Loop Industries, Inc. (LOOP) Earnings

Management highlights

### Infinite Loop India Joint Venture Project - Debt financing for the project is progressing well: additional term sheets have been received from new lenders, and the lending consortium has entered the technical due diligence phase. Management expects to conclude debt financing on schedule, with a planned 70-30 debt-to-equity split for the overall project. - A 15,000 ton fixed-price letter of intent (LOI) has been signed with a leading global textile apparel brand, which has a total long-term appetite of 90,000 tons per year of output. The customer, a typical spot/short-term buyer that does not sign long-term forward contracts, has offered to speak with lenders to confirm their purchase intent. - The joint venture has applied for clean technology subsidies from the state of Gujarat, and is eligible to receive approximately $28 million over 8 years, which improves the project's financial viability and returns. - Management is actively evaluating non-dilutive financing options for Loop's 15% equity share of the joint venture, targeting completion within the next few months aligned with debt financing closing. - Groundbreaking is planned for fall 2026, with an 18-month construction period followed by commissioning, and full commercial operation targeted for 2028. A second 100,000+ ton facility is planned for the same site to support large customer demand. ### Infinite Loop Europe Licensing Project (with Reed Societe Generale Group) - The project will be sited at a BASF-owned location in Schweitzer, Germany. Final negotiations are underway for the first-phase engineering contract, scheduled to launch in September 2026. - This will be the company's first modular construction project: plant modules will be built in India and shipped to the site to minimize high local labor costs, establishing this low-cost approach as the future global roadmap for new projects. - The first-phase pre-feed engineering package for the 70,000 ton plant will be delivered by Loop's engineering team, followed by a second engineering phase in mid-2027. Revenue from these engineering contracts is expected to fully cover corporate back-office operating expenses for the foreseeable future. - Loop will not contribute equity capital to this project. Milestone-based revenue includes an initial 10 million euro down payment for the license, 10 million euro structured debt investment from Societe Generale, a 10 million euro additional license payment due at final investment decision (FID) expected in late 2027/early 2028, and future revenue from the sale of pre-built plant modules. Full commercial operation is targeted for 2030. Corporate Operational Highlights - Overhead costs have been successfully reduced to a run rate of $500,000 per month.

Guidance

- Management maintains the original timeline for Infinite Loop India project: debt financing closing and groundbreaking are still on track for fall 2026, with commercial operation in 2028, no revisions to this schedule. - For the Infinite Loop Europe project, the first engineering phase remains scheduled to start in September 2026, with FID targeted for late 2027/early 2028 and commercial operation in 2030, with no changes to prior guidance. - Management confirms that existing liquidity plus milestone revenue from European engineering contracts is sufficient to fund ongoing corporate operating expenses for the foreseeable future, with an additional 10 million euro licensing milestone payment expected in late 2027. - Management reaffirms the target to secure enough customer commitments (either binding contracts or LOIs) to satisfy lending requirements in time for fall 2026 financing closing.

Segment performance

Loop Industry did not report separate financial performance for multiple product segments in this call. Only overall corporate operating metrics were shared: monthly cash overhead was reduced to $500,000, driven by lower employee compensation and reduced insurance costs. As of Q1 end (May 31, 2026), total liquidity including the credit facility was approximately $3.6 million. The company has received $2.9 million Canadian in aggregate funding from the National Research Council of Canada, which began monthly disbursements earlier in 2026. No segment-level revenue or contribution percentage data was provided.

Risks & headwinds

- Finalizing customer offtake commitments is delayed by supply chain complexity for textile customers, who are unfamiliar with purchasing raw polyester chips and require time to structure their downstream supply chain arrangements before signing binding agreements. - Achieving financing closure for the Indian joint venture is dependent on lenders gaining sufficient comfort from existing customer LOIs and customer willingness to confirm purchase intent, since not all customers will sign binding long-term forward contracts before plant completion. - The company still needs to secure external financing for its 15% equity share of the Indian project, and there is no guarantee that planned non-dilutive financing will be completed on acceptable terms. - The length of the plant startup and commissioning phase after construction is uncertain, with no fixed timeline for completion.

Analyst Q&A

• Q: What key steps remain for Infinite Loop India debt financing, what is the closing timeline, and what is the final debt-to-equity structure? /

  A: After term sheet harmonization, the next main step is technical due diligence by the lending consortium. Management has no concerns about technical viability, as multiple third parties including Societe Generale and SK Global Chemical have already completed full technical due diligence on the company's technology. The agreed structure is a 70-30 debt-to-equity split, with both Loop and its JV partner each covering 15% of the total equity. Closing is still targeted for fall 2026, aligned with groundbreaking.

• Q: What percentage of the 70,000 ton India plant capacity is already covered by signed contracts and LOIs, and how does the LOI structure work for the new textile customer? /

  A: Once current advanced negotiations conclude, most of the plant capacity will be locked in via binding contracts or LOIs. The new textile customer will not convert the LOI to a long-term binding contract, as these buyers typically only engage in spot or 6-month purchases. The customer has already qualified and tested Loop's product, and will start spot purchases once the plant is operational, with a total long-term appetite of 90,000 tons per year.

• Q: How will Loop fund operating expenses and remaining capex over the next 12 months, and does it need to issue new dilutive equity? /

  A: Existing liquidity plus revenue from the upcoming European engineering contracts will fully fund ongoing corporate operating expenses for the foreseeable future. A 10 million euro milestone licensing payment from Societe Generale is also expected at the end of 2027. For Loop's Indian JV equity requirement, management's top priority is securing non-dilutive structured debt rather than issuing new dilutive equity, and is currently evaluating these options.

• Q: What is the expected timeline and revenue model for the European Infinite Loop project? /

  A: The first pre-feed engineering contract will launch in September 2026, finishing in Q1 2027, followed by a second engineering phase through the end of 2027. FID is expected in late 2027/early 2028, with commercial operation targeted for 2030. Loop has three separate revenue streams: milestone-based license payments, engineering contract revenue, and future revenue from the sale of pre-built modular plant components, all received in advance of project completion.