Cover
Cover - shares | 9 Months Ended | |
Nov. 30, 2023 | Jan. 15, 2024 | |
Cover [Abstract] | ||
Entity Registrant Name | Loop Industries, Inc. | |
Entity Central Index Key | 0001504678 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-28 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Nov. 30, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2024 | |
Entity Common Stock Shares Outstanding | 47,528,908 | |
Entity File Number | 000-54768 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 27-2094706 | |
Entity Address Address Line 1 | 480 Fernand-Poitras | |
Entity Address Address Line 2 | Terrebonne | |
Entity Address City Or Town | Québec | |
Entity Address Postal Zip Code | J6Y 1Y4 | |
City Area Code | 450 | |
Local Phone Number | 951-8555 | |
Security 12b Title | Common Stock | |
Trading Symbol | LOOP | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Address Country | CA | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2023 | Feb. 28, 2023 |
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 |
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 share issued and outstanding | 0 | 0 |
Common stock par value $0.0001; 250,000,000 shares authorized; 47,528,908 shares issued and outstanding (February 28, 2023 - 47,469,224) (Note 12) | 5 | 5 |
Additional paid-in capital | 171,510 | 170,370 |
Additional paid-in capital - Warrants | 20,385 | 20,385 |
Accumulated deficit | (171,878) | (155,883) |
Accumulated other comprehensive loss | (1,120) | (1,141) |
Total stockholders' equity | 18,902 | 33,736 |
Total liabilities and stockholders' equity | $ 24,777 | $ 40,560 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Nov. 30, 2023 | Feb. 28, 2023 |
Stockholders' Equity | ||
Series A preferred stock, par value | $ 0.0001 | $ 0.0001 |
Series A preferred stock, share authorized | 25,000,000,000 | 25,000,000,000 |
Series A preferred stock, share issued | 1,000 | 1,000 |
Series A preferred stock, share outstanding | 1,000 | 1,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 250,000,000,000 | 250,000,000,000 |
Common stock, shares issued | 47,528,908,000 | 47,469,224,000 |
Common stock, shares outstanding | 47,528,908 | 47,469,224 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2023 | Nov. 30, 2022 | Nov. 30, 2023 | Nov. 30, 2022 | |
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) | ||||
Revenue from contracts with customers | $ 26 | $ 25 | $ 108 | $ 160 |
Expenses : | ||||
Research and development (Note 13) | 1,833 | 4,582 | 8,361 | 15,133 |
General and administrative (Note 14) | 2,458 | 3,183 | 7,767 | 18,230 |
Depreciation and amortization (Notes 6 and 7) | 131 | 134 | 400 | 411 |
Total expenses | 4,422 | 7,899 | 16,528 | 33,774 |
Other (income) loss : | ||||
Gain on disposition of assets (Note 6) | 0 | (6,704) | 0 | (6,704) |
Interest and other financial expenses | 42 | 54 | 140 | 139 |
Interest income | (166) | (13) | (484) | (36) |
Foreign exchange gain | (28) | (198) | (81) | (289) |
Total other (income) loss | (152) | (6,861) | (425) | (6,890) |
Net loss | (4,244) | (1,013) | (15,995) | (26,724) |
Foreign currency translation adjustment | (83) | (440) | 21 | (857) |
Comprehensive loss | $ (4,327) | $ (1,453) | $ (15,974) | $ (27,581) |
Net loss per share | ||||
Basic and diluted | $ (0.09) | $ (0.02) | $ (0.34) | $ (0.56) |
Weighted average common shares outstanding | ||||
Basic and diluted | 47,523,817 | 47,416,340 | 47,520,356 | 47,405,801 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Preferred Stock | Additional Paid-In Capital | Additional Paid-in Capital - Warrants | Accumulated Deficit | Accumulated other comprehensive Income (Loss) |
Balance, shares at Feb. 28, 2022 | 47,388,056 | 1 | |||||
Balance, amount at Feb. 28, 2022 | $ 45,995 | $ 5 | $ 0 | $ 150,397 | $ 30,272 | $ (134,583) | $ (96) |
Issuance of shares upon the vesting of restricted stock units (Note 15), shares | 51,531 | ||||||
Issuance of shares upon the vesting of restricted stock units (Note 15), amount | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 |
Expiration of warrants (Note 17) | 0 | 0 | 0 | 9,809 | (9,809) | 0 | 0 |
Stock options issued for services (Note 15) | 1,181 | 0 | 0 | 1,181 | 0 | 0 | 0 |
Restricted stock units issued for services (Note 15) | 8,788 | 0 | 0 | 8,788 | 0 | 0 | 0 |
Foreign currency translation | (857) | $ 0 | $ 0 | 0 | 0 | (857) | |
Net loss | (26,724) | (26,724) | |||||
Balance, shares at Nov. 30, 2022 | 47,439,587 | 1 | |||||
Balance, amount at Nov. 30, 2022 | 28,383 | $ 5 | $ 0 | 170,175 | 20,463 | (161,307) | (953) |
Balance, shares at Aug. 31, 2022 | 47,400,709 | 1 | |||||
Balance, amount at Aug. 31, 2022 | 28,962 | $ 5 | $ 0 | 169,301 | 20,463 | (160,294) | (513) |
Issuance of shares upon the vesting of restricted stock units (Note 15), shares | 38,878 | ||||||
Issuance of shares upon the vesting of restricted stock units (Note 15), amount | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 |
Expiration of warrants (Note 17) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Stock options issued for services (Note 15) | 551 | 0 | 0 | 551 | 0 | 0 | 0 |
Restricted stock units issued for services (Note 15) | 323 | 0 | 0 | 323 | 0 | 0 | 0 |
Foreign currency translation | (440) | 0 | 0 | 0 | 0 | 0 | (440) |
Net loss | (1,013) | $ 0 | $ 0 | 0 | 0 | (1,013) | 0 |
Balance, shares at Nov. 30, 2022 | 47,439,587 | 1 | |||||
Balance, amount at Nov. 30, 2022 | 28,383 | $ 5 | $ 0 | 170,175 | 20,463 | (161,307) | (953) |
Balance, shares at Feb. 28, 2023 | 47,469,224 | 1 | |||||
Balance, amount at Feb. 28, 2023 | 33,736 | $ 5 | $ 0 | 170,370 | 20,385 | (155,883) | (1,141) |
Issuance of shares upon the vesting of restricted stock units (Note 15), shares | 51,963 | ||||||
Issuance of shares upon the vesting of restricted stock units (Note 15), amount | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 |
Stock options issued for services (Note 15) | 501 | 0 | 0 | 501 | 0 | 0 | 0 |
Restricted stock units issued for services (Note 15) | 639 | 0 | 0 | 639 | 0 | 0 | 0 |
Foreign currency translation | 21 | 0 | 0 | 0 | 0 | 0 | 21 |
Net loss | (15,995) | $ 0 | 0 | 0 | 0 | (15,995) | 0 |
Issuance of shares upon the exercise of stock options (Note 15), shares | 7,721 | ||||||
Issuance of shares upon the exercise of stock options (Note 15), amount | 0 | $ 0 | $ 0 | 0 | 0 | 0 | 0 |
Balance, shares at Nov. 30, 2023 | 47,528,908 | 1 | |||||
Balance, amount at Nov. 30, 2023 | 18,902 | $ 5 | $ 0 | 171,510 | 20,385 | (171,878) | (1,120) |
Balance, shares at Aug. 31, 2023 | 47,521,187 | 1 | |||||
Balance, amount at Aug. 31, 2023 | 22,832 | $ 5 | $ 0 | 171,113 | 20,385 | (167,634) | (1,037) |
Stock options issued for services (Note 15) | 168 | 0 | 0 | 168 | 0 | 0 | 0 |
Restricted stock units issued for services (Note 15) | 229 | 0 | 0 | 229 | 0 | 0 | 0 |
Foreign currency translation | (83) | 0 | 0 | 0 | 0 | 0 | (83) |
Net loss | (4,244) | $ 0 | 0 | 0 | 0 | (4,244) | 0 |
Issuance of shares upon the exercise of stock options (Note 15), shares | 7,721 | ||||||
Issuance of shares upon the exercise of stock options (Note 15), amount | 0 | $ 0 | $ 0 | 0 | 0 | 0 | 0 |
Balance, shares at Nov. 30, 2023 | 47,528,908 | 1 | |||||
Balance, amount at Nov. 30, 2023 | $ 18,902 | $ 5 | $ 0 | $ 171,510 | $ 20,385 | $ (171,878) | $ (1,120) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net loss | $ (15,995) | $ (26,724) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization (Notes 6 and 7) | 400 | 411 |
Stock-based compensation expense (Note 15) | 1,140 | 9,969 |
