Loop Industries (LOOP) 10-Q 11 Jan 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Nov. 30, 2021	Jan. 10, 2022
Cover [Abstract]
Entity Registrant Name	Loop Industries, Inc.
Entity Central Index Key	0001504678
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--02-28
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Nov. 30, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Entity Common Stock Shares Outstanding		47,388,056
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity File Number	000-54768
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	27-2094706
Entity Address Address Line 1	480 Fernand-Poitras
Entity Address Address Line 2	Terrebonne
Entity Address Country	CA
City Area Code	450
Local Phone Number	951-8555
Security 12b Title	Common Stock
Trading Symbol	LOOP
Security Exchange Name	NASDAQ
Entity Address City Or Town	Québec
Entity Address Postal Zip Code	J6Y 1Y4

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Nov. 30, 2021	Feb. 28, 2021
Current assets
Cash and cash equivalents	$ 54,860,046	$ 35,221,951
Sales tax, tax credits and other receivables (Note 3)	825,384	1,763,835
Prepaid expenses and deposits (Note 4)	1,989,970	609,782
Assets held for sale (Note 5)	3,364,374	0
Total current assets	61,039,774	37,595,568
Investment in joint venture (Note 10)	1,500,000	1,500,000
Property, plant and equipment, net (Note 6)	5,540,679	3,513,051
Intangible assets, net (Note 7)	1,081,447	794,894
Total assets	69,161,900	43,403,513
Current liabilities
Accounts payable and accrued liabilities (Note 9)	5,422,386	8,124,865
Current portion of long-term debt (Note 11)	889,228	938,116
Total current liabilities	6,311,614	9,062,981
Long-term debt (Note 11)	3,315,345	1,516,008
Total liabilities	9,626,959	10,578,989
Stockholders' Equity
Series A Preferred stock par value $0.0001; 25,000,000 shares authorized; one share issued and outstanding	0	0
Common stock par value $0.0001: 250,000,000 shares authorized; 47,388,056 shares issued and outstanding (February 28, 2021 - 42,413,691) (Note 13)	4,740	4,242
Additional paid-in capital	149,734,659	113,662,677
Additional paid-in capital - Warrants (Note 18)	30,272,496	8,826,165
Accumulated deficit	(120,309,993)	(89,661,970)
Accumulated other comprehensive loss	(166,961)	(6,590)
Total stockholders' equity	59,534,941	32,824,524
Total liabilities and stockholders' equity	$ 69,161,900	$ 43,403,513

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Nov. 30, 2021	Feb. 28, 2021
Stockholders' Equity
Series A preferred stock, par value	$ 0.0001	$ 0.0001
Series A preferred stock, share authorized	25,000,000	25,000,000
Series A preferred stock, share issued	1	1
Series A preferred stock, share outstanding	1	1
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	47,388,056	42,413,691
Common stock, shares outstanding	47,388,056	42,413,691

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2021	Nov. 30, 2020
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
Revenue	$ 0	$ 0	$ 0	$ 0
Expenses
Research and development (Note 14)	6,835,304	6,274,283	20,757,937	10,504,093
General and administrative (Note 15)	3,091,255	2,724,016	9,368,052	6,726,339
Write-down and impairment of property, plant and equipment	0	5,034,606	0	5,043,120
Depreciation and amortization (Notes 6 and 7)	135,035	104,307	407,806	654,354
Interest expense and other financial (income) expenses (Note 19)	49,655	(41,855)	113,344	26,016
Interest income	(23,654)	(20,008)	(41,828)	(78,394)
Foreign exchange loss (gain)	10,648	95,644	42,712	275,903
Total expenses	10,098,243	14,170,993	30,648,023	23,151,431
Net Loss	(10,098,243)	(14,170,993)	(30,648,023)	(23,151,431)
Other comprehensive income (loss)
Foreign currency translation adjustment	(13,473)	66,170	(160,371)	298,570
Comprehensive loss	$ (10,111,716)	$ (14,104,823)	$ (30,808,394)	$ (22,852,861)
Loss per share
Basic and Diluted	$ (0.21)	$ (0.34)	$ (0.69)	$ (0.57)
Weighted average common shares outstanding
Basic and Diluted	47,264,646	41,715,806	44,600,557	40,515,885

