Investment Thesis
Loop Industries is a deeply distressed company with negative stockholders' equity (-$7.3M), massive operating losses (-$9.6M net income) against minimal revenue ($338K), and negative operating cash flow (-$7.4M). The balance sheet insolvency combined with persistent cash burn creates material bankruptcy risk without significant operational improvements or external capital infusion.
Strengths
- Maintains $5.2M cash position providing near-term runway
- Interest coverage ratio of 24x suggests some debt servicing capacity
- Current ratio of 1.69x indicates reasonable short-term liquidity position
Risks
- Negative stockholders' equity of -$7.3M represents technical balance sheet insolvency
- Operating cash flow of -$7.4M indicates company is burning cash with no positive operations
- Revenue of only $338K is insufficient to support $18.6M in liabilities and operating infrastructure
- Persistent net losses of -$9.6M with negative cash flow trajectory unsustainable
Key Metrics to Watch
- Revenue growth trajectory and achievement of meaningful sales volume
- Operating cash flow return to positive territory
- Stockholders' equity recovery above zero
- Quarterly cash burn rate and runway to profitability or capital raise
Financial Metrics
Revenue
338.0K
Net Income
-9.6M
EPS (Diluted)
$-0.07
Free Cash Flow
-7.4M
Total Assets
11.3M
Cash
5.2M
Profitability Ratios
Gross Margin
N/A
Operating Margin
1,094.4%
Net Margin
-2,838.8%
ROE
N/A
ROA
-85.0%
FCF Margin
-2,181.1%
Balance Sheet & Liquidity
Current Ratio
1.69x
Quick Ratio
1.67x
Debt/Equity
N/A
Debt/Assets
164.9%
Interest Coverage
23.97x
Long-term Debt
3.0M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-12T18:33:19.245278 |
Data as of: 2025-11-30 |
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