Gain on disposition of assets (Note 6) | 0 | (6,704) |
Accretion and accrued interest expenses (Note 10) | 53 | 118 |
Changes in operating assets and liabilities: | ||
Sales tax and tax credits receivable (Note 3) | 670 | 20 |
Inventories (Note 4) | (210) | (426) |
Prepaid expenses (Note 5) | 147 | (24) |
Accounts payable and accrued liabilities (Note 9) | (955) | (2,652) |
Customer deposits | (12) | 1,000 |
Net cash used in operating activities | (14,762) | (25,012) |
Cash Flows from Investing Activities | ||
Proceeds from disposition of assets (Note 6) | 0 | 8,559 |
Deposits on equipment (Note 5) | (5,065) | (1,271) |
Additions to property, plant and equipment (Note 6) | (10) | (68) |
Additions to intangible assets (Note 7) | (378) | (225) |
Net cash used in investing activities | (5,453) | 6,995 |
Cash Flows from Financing Activities | ||
Repayment of long-term debt (Note 10) | (47) | 0 |
Net cash (used) provided by financing activities | (47) | |
Effect of exchange rate changes | 37 | (419) |
Net decrease in cash | (20,225) | (18,436) |
Cash, cash equivalents and restricted cash, beginning of period | 30,591 | 44,061 |
Cash, cash equivalents and restricted cash, end of period | 10,366 | 25,625 |
Supplemental Disclosure of Cash Flow Information: | ||
Income tax paid | 0 | 0 |
Interest paid | 63 | 0 |
Interest received | $ 347 | $ 36 |
The Company and Basis of Presen
The Company and Basis of Presentation | 9 Months Ended |
Nov. 30, 2023 | |
The Company and Basis of Presentation | |
The Company and Basis of Presentation | 1. The Company and Basis of Presentation The Company Loop Industries, Inc. (the “Company,” “Loop,” “we,” or “our”) is a technology company that owns patented and proprietary technology that depolymerizes no and low-value waste polyethylene terephthalate (“PET”) plastic and polyester fiber to its base building blocks (monomers). The monomers are filtered, purified and polymerized to create virgin-quality Loop™ branded PET resin suitable for use in food-grade packaging and polyester fiber. The Company is currently in the pre-commercialization stage with limited revenues. Basis of Presentation These unaudited interim condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“US GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures included in these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2023, filed with the SEC on May 18, 2023. The unaudited interim condensed consolidated financial statements comprise the consolidated financial position and results of operations of Loop Industries, Inc. and its subsidiaries, Loop Innovations, LLC and Loop Canada Inc. All subsidiaries are, either directly or indirectly, wholly owned subsidiaries of Loop Industries, Inc. (collectively, the “Company”). The Company also owns, through Loop Innovations, LLC, a 50% interest in a joint venture, Indorama Loop Technologies, LLC, which is accounted for under the equity method. Intercompany balances and transactions are eliminated on consolidation. The condensed consolidated balance sheet as of February 28, 2023, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by US GAAP on an annual reporting basis. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods. The results for the three- and nine-month periods ended November 30, 2023 are not necessarily indicative of the results to be expected for any subsequent quarter, for the fiscal year ending February 29, 2024, or for any other period. The consolidated financial statements of the Company have been prepared on a going concern basis, which contemplates the continuing of operations, the realization of assets and the settlement of liabilities in the normal course of business. All monetary amounts in these notes to the condensed consolidated financial statements are in thousands of U.S. dollars unless otherwise specified, except for per share data. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Nov. 30, 2023 | |
Summary of Significant Accounting Policies | |
Summary Of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Liquidity Risk Assessment Since its inception, the Company has been in the pre-commercialization stage with limited revenues from customers, and its ongoing operations and commercialization plans have been financed primarily by raising equity. The Company has incurred net losses and negative cash flow from operating and investing activities since its inception and expects to incur additional net losses while it continues to develop and plan for commercialization. As at November 30, 2023, the Company’s available liquidity was $11,943, consisting of cash and cash equivalents of $9,366 and an undrawn senior loan facility from a Canadian bank of $2,577. Management actively monitors the Company’s cash resources against the Company’s short-term cash commitments to ensure the Company has sufficient liquidity to fund its costs for at least twelve months from the financial statement issuance date. Management evaluates the Company’s liquidity to determine if there is substantial doubt about the Company’s ability to continue as a going concern. In preparing this liquidity assessment, management applies significant judgment in estimating future cash flow requirements of the Company based on budgets and forecasts, which includes developing assumptions related to: (i) estimation of amount and timing of future cash outflows and inflows and (ii) determining what future expenditures are committed and what could be considered discretionary. Based on this assessment, management believes that the Company will be able to realize its assets and discharge its liabilities in the normal course of operations as they become due for a period of no less than twelve months from the date of issuance of these unaudited interim condensed consolidated financial statements. The Company’s ability to move to the next stage of its strategic development and construct manufacturing plants is dependent on whether the Company can obtain the necessary financing through a combination of the issuance of debt, equity, and/or joint ventures, and/or government incentive programs, and/or customers. However, there is no assurance that the Company will be successful in attracting additional funding. Even if additional financing is available, it may not be available on terms favorable to the Company. Failure to secure additional financing on favorable terms when it becomes required would have an adverse effect on the Company’s financial position and on its ability to execute its business plan. Use of estimates The preparation of financial statements in conformity with US GAAP requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include the going concern assessment, estimates for depreciable lives of property, plant and equipment and intangible assets, recoverability of tax credits receivable, assumptions made in calculating the fair value of stock-based compensation and other equity instruments, and the assessment of performance conditions for stock-based compensation awards. Net earnings (loss) per share The Company computes net loss per share in accordance with FASB ASC 260, Earnings Per Share For the three- and nine-month periods ended November 30, 2023 and 2022, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an antidilutive effect. As at November 30, 2023, the potentially dilutive securities consisted of 2,772,000 outstanding stock options (2022 – 2,542,000), 4,417,688 outstanding restricted stock units (2022 – 4,036,803), and 7,089,400 outstanding warrants (2022 – 7,104,553). |
