Loop Industries' Q3 2025: Unpacking Contradictions in Project Timelines, Partnerships, and Revenue Recognition

Strategic Partnership and Licensing:
- Loop Industries finalized a EUR 20 million financing deal with Societe Generale, including a EUR 10 million convertible preferred security and the first license to use Loop's technology in Europe.
- This deal signifies a crucial milestone for Loop, enabling the company to license its technology in higher-cost manufacturing regions and develop an Infinite Loop facility in Europe.

Cash Flow and Financial Management:
- The company's cash burn rate decreased to $2.8 million in Q3, lower than the previous quarter.
- This improvement is attributed to reduced R&D and G&A expenses, reflecting the maturity of Loop's production facility and increased operational efficiency.

India Joint Venture and Market Focus:
- Loop entered a service agreement with its India JV partner for engineering services, which are expected to generate revenue for the company.
- The focus on India is driven by the availability of low-cost manufacturing resources and proximity to the fashion supply chain, enabling a circular fashion approach.

SKGC Partnership Termination:
- Loop terminated its joint venture with SKGC due to strategic differences, as SKGC's financial issues and the high-cost manufacturing environment in Korea did not align with Loop's objectives.
- The company now prioritizes low-cost manufacturing countries and licensing deals in higher-cost regions, reflecting a strategic shift in its market approach.