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders Equity (Unaudited) - USD ($)	Total	Common Stock	Series A, Preferred Stock	Additional Paid-In Capital	Additional Paid-in Capital -Warrants [Member]	Retained Earnings (Accumulated Deficit)	Accumulated other comprehensive loss
Balance, shares at Feb. 29, 2020		39,910,774	1
Balance, amount at Feb. 29, 2020	$ 38,463,708	$ 3,992	$ 0	$ 82,379,413	$ 9,785,799	$ (53,317,047)	$ (388,449)
Issuance of common shares for cash, net of share issuance costs (Note 13), shares		2,087,000
Issuance of common shares for cash, net of share issuance costs (Note 13), amount	24,996,628	$ 209	0	24,996,419	0	0	0
Issuance of shares upon exercise of warrants (Note 16), shares		190,529
Issuance of shares upon exercise of warrants (Note 16), amount	1,652,627	$ 19	0	2,046,853	(394,245)	0	0
Warrant issued for services (Note 18)	84,442	$ 0	0	0	84,442	0	0
Issuance of shares upon the vesting of restricted stock units (Note 16), shares		224,436
Issuance of shares upon the vesting of restricted stock units (Note 16), amount	0	$ 22	0	(22)	0	0	0
Stock options issued for services (Note 16)	1,662,155	0	0	1,662,155	0	0	0
Restricted stock units issued for services (Note 16)	1,028,152	0	0	1,028,152	0	0	0
Foreign currency translation	298,570	0	0	0	0	0	298,570
Net loss	$ (23,151,431)	$ 0	$ 0	0	0	(23,151,431)	0
Issuance of shares upon exercise of options (Note 16), shares	0
Balance, shares at Nov. 30, 2020		42,412,739	1
Balance, amount at Nov. 30, 2020	$ 45,034,851	$ 4,242	$ 0	112,112,970	9,475,996	(76,468,478)	(89,879)
Balance, shares at Aug. 31, 2020		39,935,210	1
Balance, amount at Aug. 31, 2020	31,593,424	$ 3,994	$ 0	84,172,723	9,870,241	(62,297,485)	(156,049)
Issuance of shares upon the vesting of restricted stock units (Note 16), shares		200,000
Issuance of shares upon the vesting of restricted stock units (Note 16), amount	0	$ 20	0	(20)	0	0	0
Restricted stock units issued for services (Note 16)	345,274	0	0	345,274	0	0	0
Foreign currency translation	66,170	0	0	0	0	0	66,170
Net loss	(14,170,993)	$ 0	0	0	0	(14,170,993)	0
Issuance of common shares for cash, net of share issuance costs (Note 13), shares		2,087,000
Issuance of common shares for cash, net of share issuance costs (Note 13), amount	24,996,628	$ 209	0	24,996,419	0	0	0
Issuance of shares upon exercise of warrants (Note 18), shares		190,529
Issuance of shares upon exercise of warrants (Note 18), amount	1,652,628	$ 19	0	2,046,854	(394,245)	0	0
Stock options granted for services (Note 16)	$ 551,720	$ 0	$ 0	551,720	0	0	0
Issuance of shares upon exercise of options (Note 16), shares	0
Balance, shares at Nov. 30, 2020		42,412,739	1
Balance, amount at Nov. 30, 2020	$ 45,034,851	$ 4,242	$ 0	112,112,970	9,475,996	(76,468,478)	(89,879)
Balance, shares at Feb. 28, 2021		42,413,691	1
Balance, amount at Feb. 28, 2021	32,824,524	$ 4,242	$ 0	113,662,677	8,826,165	(89,661,970)	(6,590)
Issuance of shares upon exercise of warrants (Note 16), shares		11,666
Issuance of shares upon exercise of warrants (Note 16), amount	0	$ 1	0	84,441	(84,442)	0	0
Issuance of shares upon the vesting of restricted stock units (Note 16), shares		231,660
Issuance of shares upon the vesting of restricted stock units (Note 16), amount	0	$ 24	0	(24)	0	0	0
Stock options issued for services (Note 16)	1,203,975	0	0	1,203,975	0	0	0
Restricted stock units issued for services (Note 16)	157,769	0	0	157,769	0	0	0
Foreign currency translation	(160,371)	0	0	0	0	0	(160,371)
Net loss	(30,648,023)	$ 0	0	0	0	(30,648,023)	0
Issuance of common shares for cash, net of share issuance costs (Note 13), shares		4,714,813
Issuance of common shares for cash, net of share issuance costs (Note 13), amount	56,087,744	$ 471	0	34,625,823	21,461,450	0	0
Issuance of warrants for financing facility (Notes 11 and 18)	$ 69,323	$ 0	0	0	69,323	0	0
Issuance of shares upon exercise of options (Note 16), shares	16,226	16,226
Issuance of shares upon exercise of options (Note 16), amount	$ 0	$ 2	$ 0	(2)	0	0	0
Balance, shares at Nov. 30, 2021		47,388,056	1
Balance, amount at Nov. 30, 2021	59,534,941	$ 4,740	$ 0	149,734,659	30,272,496	(120,309,993)	(166,961)
Balance, shares at Aug. 31, 2021		47,160,164	1
Balance, amount at Aug. 31, 2021	69,004,648	$ 4,717	$ 0	149,008,231	30,356,938	(110,211,750)	(153,488)
Issuance of shares upon the vesting of restricted stock units (Note 16), shares		200,000
Issuance of shares upon the vesting of restricted stock units (Note 16), amount	0	$ 20	0	(20)	0	0	0
Stock options issued for services (Note 16)	311,004	0	0	311,004	0	0	0
Restricted stock units issued for services (Note 16)	331,005	0	0	331,005	0	0	0
Foreign currency translation	(13,473)	0	0	0	0	0	(13,473)
Net loss	(10,098,243)	$ 0	0	0	0	(10,098,243)	0
Issuance of shares upon exercise of warrants (Note 18), shares		11,666
Issuance of shares upon exercise of warrants (Note 18), amount	$ 0	$ 1	0	84,441	(84,442)	0	0
Issuance of shares upon exercise of options (Note 16), shares	17,081	16,226
Issuance of shares upon exercise of options (Note 16), amount	$ 0	$ 2	$ 0	(2)	0	0	0
Balance, shares at Nov. 30, 2021		47,388,056	1
Balance, amount at Nov. 30, 2021	$ 59,534,941	$ 4,740	$ 0	$ 149,734,659	$ 30,272,496	$ (120,309,993)	$ (166,961)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Cash Flows from Operating Activities
Net loss	$ (30,648,023)	$ (23,151,431)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization (Notes 6 and 7)	407,806	654,354
Stock-based compensation expense (Note 16)	1,361,744	2,774,749
Write-down and impairment of property, plant and equipment	0	5,043,120
Accretion and accrued interest expenses (Note 19)	82,393	56,259
Loss (gain) on revaluation of foreign exchange contracts (Note 19)	0	(58,945)
Changes in operating assets and liabilities:
Sales tax and tax credits receivable (Note 3)	948,328	(477,855)
Prepaid expenses (Note 4)	(1,394,272)	(1,075,291)
Accounts payable and accrued liabilities (Note 9)	(3,587,932)	1,690,789
Net cash used in operating activities	(32,829,956)	(14,544,251)
Cash Flows from Investing Activities
Investment in joint venture (Note 10)	0	(650,000)
Additions to property, plant and equipment (Notes 5 and 6)	(5,022,255)	(1,580,795)
Additions to intangible assets (Note 7)	(348,017)	(155,798)
Net cash used in investing activities	(5,370,272)	(2,386,593)
Cash Flows from Financing Activities
Proceeds from sale of common shares and warrants, and exercise of warrants, net of share issuance costs (Note 13)	56,087,746	26,649,253
Proceeds from issuance of long-term debt (Note 11)	1,868,954	0
Repayment of long-term debt (Note 11)	(41,041)	(32,781)
Net cash (used) provided by financing activities	57,915,659	26,616,472
Effect of exchange rate changes	(77,336)	210,516
Net increase (decrease) in cash	19,638,095	9,896,144
Cash, beginning of period	35,221,951	33,717,671
Cash, end of period	54,860,046	43,613,815
Supplemental Disclosure of Cash Flow Information:
Income tax paid	0	0
Interest paid	30,506	28,613
Interest received	$ 23,654	$ 78,394

