LOOP INDUSTRIES, INC.

Red flags

• Management states that $2.356 million of cash and $2.566 million of available credit will not fund operations, obligations, and commitments for the next 12 months; the filing includes a going-concern warning.
• FY2026 net loss was $12.2 million, compared with only $0.5 million of engineering-services revenue; material licensing or product revenue may be several years away.
• The company has recurring operating losses, negative operating cash flow since inception, and a net capital deficiency, making future equity financing and dilution likely.
• The India JV facility requires approximately $165–170 million of initial funding, while Loop must fund its equity contribution and ongoing costs before receiving JV returns.
• Strategic projects have already been abandoned or suspended: the SKGC South Korea JV was terminated in January 2025 and the SUEZ/SKGC European partnership was suspended in 2022.
• Founder Moshe Solomita held 76.02% of voting control as of February 28, 2026 through one Series A preferred share, which also provides approval rights over major equity, debt, merger, and capitalization actions.