

The operating expenses of Loop Industries surged in Q3 2025 primarily due to the impairment of equipment, which amounted to $8,46012. This increase in impairment expense offset the decrease in research and development expenses, which dropped by $456, and the decrease in other expenses, which was $310 less than the previous quarter1. The impairment of equipment reflects a non-cash charge related to the termination of the SKGC joint venture, leading to a significant increase in assets expense for the quarter2.
- Impairment of Equipment: The most significant factor contributing to the surge in operating expenses was the impairment of equipment, amounting to $8,460. This non-cash charge was a result of the termination of the SKGC joint venture, which led to the company's assets being impaired12.
- Research and Development Expenses: Although there was a decrease of $456 in research and development expenses, this decrease was overshadowed by the significant impairment charge. This reduction in R&D spending may indicate a strategic shift or cost-control measures, but it was not enough to offset the impact of the impairment1.
- Other Expenses: There was also a decrease of $310 in other expenses compared to the previous quarter. This could include various operational costs that were lower in Q3 2025, but again, this decrease was minor compared to the substantial impairment charge1.
In summary, the surge in operating expenses in Q3 2025 was primarily driven by the impairment of equipment, which was a result of the company's strategic decision to terminate the SKGC joint venture. This impairment charge overshadowed the small decreases in research and development and other expenses, leading to a significant increase in operating expenses for the quarter.
