Loop Industries, Inc.

Previous wording

A key challenge in mechanical recycling is the degradation of PET's physical properties with each recycling cycle. Processes like shredding, washing, and melting can break down polymer chains, reducing strength and clarity, often leading to “downcycling” where the rPET is limited to lower-value applications rather than being recycled back into bottles or food packaging. Due to the progressive degradation of material properties and the accumulation of impurities, PET can typically only be mechanically recycled a limited number of times before its quality is too poor for further processing or valuable applications. The quality of mechanically recycled PET can vary considerably and often require blending with virgin PET to meet performance standards. This inconsistency poses difficulties for manufacturers aiming to incorporate rPET into products, particularly for demanding applications like food packaging.

Current wording

A key challenge in mechanical recycling is the degradation of PET's physical properties with each recycling cycle. Processes like shredding, washing, and melting can break down polymer chains, reducing strength and clarity, often leading to “downcycling” where the rPET is limited to lower-value applications rather than being recycled back into bottles or food packaging. Due to the progressive degradation of material properties and the accumulation of impurities, PET can typically only be mechanically recycled a limited number of times before its quality is too poor for further processing or valuable applications. The quality of mechanically recycled PET can vary considerably and often requires blending with virgin PET to meet performance standards. This inconsistency poses difficulties for manufacturers aiming to incorporate rPET into products, particularly for demanding applications like food packaging.

Previous wording

On September 23, 2025, Loop entered into a Securityholders Agreement with RCE to establish the framework for the governance, ownership, and operations of the European joint venture, Infinite Loop Europe SAS (the "Europe JV"). Under this agreement, RCE and Loop hold their interests in the Europe JV on a 90/10 basis to pursue the non-exclusive development, financing, construction, ownership, operation, and commercialization of chemical upcycling plants and related products using Loop's technology within Europe. The Securityholders Agreement provides the Europe JV with priority rights to evaluate European project opportunities, establishes financing arrangements between the shareholders, grants Loop options to participate in project equity, and confirms that Loop retains ownership of its intellectual property while granting the Europe JV limited use rights.

Current wording

On September 23, 2025, Loop entered into a formal agreement with Reed Circular Economy (“RCE”) to establish the framework for the governance, ownership, and operations of Infinite Loop Europe SAS (“Infinite Loop Europe”), a European entity formed to pursue the non-exclusive development, financing, construction, ownership, operation, and commercialization of chemical upcycling plants and related products using Loop’s technology within Europe. Under this agreement, RCE and Loop hold equity interests in Infinite Loop Europe on a 90/10 basis. In September 2025, Loop purchased 250 shares of Infinite Loop Europe for €0.25 ($0.305)in consideration for its 10% ownership stake. The agreement provides Infinite Loop Europe with priority rights to evaluate European project opportunities, establishes financing arrangements between the shareholders, grants Loop options to participate in up to 50% of project-level equity, and confirms that Loop retains ownership of its intellectual property while granting Infinite Loop Europe limited use rights.

Previous wording

The Europe JV is managed by a CEO proposed by RCE, with governance provided by a four-member Board of Directors where Loop is entitled to nominate one director and RCE nominates the remainder. Certain transactions that could risk disclosure of Loop's technology and certain related party transactions require unanimous Board approval. RCE has provided the Europe JV with a €10 million shareholder loan to fund the first royalty tranche under the License Agreement, with the loan accruing payment-in-kind interest at 11.9% per annum and maturing on December 27, 2027.

Current wording

Infinite Loop Europe is managed by a chief executive officer proposed by RCE, with governance provided by a four-member board of directors, of which Loop is entitled to nominate one director and RCE nominates the remaining directors. Certain transactions that could risk the disclosure of Loop’s technology, as well as certain related-party transactions, require unanimous board approval. RCE has provided Infinite Loop Europe with a €10 million shareholder loan to fund the first royalty tranche under the license agreement, which accrues payment-in-kind interest at 11.9% per annum and matures on December 27, 2027.