Sales Tax Tax Credits and Other
Sales Tax Tax Credits and Other Receivables | 9 Months Ended |
Nov. 30, 2023 | |
Sales Tax Tax Credits and Other Receivables | |
Sales Tax, Tax Credits And Other Receivables | 3. Sales Tax, Tax Credits and Other Receivables Sales tax, research and development tax credits and other receivables as at November 30, 2023 and February 28, 2023 were as follows: November 30, 2023 February 28, 2023 Sales tax $ 97 $ 170 Investment tax credits 37 461 Research and development tax credits 120 402 Other receivables 157 42 $ 411 $ 1,075 |
Inventories
Inventories | 9 Months Ended |
Nov. 30, 2023 | |
Inventories | |
Inventories | 4. Inventories Inventories as at November 30, 2023 and February 28, 2023 were as follows: November 30, 2023 February 28, 2023 Finished goods $ 569 $ 242 Work in process 331 467 Raw materials 37 18 $ 937 $ 727 As at November 30 and February 28, 2023, inventories included finished goods, work in process and raw materials. Finished goods inventories consist of bottle grade and fiber grade Loop ™ ™ |
Deposits and Prepaid Expenses
Deposits and Prepaid Expenses | 9 Months Ended |
Nov. 30, 2023 | |
Deposits and Prepaid Expenses | |
Deposits and Prepaid Expenses | 5. Deposits and Prepaid Expenses As at November 30, 2023, the Company had $8,460 (February 28, 2023 – $3,395) of non-refundable cash deposits on long-lead equipment that are intended to be used in the first planned Infinite Loop ™ Prepaid expenses and other deposits as at November 30, 2023 were $470 and $636 as at February 28, 2023. |
Property Plant and Equipment
Property Plant and Equipment | 9 Months Ended |
Nov. 30, 2023 | |
Property Plant and Equipment | |
Property, Plant And Equipment | 6. Property, Plant and Equipment As at November 30, 2023 Cost Accumulated depreciation, write-down and impairment Net book value Building $ 1,825 $ (355 ) $ 1,470 Land 225 - 225 Building and Land Improvements 1,851 (1,399 ) 452 Office equipment and furniture 277 (157 ) 120 $ 4,178 $ (1,911 ) $ 2,267 As at February 28, 2023 Cost Accumulated depreciation, write-down and impairment Net book value Building $ 1,822 $ (309 ) $ 1,513 Land 225 - 225 Building and Land Improvements 1,839 (1,166 ) 673 Office equipment and furniture 274 (140 ) 134 $ 4,160 $ (1,615 ) $ 2,545 Depreciation expense for the three- and nine-month periods ended November 30, 2023 amounted to $93 and $295, respectively (2022 – $111 and $348). On May 27, 2021, we acquired land in Bécancour, Québec for cash of $4,400. The Company sold approximately two thirds of the land held for sale in the three-month period ended November 30, 2022 for cash proceeds of $8,559 and a gain on disposition of the asset of $6,704. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Nov. 30, 2023 | |
Intangible Assets | |
Intangible Assets | 7. Intangible Assets Intangible assets as at November 30, 2023 and February 28, 2023 were $1,485 and $1,210, respectively. During the nine-month periods ended November 30, 2023 and 2022, we made additions relating to patent application costs to intangible assets of $378 and $225, respectively. Amortization expense for the three- and nine-month periods ended November 30, 2023 amounted to $38 and $105, respectively (2022 – $23 and $63). |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Nov. 30, 2023 | |
Fair Value of Financial Instruments | |
Fair value of financial instruments | 8. Fair Value of Financial Instruments The following tables presents the fair value of the Company’s financial liabilities as at November 30, 2023 and February 28, 2023: Fair Value as at November 30, 2023 Carrying Amount Fair Value Level in the hierarchy Financial liabilities measured at amortized cost: Long-term debt $ 3,315 $ 3,290 Level 2 Fair Value as at February 28, 2023 Carrying Amount Fair Value Level in the hierarchy Financial liabilities measured at amortized cost: Long-term debt $ 3,302 $ 3,280 Level 2 The fair value of cash and cash equivalents, restricted cash, customer deposits, other receivables, and accounts payable and accrued liabilities approximate their carrying values due to their short-term maturity. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 9 Months Ended |
Nov. 30, 2023 | |
Accounts Payable and Accrued Liabilities | |
Accounts Payable And Accrued Liabilities | 9. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities as at November 30, 2023 and February 28, 2023 were as follows: November 30, 2023 February 28, 2023 Trade accounts payable $ 288 $ 1,020 Accrued employee compensation 891 712 Accrued professional fees 277 410 Accrued insurance premiums - 70 Accrued engineering fees - 96 Accrued director compensation 44 44 Other accrued liabilities 60 158 $ 1,560 $ 2,510 |
Long Term Debt
Long Term Debt | 9 Months Ended |
Nov. 30, 2023 | |
Long Term Debt | |
Long-term Debt | 10. Long‑Term Debt Long-term debt as of November 30, 2023 and February 28, 2023, was comprised of the following: November 30, 2023 February 28, 2023 Investissement Québec financing facility: Principal amount $ 3,360 $ 3,380 Unamortized discount (210 ) (261 ) Accrued interest 165 183 Total Investissement Québec financing facility 3,315 3,302 Less: current portion of long-term debt (501 ) (62 ) Long-term debt, net of current portion $ 2,814 $ 3,240 Investissement Québec financing facility The Company recorded interest expense on the Investissement Québec loan for the three- and nine-month periods ended November 30, 2023 in the amount of $21 and $63, respectively (2022 – $21 and $65) and an accretion expense of $18 and $53, respectively (2022 – $17 and $52). During the nine-month period ended November 30, 2023, the Company made repayments of $47 (2022 – nil) on the Investissement Québec loan. Total repayments due on the Company’s indebtedness over the next five years are as follows: Years ending Amount February 29, 2024 $ 16 February 28, 2025 585 February 28, 2026 585 February 28, 2027 585 February 29, 2028 585 Thereafter 1,169 Total $ 3,525 Credit facility from a Canadian bank On July 26, 2022, Loop Canada, Inc., a wholly-owned subsidiary of the Company, entered into an Operating Credit Facility (the “Credit Facility”) with a Canadian bank. The Credit Facility allows for borrowings of up to $2,577 in aggregate principal amount and provides for a two-year term. The Credit Facility is secured by the Company’s Terrebonne, Québec property and is subject to a minimum equity covenant, tested quarterly with which the Company was in compliance as at November 30, 2023. All borrowings under the Credit Facility will bear interest at an annual rate equal to the bank’s Canadian prime rate plus 1.0%. The Company is subject to a guarantee of the liabilities of Loop Canada Inc. As at November 30, 2023, the Credit Facility was available and undrawn. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Nov. 30, 2023 | |
Related Party Transactions | |
Related Party Transactions | 11. Related Party Transactions Employment Agreement During the nine-month period ended November 30, 2022, Mr. Solomita met a performance milestone in relation to the signature of a supply agreement with a customer. Accordingly, 1,000,000 performance incentive RSUs with a fair value of $7,740 were earned and issuable to Mr. Solomita. This amount was reflected as stock-based compensation expense during the nine-month period ended November 30, 2022. During the nine-month period ended November 30, 2023, no outstanding performance milestones were probable of being achieved and, accordingly, the Company did not record any additional stock-based compensation expense. On October 12, 2023, Mr. Solomita and the Company agreed to defer by one year the settlement of 800,000 RSUs that were set to settle on October 15, 2023. On October 14, 2022, Mr. Solomita and the Company agreed to defer by one year the settlement of 400,000 RSUs that were set to settle on October 15, 2022. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Nov. 30, 2023 | |
