v3.26.1
Note 8 - Financial Instruments and Management of Financial Risk
 12 Months Ended
Feb. 28, 2026
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

8. Financial Instruments and Management of Financial Risk

 

Carrying values and fair values

 

The following table presents the fair value of the Company’s financial liabilities at February 28, 2026 and February 28, 2025:

 

  

Fair Value at February 28, 2026

  

Carrying

     

Level in the

  

Amount

  

Fair Value

 

hierarchy

Financial liabilities measured at amortized cost:

         

Series B Convertible Preferred Stock (Note 12)

 $12,054  $11,770 

Level 2

Long-term debt (Note 13)

 $3,035  $2,873 

Level 2

Due to customer (Note 10)

 $900  $897 

Level 2

 

  

Fair Value as at February 28, 2025

  

Carrying

     

Level in the

  

Amount

  

Fair Value

 

hierarchy

Financial liabilities measured at amortized cost:

         

Series B Convertible Preferred Stock (Note 12)

 $10,647  $10,647 

Level 2

Long-term debt (Note 13)

 $3,085  $3,085 

Level 2

Due to customer (Note 10)

 $832  $832 

Level 2

 

The fair value of cash and cash equivalents, accounts receivable, and accounts payable and accrued liabilities approximate their carrying values due to their short-term maturity.

 

Currency Risk

 

We are subject to risks associated with currency fluctuations, and changes in foreign currency exchange rates could impact our results of operations. We operate mainly through two entities, Loop Industries, Inc., which is a Nevada corporation and has a U.S. dollar functional currency, and our wholly-owned subsidiary, Loop Canada Inc. (“Loop Canada”), which is based in Terrebonne, Québec, Canada and has a Canadian dollar functional currency. Our reporting currency is the U.S. dollar.

 

We mainly finance our operations through the sale and issuance of equity in U.S. dollars while our operations are concentrated in our wholly-owned subsidiary, Loop Canada. Accordingly, we are exposed to foreign exchange risk as we maintain bank accounts in U.S. dollars and a significant portion of our operational costs (including payroll, site costs, costs of locally sourced supplies and income taxes) are denominated in Canadian dollars.

 

Significant fluctuations in U.S. dollar to Canadian dollar exchange rates could materially affect our result of operations, cash position and funding requirements. To the extent that fluctuations in currency exchange rates cause our results of operations to differ materially from our expectations or the expectations of our investors, the trading price of our common stock could be adversely affected.