Earnings release
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Loop Industries Reports Second Quarter Fiscal 2027 Results and Announces Plan to Expedite Development of India Facility INFINITE LOOP INDIA FACILITY RESCALED TO 45 KTA TO REDUCE CAPITAL REQUIREMENTS ANDSUPPORT FASTER DEVELOPMENTSPECIAL COMMITTEE, FORMED IN SEPTEMBER 2026, CONTINUES TO EVALUATE FINANCINGALTERNATIVES TO SUPPORT THE INDIA JV LOOP MANAGEMENT TO HOLD UPDATE CALL AT 8:45 AM ET ON FRIDAY, OCTOBER 16, 2026 MONTRÉAL, QC / ACCESS Newswire / October 15, 2026 / Loop Industries, Inc. (Nasdaq:LOOP) (the "Company," "Loop," "we," "us," or "our") aclean technology company that has developed patented and proprietary processes to recycle low-value waste polyethylene terephthalate (PET) plasticand polyester fiber into virgin-quality PET resin, today reported its consolidated financial results for the second quarter of fiscal year 2027 andprovided a status update on its commercial development project in India. Infinite Loop™ India: Optimizing scale to Support Faster Execution Loop's planned first commercial facility in India has been rescaled to a capacity of 45 kilotonnes per annum (KTA), following an engineering reviewintended to reduce the project's estimated capital requirement and support a more focused development plan: ● Lower Capital Requirement: Reducing the scale of the facility will directly lower the overall facility cost, decreasingboth our debt and equity financing needs. Toyo Engineering India Private Limited is completing a comprehensive analysisto finalize the updated cost estimate.● Shorter Timeline: The streamlined capacity allows for a more efficient capital-raising process and faster construction.The project target timeline is for construction completion by the end of 2028, with startup and commissioning scheduledfor 2029.● Attractive Return on Investment: The facility is positioned to deliver high returns due to the advantages of Loop'sunique technology, which combines virgin quality product with low operating costs, together with being located in a low-cost environment in India that offers access to plentiful textile waste.● Multi-Facility Plan: This is the first of two facilities planned for the India site. The second facility is expected to belarger than the first and is planned to be developed following the successful start-up of the initial facility.Special Committee Update ● Comprehensive Financing Strategy: The Special Committee, formed by the Board of Directors in September 2026, isactively engaged in working with advisors dedicated to securing capital to fund Loop's portion of the equity needed tofinance the India JV.● Exploring All Options: The committee is evaluating a full spectrum of financing alternatives, including equity, debt, andnon-dilutive options to optimize capital structure and support long-term growth.Financial highlights Cash operating expenses* for the second quarter were $1.6 million, a decrease of $0.8 million year-over-year. At August 31, 2026 the Companyreported total available liquidity of $1.9 million. Loop continues to seek capital to fund its expected equity contribution to the India joint venture (JV)and its ongoing pre-commercial operating expenses. The timing and amount of any financing, engineering-services revenue, or licensing revenueremain subject to execution, financing availability, and the progress of the Company's projects; there can be no assurance that these sources will besufficient to fund operations through commercial start-up. *Cash operating expenses are defined as research & development and general & administrative expenses, less stock-based compensation expenses. CEO Comment "We continue to refine our commercial roadmap with a focus on disciplined capital allocation and project execution," said Daniel Solomita, Founderand CEO of Loop Industries. "Rescaling the planned India facility to 45 KTA is intended to lower the project's capital requirement while retaining thebenefits of regional feedstock availability and a lower-cost operating environment. Alongside our advancing partnership in Europe, Loop is building ahighly scalable, economically attractive foundation for global growth." About Loop Industries Loop Industries is a clean technology company whose mission is to accelerate the shift from fossil fuels to sustainable PET plastic and polyester fiber.Loop owns patented and proprietary technology that depolymerizes waste PET plastic and polyester fiber - including bottles, packaging, carpets andtextiles - into their base building blocks. Those monomers are filtered, purified and polymerized into virgin-quality Loop™ branded PET resin for food-grade packaging and polyester fiber. Loop's technology is designed to recycle PET plastic and polyester fiber repeatedly without quality degradation,helping brands meet sustainability goals and reduce reliance on virgin fossil-based materials. Corporate Update Call Loop's senior management will host a corporate update call and question-and-answer session to discuss the Company's second quarter fiscal 2027results and provide an update on its commercial strategy and project development activities. Date: Friday, October 16, 2026 Time: 8:45 am Eastern Time Participant Dial-In Numbers: International: +1 585 542-9983