Stockholders' Equity | |
Stockholders' Equity | 12. Stockholders’ Equity Common Stock For the nine-month period ended November 30, 2023 Number of shares Amount Balance, February 28, 2023 47,469,224 $ 5 Issuance of shares upon settlement of restricted stock units 51,963 - Issuance of shares upon the exercise of stock options 7,721 - Balance, November 30, 2023 47,528,908 $ 5 For the nine-month period ended November 30, 2022 Number of shares Amount Balance, February 28, 2022 47,388,056 $ 5 Issuance of shares upon settlement of restricted stock units 51,531 - Balance, November 30, 2022 47,439,587 $ 5 During the nine months ended November 30, 2023, the Company recorded the following common stock transaction: (i) The Company issued 51,963 shares of the common stock to settle restricted stock units that vested in the period. (ii) The Company issued 7,721 shares of the common stock to settle stock options exercised in the period. During the nine months ended November 30, 2022, the Company recorded the following common stock transaction: (i) The Company issued 51,531 shares of the common stock to settle restricted stock units that vested in the period. |
Research and Development Expens
Research and Development Expenses | 9 Months Ended |
Nov. 30, 2023 | |
Research and Development Expenses | |
Research And Development Expenses | 13. Research and Development Expenses Research and development expenses for the three-month periods ended November 30, 2023 and 2022 were as follows: November 30, 2023 November 30, 2022 Employee compensation $ 1,268 $ 1,995 Machinery and equipment expenditures 4 1,059 External engineering 262 707 Plant and laboratory operating expenses 322 916 Tax credits (221 ) (300 ) Other 198 205 $ 1,833 $ 4,582 Research and development expenses for the nine-month periods ended November 30, 2023 and 2022 were as follows: November 30, 2023 November 30, 2022 Employee compensation $ 4,087 $ 6,350 Machinery and equipment expenditures 1,240 4,133 External engineering 1,558 2,914 Plant and laboratory operating expenses 1,238 2,366 Tax credits (269 ) (1,207 ) Other 507 577 $ 8,361 $ 15,133 |
General and Administrative Expe
General and Administrative Expenses | 9 Months Ended |
Nov. 30, 2023 | |
General and Administrative Expenses | |
General And Administrative Expenses | 14. General and Administrative Expenses General and administrative expenses for the three-month periods ended November 30, 2023 and 2022 were as follows: November 30, 2023 November 30, 2022 Employee compensation $ 835 $ 911 Professional fees 720 1,278 Insurance 645 710 Other 258 284 $ 2,458 $ 3,183 General and administrative expenses for the nine-month periods ended November 30, 2023 and 2022 were as follows: November 30, 2023 November 30, 2022 Employee compensation (1) $ 2,548 $ 10,728 Professional fees 2,251 3,841 Insurance 2,058 2,883 Other 910 778 $ 7,767 $ 18,230 (1) Includes stock-based compensation expense. During the nine-month period ended November 30, 2022, the Company recorded a stock-based compensation expense of $7,740 related to the achievement of a performance milestone for 1,000,000 RSUs (Note 11). |
Share Based Payments
Share Based Payments | 9 Months Ended |
Nov. 30, 2023 | |
Share Based Payments | |
Share-based Payments | 15. Share-based Payments Stock Options The following tables summarizes the continuity of the Company’s stock options during the three-month periods ended November 30, 2023 and 2022: 2023 2022 Number of stock options Weighted average exercise price Number of stock options Weighted average exercise price Outstanding, beginning of period 2,782,000 $ 5.08 1,570,000 $ 6.87 Granted - - 972,000 2.68 Exercised (10,000 ) 0.80 - - Forfeited - - - - Expired - - - - Outstanding, end of period 2,772,000 $ 5.10 2,542,000 $ 5.27 Exercisable, end of period 1,810,000 $ 6.53 1,670,000 $ 6.84 The following tables summarizes the continuity of the Company’s stock options during the nine-month periods ended November 30, 2023 and 2022: 2023 2022 Number of stock options Weighted average exercise price Number of stock options Weighted average exercise price Outstanding, beginning of period 2,542,000 $ 5.27 1,570,000 $ 6.87 Granted 240,000 3.11 972,000 2.68 Exercised (10,000 ) 0.80 - - Forfeited - - - - Expired - - - - Outstanding, end of period 2,772,000 $ 5.10 2,542,000 $ 5.27 Exercisable, end of period 1,810,000 $ 6.53 1,670,000 $ 6.84 The Company applies the fair value method of accounting for stock-based compensation awards granted. Fair value is calculated based on a Black-Scholes option pricing model. There were no new issuances of stock options for the three-month period ended November 30, 2022. The principal components of the pricing model for the stock options granted in the nine-month period ended November 30, 2023 were as follows: Exercise price $ 3.11 Risk-free interest rate 3.84 % Expected dividend yield 0 % Expected volatility 79 % Expected life 3 years During the three-month periods ended November 30, 2023 and 2022, stock-based compensation expense attributable to stock options amounted to $168 and $551, respectively. During the nine-month periods ended November 30, 2023 and 2022, stock-based compensation expense attributable to stock options amounted to $501 and $1,181, respectively. Restricted Stock Units The following table summarizes the continuity of the restricted stock units during the three-month periods ended November 30, 2023 and 2022: 2023 2022 Number of units Weighted average fair value price Number of units Weighted average fair value price Outstanding, beginning of period 4,417,688 $ 6.52 4,128,718 $ 7.37 Granted - - - - Settled - - (38,878 ) 13.08 Forfeited - - (53,037 ) 13.40 Outstanding, end of period 4,417,688 $ 6.52 4,036,803 $ 7.17 Outstanding vested, end of period 1,635,241 $ 6.22 1,563,497 $ 6.29 The following table summarizes the continuity of the restricted stock units during the nine-month periods ended November 30, 2023 and 2022: 2023 2022 Number of units Weighted average fair value price Number of units Weighted average fair value price Outstanding, beginning of period 3,888,618 $ 7.09 4,018,567 $ 7.42 Granted 585,364 2.93 151,605 5.14 Settled (51,963 ) 8.66 (51,531 ) 13.07 Forfeited (4,331 ) 8.21 (81,838 ) 11.74 Outstanding, end of period 4,417,688 $ 6.52 4,036,803 $ 7.17 Outstanding vested, end of period 1,635,241 $ 6.22 1,563,497 $ 6.29 The Company applies the fair value method of accounting for awards granted through the issuance of restricted stock units. Fair value is calculated based on the intrinsic value at grant date multiplied by the number of restricted stock unit awards granted. During the three-month periods ended November 30, 2023 and 2022, stock-based compensation attributable to RSUs amounted to $229 and $323, respectively. During the nine-month periods ended November 30, 2023 and 2022, stock-based compensation attributable to RSUs amounted to $639 and $8,788, respectively. During the nine-month period ended November 30, 2022, the Company recorded a stock-based compensation expense of $7,740 related to the achievement of a performance milestone for 1,000,000 RSUs (Note 11). Stock-Based Compensation Expense During the three-month periods ended November 30, 2023 and 2022, stock-based compensation included in research and development expenses amounted to $161 and $455, respectively, and in general and administrative expenses amounted to $236 and $419, respectively. During the nine-month periods ended November 30, 2023 and 2022, stock-based compensation included in research and development expenses amounted to $476 and $1,170, respectively, and in general and administrative expenses amounted to $664 and $8,799, respectively. The amount recorded in general and administrative expenses for the nine-month period ended November 30, 2022 includes $7,740 related to the achievement of a performance milestone for 1,000,000 RSUs (Note 11). |