The Company Basis of Presentati

The Company Basis of Presentation	9 Months Ended
	Nov. 30, 2021
The Company Basis of Presentation
1. The Company, Basis of Presentation	1. The Company, Basis of Presentation The Company Loop Industries, Inc. (the “Company,” “Loop Industries,” “we,” or “our”) is a technology company that owns patented and proprietary technology that depolymerizes no and low-value waste PET plastic and polyester fiber to its base building blocks (monomers). The monomers are filtered, purified and polymerized to create virgin-quality Loop™ branded PET resin suitable for use in food-grade packaging and polyester fiber. The Company is currently in the development stage with no revenues. The Company is in the process of pursuing the construction of Infinite Loop™ commercial scale facilities in Québec, Canada, and with strategic partners in Europe and South Korea. Additionally, the company has a joint venture to pursue the retrofitting of existing fossil fuel PET polymerization facilities with its recycling technology. Risks and uncertainties Our ability to implement our business plan and generate future operating revenues depends in part on whether we can obtain the necessary financing through a combination of the issuance of debt, equity, and/or joint ventures and/or government incentive programs. We have committed a portion of our cash on hand for certain long lead equipment in connection with the Bécancour project. We expect to enter into additional commitments to move the project ahead within our targeted construction timeframes. However, there is a risk that we may not be able to attract additional financing through debt or equity markets. Even if additional financing is available, it may not be available on terms favorable to us. Our failure to secure additional financing on favorable terms when it becomes required would have an adverse effect on our ability to execute our business plan. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“US GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures included in these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2021, filed with the SEC on June 1, 2021. The unaudited interim condensed consolidated financial statements comprise the consolidated financial position and results of operations of Loop Industries, Inc. and its subsidiaries, Loop Innovations, LLC and Loop Canada Inc. All subsidiaries are, either directly or indirectly, wholly owned subsidiaries of Loop Industries, Inc. (collectively, the “Company”). The Company also owns, through Loop Innovations, LLC, a 50% interest in a joint venture, Indorama Loop Technologies, LLC, which is accounted for under the equity method. Intercompany balances and transactions are eliminated on consolidation. The condensed consolidated balance sheet as of February 28, 2021, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods. The results for the three- and nine-month periods ended November 30, 2021 are not necessarily indicative of the results to be expected for any subsequent quarter, for the fiscal year ending February 28, 2022, or for any other period.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Nov. 30, 2021
Summary of Significant Accounting Policies
2. Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include estimates for depreciable lives of property, plant and equipment, intangible assets, analysis of impairments of long-lived assets and intangible assets as well as the carrying value of our joint venture investment, assets held for sale, accruals for potential liabilities, assumptions made in calculating the fair value of stock-based compensation and other equity instruments, and the assessment of performance conditions for stock-based compensation awards and the judgment in the assessment. The COVID-19 pandemic has disrupted business operations for us and our customers, suppliers, vendors and other parties with whom we do business, and such disruptions are expected to continue for an indefinite period of time. The uncertain duration of these measures has had and may continue to have an effect on our development and commercialization efforts. Although the Company continues to monitor the situation and may adjust the Company’s current policies as more information and public health guidance continues to evolve, the COVID-19 pandemic is ongoing, and its dynamic nature, including uncertainties relating to the ultimate spread of the virus, the severity of the disease, the duration of the outbreak and actions that may be taken by governmental authorities to contain the outbreak or to treat its impact, makes it difficult to assess whether there will be further impact on the development and commercialization of the Company’s technology which could have a material adverse effect on the Company’s results of operations and cash flows. Stock‑based compensation The Company periodically issues stock options, warrants and restricted stock units to employees and non-employees in non-capital raising transactions for services and financing expenses. The Company accounts for stock options granted to employees based on the authoritative guidance provided by the FASB wherein the fair value of the award is measured on the grant date and where there are no performance conditions, recognized as compensation expense on the straight-line basis over the vesting period and where performance conditions exist, recognize compensation expense when it becomes probable that the performance condition will be met. Forfeitures on share-based payments are accounted for by recognizing forfeitures as they occur. The Company accounts for stock options and warrants granted to non-employees in accordance with the authoritative guidance of the FASB wherein the fair value of the stock compensation is based upon the measurement date determined as the earlier of the date at which either