Loop Industries Inc (LOOP) Reports Q2 Fiscal 2024 Results: Significant Reduction in Operating ...
Loop Industries Inc (NASDAQ:LOOP) reports a decrease in net loss for Q2 2024, down to $4,750 from $7,705 in the same period in 2022.
LOOP's operating expenses have significantly reduced, with the company expecting to spend $1.0-1.2 million per month for the balance of the current fiscal year.
LOOP's cash on hand at August 31, 2023, was $13.4 million, and the company expects to recover approximately $16 million from the joint venture with SK Geo Centric.
LOOP announces plans to build four Infinite Loop manufacturing facilities throughout Asia by 2030, in partnership with SK Geo Centric.
Loop Industries Inc (NASDAQ:LOOP), a clean technology company focused on manufacturing 100% recycled polyethylene terephthalate (PET) plastic and polyester fiber, released its consolidated financial results for the second quarter of fiscal year 2024 on October 16, 2023. The report highlighted a decrease in net loss, a strong liquidity position, and promising business developments.
Financial Highlights
LOOP reported a decrease in net loss for the three-month period ended August 31, 2023, down to $4,750 from $7,705 in the same period in 2022. The decrease is primarily due to a $1,713 decrease in research and development expenses, and a decrease in general and administrative expenses of $1,168. The company's revenues for the three-month period ended August 31, 2023, decreased to $54 from $135 for the same period in 2022.
For the six-month period ended August 31, 2023, LOOP reported a decrease in net loss to $11,751 from $25,711 for the same period in 2022. The decrease is primarily due to the decrease in general and administrative expenses of $9,739, and the $4,024 decrease in research and development expenses.
Business Developments
LOOP and its strategic partner, SK Geo Centric (SKGC), announced plans to build four Infinite Loop manufacturing facilities throughout Asia by 2030. The first planned facility in Asia will be part of SKGCs Ulsan Advanced Recycling Cluster (ARC) in South Korea. Construction of the Infinite Loop Ulsan facility is anticipated to commence by the end of 2023 and reach completion by the end of 2025.
LOOP's CEO, Daniel Solomita, commented on the recent updates, saying:
The groundbreaking ceremony of the Ulsan ARC paves the way for the planned construction of the Infinite Loop Ulsan facility and the commercialization of Loops technology. We are currently engaged in advanced discussions to secure the required funding for the Infinite Loop Ulsan facility and we are excited to continue to collaborate with our valued strategic partners as we now transition to the next stage of Loops strategic development.
Liquidity and Future Prospects
LOOP reported $13.4 million of cash on hand at August 31, 2023. The company expects to recover approximately $16 million from the joint venture with SKGC as reimbursement for expenditures when construction begins on the Ulsan project. Based on the amount of cash on hand and the expected recovery, LOOP believes that it is in a favorable liquidity position to fund its ongoing operations for approximately three years, not including the new growth capital currently being raised to fund the Ulsan project.
With these promising financial results and strategic business developments, LOOP is well-positioned to continue its mission of accelerating a circular plastics economy.
This article first appeared on GuruFocus.
