Loop Industries, Inc. Q4 FY2025 earnings call

• Q4 was a milestone with first material revenues from a $10.4M license sale to Reed Societe Generale Group. - Executed a $600k engineering services agreement with India joint venture ELITe for FEED engineering study, expecting $750k more in engineering revenue by year-end. - Closed $10.4M convertible debt from Reed. - India JV: TATA completed FEED study with CapEx slightly below original estimate, added continuous polymerization line. In advanced discussions with brands for offtake agreements. - Europe partnership with Reed: Timeline advanced, site selection ongoing, Loop to handle engineering for modular construction of European facility, leveraging low-cost manufacturing and modularization to reduce CapEx and time to market.

In Q4, Loop reported $10.8 million in revenue. The major component was a $10.4 million upfront royalty payment from Reed Societe Generale Group for the first technology license, contributing 96.3% of the revenue. Additionally, $0.4 million was from engineering revenue related to the India joint venture, making up 3.7% of the total revenue. Cash operating expenses were $2.6 million, a 44% year-over-year decrease, and cash balance at quarter-end was approximately $13 million with $2.4 million line of credit undrawn.

• India JV expected to break ground in H2 2025, with groundbreaking dependent on securing offtake agreements. Target commercial operations in 2027. - Europe project: Site selection expected in late Q3/early Q4 2025, Loop to execute engineering studies for modular construction. - Anticipate $5M to $10M in additional licensing revenue next year from engineering work related to European and India projects.

• Delay in securing offtake agreements for India JV could push back groundbreaking. - Uncertainties in European site selection and government incentives may affect project timeline and costs.

Q: Can you walk us through the latest time line for the India JV and any binding offtake agreements?

A: Groundbreaking in H2 2025, gating item is securing offtake agreements. No binding agreements yet, but working on LOIs converting to binding ones.

Q: How many quarters of runway do you currently have and about Quebec government financing?

A: Have 5-6 quarters of liquidity, Quebec financing available at time of equity commitment check, discussing financing gap with strategic partners.

Q: What's the CapEx for the India plant and output?

A: CapEx for India plant is $176 million, output is 70,000 tonnes per year, full ramp-up expected early 2028.

Q: Describe offtake agreements structure?

A: Guaranteed volume, set price, most have take-or-pay feature to make contracts bankable for debt financing.

Q: Margins and payback on India equity?

A: Loop gets 5% licensing fee, joint venture profitable, payback on India equity ~1.5-2.5 years based on 50-50 split.