a) a commitment is reached with the counterparty for performance or b) the counterparty completes its performance. The Company estimates the fair value of restricted stock unit awards to employees and directors based on the closing market price of its common stock on the date of grant. The fair value of the stock options granted is estimated using the Black-Scholes-Merton Option Pricing (“Black-Scholes”) model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options, and future dividends. Stock-based compensation expense is recorded based on the value derived from the Black-Scholes model and on actual experience. The assumptions used in the Black-Scholes model could materially affect stock-based compensation expenses recorded in the current and future periods. Research and development expenses Research and development expenses relate primarily to process development and design, testing of preproduction samples, purchases of machinery and equipment for the small-scale Terrebonne production facility (the “Terrebonne Facility”), compensation, and consulting fees, and are expensed as incurred. Total research and development expenses recorded during the nine-month periods ended November 30, 2021 and 2020 amounted to $20,757,937 and $10,504,093, respectively, and are net of government research and development tax credits and government grants from the federal and provincial taxation authorities accrued and recorded based on qualifying expenditures incurred during the fiscal periods. Assets held for sale Assets are classified as held for sale when they met the criteria set out in ASC 360-10-45-9 Long-lived assets classified as held for sale · Management, having the authority to approve the action, commits to a plan to sell the asset; · The asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; · An active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; · The sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year; · The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and · Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When the criteria are met, the assets are presented at the lesser of fair market value, net of selling costs, and cost in current assets. Foreign currency translations and transactions The accompanying consolidated financial statements are presented in U.S. dollars, the reporting currency of the Company. Assets and liabilities of subsidiaries that have a functional currency other than that of the Company are translated to U.S. dollars at the exchange rate as at the balance sheet date. Income and expenses are translated at the average exchange rate of the period. The resulting translation adjustments are included in other comprehensive income (loss) (“OCI”). As a result, foreign currency exchange fluctuations may impact operating expenses. The Company currently is not engaged in any currency hedging activities. For transactions and balances, monetary assets and liabilities denominated in foreign currencies are translated into the functional currency of the entity at the prevailing exchange rate at the reporting date. Non-monetary assets and liabilities, and revenue and expense items denominated in foreign currencies are translated into the functional currency using the exchange rate prevailing at the dates of the respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the consolidated statements of operations and comprehensive loss, except for gains or losses arising from the translation of intercompany balances denominated in foreign currencies that forms part in the net investment in the subsidiary which are included in OCI. Net earnings (loss) per share The Company computes net loss per share in accordance with FASB ASC 260, Earnings Per Share For the nine-month periods ended November 30, 2021 and 2020, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an antidilutive effect. As at November 30, 2021, the potentially dilutive securities consisted of 1,570,000 outstanding stock options (2020 – 1,587,081), 4,014,928 outstanding restricted stock units (2020 – 4,171,609), and 11,659,418 outstanding warrants (2020 – 4,693,802). Recently issued accounting pronouncements not yet adopted In November 2021, the FASB issued ASU 2021-10, “Disclosures by Business Entities about Government Assistance”. This ASU provided guidance to increase the transparency of government assistance including the disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. Under the new guidance, an entity is required to provide the following annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy: (1) information about the nature of the transactions and the related accounting policy used to account for the transactions, (2) the line items on the balance sheet and income statement that are affected by the transactions, and the amounts applicable to each financial statement line item and, (3) significant terms and conditions of the transactions, including commitments and contingencies. This update is effective for fiscal years beginning after December 15, 2021. We do not expect this accounting guidance to materially impact our results of operations or financial position.

Sales Tax Tax Credits and Other

Sales Tax Tax Credits and Other Receivables	9 Months Ended
	Nov. 30, 2021
Sales Tax Tax Credits and Other Receivables
3. Sales Tax, Tax Credits and Other Receivables	3. Sales Tax, Tax Credits and Other Receivables Sales tax, research and development tax credits and other receivables as at November 30, 2021 and February 28, 2021 were as follows: November 30, 2021 February 28, 2021 Sales tax $ 502,180 $ 1,155,504 Research and development tax credits 208,256 435,467 Other receivables 114,948 172,864 $ 825,384 $ 1,763,835 In the nine-month period ended November 30, 2021, the Company received 327,429 (2021 – nil) reimbursable research and development tax credits in cash.

