Loop Industries Reports Significant Revenue Decline and Increased Net Loss for Six Months Ended August 31, 2026

Loop Industries, Inc. reported its financial results for the three and six months ended August 31, 2026, revealing a total revenue of $117,000 for the quarter and $296,000 for the half-year, a significant decrease from $252,000 in the same period last year. The company did not generate any revenue from product sales during this period, contrasting with $8,000 in product revenue recorded in the previous year. The net loss for the three months was $2.99 million, slightly down from a loss of $3.20 million in the prior year, while the six-month net loss was $6.37 million, compared to $6.65 million in the same period of 2025.

The company's total assets decreased to $6.37 million as of August 31, 2026, down from $8.56 million at the end of February 2026. This decline was primarily attributed to a reduction in cash and cash equivalents, which fell to $836,000 from $2.36 million. Current liabilities also increased significantly to $4.78 million, up from $2.76 million, largely due to an increase in accounts payable and accrued liabilities, which rose to $2.09 million from $1.92 million. The stockholders' deficit widened to $14.13 million from $9.58 million, reflecting ongoing operational challenges.

In terms of strategic developments, Loop Industries has continued its focus on joint ventures, particularly with Ester Industries Ltd. to establish a manufacturing facility in India. During the six-month period, both Loop and Ester contributed $737,000 to the joint venture, which is expected to produce lower carbon footprint materials. The company also engaged in an ATM equity offering, raising $466,000 through the issuance of 428,203 shares, which contributed to its cash flow.

Operationally, Loop Industries reported a decrease in research and development expenses, which totaled $1.50 million for the six months ended August 31, 2026, down from $2.10 million in the previous year. This reduction reflects the company's ongoing efforts to manage costs amid its pre-commercialization stage. The company’s employee headcount remained stable, with no significant changes reported. However, the company continues to face challenges in securing sufficient financing to support its operations and growth plans, raising concerns about its ability to continue as a going concern.

Looking ahead, Loop Industries has indicated that it will require additional financing to fund its ongoing operations and commitments, particularly for its joint venture in India. The company is actively pursuing various financing options, including equity and debt issuance, but acknowledges that there is no guarantee of success in securing the necessary funds. The management's outlook remains cautious, emphasizing the need for strategic financial planning to navigate the current market conditions and operational challenges.