from Loop Industries, Inc. (NASDAQ:LOOP)
Loop Industries Reports First Quarter Fiscal 2024 Results
- LOOP AND SK GEO CENTRIC ("SKGC") SIGN JOINT VENTURE AGREEMENT TO BUILD INFINITE LOOP™ MANUFACTURING FACILITIES THROUGHOUT ASIA
- LOOP AND GARNIER LAUNCH MICELLAR CLEANSING WATER BOTTLE PRODUCED UTILIZING LOOP'S TECHNOLOGY
- ON AG SIGNS LETTER OF INTENT ("LOI") TO SECURE VOLUMES FROM PLANNED ULSAN, SOUTH KOREA MANUFACTURING FACILITY
Loop Management to hold update call at 9:30 AM ET on July 13, 2023
MONTREAL, QC / ACCESSWIRE / July 12, 2023 / Loop Industries, Inc. (Nasdaq:LOOP) (the "Company" or "Loop"), a clean technology company on a mission to accelerate a circular plastics economy by manufacturing 100% recycled polyethylene terephthalate ("PET") plastic and polyester fiber, today provided an update on its activities and reported its consolidated financial results for the first quarter for fiscal year 2024.
Significant Milestones
1. Global Commercialization Update - Asia
On April 27th, 2023, Loop and its strategic partner, SKGC, signed a joint venture agreement to build Infinite Loop™ facilities in the Asian market. The two partners aim to build four commercial manufacturing facilities throughout Asia by 2030. Construction of the first planned Asian manufacturing facility, situated in Ulsan, South Korea, is expected to commence in 2023 and reach completion by the end of 2025.
2. Loop x Garnier Micellar Cleansing Water Bottle Launch
On April 19th, 2023, Loop and Garnier, a beauty brand owned by L'Oréal, announced the launch of Garnier's Micellar Cleansing Water in a 100% upcycled bottle produced with Loop™ PET resin. The product was launched and sold in the US at Ulta stores and online in April 2023.
3. Customer Letter of Intent
Loop announced on May 15th, 2023, that On AG, a sportswear brand and a subsidiary of On Holding AG, signed an LOI to secure volumes of 100% recycled virgin quality Loop™ PET resin from the planned Asian Infinite Loop™ manufacturing facility in Ulsan, South Korea.
4. Cost reductions
Following the cost reduction measures that Loop announced on December 22nd, 2022, the Company has made significant progress in streamlining operations at its Terrebonne, Quebec, production facility. Excluding a milestone stock-based compensation expense recorded in the quarter ended May 31, 2022 in the amount of $7.74 million, Loop has reduced net overall costs by approximately 30% and has enabled greater alignment of resources at the facility.
CEO Comment
Daniel Solomita, Founder and CEO of Loop Industries, commented on the recent updates, saying: "The signing of the joint venture agreement with SKGC in the first quarter marks the next phase in our strategic partnership with them, as we progress towards breaking ground later this year on our Infinite Loop manufacturing facility in Ulsan, South Korea. We are very excited to expand our technology into the Asian market to support our global brand customers by supplying them with Loop branded PET resin and polyester made from 100% recycled content. The Ulsan facility is the first of many planned Infinite Loop manufacturing facilities in partnership with SKGC. Through this partnership, Loop benefits from SKGC's vast operational, financial and construction resources. Loop is also collaborating closely with its partners, SKGC and SUEZ, on our expansion into the European market with our planned Infinite Loop France facility in Saint-Avold, France. Consumer demand for our product is very strong as we continue to supply high quality PET resin from our Terrebonne, Quebec, manufacturing facility to global brand companies from multiple sectors including consumer packaging, fashion and textiles, automotive and the toy industry."
Corporate Update Call
Senior Management of Loop, will host a corporate update call, followed by a question-and-answer session, which can be accessed via the dial-in numbers below. Slides supporting Senior Management's remarks will be available via the Investors section of Loop's website at http://loopindustries.com/en/investors/overview.
Date: Thursday, July 13, 2023
Time: 9:30 am Eastern Time
Participant joining details (by Telephone):
Joining by Telephone:
United States (Local): +1 404 975 4839
United States (Toll-Free): +1 833 470 1428
Access Code: 189676
OR
Registration Link: https://www.netroadshow.com/events/login?show=8e3c6216&confId=53264
- Avoid wait time - Bypass speaking with an operator to join the call
- Receive a Calendar Invitation with call access details including your unique PIN
Q1 2024 Financial Results
The following table summarizes our operating results for the three-month periods ended May 31, 2023 and 2022, in thousands of U.S. Dollars.