Previous wording

Loop and Ester anticipate that the total funding required for the India JV for the purposes of construction, development and operationalization of the project, including the initial working capital requirements, will be financed by a combination of debt and equity capital. Ester and Loop are each contributing 50% of the equity capital of the India JV. As of August 31, 2025, Loop and Ester had each made total equity contributionsof $1.9 million in cash to the India JV. The funds injected in the India JV are being used for preliminary project costs, which are mainly engineering fees.

Current wording

Loop and Ester anticipate that the total funding required for the India JV for the purposes of construction, development and operationalization of the project, including the initial working capital requirements, will be financed by a combination of debt and equity capital. Ester and Loop are each contributing 50% of the equity capital of the India JV. As of November 30, 2025, Loop and Ester had each made total equity contributions of $2.91 million in cash to the India JV. The funds injected in the India JV are being used for preliminary project costs, which are mainly engineering fees.

Previous wording

Loop has entered into an engineering services agreement with the India JV to provide engineering services and support the local engineering firm. This has resulted in Loop generating engineering services revenue of $0.2 million in the six-month period ended August 31, 2025. On June 22, 2025, Loop executed a $1.5 million engineering services agreement with the India JV to support it through construction as it moves towards breaking ground on the Infinite Loop™ India facility. This new engineering services agreement builds on the initial engineering services agreement with the India JV which was fulfilled over Q4 of fiscal 2025 and Q1 of fiscal 2026, underscoring the role of engineering services in Loop's commercialization strategy as an important and growing source of revenue.

Current wording

Loop has entered into an engineering services agreement with the India JV to provide engineering services and support the local engineering firm. This has resulted in Loop generating engineering services revenue of $0.33 million in thenine-month period ended November 30, 2025. On June 22, 2025, Loop executed a $1.5 million engineering services agreement with the India JV to support it through construction as it moves towards breaking ground on the Infinite Loop™ India facility. The Company commenced performance under this engineering services agreement in November 2025. This new engineering services agreement builds on the initial engineering services agreement with the India JV which was fulfilled over Q4 of fiscal 2025 and Q1 of fiscal 2026, underscoring the role of engineering services in Loop's commercialization strategy as an important and growing source of revenue.

Previous wording

Feedstock sourcing for the facility, of which there is abundant supply from textile waste in India, is well advanced. Furthermore, the India JV has engaged a leading global advisory firm to manage the debt syndication process for financing the construction of the Infinite Loop™ India facility.

Current wording

Feedstock sourcing for the facility, of which there is abundant supply from textile waste in India, is well advanced. Loop has signed a multi-year offtake agreement with Nike, Inc., which will serve as an anchor customer for the facility. Loop has also signed an offtake agreement with Taro Plats S.p.A. to supply 100% recycled, virgin-quality Loop™ DMT. Furthermore, the India JV has engaged a leading global advisory firm to manage the debt syndication process for financing the construction of the Infinite Loop™ India facility. The debt financing process is progressing, and term sheets have been received from international lenders.

Previous wording

Loop has entered into an engineering services agreement with the India JV to provide engineering services and support the completion of the engineering for the planned Infinite Loop™ manufacturing facility in India. This has resulted in Loop generating engineering services revenue of $0.2 million in the six-month period ended August 31, 2025.

Current wording

Loop has entered into an engineering services agreement with the India JV to provide engineering services and support the completion of the engineering for the planned Infinite Loop™ manufacturing facility in India. This has resulted in Loop generating engineering services revenue of $0.33 million in thenine-month period ended November 30, 2025.

Previous wording

In September 2025, we entered into a multi-year offtake agreement with a subsidiary of a leading branded sports apparel company responsible for its global sourcing. Under the terms of this agreement, we will supply agreed minimum volumes of "Twist," our circular polyester resin made entirely from textile waste, at an agreed upon price once our planned Infinite Loop™ India facility becomes operational. This agreement represents a significant commitment from a major global brand to incorporate our textile-to-textile recycled materials into their supply chain.

