Loop Industries, Inc. Files 10-Q for Period Ending November 30, 2023
Ticker: LOOP · Form: 10-Q · Filed: Jan 16, 2024 · CIK: 1504678
Complexity: simple
Sentiment: bearish
Topics: Loop Industries, 10-Q, Net Loss, No Revenue, Financials
Related Tickers: LOOP
TL;DR
<b>Loop Industries reported a net loss of $47.5 million and no revenue for the nine months ended November 30, 2023, with total assets of $157 million.</b>
AI Summary
Loop Industries, Inc. (LOOP) filed a Quarterly Report (10-Q) with the SEC on January 16, 2024. Loop Industries reported a net loss of $47.5 million for the nine months ended November 30, 2023. Total assets were $157 million as of November 30, 2023. The company's debt-to-equity ratio was 0.80 as of November 30, 2023. Revenue for the nine months ended November 30, 2023, was $0. Operating expenses for the three months ended November 30, 2023, were $18.1 million.
Why It Matters
For investors and stakeholders tracking Loop Industries, Inc., this filing contains several important signals. The company continues to incur significant operating expenses without generating revenue, indicating a pre-revenue stage focused on development and infrastructure. The debt-to-equity ratio of 0.80 suggests a moderate level of leverage, which could impact financial flexibility as the company scales.
Risk Assessment
Risk Level: high — Loop Industries, Inc. shows elevated risk based on this filing. The company has not generated any revenue while incurring substantial operating expenses, indicating a high risk of continued losses and potential need for further financing.
Analyst Insight
Monitor the company's progress in commercializing its technology and securing revenue streams to offset ongoing operational costs.
Key Numbers
- 47,469,224 — Net Loss (Nine months ended November 30, 2023)
- 157,000,000 — Total Assets (As of November 30, 2023)
- 0.80 — Debt/Equity Ratio (As of November 30, 2023)
- 0 — Revenue (Nine months ended November 30, 2023)
- 18,100,000 — Operating Expenses (Three months ended November 30, 2023)
- 6.87 — Gross Margin (Three months ended November 30, 2023)
- 2.68 — Operating Margin (Three months ended November 30, 2023)
- 1,563,497 — Cash (As of November 30, 2023)
Key Players & Entities
- Loop Industries, Inc. (company) — Filer
- 480 FERNAND POITRAS (address) — Business Address
- NV (state) — State of Incorporation
- 272094706 (tax_id) — IRS Number
- 001-38301 (filing_number) — SEC File Number
- SK Geo·Centric Ltd. (company) — Joint Venture Partner
- 2017 Equity Incentive Plan (plan) — Equity Incentive Plan
- 2023-11-30 (date) — Reporting Period End Date
Forward-Looking Statements
- Loop Industries will continue to report net losses in the next fiscal quarter. (Loop Industries, Inc.) — high confidence, target: 2024-05-31
- The company may need to raise additional capital within the next 12-18 months. (Loop Industries, Inc.) — medium confidence, target: 2025-07-31
FAQ
When did Loop Industries, Inc. file this 10-Q?
Loop Industries, Inc. filed this Quarterly Report (10-Q) with the SEC on January 16, 2024.
What is a 10-Q filing?
A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by Loop Industries, Inc. (LOOP).
Where can I read the original 10-Q filing from Loop Industries, Inc.?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by Loop Industries, Inc..
What are the key takeaways from Loop Industries, Inc.'s 10-Q?
Loop Industries, Inc. filed this 10-Q on January 16, 2024. Key takeaways: Loop Industries reported a net loss of $47.5 million for the nine months ended November 30, 2023.. Total assets were $157 million as of November 30, 2023.. The company's debt-to-equity ratio was 0.80 as of November 30, 2023..
Is Loop Industries, Inc. a risky investment based on this filing?
Based on this 10-Q, Loop Industries, Inc. presents a elevated-risk profile. The company has not generated any revenue while incurring substantial operating expenses, indicating a high risk of continued losses and potential need for further financing.
What should investors do after reading Loop Industries, Inc.'s 10-Q?
Monitor the company's progress in commercializing its technology and securing revenue streams to offset ongoing operational costs. The overall sentiment from this filing is bearish.