| Three months ended May 31, | ||||||||||||
| 2023 | 2022 | Change | ||||||||||
Revenue from contracts with customers | $ | 27 | $ | - | $ | 27 | ||||||
Expenses | ||||||||||||
Research and development | ||||||||||||
Machinery and equipment expenditures | 1,236 | 1,890 | (654) | |||||||||
External engineering | 1,155 | 1,596 | (441) | |||||||||
Employee compensation | 1,286 | 1,891 | (605) | |||||||||
Stock-based compensation | 160 | 396 | (236) | |||||||||
Plant and laboratory operating expenses | 469 | 866 | (397) | |||||||||
Other | 184 | 161 | 23 | |||||||||
Total research and development | 4,490 | 6,800 | (2,310) | |||||||||
General and administrative | ||||||||||||
Professional fees | 619 | 799 | (180) | |||||||||
Employee compensation | 637 | 715 | (78) | |||||||||
Stock-based compensation | 196 | 8,070 | (7,874) | |||||||||
Insurance | 703 | 1,103 | (400) | |||||||||
Other | 310 | 350 | (40) | |||||||||
Total general and administrative | 2,465 | 11,037 | (8,572) | |||||||||
Depreciation and amortization | 133 | 139 | (6) | |||||||||
Interest and other financial expenses | 54 | 41 | 13 | |||||||||
Interest income | (99) | (13) | (86) | |||||||||
Foreign exchange loss | (15) | 2 | (17) | |||||||||
Total expenses | 7,028 | 18,006 | (10,978) | |||||||||
Net loss | $ | (7,001) | $ | (18,006) | $ | 11,005 | ||||||
First Quarter Ended May 31, 2023
Revenues
Revenues for the three-month period ended May 31, 2023 were $27. For the same period in 2022, there were no revenues. The revenues resulted from the delivery of initial volumes to customers of Loop™ PET resin produced using monomers manufactured at the Terrebonne Facility.
Research and Development
Research and development expense for the three-month period ended May 31, 2023 decreased $2,310 to $4,490, as compared to $6,800 for the same period in 2022. The decrease was primarily attributable to a $654 decrease in purchases of machinery and equipment used at the Terrebonne Facility, a $605 decrease in employee compensation expenses, a $441 decrease in external engineering costs for design work for our Infinite Loop™ manufacturing process, a $397 decrease in plant and laboratory expenses to operate our Terrebonne Facility, and a $236 decrease in stock-based compensation expenses.
General and administrative expenses
General and administrative expenses for the three-month period ended May 31, 2023 decreased $8,572 to $2,465, as compared to $11,037 for the same period in 2022. The decrease was primarily attributable to a $7,874 decrease in stock-based compensation which is mainly attributable to a $7,740 expense recorded in relation to the achievement of a performance milestone for 1,000,000 RSUs in the three-month period ended May 31, 2022, and a $400 decrease in insurance costs.
Net Loss
The net loss for the three-month period ended May 31, 2023 decreased $11,005 to $7,001, as compared to $18,006 for the same period in 2022. The decrease is primarily due to the decrease in general and administrative expenses of $8,572, and the $2,310 decrease in research and development 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 Ended | |||||||
| May 31, 2023 | May 31, 2022 | |||||||
Revenue from contracts with customers | $ | 27 | $ | - | ||||
Expenses : | ||||||||
Research and development | 4,490 | 6,800 | ||||||
General and administrative | 2,465 | 11,037 | ||||||
Depreciation and amortization | 133 | 139 | ||||||
Total expenses | 7,088 | 17,976 | ||||||
Other (income) loss : | ||||||||
Interest and other financial expenses | 54 | 41 | ||||||
Interest income | (99) | (13) | ||||||
Foreign exchange (gain) loss | (15) | 2 | ||||||
Total other (income) loss | (60) | 30 | ||||||
Net loss | (7,001) | (18,006) | ||||||
Other comprehensive loss - | ||||||||
Foreign currency translation adjustment | 20 | (5) | ||||||
Comprehensive loss | $ | (6,981) | $ | (18,011) | ||||
Net loss per share | ||||||||
Basic and diluted | $ | (0.15) | $ | (0.38) | ||||
Weighted average common shares outstanding | ||||||||
Basic and diluted | 47,516,104 | 47,400,571 | ||||||
Loop Industries, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands of U.S. dollars, except per share data) | As at | |||||||
| May 31, 2023 | February 28, 2023 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 21,970 | $ | 29,591 | ||||
Restricted cash | 1,000 | 1,000 | ||||||
Sales tax, tax credits and other receivables | 1,158 | 1,075 | ||||||
Inventories | 871 | 727 | ||||||
Deposits on machinery and equipment | 5,430 | 3,395 | ||||||
Prepaid expenses and other deposits | 710 | 636 | ||||||
Total current assets | 31,139 | 36,424 | ||||||
Investment in joint venture | 381 | 381 | ||||||
Property, plant and equipment, net | 2,446 | 2,545 | ||||||
Intangible assets, net | 1,278 | 1,210 | ||||||
Total assets | $ | 35,244 | $ | 40,560 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 3,828 | $ | 2,510 | ||||
Customer deposits | 1,000 | 1,012 | ||||||
Current portion of long-term debt | 208 | 62 | ||||||
Total current liabilities | 5,036 | 3,584 | ||||||
Long-term debt | 3,098 | 3,240 | ||||||