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United States & Canada (Toll-Free): +1 833 461-5787 Conference ID: 859 424 795 Participants are encouraged to pre-register using the link below to avoid wait time and receive a unique PIN for expedited access to the call: Registration Link: https://registrations.events/direct/Q4I3922772 Additional international dial-in numbers are available through the registration portal using Conference ID 859 424 795 Results of Operations All monetary amounts are in thousands of U.S. dollars unless otherwise specified. The following table summarizes our operating results for the three-month periods ended August 31, 2026 and 2025, in thousands of U.S. Dollars. Three months ended August 31,Change 2026 2025 favorable /(unfavorable)RevenuesServices 117 - 117 Total revenues 117 - 117 Cost of servicesCost of services 113 - (113)Total cost of services 113 - (113) ExpensesResearch and developmentEmployee compensation 247 597 350Stock-based compensation 98 32 (66)Plant and laboratory operating expenses 117 149 32External engineering 4 6 2Other 74 59 (15)Total research and development 540 843 303 General and administrativeEmployee compensation 342 423 81Stock-based compensation 331 248 (83)Professional fees 416 612 196Insurance 111 423 312Other 278 165 (113)Total general and administrative 1,478 1,871 393 Loss on equity accounted investment 431 43 (388)Depreciation and amortization 83 96 13Interest and other financial expenses 460 419 (41)Interest income (6) (70) (64)Foreign exchange loss (gain) 6 2 (4) Total expenses 3,105 3,204 99 Net loss $ (2,988) $ (3,204) $ 216 Second Quarter Ended August 31, 2026 Revenues Revenues for the three-month period ended August 31, 2026, increased $117 to $117, as compared to $0 for the same period in 2025. The revenuesof $117 for the three month period ended August 31, 2026 resulted from engineering services provided to the India JV. Cost of Services Cost of Services for the three-month period ended August 31, 2026 increased $113 to $113 compared to $0 for the same period in 2025. Research and Development Research and development expense for the three-month period ended August 31, 2026, decreased $303 to $540, as compared to $843 for the sameperiod in 2025. The decrease was primarily attributable to a $350 decrease in employee compensation expenses, a $32 decrease in plant andlaboratory expenses, partially offset by a $66 increase in stock compensation. General and administrative expenses General and administrative expenses for the three-month period ended August 31, 2026, decreased $393 to $1,478, as compared to $1,871 for thesame period in 2025. The decrease was primarily attributable to a $312 decrease in insurance expenses, a $196 decrease in professional fees, partiallyoffset by a $113 increase in other miscellaneous expenses and $83 increase in stock compensation.
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Interest and other financial expenses Interest and other financial expenses increased by $41 for the three-month period ended August 31, 2026. Net Loss The net loss for the three-month period ended August 31, 2026, decreased $216 to $2,988, as compared to $3,204 for the same period in 2025. Thisdecrease was primarily due to the decrease of $303 in research and development expenses, a decrease of $393 in general and administrativeexpenses. These decreases were partially offset by the increase of $388 in equity investment, decrease of $64 in interest income and increase of $41in interest and other financial expenses. Six Months Ended August 31, 2026 The following table summarizes our operating results for the six-month periods ended August 31, 2026 and 2025, in thousands of U.S. Dollars. Six months ended August 31,2026 2025 ChangeRevenuesProducts $ - $ 8 $ (8)Services 296 244 52 Total revenues 296 252 44 Cost of servicesCost of services 292 114 (178)Total cost of services 292 114 (178) ExpensesResearch and developmentEmployee compensation 496 1,187 691Stock-based compensation 556 344 (212)Plant and laboratory operating expenses 298 383 85External engineering 13 61 48Other 138 127 (11)Total research and development 1,501 2,102 601 General and administrativeEmployee compensation 730 992 262Stock-based compensation 852 311 (541)Professional fees 659 974 315Insurance 266 876 610Other 545 366 (179)Total general and administrative 3,052 3,519 467 Loss on equity accounted investment 750 345 (405)Depreciation and amortization 167 197 30Interest and other financial expenses 897 837 (60)Interest income (12) (170) (158)Foreign exchange loss (gain) 21 (41) (62)Total expenses 6,668 6,903 235Net loss $ (6,372) $ (6,651) $ 279Six Months Ended August 31, 2026 Revenues Revenues for the six-month period ended August 31, 2026, increased $44 to $296, as compared to $252 for the same period in 2025. The revenues of$296 for the six-month period ended August 31, 2026 resulted from engineering services provided to the India JV. The revenues of $252 for the six-month period ended August 31, 2025 resulted from engineering services provided to the India JV for $244 and sales of Loop™ PET resin for $8. Cost of Services Cost of Services for the six-month period ended August 31, 2026 increased $178 to $292 compared to $114 for