Equity Incentive Plan
Equity Incentive Plan | 9 Months Ended |
Nov. 30, 2023 | |
Equity Incentive Plan | |
Equity Incentive Plan | 16. Equity Incentive Plan On July 6, 2017, the Company adopted the 2017 Equity Incentive Plan (the “Plan”). The Plan permits the granting of warrants, stock options, stock appreciation rights and restricted stock units to employees, directors and consultants of the Company. A total of 3,000,000 shares of common stock were initially reserved for issuance under the Plan at July 6, 2017, with annual automatic share reserve increases, as defined in the Plan, amounting to the lessor of (i) 1,500,000 shares, (ii) 5% of the outstanding shares on the last day of the immediately preceding fiscal year, or (iii) or such number of shares determined by the Administrator of the Plan, effective March 1, 2018. On March 1, 2023, the share reserve was increased by 1,500,000 shares. On March 1, 2022, the Board of Directors opted to waive the annual share reserve increase. The Plan is administered by the Board of Directors who designates eligible participants to be included under the Plan, the number of awards granted, the share price pursuant to the awards and the vesting conditions and period. The awards, when granted, will have an exercise price of no less than the estimated fair value of shares at the date of grant and a life not exceeding 10 years from the grant date. However, where a participant, at the time of the grant, owns stock representing more than 10% of the voting power of the Company, the life of the options shall not exceed 5 years. The following table summarizes the continuity of the Company’s Equity Incentive Plan units that were authorized for issuance as at and during the nine-month periods ended November 30, 2023 and 2022: 2023 2022 Number of units* Number of units* Authorized, beginning of period 120,486 1,043,705 Automatic share reserve increase 1,500,000 - Units granted (825,364 ) (1,123,605 ) Units forfeited 4,331 81,838 Units expired - - Authorized, end of period 799,453 1,938 *The use of the term “units” in the table above describes a combination of stock options and RSUs. |
Warrants
Warrants | 9 Months Ended |
Nov. 30, 2023 | |
Warrants | |
Warrants | 17. Warrants During the nine-month period ended November 30, 2022, warrants to purchase 4,554,865 shares of our common stock in aggregate with an exercise price of $11.00 expired. |
Commitments
Commitments | 9 Months Ended |
Nov. 30, 2023 | |
Commitments | |
Commitments | 18. Commitments Agreement for purchase of equipment In December 2021, the Company entered into an agreement for the purchase of long-lead equipment in connection with the construction of our first Infinite Loop™ manufacturing facility for up to $8,546, subject to various terms and conditions, including fabrication timelines and equipment inspection. Pursuant to the agreement, the Company has paid cash deposits of $8,460 (Note 5). The remaining balance is expected to be paid by the end of this fiscal year. Agreement with SK Geo Centric Co. Ltd. (“SKGC”) On April 27, 2023, the Company and SKGC entered into an agreement to build Infinite Loop manufacturing facilities in Asia. Pursuant to the agreement, the Company and SKGC agreed to form a new entity, which will be headquartered in Singapore. SKGC will contribute 51% and Loop will contribute the remaining 49% of the initial equity capital of the new entity. The Company’s investment in the new entity will be accounted for under the equity method and initially recognized at cost. To date, no amounts have been contributed by the Company to the new entity. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Nov. 30, 2023 | |
Subsequent Event | |
Subsequent Event | 19. Subsequent Event On January 16 th The non-binding memorandum of understanding is subject to customary due diligence and the fulfillment of certain pre-closing conditions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Nov. 30, 2023 | |
Summary of Significant Accounting Policies | |
Liquidity Risk Assessment | Since its inception, the Company has been in the pre-commercialization stage with limited revenues from customers, and its ongoing operations and commercialization plans have been financed primarily by raising equity. The Company has incurred net losses and negative cash flow from operating and investing activities since its inception and expects to incur additional net losses while it continues to develop and plan for commercialization. As at November 30, 2023, the Company’s available liquidity was $11,943, consisting of cash and cash equivalents of $9,366 and an undrawn senior loan facility from a Canadian bank of $2,577. Management actively monitors the Company’s cash resources against the Company’s short-term cash commitments to ensure the Company has sufficient liquidity to fund its costs for at least twelve months from the financial statement issuance date. Management evaluates the Company’s liquidity to determine if there is substantial doubt about the Company’s ability to continue as a going concern. In preparing this liquidity assessment, management applies significant judgment in estimating future cash flow requirements of the Company based on budgets and forecasts, which includes developing assumptions related to: (i) estimation of amount and timing of future cash outflows and inflows and (ii) determining what future expenditures are committed and what could be considered discretionary. Based on this assessment, management believes that the Company will be able to realize its assets and discharge its liabilities in the normal course of operations as they become due for a period of no less than twelve months from the date of issuance of these unaudited interim condensed consolidated financial statements. The Company’s ability to move to the next stage of its strategic development and construct manufacturing plants is dependent on whether the Company can obtain the necessary financing through a combination of the issuance of debt, equity, and/or joint ventures, and/or government incentive programs, and/or customers. However, there is no assurance that the Company will be successful in attracting additional funding. Even if additional financing is available, it may not be available on terms favorable to the Company. Failure to secure additional financing on favorable terms when it becomes required would have an adverse effect on the Company’s financial position and on its ability to execute its business plan. |
