Loop Industries Reports Decrease in Revenue and Increased Net Loss for Quarter Ended May 31, 2026

Loop Industries, Inc. reported its financial results for the three months ended May 31, 2026, revealing total revenues of $179,252, a decrease from $252,000 in the same period last year. The revenue for the current quarter primarily stemmed from engineering services provided to its joint venture in India, while product sales were negligible compared to the previous year. The company incurred a net loss of $3,385,000, slightly improved from a loss of $3,446,000 in the prior year, attributed to reduced research and development and general administrative expenses.

The company's total assets decreased to $6,703,000 as of May 31, 2026, down from $8,559,000 at the end of February 2026. This decline was primarily due to a reduction in cash and cash equivalents, which fell to $1,063,000 from $2,356,000. Current liabilities also increased to $3,168,000, compared to $2,755,000 in the previous quarter, driven by higher accounts payable and accrued liabilities. The stockholders' deficit widened to $12,018,000 from $9,580,000, reflecting ongoing operational challenges and the need for additional financing.

Strategically, Loop Industries is advancing its commercialization efforts through key partnerships and joint ventures. The company is working on constructing an Infinite Loop™ manufacturing facility in India in collaboration with Ester Industries, with a planned production capacity of 70,000 tons per year. Additionally, Loop has entered into a licensing agreement with Reed Societe Generale Group for a facility in Europe, which includes an initial payment of $10.4 million. These initiatives are part of Loop's broader strategy to deploy its proprietary depolymerization technology globally.

Operationally, Loop Industries reported a headcount of 38 employees, with a focus on research and development, engineering, and administrative functions. The company is actively engaged in discussions to secure additional financing to support its ongoing operations and the construction of its facilities. As of May 31, 2026, Loop's cash resources, including an undrawn credit facility of $2,537,000, are deemed insufficient to meet its obligations for the next twelve months, raising substantial doubt about its ability to continue as a going concern.

Looking ahead, Loop Industries aims to enhance its market position by expanding its technology licensing and engineering services. The company is also exploring opportunities to secure government incentives and additional funding to support its growth initiatives. However, the success of these plans is contingent upon Loop's ability to attract necessary financing and effectively execute its commercialization strategy in a competitive market environment.