Prepaid Expenses and Deposits

Prepaid Expenses and Deposits	9 Months Ended
	Nov. 30, 2021
Prepaid Expenses and Deposits
4. Prepaid Expenses and Deposits	4. Prepaid Expenses and Deposits Prepaid expenses and deposits as at November 30, 2021 and February 28, 2021 were as follows: November 30, 2021 February 28, 2021 Cash deposits on machinery and equipment $ 739,863 $ 379,395 Insurance 1,073,650 - Other 176,457 230,387 $ 1,989,970 $ 609,782 The Company has paid $739,863 of non-refundable cash deposits on machinery and equipment, $638,273 of which will be used in connection with the Terrebonne Facility in research and development activities will be expensed, and classified as research and development expenses, in the period the equipment is received. The Company also made $101,590 of non-refundable cash deposits on machinery and equipment that will be used in connection with the construction of our Infinite Loop ™

Assets held for sale

Assets held for sale	9 Months Ended
	Nov. 30, 2021
Assets held for sale
5. Assets held for sale	5. Asset held for sale On May 27, 2021, we acquired land in Bécancour, Québec for cash of $4.8 million (CDN $5.9 million). The site is part of our planning for an Infinite Loop ™ ™ ASC 360 Property, plant and equipment The total purchase cost of the land has been allocated between the portion of land held for sale and the land being used for the Infinite Loop ™ Description Balance sheet line item Cost Land held for sale Assets held for sale $ 3,364,373 Infinite Loop ™ Property, plant and equipment, net 1,391,556 $ 4,755,929

Property Plant and Equipment

Property Plant and Equipment	9 Months Ended
	Nov. 30, 2021
Property Plant and Equipment
6. Property, Plant and Equipment	6. Property, Plant and Equipment Property, plant and equipment as at November 30, 2021 and February 28, 2021 were as follows: As at November 30, 2021 Cost Accumulated depreciation, write-down and impairment Net book value Building $ 1,939,801 $ (248,333 ) $ 1,691,468 Land 1,632,003 - 1,632,003 Building and Land Improvements 2,797,984 (754,713 ) 2,043,271 Machinery and equipment 6,514,252 (6,514,252 ) - Office equipment and furniture 294,146 (120,209 ) 173,937 $ 13,178,186 $ (7,637,507 ) $ 5,540,679 As at February 28, 2021 Cost Accumulated depreciation, write-down and impairment Net book value Building $ 1,954,345 $ (201,589 ) $ 1,752,756 Land 241,578 - 241,578 Building and Land Improvements 1,804,872 (474,114 ) 1,330,758 Machinery and equipment 6,514,252 (6,514,252 ) - Office equipment and furniture 292,946 (104,987 ) 187,959 $ 10,807,993 $ (7,294,942 ) $ 3,513,051 On May 27, 2021, the Company acquired a parcel of land in Bécancour, Québec for $4.8 million (CDN $5.9 million). The Company is using a portion of the property for the construction of a commercial facility to manufacture Loop™ branded PET resin using its Infinite Loop™ technology. The excess land is classified as asset held for sale, as described in Note 5. During the three-month period ended November 30, 2021, the Company incurred civil construction costs of $902,325 for site preparation on the Bécancour land for the planned commercial facility. Depreciation expense for the three- and nine-month periods ended November 30, 2021 amounted to $114,799 and $351,589, respectively (2020– $93,006 and $624,189, respectively), and is recorded as an operating expense in the consolidated statements of operations and comprehensive loss.

Intangible Assets

Intangible Assets	9 Months Ended
	Nov. 30, 2021
Intangible Assets
7. Intangible Assets	7. Intangible Assets Intangible assets as at November 30, 2021 and February 28, 2021 were $1,081,447and $794,894, respectively. During the nine-months periods ended November 30, 2021 and 2020, we made additions to intangible assets of $348,017 and $452,758, respectively. Amortization expense for the three- and nine-month periods ended November 30, 2021 amounted to $20,236 and $56,216, respectively (2020 - $11,301 and $30,165, respectively), and is recorded as an operating expense in the unaudited condensed consolidated statements of operations and comprehensive loss.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Nov. 30, 2021
Fair Value of Financial Instruments
8. Fair Value of Financial Instruments	8. Fair value of financial instruments The following tables present the fair value of the Company’s financial liabilitiy, being long-term debt as at November 30, 2021 and February 28, 2021: Fair Value as at November 30, 2021 Carrying Amount Fair Value Level in the hierarchy Instruments carried at amortized cost: Long-term debt $ 4,204,573 $ 4,219,305 Level 2 Fair Value at February 28, 2021 Carrying Amount Fair Value Level in the hierarchy Instruments carried at amortized cost: Long-term debt $ 2,454,123 $ 2,464,540 Level 2

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	9 Months Ended
	Nov. 30, 2021
Accounts Payable and Accrued Liabilities
9. Accounts Payable and Accrued Liabilities	9. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities as at November 30, 2021 and February 28, 2021 were as follows: November 30, 2021 February 28, 2021 Trade accounts payable $ 2,513,404 $ 5,082,736 Accrued construction costs 902,325 - Accrued employee compensation 1,187,977 970,154 Accrued engineering fees 312,155 535,359 Accrued professional fees 288,966 1,270,628 Other accrued liabilities 217,559 265,988 $ 5,422,386 $ 8,124,865