the same period in 2025. Research and Development Research and development expense for the six-month period ended August 31, 2026, decreased $601 to $1,501, as compared to $2,102 for the sameperiod in 2025. The decrease was primarily attributable to a $691 decrease in employee compensation expenses, a $48 decrease in externalengineering expenses, a $85 decrease in plant and laboratory expenses, partially offset by a $212 increase in stock compensation. General and administrative expenses General and administrative expenses for the six-month period ended August 31, 2026, decreased $467 to $3,052, as compared to $3,519 for thesame period in 2025. The decrease was primarily attributable to a $610 decrease in insurance expenses, a $315 decrease in professional fees, a $262decrease in employee compensation, partially offset by a $541 increase in stock compensation and a $179 increase in other miscellaneous expenses. Interest and other financial expenses
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Interest and other financial expenses increased by $60 for the six-month period ended August 31, 2026. Net Loss The net loss for the six-month period ended August 31, 2026, decreased $279 to $6,372, as compared to $6,651 for the same period in 2025. Thisdecrease was primarily due to the decrease of $601 in research and development expenses, a decrease of $467 in general and administrativeexpenses. These decreases were partially offset by the decrease of $158 in interest income, increase of $405 in equity investment, increase of $178 incost of services and increase of $60 in interest and other financial expenses. Loop Industries, Inc. Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (in thousands of U.S. dollars, except per share data) Three Months EndedSix Months EndedAugust 31,2026 August 31,2025 August 31,2026 August 31,2025Revenues:Products $ - $ - $ - $ 8Services 117 - 296 244 Total revenues 117 - 296 252 Cost of servicesCost of services 113 - 292 114Total cost of services 113 - 292 114 Expenses:Research and development 540 843 1,501 2,102General and administrative 1,478 1,871 3,052 3,519 Depreciation and amortization 83 96 167 197 Total expenses 2,101 2,810 4,720 5,818 Other lossLoss on equity accounted investments 431 43 750 345Interest and other financial expenses 460 419 897 837Interest income (6) (70) (12) (170)Foreign exchange loss (gain) 6 2 21 (41)Total other loss 891 394 1,656 971 Net loss (2,988) (3,204) (6,372) (6,651) Other comprehensive lossForeign currency translation adjustment (47) (6) (41) (25) Comprehensive loss $ (3,035) $ (3,210) $ (6,413) $ (6,676)Net loss per shareBasic and diluted $ (0.06) $ (0.07) $ (0.13) $ (0.14)Weighted average common shares outstandingBasic and diluted 48,433,26547,769,80048,398,36347,716,964Loop Industries, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands of U.S. dollars, except per share data) As at August 31,February28,2026 2026 AssetsCurrent assetsCash and cash equivalents $ 836$ 2,356Accounts receivable and other 422 755 Prepaid expenses 313 495 Total current assets 1,571 3,606Equity method investments 1,465 1,478Property, plant and equipment, net 1,627 1,699 Intangible assets, net 1,710 1,776 Total assets $ 6,373$ 8,559 Liabilities and Stockholders' Deficit
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Current liabilitiesAccounts payable and accrued liabilities $ 2,094$ 1,916Unearned revenue 386 234Current portion of long-term debt 890 605Total current liabilities 4,781 2,755Due to customer 936 900Series B Convertible Preferred stock 12,804 12,054Long-term debt 1,986 2,430Total liabilities 20,507 18,139 Stockholders' DeficitCommon stock par value $0.0001; 250,000,000 shares authorized; 48,812,574 shares issued andoutstanding (February 28, 2026 - 48,337,555) 5 5Additional paid-in capital 197,794 195,934Accumulated deficit (210,698) (204,326)Accumulated other comprehensive loss (1,235) (1,193) Total stockholders' deficit (14,134) (9,580) Total liabilities and stockholders' deficit $ 6,373$ 8,559 Loop Industries, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands of U.S. dollars) Six Months Ended August31,2026 2025Cash Flows from Operating ActivitiesNet loss $ (6,372) $ (6,651)Adjustments to reconcile net loss to net cash used in operating activities:Depreciation and amortization 167 197Stock-based compensation expense 1,408 655Accrued interest and other financing costs 808 737Loss on Equity method investments 750 345Changes in operating assets and liabilities:Accounts receivable and other 333 (228)Prepaid expenses 182 (338)Accounts payable and accrued liabilities 177 (321) Unearned revenue 153 - Net cash used in operating activities (2,394) (5,604) Cash Flows from Investing ActivitiesInvestment in joint venture (737) -Additions to intangible assets (82) (133)Net cash used in investing activities (819) (133) Cash Flows from Financing ActivitiesProceeds from ATM equity offering, net of issuance costs 452 187Borrowings under credit facility 1,411 -Repayment of long-term debt (132) (136)Net cash provided by financing activities 1,731 51 Effect of exchange rate changes (38) 23Net decrease in cash and cash equivalents (1,520) (5,663)Cash and cash equivalents, beginning of period 2,356 12,973 Cash and cash equivalents, end