Loop Industries, Inc.

Good morning, ladies and gentlemen. Thank you for standing by and welcome to Loop Industries' third quarter fiscal 2026 corporate update call. At this time, all participants are in a listen-only mode. Following prepared remarks, we will open the call for questions. Instructions will be provided at that time. This conference call is being recorded today, Thursday, January 15th, 2026. The earnings release accompanying this call was issued after the market closed yesterday, Wednesday, January 15th, 2026. On the call today are Daniel Solomita, founder and chief executive officer, Spencer Hart, chief financial officer, and Kevin O'Dowd, head of investor relations. I would now like to turn the call over to Kevin O'Dowd to read the company's forward-looking statements disclaimer.

Thank you, operator. Before we begin, please note that today's discussion will include forward-looking statements within the meaning of U.S. security laws. These statements relate to our expectations, projections, beliefs, future plans and strategies, anticipated events, and other matters regarding future performance. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied. For a discussion of these risks and uncertainties, please refer to the risk factors in forward-looking statement sections of our most recent annual report on Form 10-K, Our quarterly report on Form 10-Q filed with the SEC and the earnings release issued after earlier today. These filings are available on the SEC's website at sec.gov or through our investor relations teams. With that, I'll now turn the call over to Daniel Salamita, Founder and Chief Executive Officer of Loop Industries.

Thank you very much, Kevin. with a busy quarter for Loop as we move towards the construction phase of our Infinite Loop India manufacturing facility and progressing with our partnership with Reed Sock, Associate General Group for our project in Europe. I'm pleased to report on several positive developments. The Infinite Loop India project is on budget and on schedule. Before getting into the details, I want to officially welcome Spencer Hart, joining Loop as CFO. I've gotten to know Spencer well over the past year since he joined our board of directors. His leadership and knowledge of the capital markets and financing structures will be a great asset for Loop moving forward. In Q3, we announced that we have executed a supply contract with Nike, the large American sports apparel company. to be an anchor customer for the Infinite Loop India manufacturing facility. The contract is for Loop to supply Nike with a fixed amount of twist, our textile-to-textile polyester resin, on an annual basis at a fixed price for multiple years. There's a guaranteed take-or-pay element to the contract as well, which means if Nike does not take the delivery of the material, they still have to pay us a percentage of the sales price. We are currently in discussions with several CPG and apparel brand companies to secure additional off-take agreements. Textile to textile is becoming a very important growth driver as European regulations are being put in place to mandate more recycled content in clothing and recycled content coming from textile to textile, which means starting from a polyester textile waste and producing a new polyester textile with it. they're forcing the apparel companies to find a solution to recycling old clothing at the end of its life. Loop's technology is uniquely suited to recycle post-consumer textile waste. Post-consumer textile waste is difficult to recycle because of the different components that go into making the clothing. You often have polyester mixed with cotton, polyester mixed with nylon, cotton in zippers, et cetera. And all of these components have different monomers or starting components. And for this reason, it poses a tremendous challenge to recycle. Typical recycling is done at very high pressure, high temperature, where you're either forcing the depolymerization to be done under very extreme conditions, or you're simply just melting the plastic down into a new form. And both of those do not work well for the textile industry because of the different components. And where Loop's technology overcomes that is because of our low-temperature depolymerization, What we do is at very low temperature, we break down the polyester into the DMT and MEG. And because of the low temperature, all of the other components, like the cotton, the nylon, the buttons, and the zippers, they stay whole. And we filter them out after the depolymerization, which gives us a huge advantage. And that's why Loop's technology is uniquely suited to be able to process this type of clothing waste. Our project in India is also located next to a free trade zone, so we'd be able to import the waste clothing from Europe or from other parts of the world into that free trade zone and then transport that to our facilities to help the brands in Europe be able to recycle the material once they've collected it. So it's a really huge benefit to Loop. And this government regulation is starting in 2026 and is going to start being enforced in 2028, which is exactly the right timing for us. You know, our plant is scheduled to be completed construction at the end of 27. So 2028 is a perfect timing for us to be able to do this. So because of all of these regulations, we're really seeing an uptick in the demand for the textile-to-textile side. And, you know, we were on the phone the other day with a very large textile manufacturing clothing company, and they said textile to textile is not a nice to have anymore. It's a must-have because of the European regulation. So that's going to be a big driving force in the future. Sixty-six percent of all of the PET and polyester manufactured in the world, which I believe is about 85 million tons per year, 85 million tons per year, is coming from the polyester textile side. So, it's a really huge shift in the marketplace, which we are really uniquely suited to be able to capitalize on. And the Indian facility is perfectly located for that. Besides the low-cost manufacturing, like I said, it's near the textile hub in India, the Gujarat province, a lot of textiles. So, the main feedstock we'll be using for the process is textile for the textile to textile. So, it's really perfect timing for us and perfect timing for this Indian project. On the engineering front, we hired Toyo, the large Japanese engineering and construction company to complete the detailed engineering, which started November 1st and runs through the construction of the plant. Toyo has a very large presence in India and has done tremendous work to date. You know, our engineering team is now fully deployed on working for this project and generating revenue for Loop from this project from the joint venture. So, we really feel that we're in really good hands with Toyo. They're doing an excellent job, and we're excited to be working with them through the construction of the facility. Debt syndication is moving well. We are building a syndicate of lenders for the project debt financing. We've received several term sheets from multinationals. lateral development banks, sovereign wealth funds, as well as international and local commercial banks. The terms so far are in line with our expectations, and we anticipate closing the debt financing in the coming months in line with our project schedule. So that's really the updates on India. As far as the progress with our partnership with Reed Societe Generale Group, as you know, we've licensed our – we sold Reed SofGen a license to our technology to build one plant in Europe. SofGen has spent time working on site selection. I believe they started off with looking at 20 sites across Europe. They've narrowed it down to three. There's one lead site in Germany that is being – being negotiated right now. And we think that should be finalized very shortly, sometime probably the end of January, beginning of February, at which time we anticipate to begin generating meaningful revenue and profits from providing the engineering for that project. So, the engineering and milestone payments will be, you know, over the next three years for the project. And we believe that that would cover all of Loop's back office expenses for the next several years. Cash operating expenses for the quarter were 2.2 million, reflecting a year-over-year decrease of 1.1 million. At the end of the third quarter, we had total liquidity available of $7.7 million. In the coming quarters, this number will continue to decrease. The operating cash expenses will continue to decrease as more expenses are transferred to the joint venture in India and the project in Europe. as well as we've seen some meaningful reductions in other areas of our spend. Our focus is on raising the remaining financing required for our equity contribution to ELITE and for the operating expenses until the startup of the Indian facility. We are engaged with multiple parties regarding financing to fund our investment in ELITE. This capital along with anticipated engineering revenues derived from the India and European projects is expected to fund LOOP's ongoing operations until its first facility becomes operational. I'd like to turn it over to Spencer Hart now, our new CFO, and let Spencer say a few words.