Joint Venture

Joint Venture	9 Months Ended
	Nov. 30, 2021
Joint Venture
10. Joint Venture	10. Joint Venture On September 15, 2018, the Company, through its wholly-owned subsidiary Loop Innovations, LLC, a Delaware limited liability company, entered into a Joint Venture Agreement (the “Joint Venture Agreement”) with Indorama Ventures Holdings LP, USA, an indirect subsidiary of Indorama Ventures Public Company Limited, to manufacture and commercialize sustainable polyester resin. Each company has a 50/50 equity interest in Indorama Loop Technologies, LLC (“ILT”), which was specifically formed to operate and execute the joint venture. Under the Joint Venture Agreement, Indorama Ventures is contributing manufacturing knowledge and Loop Industries is required to contribute its proprietary technology. Specifically, the Company is contributing an exclusive worldwide royalty-free license to ILT to use its proprietary technology to produce 100% sustainably produced PET resin and polyester fiber. ILT 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 in ILT. As such, the Company uses the equity method of accounting to account for its share of the investment in ILT. There were no operations in ILT from the date of inception of September 24, 2018 to November 30, 2021 and, as at November 30, 2021, the carrying value of the equity investment was $1,500,000, which is the total of the cash contributions we have made to ILT. During the nine-month period ended November 30, 2021, we made no contributions to ILT (2020 – $650,000). These contributions to ILT, which have been matched by Indorama Ventures, were used to fund engineering design costs which have been capitalized in ILT. In conjunction with the SK strategic partnership described in Note 13, on June 18, 2021, the Company, Loop Innovations, LLC, a wholly-owned subsidiary of the Company (“Loop Innovations”), Indorama Ventures Holdings LP (“Indorama”) and Indorama Loop Technologies, LLC (the “Indorama Joint Venture Company”) amended (i) the Limited Liability Company Agreement between Loop Innovations, LLC and Indorama Ventures Holdings LP (the “LLC Agreement”), (ii) the Marketing Agreement between the Company and Indorama Loop Technologies, LLC (the “Marketing Agreement”) and (iii) the License Agreement between the Company and the Indorama Joint Venture Company (the “License Agreement”), each dated September 24, 2018 (collectively such amendments, the “Indorama Joint Venture Amendments”). Under the Indorama Joint Venture Amendments, the Company, Indorama and the Indorama Joint Venture Company agreed to: · terminate Indorama’s right of first refusal under the LLC Agreement over any facility to produce products utilizing any waste-to-resin technology applying the PET depolymerization process of the Company; · amend the non-compete obligations under the LLC Agreement to solely apply to the Company; · limit the scope of the Company’s grant of intellectual property rights and the scope of the exclusivity rights of the Indorama Joint Venture Company for the retrofit of existing facilities under the License Agreement to North America and Europe; and · limit the scope of the Indorama Joint Venture Company’s permitted marketing rights under the Marketing Agreement to North America and Europe.

LongTerm Debt

LongTerm Debt	9 Months Ended
	Nov. 30, 2021
LongTerm Debt
11. Long-Term Debt	11. Long‑Term Debt November 30, 2021 February 28, 2021 Investissement Québec financing facility : Principal amount $ 3,595,998 $ 1,741,612 Unamortized discount (366,219 ) (268,192 ) Accrued interest 85,566 42,588 Total Investissement Québec financing facility 3,315,345 1,516,008 Term loan Principal amount 889,228 938,116 Less: current portion (889,228 ) (938,116 ) Total term loan, net of current portion - - Long-term debt, net of current portion $ 3,315,345 $ 1,516,008 Investissement Québec financing facility On February 21, 2020, the Company received $1,727,043 (CDN$2,209,234) from Investissement Québec as the first disbursement of our financing facility, out of a maximum of $3,595,998 (CDN$4,600,000) (the “Financing Facility”). The loan bears interest at 2.36% and there is a 36-month moratorium on both capital and interest repayments starting on the date of the first disbursement, after which capital and interest is repayable in 84 monthly installments. The Company established the fair value of the loan for the first disbursement at $1,354,408 based on a discount rate of 5.45%, which reflected a debt discount of $290,714. The discount rate used was based on the external financing from a Canadian bank. The Company, under the loan agreement, was required to pay fees representing 1% of the loan amount, $35,960 (CDN$46,000) to Investissment Québec which we deferred and recorded as a reduction of the Financing Facility. Debt discount and deferred financing expenses are amortized to “Interest and other financial expenses” in our Consolidated Statements of Operations and Comprehensive Loss. On August 26, 2021, the Company received $1,868,954 (CDN$2,390,766) from Investissement Québec as the second disbursement of the Financing Facility, the balance of the total amount available under the Financing Facility. The second disbursement bears the same interest rate and repayment terms as the first disbursement. The Company established the fair value of the loan for the first disbursement at $1,750,395 based on a discount rate of 3.95%, which reflected a debt discount of $139,390. The discount rate used was based on the external financing from a Canadian bank. There were no fees associated with the second disbursement. Debt discount and deferred financing expenses are amortized to “Interest and other financial expenses” in our Consolidated Statements of Operations and Comprehensive Loss. The Company recorded interest expense on the Investissement Québec loan for the three- and nine-month periods ended November 30, 2021 in the amount of $21,704 and $44,098 respectively (2020 – $10,003 and $28,816) and an accretion expense of $16,723 and $38,295 respectively (2020 – $9,387 and $27,045). The Company also agreed to issue to Investissement Québec warrants to purchase shares of common stock of the Company in an amount equal to 10% of each disbursement up to a maximum aggregate amount of $359,600 (CDN$460,000). The exercise price of the warrants is equal to the higher of (i) $11.00 per share and (ii) the ten-day weighted average closing price of Loop Industries shares of common stock on the Nasdaq stock market for the 10 days prior to the issue of the warrants. The warrants can be exercised immediately upon grant and have a term of three years from the date of issuance. The loan can be repaid at any time by the Company without penalty. In connection with the first disbursement of the Financing Facility, the Company issued a warrant (“First Disbursement Warrant”) to acquire 15,153 shares of common stock at a strike price of $11.00 per share to Investissement Québec. The Company determined the fair value of the warrants using the Black-Scholes pricing formula. The fair value of the First Disbursement Warrant was determined to be $77,954 and is included in “Additional paid-in capital – Warrants” in our Condensed Consolidated Balance Sheets. In connection with the second disbursement of the Financing Facility, the Company issued a warrant (“Second Disbursement Warrant”) to acquire 17,180 shares of common stock at a strike price of $11.00 per share to Investissement Québec. The Company determined the fair value of the warrants using the Black-Scholes pricing formula. The fair value of the First Disbursement Warrant was determined to be $69,323 and is included in “Additional paid-in capital – Warrants” in our Condensed Consolidated Balance Sheets. The First and Second Disbursement Warrants remain outstanding as at November 30, 2021. Term loan On January 24, 2018, the Company obtained a $1,109,614 (CDN$1,400,000) 20-year term installment loan (the “Loan”), from a Canadian bank. The Loan bears interest at the bank’s Canadian prime rate plus 1.5%. By agreement, the Loan is repayable in monthly payments of $4,560 (CDN$5,833) plus interest, maturing in January 2022. It includes an option allowing for the prepayment of the Loan without penalty. During the three- and nine-month periods ended November 30, 2021, we repaid $13,680 and $41,041 respectively (2020 – $13,497 and $32,781) on the principal balance of the Loan and interest paid amounted to $11,010 and $30,506 and (2020 – $9,172 and $29,102). The terms of the credit facility require the Company to comply with certain financial covenants. As at November 30, 2021 and 2020, the Company was in compliance with its financial covenants. Principal repayments due on the Company’s long-term debt over the next five years are as follows: Years ending Amount February 28, 2022 $ 889,228 February 28, 2023 - February 29, 2024 513,705 February 28, 2025 513,705 February 28, 2026 513,705 Thereafter 2,054,881 Total $ 4,485,224