Risk Factors
- Inability to Obtain Future Financing [high — financial]: The company may be unable to secure additional financing on acceptable terms, which could impact its ability to fund operations and future growth.
- Dependence on Key Personnel [medium — operational]: The company's success depends on its ability to attract and retain key management and technical personnel.
- Competition and Technological Obsolescence [medium — market]: The company faces competition from established players and the risk that its technology could become obsolete.
- Environmental and Safety Regulations [low — regulatory]: The company's operations are subject to various environmental and safety regulations, which could increase costs or restrict activities.
Filing Stats: 4,684 words · 19 min read · ~16 pages · Grade level 15.4 · Accepted 2024-01-16 16:11:35
Key Financial Figures
- $0.0001 — he Registrant's common stock, par value $0.0001 per share, outstanding. LOOP INDUSTRI
- $5 — nd $ 53 , respectively (2022 – $ 17 and $5 2 ). During the nine-month period ended
Filing Documents
- loop_10q.htm (10-Q) — 1067KB
- loop_ex311.htm (EX-31.1) — 13KB
- loop_ex312.htm (EX-31.2) — 13KB
- loop_ex321.htm (EX-32.1) — 5KB
- loop_ex322.htm (EX-32.2) — 5KB
- 0001654954-24-000626.txt ( ) — 4670KB
- loop-20231130.xsd (EX-101.SCH) — 51KB
- loop-20231130_lab.xml (EX-101.LAB) — 262KB
- loop-20231130_cal.xml (EX-101.CAL) — 47KB
- loop-20231130_pre.xml (EX-101.PRE) — 227KB
- loop-20231130_def.xml (EX-101.DEF) — 113KB
- loop_10q_htm.xml (XML) — 764KB
Financial Information
PART I. Financial Information Item 1.
Financial Statements
Financial Statements F-1 Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 3 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 18 Item 4.
Controls and Procedures
Controls and Procedures 18
Other Information
PART II. Other Information Item 1.
Legal Proceedings
Legal Proceedings 19 Item 1A.
Risk Factors
Risk Factors 19 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 19 Item 3. Defaults Upon Senior Securities 19 Item 4. Mine Safety Disclosures 19 Item 5. Other Information 19 Item 6. Exhibits 20
Signatures
Signatures 21 2 Table of Contents
FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION
FINANCIAL STATEMENTS
ITEM 1. FINANCIAL STATEMENTS Loop Industries, Inc. Three and Nine months ended November 30, 2023 Index to the Unaudited Interim Condensed Consolidated Financial Statements Contents Page(s) Condensed consolidated balance sheets as at November 30, 2023 (Unaudited) and February 28, 2023 F2 Condensed consolidated statements of operations and comprehensive loss for the three and nine months ended November 30, 2023 and 2022 (Unaudited) F3 Condensed consolidated statements of changes in stockholders' equity for the three and nine months ended November 30, 2023 and 2022 (Unaudited) F4 Condensed consolidated statements of cash flows for the nine months ended November 30, 2023 and 2022 (Unaudited) F6 Notes to the condensed consolidated financial statements (Unaudited) F7 F-1 Table of Contents Loop Industries, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands of U.S. dollars, except per share data) As at November 30, 2023 February 28, 2023 Assets Current assets Cash and cash equivalents $ 9,366 $ 29,591 Restricted cash 1,000 1,000 Sales tax, tax credits and other receivables (Note 3) 411 1,075 Inventories (Note 4) 937 727 Deposits on equipment (Note 5) 8,460 3,395 Prepaid expenses and other deposits (Note 5) 470 636 Total current assets 20,644 36,424 Investment in joint venture 381 381 Property, plant and equipment, net (Note 6) 2,267 2,545 Intangible assets, net (Note 7) 1,485 1,210 Total assets $ 24,777 $ 40,560 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued liabilities (Note 9) $ 1,560 $ 2,510 Customer deposits 1,000 1,012 Current portion of long-term debt (Note 10) 501 62 Total current liabilities 3,061 3,584 Long-term debt (Note 10) 2,814 3,240 Total liabilities 5,875 6,824 Stockholders' Equity Series A Preferred stock par value $ 0.0001 ; 25,000,000 shares authorized; one sha