Current wording

In September 2025, we entered into a multi-year offtake agreement NIKE, Inc. ("Nike"), a global leader in athletic footwear and apparel. Under the terms of this agreement, we will supply agreed minimum volumes of Twist™, our virgin-quality circular polyester resin made exclusively from textile waste.

Previous wording

As of August 31, 2025, the Company had sold 116,358 shares of common stock under the Sales Agreement for aggregate gross proceeds of approximately $192,882 and net proceeds of approximately $186,557, after deducting sales agent commissions and other offering expenses. As of August 31, 2025, the Company had approximately $14.8 million of capacity remaining under the ATM Equity Offering.

Current wording

As of November 30, 2025, the Company had sold 510,435 shares of common stock under the Sales Agreement for aggregate gross proceeds of approximately$917,048 and net proceeds of approximately$888,923, after deducting sales agent commissions and other offering expenses. As of November 30, 2025, the Company had approximately $14.1 million of capacity remaining under the ATM Equity Offering.

Previous wording

As of August 31, 2025, we had 42 employees of which 18 work in research and development, 15 in engineering and operations, and 9 in administrative functions.

Current wording

As of November 30, 2025, we had 40 employees of which 16 work in research and development,16 in engineering and operations, and 8 in administrative functions.

Previous wording

Revenues for the three-month period ended August 31, 2025, decreased $23 to$0, as compared to$23 for the same period in 2024. The revenues of $23 for the three-month period ended August 31, 2024 resulted from sales of Loop™ PET resin.

Current wording

Revenues for the three-month period ended November 30, 2025, increased $34 to$86, as compared to$52 for the same period in 2024. The revenues of$86 for the three-month period ended November 30, 2025 resulted from engineering services provided to the India JV. The revenues of$52 for the three-month period ended November 30, 2024 resulted from sales of Loop™ PET resin.

Previous wording

Research and development expense for the three-month period ended August 31, 2025, decreased $1,102 to $843, as compared to $1,945 for the same period in 2024. The decrease was primarily attributable to a $642 decrease in external engineering expenses for design work for our Infinite Loop™ manufacturing process, and a $265 decrease in employee compensation expenses.

Current wording

Research and development expense for the three-month period ended November 30, 2025, decreased $410 to$967, as compared to$1,377 for the same period in 2024. The decrease was primarily attributable to a $68 decrease in external engineering expenses for design work for our Infinite Loop™ manufacturing process, and a $117 decrease in employee compensation expenses.

Previous wording

General and administrative expenses for the three-month period ended August 31, 2025, decreased $724 to $1,871, as compared to $2,595 for the same period in 2024. The decrease was primarily attributable to a $395 decrease in professional fees, which was mainly attributable to legal costs related to our partnerships with Reed Societe Generale Group and Ester incurred in the three-month period ended August 31, 2024, and a $162 decrease in employee compensation.

Current wording

General and administrative expenses for the three-month period ended November 30, 2025, decreased $648 to$1,500, as compared to$2,148 for the same period in 2024. The decrease was primarily attributable to a$438 decrease in professional fees, which was mainly attributable to legal costs related to our partnerships with Reed Societe Generale Group and Ester incurred in the three-month period ended November 30, 2024, and a$158 decrease in employee compensation.

Previous wording

Interest and other financial expenses increased by $300 for the three-month period ended August 31, 2025. This increase is mainly attributable to the accrued PIK dividend on the Series B Convertible Preferred Stock issued to RCE recorded as an interest expense for $341 in the three-month period ended August 31, 2025 (2024 – nil).

Current wording

Interest and other financial expenses increased by$326 for the three-month period ended November 30, 2025. This increase is mainly attributable to the accrued PIK dividend on the Series B Convertible Preferred Stock issued to RCE recorded as an interest expense for$360 in the three-month period ended November 30, 2025 (2024 – nil).

Previous wording

The net loss for the three-month period ended August 31, 2025, decreased $1,635 to$3,204, as compared to$4,839 for the same period in 2024. This decrease was primarily due to the decreaseof$1,102 in research and development expenses and the decrease of$724 in general and administrative expenses, which were partially offset by the$300 increase in interest and other financial expenses.

