Note 9 - Equity Method Investments |
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Aug. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||
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| Equity Method Investments and Joint Ventures Disclosure [Text Block] |
9. 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 six-month period ended August 31, 2026, Loop and Ester each made $737 contribution (2025 – ) to ELITe. During the three and six-month periods ended August 31, 2026, ELITe incurred losses of $861 and $1,501 (2025 – $86 and $689), resulting in the Company recording its share of the loss on equity accounted investment of $431 and $750 (2025 – $43 and $345). As at August 31, 2026, and February 28, 2026 the carrying value of the Company's investment in ELITe was $1,452 and $1,465, respectively.
The summarized financial information for ELITe is presented below, on a quarterly lag (in thousands).
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