Use Of Estimates | The preparation of financial statements in conformity with US GAAP requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include the going concern assessment, estimates for depreciable lives of property, plant and equipment and intangible assets, recoverability of tax credits receivable, assumptions made in calculating the fair value of stock-based compensation and other equity instruments, and the assessment of performance conditions for stock-based compensation awards. |
Net Earnings (loss) Per Share | The Company computes net loss per share in accordance with FASB ASC 260, Earnings Per Share For the three- and nine-month periods ended November 30, 2023 and 2022, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an antidilutive effect. As at November 30, 2023, the potentially dilutive securities consisted of 2,772,000 outstanding stock options (2022 – 2,542,000), 4,417,688 outstanding restricted stock units (2022 – 4,036,803), and 7,089,400 outstanding warrants (2022 – 7,104,553). |
Sales Tax Tax Credits and Oth_2
Sales Tax Tax Credits and Other Receivables (Tables) | 9 Months Ended |
Nov. 30, 2023 | |
Sales Tax Tax Credits and Other Receivables | |
Schdule of Sales tax, tax credits and other receivables | November 30, 2023 February 28, 2023 Sales tax $ 97 $ 170 Investment tax credits 37 461 Research and development tax credits 120 402 Other receivables 157 42 $ 411 $ 1,075 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Nov. 30, 2023 | |
Inventories | |
Inventories | November 30, 2023 February 28, 2023 Finished goods $ 569 $ 242 Work in process 331 467 Raw materials 37 18 $ 937 $ 727 |
Property Plant and Equipment (T
Property Plant and Equipment (Tables) | 9 Months Ended |
Nov. 30, 2023 | |
Property Plant and Equipment | |
Property, Plant And Equipment | As at November 30, 2023 Cost Accumulated depreciation, write-down and impairment Net book value Building $ 1,825 $ (355 ) $ 1,470 Land 225 - 225 Building and Land Improvements 1,851 (1,399 ) 452 Office equipment and furniture 277 (157 ) 120 $ 4,178 $ (1,911 ) $ 2,267 As at February 28, 2023 Cost Accumulated depreciation, write-down and impairment Net book value Building $ 1,822 $ (309 ) $ 1,513 Land 225 - 225 Building and Land Improvements 1,839 (1,166 ) 673 Office equipment and furniture 274 (140 ) 134 $ 4,160 $ (1,615 ) $ 2,545 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Nov. 30, 2023 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | Fair Value as at November 30, 2023 Carrying Amount Fair Value Level in the hierarchy Financial liabilities measured at amortized cost: Long-term debt $ 3,315 $ 3,290 Level 2 Fair Value as at February 28, 2023 Carrying Amount Fair Value Level in the hierarchy Financial liabilities measured at amortized cost: Long-term debt $ 3,302 $ 3,280 Level 2 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Nov. 30, 2023 | |
Accounts Payable and Accrued Liabilities | |
Schdule of Accounts Payable And Accrued Liabilities | November 30, 2023 February 28, 2023 Trade accounts payable $ 288 $ 1,020 Accrued employee compensation 891 712 Accrued professional fees 277 410 Accrued insurance premiums - 70 Accrued engineering fees - 96 Accrued director compensation 44 44 Other accrued liabilities 60 158 $ 1,560 $ 2,510 |
LongTerm Debt (Tables)
LongTerm Debt (Tables) | 9 Months Ended |
Nov. 30, 2023 | |
LongTerm Debt (Tables) | |
Schdule of Long-term Debt | November 30, 2023 February 28, 2023 Investissement Québec financing facility: Principal amount $ 3,360 $ 3,380 Unamortized discount (210 ) (261 ) Accrued interest 165 183 Total Investissement Québec financing facility 3,315 3,302 Less: current portion of long-term debt (501 ) (62 ) Long-term debt, net of current portion $ 2,814 $ 3,240 |
Principal Repayments | Years ending Amount February 29, 2024 $ 16 February 28, 2025 585 February 28, 2026 585 February 28, 2027 585 February 29, 2028 585 Thereafter 1,169 Total $ 3,525 |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 9 Months Ended |
Nov. 30, 2023 | |
Stockholders Equity Abstract | |
Common Stock | For the nine-month period ended November 30, 2023 Number of shares Amount Balance, February 28, 2023 47,469,224 $ 5 Issuance of shares upon settlement of restricted stock units 51,963 - Issuance of shares upon the exercise of stock options 7,721 - Balance, November 30, 2023 47,528,908 $ 5 For the nine-month period ended November 30, 2022 Number of shares Amount Balance, February 28, 2022 47,388,056 $ 5 Issuance of shares upon settlement of restricted stock units 51,531 - Balance, November 30, 2022 47,439,587 $ 5 |
Research and Development Expe_2
Research and Development Expenses (Tables) | 9 Months Ended |
Nov. 30, 2023 | |
Research and Development Expenses | |
Schedule Of Research And Development Expenses | November 30, 2023 November 30, 2022 Employee compensation $ 1,268 $ 1,995 Machinery and equipment expenditures 4 1,059 External engineering 262 707 Plant and laboratory operating expenses 322 916 Tax credits (221 ) (300 ) Other 198 205 $ 1,833 $ 4,582 November 30, 2023 November 30, 2022 Employee compensation $ 4,087 $ 6,350 Machinery and equipment expenditures 1,240 4,133 External engineering 1,558 2,914 Plant and laboratory operating expenses 1,238 2,366 Tax credits (269 ) (1,207 ) Other 507 577 $ 8,361 $ 15,133 |
General and Administrative Ex_2
General and Administrative Expenses (Tables) | 9 Months Ended |
Nov. 30, 2023 | |
General and Administrative Expenses | |
General And Administrative Expenses | November 30, 2023 November 30, 2022 Employee compensation $ 835 $ 911 Professional fees 720 1,278 Insurance 645 710 Other 258 284 $ 2,458 $ 3,183 November 30, 2023 November 30, 2022 Employee compensation (1) $ 2,548 $ 10,728 Professional fees 2,251 3,841 Insurance 2,058 2,883 Other 910 778 $ 7,767 $ 18,230 |
Share based Payments (Tables)
Share based Payments (Tables) | 9 Months Ended |
Nov. 30, 2023 | |
Share based Payments (Tables) | |
Schdule of Stock Options Activity | 2023 2022 Number of stock options Weighted average exercise price Number of stock options Weighted average exercise price Outstanding, beginning of period 2,782,000 $ 5.08 1,570,000 $ 6.87 Granted - - 972,000 2.68 Exercised (10,000 ) 0.80 - - Forfeited - - - - Expired - - - - Outstanding, end of period 2,772,000 $ 5.10 2,542,000 $ 5.27 Exercisable, end of period 1,810,000 $ 6.53 1,670,000 $ 6.84 2023 2022 Number of stock options Weighted average exercise price Number of stock options Weighted average exercise price Outstanding, beginning of period 2,542,000 $ 5.27 1,570,000 $ 6.87 Granted 240,000 3.11 972,000 2.68 Exercised (10,000 ) 0.80 - - Forfeited - - - - Expired - - - - Outstanding, end of period 2,772,000 $ 5.10 2,542,000 $ 5.27 Exercisable, end of period 1,810,000 $ 6.53 1,670,000 $ 6.84 |
Principle components of the pricing model of stock option activity | Exercise price $ 3.11 Risk-free interest rate 3.84 % Expected dividend yield 0 % Expected volatility 79 % Expected life 3 years |
Schdule of restricted stock units | 2023 2022 Number of units Weighted average fair value price Number of units Weighted average fair value price Outstanding, beginning of period 4,417,688 $ 6.52 4,128,718 $ 7.37 Granted - - - - Settled - - (38,878 ) 13.08 Forfeited - - (53,037 ) 13.40 Outstanding, end of period 4,417,688 $ 6.52 4,036,803 $ 7.17 Outstanding vested, end of period 1,635,241 $ 6.22 1,563,497 $ 6.29 2023 2022 Number of units Weighted average fair value price Number of units Weighted average fair value price Outstanding, beginning of period 3,888,618 $ 7.09 4,018,567 $ 7.42 Granted 585,364 2.93 151,605 5.14 Settled (51,963 ) 8.66 (51,531 ) 13.07 Forfeited (4,331 ) 8.21 (81,838 ) 11.74 Outstanding, end of period 4,417,688 $ 6.52 4,036,803 $ 7.17 Outstanding vested, end of period 1,635,241 $ 6.22 1,563,497 $ 6.29 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 9 Months Ended |