Related Party Transactions

Related Party Transactions	9 Months Ended
	Nov. 30, 2021
Related Party Transactions
12. Related Party Transactions	12. Related Party Transactions Employment Agreement On June 29, 2015, the Company entered into an employment agreement with Mr. Daniel Solomita, the Company’s President and Chief Executive Officer (“CEO”). The employment agreement is for an indefinite term. On July 13, 2018, the Company and Mr. Solomita entered into an amendment and restatement of the employment agreement which provided for a long-term incentive grant of 4,000,000 shares of the Company’s common stock, in tranches of one million shares each, upon the achievement of four performance milestones. This was modified to provide a grant of 4,000,000 restricted stock units covering 4,000,000 shares of the Company’s common stock while the performance milestones remained the same. The grant of the restricted stock units became effective upon approval by the Company’s shareholders at the Company’s 2019 annual meeting, of an increase in the number of shares available for grant under the Plan. Such approval was granted by the Company’s shareholders at the Company’s 2019 annual meeting. On April 30, 2020, the Company and Mr. Solomita entered into an amendment of Mr. Solomita’s employment agreement. The amendment clarified the milestones consistent with the shift in the Company’s business from the production of terephthalate to the production of dimethyl terephthalate, another proven monomer of PET plastic that is far simpler to purify. During the quarters ended November 30, 2021 and 2020, no outstanding milestones were probable of being met based on the authoritative guidance provided by the FASB and, accordingly, the Company did not record any additional compensation expense. When a milestone becomes probable, the corresponding expense will be valued based on the grant date fair value on April 30, 2020, the date of the last modification of Mr. Solomita’s employment agreement. The closing price of the Company’s common stock on the Nasdaq on April 30, 2020 was $7.74 per share.

