11. Equity Method Investments

Joint Venture with Ester

On May 1, 2024, the Company entered into an agreement with Ester Industries Ltd. (“Ester”), a manufacturer of polyester films and specialty polymers in India, to form a 50/50 joint venture based in India (“India JV”). The purpose of the India JV is to build and operate an Infinite Loop™ manufacturing facility in India which will produce lower carbon footprint rDMT, rMEG and specialty polymers, using the Infinite Loop™ Technology. During the year ended February 28, 2025, Ester Loop Infinite Technologies Private Limited (“ELITe”) was incorporated as the India JV.

ELITe meets the accounting definition of a joint venture where neither party has control of the joint venture entity and both parties have joint control over the decision-making process. As such, the Company uses the equity method of accounting to account for its share of the investment in ELITe.

During the year ended February 28, 2026, Loop and Ester each contributed $960 (2025 – $1,954) to ELITe. ELITe incurred losses of $1,526, resulting in the Company recording its share of the loss on equity accounted investment of $763 (2025 – $687) for the respective periods. As at February 28, 2026 the carrying value of the Company's investment in ELITe was $1,465 (2025 – $1,267).

The summarized financial information for ELITe is presented below, on a quarterly lag (in thousands).

⁽¹⁾ The summarized financial information presented above includes only the financial information of ELITe for the periods during which it was considered a significant equity method investee and accounted for under the equity method. The summarized financial information has been prepared based on ELITe’s financial statements adjusted to conform with US GAAP. The adjustments primarily related to the capitalization of development and pre-construction costs. Under U.S. GAAP, such costs are expensed as incurred until a final investment decision is reached and construction of the related asset is probable. ELITe’s fiscal year end differs from the Company’s fiscal year end. The summarized financial information is based on ELITe’s most recent financial statements available and is presented on a consistent reporting lag. Management considered whether any material events occurred between December 31, 2025 and February 28, 2026 and concluded that no material intervening events requiring adjustment or disclosure occurred.

Equity-Method Investment with Reed Circular Economy

On September 23, 2025, Loop entered into a formal agreement with Reed Circular Economy ("RCE"), an affiliate of Reed Management SAS, to establish the framework for the governance, ownership, and operations of Infinite Loop Europe SAS ("Infinite Loop Europe"). Under this agreement, and as previously announced, RCE and Loop hold their interests in Infinite Loop Europe on a 90/10 basis to pursue the non-exclusive development, financing, construction, ownership, operation, and commercialization of chemical upcycling plants using Loop's technology within Europe. 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 project equity, and confirms that Loop retains ownership of its intellectual property while granting Infinite Loop Europe limited use rights. There were no monetary transactions between Loop and Infinite Europe in the year ended Feb 28, 2026.

Infinite Loop Europe does not meet the accounting definition of a joint venture, as the Company does not have joint control over the entity. However, the Company has significant influence over Infinite Loop Europe and, accordingly, accounts for its investment using the equity method.

In September 2025, Loop purchased 250 shares of Infinite Loop Europe for €0.25 ($0.305) (2025 – nil). Infinite Loop Europe has not yet commenced operations. As at February 28, 2026, the carrying value of the Company's investment in Infinite Loop Europe was nominal.