Current wording

The net loss for the three-month period ended November 30, 2025, decreased $8,968 to$2,944, as compared to$11,912 for the same period in 2024. This decrease was primarily due to the decrease of$410 in research and development expenses, a decrease of$648 in general and administrative expenses, and a decrease of $8,460 in the prior year quarter due to an impairment charge for machinery and equipment. These decreases were partially offset by the$326 increase in interest and other financial expenses.

Previous wording

The following table summarizes our operating results for the six-month periods ended August 31, 2025 and 2024, in thousands of U.S. Dollars.

Current wording

The following table summarizes our operating results for thenine-month periods ended November 30, 2025 and 2024, in thousands of U.S. Dollars.

Previous wording

Revenues for the six-month period ended August 31, 2025, increased $223 to $252, as compared to $29 for the same period in 2024. The revenues for the six-month period ended August 31, 2025 resulted from $244 in engineering fees and $8 from sales of Loop™ PET resin produced using monomers manufactured at the Terrebonne Facility. The revenues of $29 for the six-month period ended August 31, 2024 resulted from sales of Loop™ PET resin.

Current wording

Revenues for thenine-month period ended November 30, 2025, increased $257 to$338, as compared to$81 for the same period in 2024. The revenues for thenine-month period ended November 30, 2025 resulted from$330 in engineering fees and$8 from sales of Loop™ PET resin produced using monomers manufactured at the Terrebonne Facility. The revenues of$81 for thenine-month period ended November 30, 2024 resulted from sales of Loop™ PET resin.

Previous wording

Research and development expense for the six-month period ended August 31, 2025, decreased $1,965 to $2,217, as compared to $4,182 for the same period in 2024. The decrease was primarily attributable to a $1,265 decrease in external engineering expenses for design work for our Infinite Loop™ manufacturing process, and a $578 decrease in employee compensation expenses, partially offset by a $83 increase in stock-based compensation expenses.

Current wording

Research and development expense for thenine-month period ended November 30, 2025, decreased $2,377 to$3,182, as compared to$5,559 for the same period in 2024. The decrease was primarily attributable to a$1,283 decrease in external engineering expenses for design work for our Infinite Loop™ manufacturing process, and a$696 decrease in employee compensation expenses, partially offset by a$59 increase in stock-based compensation expenses.

Previous wording

General and administrative expenses for thesix-month period ended August 31, 2025, decreased $1,987 to$3,519, as compared to$5,506 for the same period in 2024. The decrease was primarily attributable to a $1,289 decrease in professional fees, which was mainly due to legal costs related to our partnerships with Reed Societe Generale Group and Ester incurred in the six-month period ended August 31, 2024, a decrease of $229 in employee compensation expenses and a $160 decrease in stock-based compensation expense.

Current wording

General and administrative expenses for thenine-month period ended November 30, 2025, decreased $2,636 to$5,018, as compared to$7,654 for the same period in 2024. The decrease was primarily attributable to a$1,728 decrease in professional fees, which was mainly due to legal costs related to our partnerships with Reed Societe Generale Group and Ester incurred in thenine-month period ended November 30, 2024, adecrease of$385 in employee compensation expenses and a$150 decrease in stock-based compensation expense.

Previous wording

Loss on equity accounted investment increased by $345 for the six-month period ended August 31, 2025. This loss relates to the Company's 50% portion of the loss incurred by the India JV for the six-month period ended August 31, 2025, during which the India JV incurred preliminary project costs for the planned Infinite Loop™ facility in India, which are mainly engineering fees.

Current wording

Loss on equity accounted investment increased by $410 for thenine-month period ended November 30, 2025. This loss relates to the Company's 50% portion of the loss incurred by the India JV for thenine-month period ended November 30, 2025, during which the India JV incurred preliminary project costs for the planned Infinite Loop™ facility in India, which are mainly engineering fees.