Nov. 30, 2023 | |
Equity Incentive Plan | |
Equity Incentive Plan | 2023 2022 Number of units* Number of units* Authorized, beginning of period 120,486 1,043,705 Automatic share reserve increase 1,500,000 - Units granted (825,364 ) (1,123,605 ) Units forfeited 4,331 81,838 Units expired - - Authorized, end of period 799,453 1,938 |
The Company and Basis of Pres_2
The Company and Basis of Presentation (Details Narrative) | Feb. 28, 2023 |
Common Stock [Member] | |
Ownership, Percentage | 50% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Available Liquidity | $ 119,430 | |
Cash and cash equivalents | 93,660 | |
Loan facility | $ 25,770 | |
Note Warrant [Member] | ||
Dilutive Securities | 7,089,400 | 7,104,553 |
Restricted Stock Units [Member] | ||
Dilutive Securities | 4,417,688 | 4,036,803 |
Stock Option [Member] | ||
Dilutive Securities | 2,772,000 | 2,542,000 |
Sales Tax Tax Credits and Oth_3
Sales Tax Tax Credits and Other Receivables (Details) - USD ($) $ in Thousands | Nov. 30, 2023 | Feb. 28, 2023 |
Sales Tax Tax Credits and Other Receivables | ||
Sales Tax | $ 97 | $ 170 |
Investment tax credits | 37 | 461 |
Research And Development Tax Credits | 120 | 402 |
Other Receivables | 157 | 42 |
Total | $ 411 | $ 1,075 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Nov. 30, 2023 | Feb. 28, 2023 |
Inventories | ||
Finished goods | $ 569 | $ 242 |
Work in process | 331 | 467 |
Raw materials | 37 | 18 |
Inventory net | $ 937 | $ 727 |
Deposits and Prepaid Expenses (
Deposits and Prepaid Expenses (Details Narrative) - USD ($) | Nov. 30, 2023 | Feb. 28, 2023 |
Deposits and Prepaid Expenses | ||
Non-refundable cash deposits on long-lead equipment | $ 8,460 | $ 3,395 |
Prepaid expenses | $ 470,000 | $ 636,000 |
Property Plant and Equipment (D
Property Plant and Equipment (Details) - USD ($) | Nov. 30, 2023 | Feb. 28, 2023 |
Property, Plant And Equipment, Gross | $ 4,178,000 | $ 4,160,000 |
Less: Accumulated Depreciation, Write-down And Impairment | (1,911,000) | (1,615,000) |
Property, Plant And Equipment, Net | 2,267,000 | 2,545,000 |
Building [Member] | ||
Property, Plant And Equipment, Gross | 1,825,000 | 1,822,000 |
Less: Accumulated Depreciation, Write-down And Impairment | (355,000) | (309,000) |
Property, Plant And Equipment, Net | 1,470,000 | 1,513,000 |
Land [Member] | ||
Property, Plant And Equipment, Gross | 225,000 | 225,000 |
Less: Accumulated Depreciation, Write-down And Impairment | 0 | 0 |
Property, Plant And Equipment, Net | 225,000 | 225,000 |
Building And Land Improvements [Member] | ||
Property, Plant And Equipment, Gross | 1,851,000 | 1,839,000 |
Less: Accumulated Depreciation, Write-down And Impairment | (1,399,000) | (1,166,000) |
Property, Plant And Equipment, Net | 452,000 | 673,000 |
Office Equipment and Furniture [Member] | ||
Property, Plant And Equipment, Gross | 277,000 | 274,000 |
Less: Accumulated Depreciation, Write-down And Impairment | (157,000) | (140,000) |
Property, Plant And Equipment, Net | $ 120,000 | $ 134,000 |
Property Plant and Equipment _2
Property Plant and Equipment (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May 27, 2021 | Nov. 30, 2023 | Nov. 30, 2022 | Nov. 30, 2023 | Nov. 30, 2022 | |
Property Plant and Equipment | |||||
Depreciation Expense | $ 93 | $ 111 | $ 295 | $ 348 | |
Land Acquired For Cash, Amount | $ 4,400 | ||||
Sold the land for cash net proceeds | 8,559 | ||||
Gain on disposition of land | $ 6,704 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2023 | Nov. 30, 2022 | Nov. 30, 2023 | Nov. 30, 2022 | Feb. 28, 2023 | |
Intangible Assets | |||||
Intangible assets | $ 1,485 | $ 1,485 | $ 1,210 | ||
Additions to intangible assets | 378 | $ 225 | |||
Amortization expense | $ 38 | $ 23 | $ 105 | $ 63 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Long-term Debt [Member] - Level 2 [Member] - USD ($) | Nov. 30, 2023 | Feb. 28, 2023 |
Carrying Amount | $ 3,315 | $ 3,302 |
Fair value | $ 3,290 | $ 3,280 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) | Nov. 30, 2023 | Feb. 28, 2023 |
Accounts Payable and Accrued Liabilities | ||
Trade Accounts Payable | $ 288 | $ 1,020 |
Accrued Employee Compensation | 891 | 712 |
Accrued Professional Fees | 277 | 410 |
Accrued insurance premiums | 0 | 70 |
Accrued Engineering Fees | 0 | 96 |
Accrued director compensation | 44 | 44 |
Other Accrued Liabilities | 60 | 158 |
Accounts Payable And Accrued Liabilities | $ 1,560 | $ 2,510 |
LongTerm Debt (Details)
LongTerm Debt (Details) - USD ($) | Nov. 30, 2023 | Feb. 28, 2023 |
Principal Amount | $ 3,525 | |
Less: Current Portion | (501,000) | $ (62,000) |
Long-term Debt, Net Of Current Portion | 2,814,000 | 3,240,000 |
Investissement Quebec Financing Facility [Member] | ||
Principal Amount | 3,360,000 | 3,380,000 |
Unamortized Discount | (210,000) | (261,000) |
Accrued Interest | 165,000 | 183,000 |
Total Investissement Qu?bec financing facility | 3,315,000 | 3,302,000 |
Less: Current Portion | (501) | (62) |
Long-term Debt, Net Of Current Portion | $ 2,814,000 | $ 3,240,000 |
LongTerm Debt (Details 1)
LongTerm Debt (Details 1) | Nov. 30, 2023 USD ($) |
LongTerm Debt (Tables) | |
February 29, 2024 | $ 16,000 |
February 28, 2025 | 585,000 |
February 28, 2026 | 585,000 |
February 28, 2027 | 585,000 |
February 29, 2028 | 585,000 |
Thereafter | 1,169,000 |
Total | $ 3,525 |
LongTerm Debt (Details Narrativ
LongTerm Debt (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jul. 26, 2022 | Nov. 30, 2023 | Sep. 30, 2022 | Nov. 30, 2023 | Nov. 30, 2022 | |
Borrowings | $ 2,577 | ||||
Annual interest rate | 1% | ||||
Investissement Quebec Financing Facility [Member] | |||||
Interest Expense | $ 21 | $ 21 | $ 63 | $ 65 | |
Accretion Expense | $ 18 | $ 17 | 53 | 2 | |
Repayments amount | $ 47 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | ||
Nov. 30, 2022 | Oct. 12, 2023 | Oct. 14, 2022 | |
Related Party Transactions | |||
Unvested Restricted Stock Units Forfeited | 1,000,000 | ||
Common Stock With A Fair Value | $ 7,740 | ||
Restricted Stock Units settlement | 800,000 | 400,000 |
Stockholders Equity (Details)
Stockholders Equity (Details) - USD ($) shares in Thousands, $ in Thousands | 9 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Balance, amount | $ 33,736 | $ 45,995 |
Issuance Of Shares Upon Settlement Of Restricted Stock Units, Shares | 51,963 | 51,531 |
Issuance of shares upon the exercise of stock options, Shares | 7,721 | |
Balance, amount | $ 18,902 | $ 28,383 |
Common Stock [Member] | ||
Balance, amount | $ 5 | $ 5 |
Balance, shares | 47,469,224 | 47,388,056 |
Issuance Of Shares Upon Settlement Of Restricted Stock Units, Shares | 51,963 | 51,531 |
Issuance Of Shares Upon Settlement Of Restricted Stock Units, Amount | $ 0 | $ 0 |
Issuance of shares upon the exercise of stock options, Shares | 7,721 | |
Issuance of shares upon the exercise of stock options, Amount | $ 0 | |
Balance, shares | 47,528,908 | 47,439,587 |
Balance, amount | $ 5 | $ 5 |
Stockholders Equity (Details Na
Stockholders Equity (Details Narrative) - shares shares in Thousands | 9 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Stockholders Equity Abstract | ||
Issuance Of Shares Upon Settlement Of Restricted Stock Units, Shares | 51,963 | 51,531 |
Issuance of shares upon the exercise of stock options, Shares | 7,721 |
