Loop Industries, Inc.

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Loop Industries' second quarter fiscal 2026 corporate update call. After the presentation, you will have the opportunity to ask any questions, which you can do so by pressing star followed by the number one on your telephone keypad at any time. This conference is being recorded today, Thursday, October 16th, 2025. The earnings release accompanying this call was issued yesterday. The earnings release accompanying this call was issued after the market closed yesterday, Wednesday, October 15, 2025. On our call today are Loop Industries Chief Executive Officer Daniel Solomita and Kevin O'Dowd, Head of Investor Relations. I would now like to turn the conference over to Kevin O'Dowd to read the disclaimer regarding forward-looking statements.

Thank you, Operator. Before we begin, please note that this morning's discussion is will include forward-looking statements within the meaning of U.S. security laws. These statements relate to our expectations, beliefs, projections, future plans and strategies, anticipated events, and other future performance matters. Forward-looking statements involve risks and uncertainties that may cause actual results to offer different materials. For a more complete discussion of these risks and uncertainties, please refer to the risk factors and forward looking statement sections and our most recently quarterly report on Form 10-Q filed yesterday with the SEC. Our annual report on Form 10-K filed with the SEC on May 29th, 2025 as amended in the Form 10-K-A filed May 30th, 2025 in our accompanying press release issued yesterday. These documents are available at www.sec.gov loopindustries.com or form our investor relations team. With that, I'll turn the call over to Daniel Salamita, Chief Executive Officer and founder of Loop Industries. Go ahead, Daniel.

Thank you very much, Kevin. Thank you very much, Kevin. Thank you, everyone, for joining the call this morning. Q2 is an extremely busy quarter for Loop as we move towards the construction phase of the Infinite Loop India manufacturing facility. I'm pleased to report several positive developments. We have executed a supply contract with a leading sports apparel company in the world to be our anchor customer for the Infinite Loop India manufacturing facility. The contract is for Loop to supply our customer with a fixed amount of Twist, our textile-to-textile polyester resin on an annual basis at a fixed price for multiple years. There is a guaranteed take-or-pay element to the contract as well. This means if the customer does not take delivery of the material, they still pay us a percentage of the sales price. So it's a very strong contract, very bankable contract. We also executed a supply contract with Taro Plast, an Italian specialty polymer manufacturer, to buy DMT produced from the Infinite Loop India. DMT is a very interesting market for Loop, as we are one of the only companies that can supply virgin quality DMT made from 100% recycled content, and it allows us to have a diversified portfolio. Today, we offer textile-to-textile polyester resin for the apparel and home good companies, FDA-approved bottle-grade resin for the packaging industry, and a DMT monomer or MEG monomer. We are currently in discussion with several CPG and apparel brand companies to secure additional offtake agreements for the Infinite Loop India project. Elite, our JV in India with Esther Industries, executed an agreement for the acquisition of approximately 93 acres of land in Gujarat, India for a total consideration of $10.5 million. This represents a $5 million reduction in the amount included in our project cost estimate. The site has excellent strategic access to textile waste for feedstock, renewable energy, and industrial infrastructure. As a reminder, the total cost estimate produced by Tata Consulting Engineers was $176 million. We are currently trending to complete construction below this number as we are $6 million under budget at this date. KPMG has done a great job so far in building a syndicate of lenders for the project debt financing. We have begun to receive term sheets from multilateral development banks, sovereign wealth funds, as well as international and local commercial banks. The proposed terms we have seen so far are in line with our expectations. In Q2, we executed two textile industry partnerships, one with Shinkong from Taiwan and one with Shusong from South Korea. Both companies are industry leaders in textile spinning and have long-standing relationships with all of the apparel companies and fabric mills. Most apparel companies are not used to buying polyester resin. They buy spun fiber or rolls of fabric or even completed garments. Integrating into these supply chains can be difficult, which is why we executed these partnerships. These partnerships allow twists our branded textile-to-textile polyester resin, to have an expanded reach beyond our customer base and will be offered by Hoisong and Shinkong to their customers who buy spine fiber from them today. In our partnership with Reed's Societe Generale Group, we are coming close to completing the site selection process in Europe for the initial Infinite Loop facility. The final remaining sites all include have most or in some cases all of the utilities needed for our technology. This will significantly reduce the project's overall capex. All of the sites have direct access to a port, which allows for Loop's technology to be modularized, again driving down capex. The standardized modules will be built in a low-cost manufacturing country and then shipped and assembled onsite. Once the site is acquired, we anticipate to begin generating meaningful revenues and profits from engineering and milestone payments, which would cover all of Loop's back office expenses for the next several years. Cash operating expenses for the quarter were $2.43 million, reflecting a year-over-year decrease of $1.74 million. At the end of the second quarter, we had total available liquidity of $9.86 million. We will bring that $2.43 million down further every quarter for the foreseeable future. In conclusion, I am very pleased with the progress being made on both projects. We are hitting all of our milestones needed to ensure successful projects. With that, I'll open it up to any questions.