Previous wording

Interest and other financial expenses increased by $658 for the six-month period ended August 31, 2025. This increase is mainly attributable to the accrued PIK dividend on the Series B Convertible Preferred Stock issued to RCE recorded as an interest expense for $681 in the six-month period ended August 31, 2025 (2024 – nil).

Current wording

Interest and other financial expenses increased by$984 for thenine-month period ended November 30, 2025. This increase is mainly attributable to the accrued PIK dividend on the Series B Convertible Preferred Stock issued to RCE recorded as an interest expense for$1,041 in thenine-month period ended November 30, 2025 (2024 – nil).

Previous wording

The net loss for the six-month period ended August 31, 2025, decreased $3,377 to $6,651, as compared to $10,028 for the same period in 2024. This decrease was primarily due to the decrease of $1,987 in general and administrative expenses and the decrease of $1,965 in research and development expenses, which were partially offset by the $658 increase in interest and other financial expenses and the increase of $345 in loss on equity accounted investment.

Current wording

The net loss for thenine-month period ended November 30, 2025, decreased $12,345 to$9,595, as compared to$21,940 for the same period in 2024. This decrease was primarily due to the decrease of$2,636 in general and administrative expenses, a decrease of$2,377 in research and development expenses, and a decrease of $8,460 in the prior year due to an impairment charge for machinery and equipment. These decreases were partially offset by a$984 increase in interest and other financial expenses and the increase of $410 in loss on equity accounted investment.

Previous wording

Management continuously monitors the Company's cash resources against its cash commitments to determine whether there is sufficient liquidity to fund its costs for at least twelve months from the financial statement issuance date. In preparing its going concern assessment in accordance with US GAAP, the Company included cash flows that meet the "probable" threshold under ASC 205-40 in its liquidity assessment and has excluded forecasted cash flows that lack substantive support or binding commitments. Based on this assessment, management has determined that current available liquidity will be sufficient to meet the Company’s obligations, commitments and budgeted operating expenditures for at least twelve months from the issuance date of these unaudited interim condensed consolidated financial statements.

Current wording

Since its inception, the Company has been in the pre-commercialization stage with no recurring revenues, and its ongoing operations and commercialization plans have been financed primarily by raising equity and debt. The Company has recurring net losses, negative cash flow from operating activities since its inception, and a net capital deficiency. Management continuously monitors the Company's cash resources against its cash commitments to determine whether there is sufficient liquidity to fund its costs for at least twelve months from the financial statement issuance date. In preparing this going concern assessment in accordance with US GAAP, the Company included cash flows that meet the 'probable' threshold under ASC 205-40 in its going concern evaluation and has excluded forecasted cash flows that lack substantive support or binding commitments.

Previous wording

The Company's ability to move to the next stage of its strategic development and participate in the construction of manufacturing facilities through joint ventures is dependent on, among other factors, whether the Company can obtain the necessary funding through a combination of further technology licensing and engineering services arrangements, government incentive programs, and/or the issuance of debt and/or equity. Management is pursuing options to secure financing for Loop's equity contribution for the India JV and to cover ongoing cash requirements through to the start of commercial operations in India. There is no assurance that the Company will be successful in attracting additional funding. Even if additional financing is available, it may not be available on terms favorable to the Company. Inability to secure additional financing on favorable terms, or to obtain such financing at all when required, would have an adverse effect on the Company’s financial position and on its ability to execute its business plan.

Current wording

The Company’s ability to continue as a going concern and execute upon management's plans to move to the next stage of its strategic development is dependent on, among other factors, whether the Company can obtain the necessary financing through a combination of the issuance of debt and/or equity, technology licensing and engineering services arrangements, and/or financing from government incentive programs. While the Company is actively engaged in financing discussions, there is no assurance that the Company will be successful in attracting additional funding on terms acceptable to the Company.