Research and Development Expe_3
Research and Development Expenses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2023 | Nov. 30, 2022 | Nov. 30, 2023 | Nov. 30, 2022 | |
Research and Development Expenses | $ 1,833,000 | $ 4,582,000 | $ 8,361,000 | $ 15,133,000 |
Research and Development Expenses | (1,833,000) | (4,582,000) | (8,361,000) | (15,133,000) |
Employee Compensation [Member] | ||||
Research and Development Expenses | 1,268 | 1,995 | 4,087 | 6,350 |
Research and Development Expenses | (1,268) | (1,995) | (4,087) | (6,350) |
Machinery and Equipments [Member] | ||||
Research and Development Expenses | 4 | 1,059 | 1,240 | 4,133 |
Research and Development Expenses | (4) | (1,059) | (1,240) | (4,133) |
External Engineering [Member] | ||||
Research and Development Expenses | 262 | 707 | 1,558 | 2,914 |
Research and Development Expenses | (262) | (707) | (1,558) | (2,914) |
Plant and Laboratory Operating Expenses [Member] | ||||
Research and Development Expenses | 322 | 916 | 1,238 | 2,366 |
Research and Development Expenses | (322) | (916) | (1,238) | (2,366) |
Tax Credits [Member] | ||||
Research and Development Expenses | 221 | 300 | 269 | 1,207 |
Research and Development Expenses | (221) | (300) | (269) | (1,207) |
Other [Member] | ||||
Research and Development Expenses | 198 | 205 | 507 | 577 |
Research and Development Expenses | $ (198) | $ (205) | $ (507) | $ (577) |
General and Administrative Ex_3
General and Administrative Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2023 | Nov. 30, 2022 | Nov. 30, 2023 | Nov. 30, 2022 | |
General and administrative expenses | $ 2,458 | $ 3,183 | $ 7,767 | $ 18,230 |
Employee Compensation [Member] | ||||
General and administrative expenses | 835 | 911 | 2,548 | 10,728 |
Insurance [Member] | ||||
General and administrative expenses | 645 | 710 | 2,058 | 2,883 |
Professional Fees [Member] | ||||
General and administrative expenses | 720 | 1,278 | 2,251 | 3,841 |
Other (Member) | ||||
General and administrative expenses | $ 258 | $ 284 | $ 910 | $ 778 |
General and Administrative Ex_4
General and Administrative Expenses (Details Narrative) - USD ($) | 9 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | |
Net Reversal Of Stock-based Compensation | $ 1,140,000 | $ 9,969,000 |
Restricted Stock Units [Member] | ||
Net Reversal Of Stock-based Compensation | $ 7,740 | |
RSU shares | 1,000,000 |
ShareBased Payments (Details)
ShareBased Payments (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2023 | Nov. 30, 2022 | Nov. 30, 2023 | Nov. 30, 2022 | |
Share Based Payments | ||||
Number Of Options Outstanding, Beginning | 2,782,000 | 1,570,000 | 2,542,000 | 1,570,000 |
Number Of Options, Granted | 0 | 972,000 | 240,000 | 972,000 |
Number Of Options, Exercised | (10,000) | 0 | (10,000) | 0 |
Number Of Options Outstanding, Ending | 2,772,000 | 2,542,000 | 2,772,000 | 2,542,000 |
Exercisable, End Of Year | 1,810,000 | 1,670,000 | 1,810,000 | 1,670,000 |
Weighted Average Exercise Price Outstanding, Beginning | $ 5.08 | $ 6.87 | $ 5.27 | $ 6.87 |
Weighted Average Exercise Price, Granted | 0 | 2.68 | 3.11 | 2.68 |
Weighted Average Exercise Price, Exercised | 0.80 | 0 | 0.80 | 0 |
Weighted Average Exercise Price, Forfeited | 0 | 0 | 0 | 0 |
Weighted Average Exercise Price, Expired | 0 | 0 | 0 | 0 |
Weighted Average Outstanding, End Of Year | 5.10 | 5.27 | 5.10 | 5.27 |
Weighted Average Exercisable Price Outstanding, Ending | $ 6.53 | $ 6.84 | $ 6.53 | $ 6.84 |
ShareBased Payments (Details 1)
ShareBased Payments (Details 1) | 9 Months Ended |
Nov. 30, 2023 USD ($) $ / shares | |
Share Based Payments | |
Exercise price | $ / shares | $ 3.11 |
Risk-free interest rate | 3.84% |
Expected dividend yield | $ | $ 0 |
Expected volatility | 79% |
Expected life | 3 years |
ShareBased Payments (Details 2)
ShareBased Payments (Details 2) - Restricted Stock Units [Member] - $ / shares | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2023 | Nov. 30, 2022 | Nov. 30, 2023 | Nov. 30, 2022 | |
Number Of Units Outstanding, Beginning | 4,417,688 | 4,128,718 | 3,888,618 | 4,018,567 |
Number Of Units, Granted | 0 | 0 | 585,364 | 151,605 |
Number of Units, Settled | 0 | (38,878) | (51,963) | (51,531) |
Number of Units, Forfeited | 0 | (53,037) | (4,331) | (81,838) |
Number Of Units Outstanding, Ending | 4,417,688 | 4,036,803 | 4,417,688 | 4,036,803 |
Number Of Units Outstanding Vested, Ending | 1,635,241 | 1,563,497 | 1,635,241 | 1,563,497 |
Weighted Average Exercise Price Outstanding, Beginning | $ 6.52 | $ 7.37 | $ 7.09 | $ 7.42 |
Weighted Average Exercise Price, Granted | 0 | 0 | 2.93 | 5.14 |
Weighted Average Exercise Price, Settled | 0 | 13.08 | 8.66 | 13.07 |
Weighted Average Exercise Price, Forfeited | 0 | 13.40 | 8.21 | 11.74 |
Weighted Average Exercise Price Outstanding, Ending | 6.52 | 7.17 | 6.52 | 7.17 |
Weighted Average Exercise Price Outstanding Vested, Ending | $ 6.22 | $ 6.29 | $ 6.22 | $ 6.29 |
ShareBased Payments (Details Na
ShareBased Payments (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Nov. 30, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | Nov. 30, 2023 | |
Stock-based Compensation Expense Attributable To Stock Options | $ 168 | $ 551 | $ 1,181 | $ 501 |
Stock-based Compensation Attributable To Rsus | 229 | 323 | 8,788 | $ 639 |
Number Of Units, Granted | 1,000,000 | |||
Achievement of performance milestone | $ 7,740 | |||
General and Administrative Expenses [Member] | ||||
Number Of Units, Granted | 1,000,000 | |||
Stock-based Compensation Expense | 236 | 419 | 8,799 | $ 664 |
Achievement of performance milestone | 7,740 | |||
Research and Development Expenses [Member] | ||||
Stock-based Compensation Expense | $ 161 | $ 455 | $ 1,170 | $ 476 |
Equity Incentive Plan (Details)
Equity Incentive Plan (Details) - Equity Incentive Plan [Member[ - shares | 9 Months Ended | ||
Nov. 30, 2023 | Nov. 30, 2022 | Feb. 28, 2023 | |
Number Of Units Authorized, Beginning | 120,486 | ||
Automatic share reserve increase | 1,500,000 | ||
Units Granted | (825,364) | (1,123,605) | |
Units forfeited | 4,331 | 81,838 | |
Number Of Units Authorized, Ending | 799,453 | 1,938 |
Equity Incentive Plan (Details
Equity Incentive Plan (Details Narrative) - shares | 9 Months Ended | ||
Jul. 06, 2017 | Nov. 30, 2023 | Mar. 01, 2023 | |
Expected Life | 3 years | ||
2017 Equity Incentive Plan [Member] | |||
Common Stock Shares Reserved For Future Issuance | 3,000,000 | ||
Common Stock Shares Reserved For Future Issuance Annual Increase | 1,500,000 | 1,500,000 | |
Expected Life | 10 years | ||
Voting Power Percentage | 10 | ||
Life Of Option | 5 years | ||
Common Stock Outstanding Shares Percentage | 5% |
Warrants (Details Narrative)
Warrants (Details Narrative) shares in Thousands | 6 Months Ended |
Aug. 31, 2022 $ / shares shares | |
Warrants | |
Purchase shares of common stock | shares | 4,554,865 |
Common stock exercise price | $ / shares | $ 11 |
Commitments (Details Narrative)
Commitments (Details Narrative) - USD ($) $ in Thousands | Apr. 27, 2023 | Dec. 31, 2021 |
Purchase Of Long Lead Machinery | $ 8,546 | |
Cash Deposit | $ 8,460 | |
Loop Industries [Member] | ||
Ownership, Percentage | 49% | |
SK Geo Centric Ltd [Member] | ||
Ownership, Percentage | 51% |
Subsequent Event (Details Narra
Subsequent Event (Details Narrative) - Subsequent Event [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Non-dilutive financing | $ 66 |
Loop Technology [Member] | |
Non-dilutive financing | 33 |
European Joint Venture [Member] | |
Non-dilutive financing | $ 33 |