of period $ 836$ 7,310 About Loop Industries Loop Industries is a technology company whose mission is to accelerate the world's shift toward sustainable PET plastic and polyester fiber and awayfrom its dependence on fossil fuels. Loop Industries owns patented and proprietary technology that depolymerizes no and low-value waste PET plasticand polyester fiber, including plastic bottles packaging and textiles such as carpets and clothing, into their base building block monomers DMT andMEG. The monomers are separated, purified and polymerized to create virgin-quality Loop™ & Twist™ branded PET resin suitable for use in food-grade packaging and polyester fiber, thus enabling our customers to meet their sustainability objectives. Loop™ & Twist™ PET can be recycledinfinitely without degradation of quality, helping to close the plastic loop. Loop Industries is committed to contributing to the global movement towardsa circular economy by reducing plastic waste and recovering waste plastic for a sustainable future. Common shares of the Company are listed on the NASDAQ Global Market under the symbol "LOOP." For more information: Please visit www.loopindustries.com
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Follow Loop on X: @loopindustries, Instagram: loopindustries, Facebook: Loop Industries and LinkedIn: Loop Industries Follow Twist™ on Instagram: twistbyloop Forward-Looking Statements This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "SecuritiesAct"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and as defined in the United States Private SecuritiesLitigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could,""expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms and othercomparable terminology. These forward-looking statements include, without limitation, statements about the anticipated timing and development ofLoop's projects in India and Europe; expected progress and outcomes related to project debt and equity financing efforts; potential engineeringservices revenues and milestone payments; and the expected benefits of Loop's offtake agreement with Nike, strategic alliance with Reed SocieteGenerale Group, and other current or prospective partnerships. Although we believe that the expectations reflected in the forward-looking statementsare reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Actual results may differ materially from theprojections discussed in these forward-looking statements. The economic environment within which we operate could materially affect our actualresults. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. These risks andother factors include, but are not limited to, those listed under "Risk Factors." Additional factors that could materially affect these forward-lookingstatements and/or projections include, among other things: (i) our ability to commercialize our technology and products, (ii) the status of ourrelationships with our partners, (iii) development and protection of our intellectual property and products, (iv) industry competition, (v) our need forand ability to obtain additional funding relative to our current and future financial commitments, (vi) our ability to continue as a going concern, (vii)engineering, contracting, and building our manufacturing facilities, (viii) our ability to scale, manufacture, and sell our products and to license ourtechnology in order to generate revenues, (ix) our proposed business model and our ability to execute it, (x) our ability to obtain the necessaryapprovals or satisfy any closing conditions in respect of any of our proposed partnerships, (xi) our joint venture projects and our ability to recovercertain expenditures in connection to them, (xii) adverse effects on the Company's business and operations as a result of increased regulatory, media,or financial reporting scrutiny, practices, rumors, or otherwise, (xiii) public health issues, such as disease epidemics, which may lead to reduced accessto capital markets, supply chain disruptions, and government-imposed business closures, (xiv) war, regional tensions, and economic or other conflictsincluding trade disputes and increasing protectionist measures that could impact market stability and our business; (xv) the effect of the continuingworldwide macroeconomic uncertainty and its impacts, including inflation, market volatility and fluctuations in foreign currency exchange and interestrates, (xvi) the outcome of any SEC investigations or class action litigation filed against us, (xvii) our ability to hire and/or retain qualified employeesand consultants, (xviii) other events or circumstances over which we have little or no control, and (xix) other factors discussed in Loop's Annual Reporton Form 10-K for the fiscal year ended February 28, 2025 filed with the SEC and in Loop's subsequent filings with the SEC. More detailed informationabout Loop and the risk factors that may affect the realization of forward-looking statements is set forth in Loop's filings with the SEC. Investors andsecurity holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov. Loop assumes no obligation topublicly update or revise its forward-looking statements as a result of new information, future events or otherwise, unless otherwise required by law.