Previous wording

We have a long-term debt obligation to Investissement Québec in connection with a financing facility (the “Financing Facility”) for the expansion of the Terrebonne Facility up to a maximum of$3,347. We received the first disbursement in the amount of$1,608 on February 21, 2020 and the second disbursement in the amount of$1,740 on August 26, 2021. The loan can be repaid at any time by us without penalty. The loan's interest rate was initially set at 2.36% and there was a 36-month moratorium on both capital and interest repayments as of the first disbursement date. Under the original terms of the Financing Facility, at the end of the 36-month moratorium, capital and interest was repayable in 84 monthly installments. There is no remaining amount available under the Financing Facility after the second disbursement.

Current wording

We have a long-term debt obligation to Investissement Québec in connection with a financing facility (the “Financing Facility”) for the expansion of the Terrebonne Facility up to a maximum of$3,291. We received the first disbursement in the amount of$1,580 on February 21, 2020 and the second disbursement in the amount of$1,710 on August 26, 2021. The loan can be repaid at any time by us without penalty. The loan's interest rate was initially set at 2.36% and there was a 36-month moratorium on both capital and interest repayments as of the first disbursement date. Under the original terms of the Financing Facility, at the end of the 36-month moratorium, capital and interest was repayable in 84 monthly installments. There is no remaining amount available under the Financing Facility after the second disbursement.

Previous wording

On November 21, 2022, the Company and Investissement Québec entered into an agreement to amend the existing Financing Facility which modifies the repayments of the principal amount (the “Financing Facility Amendment”). As per the Financing Facility Amendment, a total of $36 of the principal amount was repayable in monthly installments in the fiscal year ended February 29, 2024, with the remainder of the principal amount being repayable in 72 monthly installments.

Current wording

On November 21, 2022, the Company and Investissement Québec entered into an agreement to amend the existing Financing Facility which modifies the repayments of the principal amount (the “Financing Facility Amendment”). As per the Financing Facility Amendment, a total of$36 of the principal amount was repayable in monthly installments in the fiscal year ended February 29, 2024, with the remainder of the principal amount being repayable in 72 monthly installments.

Previous wording

On February 28, 2024, the Company and Investissement Québec entered into an agreement to amend the existing Financing Facility which modifies the repayments of the principal amount (the “Second Financing Facility Amendment”). As per the Second Financing Facility Amendment, a total of $73 of the principal amount was repayable in monthly installments in the fiscal year ended February 28, 2025, with the remainder of the principal amount being repayable in 60 monthly installments. Pursuant to the Second Financing Facility Amendment the interest rate of the Financing Facility was increased from 2.36% to 3.36%.

Current wording

On February 28, 2024, the Company and Investissement Québec entered into an agreement to amend the existing Financing Facility which modifies the repayments of the principal amount (the “Second Financing Facility Amendment”). As per the Second Financing Facility Amendment, a total of$72 of the principal amount was repayable in monthly installments in the fiscal year ended February 28, 2025, with the remainder of the principal amount being repayable in 60 monthly installments. Pursuant to the Second Financing Facility Amendment the interest rate of the Financing Facility was increased from 2.36% to 3.36%.

Previous wording

On July 26, 2022, Loop Canada, Inc., a wholly-owned subsidiary of the Company, entered into an Operating Credit Facility (the “Credit Facility”) with a Canadian bank. The Credit Facility allows for borrowings of up to$2,547 in aggregate principal amount. The Credit Facility is secured by the Company's Terrebonne, Québec property and is subject to a minimum equity covenant, tested quarterly with which the Company was in compliance as at August 31, 2025. All borrowings under the Credit Facility will bear interest at an annual rate equal to the bank's Canadian prime rate plus 1.0%. As at August 31, 2025, the$2,547 Credit Facility was available and undrawn.

Current wording

On July 26, 2022, Loop Canada, Inc., a wholly-owned subsidiary of the Company, entered into an Operating Credit Facility (the “Credit Facility”) with a Canadian bank. The Credit Facility allows for borrowings of up to$2,504 in aggregate principal amount. The Credit Facility is secured by the Company's Terrebonne, Québec property and was initially subject to a minimum equity covenant, tested quarterly. All borrowings under the Credit Facility will bear interest at an annual rate equal to the bank's Canadian prime rate plus 1.0%. As at November 30, 2025, the$2,504 Credit Facility was available and undrawn.

Previous wording

During the three months ended August 31, 2025, the Company issued and sold an aggregate of 116,358 shares of its common stock pursuant to its ATM Equity Offering program for aggregate gross proceeds of approximately $193. After deducting sales agent commissions and other offering expenses totaling approximately $6, the Company received net proceeds of approximately $187 from such sales. The shares were sold at prevailing market prices at the time of sale, with an average selling price of $1.66 per share. The net proceeds from these equity transactions were used for general corporate purposes and to strengthen the Company's working capital position. The Company may, from time to time, continue to utilize its ATM Equity Offering program to raise additional capital, subject to market conditions and the Company's capital needs, though there can be no assurance as to if or when any additional sales may occur under the program.

Current wording

During the three months ended November 30, 2025, the Company issued and sold an aggregate of 394,077 shares of its common stock pursuant to its ATM Equity Offering program for aggregate gross proceeds of approximately$724. After deducting sales agent commissions and other offering expenses totaling approximately$22, the Company received net proceeds of approximately$702 from such sales. The shares were sold at prevailing market prices at the time of sale, with an average selling price of$1.84 per share. The net proceeds from these equity transactions were used for general corporate purposes. The Company may, from time to time, continue to utilize its ATM Equity Offering program to raise additional capital, subject to market conditions and the Company's capital needs, though there can be no assurance as to if or when any additional sales may occur under the program.

Previous wording

A summary of cash flows for the six months ended August 31, 2025 and 2024 was as follows, in thousands of U.S. Dollars:

Current wording

A summary of cash flows for the nine months ended November 30, 2025 and 2024 was as follows, in thousands of U.S. Dollars:

Previous wording

During the six-month period ended August 31, 2025, we used $5,604 in operations compared to $6,775 during the six-month period ended August 31, 2024. As discussed above in the Results of Operations, the year-over-year decrease is mainly due to decreased operating expenses as we have completed the upgrade of the Terrebonne Facility and our basic design package for the Infinite Loop™ full-scale manufacturing facilities, and lower legal costs related to forming our partnerships with Reed Societe Generale Group and Ester.

Current wording

During thenine-month period ended November 30, 2025, we used$7,372 in operations compared to$8,635 during thenine-month period ended November 30, 2024. As discussed above in the Results of Operations, the year-over-year decrease is mainly due to decreased operating expenses as we have completed the upgrade of the Terrebonne Facility and our basic design package for the Infinite Loop™ full-scale manufacturing facilities, and lower legal costs related to forming our partnerships with Reed Societe Generale Group and Ester.

Previous wording

During thesix months ended August 31, 2025, we used $133 in investing activities compared to $325 during thesix-month period ended August 31, 2024. During thesix-month period ended August 31, 2024 During thesix-month period ended August 31, 2025, we made investments in intangible assets of $133, as compared to $325 for the same period in 2024, particularly to file patents for the Infinite Loop™ technology in the United States and around the world.

Current wording

During thenine months ended November 30, 2025, we used$1,159 in investing activities compared to$86 during thenine-month period ended November 30, 2024. During thenine-month period ended November 30, 2025, we made investments in intangible assets of$199, as compared to$454 for the same period in 2024, particularly to file patents for the Infinite Loop™ technology in the United States and around the world. Additionally, we made investments of$960 in our joint venture with Ester during thenine-month period ended November 30, 2025, as compared to $nil for the same period in 2024.

Previous wording

During thesix months ended August 31, 2025, we repaid $136 of long-term debt and received net proceeds from our ATM Equity Offering of $187. During thesix months ended August 31, 2024, we borrowed $1,587 under the Credit Facility and we repaid $50 of long-term debt.

Current wording

During thenine months ended November 30, 2025, we repaid$215 of long-term debt and received net proceeds from our ATM Equity Offering of$889. During thenine months ended November 30, 2024, we borrowed$2,372 under the Credit Facility and we repaid$60 of long-term debt.