Stockholders Equity

Stockholders Equity	9 Months Ended
	Nov. 30, 2021
Stockholders' Equity
13. Stockholders' Equity	13. Stockholders’ Equity Common Stock For the nine months ended November 30, 2021 Number of shares Amount Balance, February 28, 2021 42,413,691 $ 4,242 Issuance of shares upon settlement of restricted stock units 231,660 24 Issuance of shares for cash 4,714,813 471 Issuance of shares upon exercise of warrants 11,666 1 Issuance of shares upon exercise of options 16,226 2 Balance, November 30, 2021 47,388,056 $ 4,740 For the nine months ended November 30, 2020 Number of shares Amount Balance, February 29, 2020 39,910,774 $ 3,992 Issuance of shares for cash 2,087,000 209 Issuance of shares upon the exercise of warrants 190,529 19 Issuance of shares upon settlement of restricted stock units 224,436 22 Balance, November 30, 2020 42,412,739 $ 4,242 During the nine months ended November 30, 2021, the Company recorded the following common stock transactions: (i) The Company issued 231,660 shares of the common stock to settle restricted stock units that vested in the period. (ii) The Company issued 4,714,813 shares of its common stock, with warrants, at an aggregate offering price of $12.00 per share for total gross proceeds of $56,577,756 and net proceeds of $56,084,304. (iii) The Company issued 11,666 shares of its common stock upon the exercise of a warrant. (iv) The Company issued 16,226 shares of its common stock upon the exercise of stock options. During the nine months ended November 30, 2020, the Company recorded the following common stock transaction: (i) On September 23, 2020 and October 1, 2020, the Company sold 1,880,000 and 207,000 shares, respectively of its common stock at an offering price of $12.75 per share in a registered direct offering, for total gross proceeds of $26,609,250. (ii) The company issued 192,529 shares of its common stock upon the exercise of warrants. (iii) On October 15, 2020, the Company issued 200,000 shares of common stock to settle restricted stock units related to the President and Chief Executive Officer. (iv) The Company issued 24,436 shares of its common stock to settle restricted stock units that vested in the period. On June 22, 2021, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) by and between the Company and SK global chemical Co., Ltd, an accredited investor (the “Purchaser”). Pursuant to the Purchase Agreement, the Company sold to the Purchaser the following securities on July 29, 2021 for an aggregate purchase price of $56.5 million (collectively, the “SKGC Investment”): · an aggregate of 4,714,813 shares (the “Shares”) of the Company’s common stock (the “Common Stock”); · warrants to purchase 4,714,813 shares of Common Stock for an exercise price of $15.00 (the “First Tranche Warrants”), with an expiration date of the third anniversary of the issue date; · warrants to purchase 2,357,407 shares of Common Stock for an exercise price of $20.00 (the “Second Tranche Warrants”), with an expiration date of the earlier of (A) the date that is the third anniversary of the First Plant Milestone (as defined in the Second Tranche Warrants), (B) the expiration of the JV Negotiation Period (as defined in the Second Tranche Warrants), provided that the Joint Venture Transaction Agreements (as defined in the Second Tranche Warrants) have not been executed by the expiration of the JV Negotiation Period and (C) the third anniversary of the BDP Date (as defined in the Second Tranche Warrants), provided that the First Plant Milestone has not occurred as of such date; and · warrants to purchase 461,298 shares of Common Stock for an exercise price of $11.00, with an expiration date of June 14, 2022 (the “Third Tranche Warrants,” and together with First Tranche Warrants and the Second Tranche Warrants, the “Warrants”). The Purchaser may exercise the First Tranche Warrant at any time beginning on January 29, 2022 and the Second Tranche Warrant at any time on or after the later to occur of (i) January 29, 2022 and (ii) the first business day following the First Plant Milestone (as defined in the Second Tranche Warrant) prior to its expiration date. The Purchaser may exercise the Third Tranche Warrant at any time prior to June 14, 2022. The table below summarizes the allocation of the aggregate purchase price, net of issuance costs, based on the relative fair-value of the components at the grant date: Common stock $ 34,622,854 First Tranche Warrants 13,158,981 Second Tranche Warrants 7,167,195 Third Tranche Warrants 1,135,274 $ 56,084,304 The fair value of the warrants was determined using the Black-Scholes model. After the closing of the SKGC Investment, the Purchaser owns approximately 10.0% of the issued and outstanding Common Stock as of that date.

Research and Development Expens

Research and Development Expenses	9 Months Ended
	Nov. 30, 2021
Research and Development Expenses
14. Research and development expenses	14. Research and Development Expenses Research and development expenses for the three-month periods ended November 30, 2021 and 2020 were as follows: November 30, 2021 November 30, 2020 Machinery and equipment expenditures $ 2,599,758 $ 2,325,540 Employee compensation 1,786,765 1,214,434 External engineering 1,585,512 2,224,910 Plant and laboratory operating expenses 665,893 515,395 Other 197,376 (5,996 ) $ 6,835,304 $ 6,274,283 Research and development expenses for the nine-month periods ended November 30, 2021 and 2020 were as follows: November 30, 2021 November 30, 2020 Machinery and equipment expenditures $ 7,707,882 $ 2,325,540 Employee compensation 5,365,581 3,094,151 External engineering 5,040,342 3,241,959 Plant and laboratory operating expenses 2,064,403 1,385,892 Other 579,729 456,551 $ 20,757,937 $ 10,504,093 During the nine-month period ended November 30, 2021, we recorded reimbursable research and development tax credits of $54,911 as a reduction of research and development expenses and an expense of $151,379 in the nine-month period ended November 30, 2020. The expense in the nine-month period ended November 30, 2020 was due to a revision of research and development tax credits by Canadian tax authorities. During the nine-month period ended November 30, 2021, we recorded no government grants as a reduction of research and development expenses (2020 – $200,738).

General and Administrative Expe

General and Administrative Expenses	9 Months Ended
	Nov. 30, 2021
General and Administrative Expenses
15. General and Administrative Expenses	15. General and Administrative Expenses General and administrative expenses for the three-month periods ended November 30, 2021 and 2020 were as follows: November 30, 2021 November 30, 2020 Professional fees $ 650,164 $ 1,164,004 Employee compensation 1,028,242 945,889 Insurance 1,193,554 480,013 Other 219,295 134,110 $ 3,091,255 $ 2,724,016 General and administrative expenses for the nine-month periods ended November 30, 2021 and 2020 were as follows: November 30, 2021 November 30, 2020 Professional fees $ 3,138,611 $ 1,806,134 Employee compensation (1) 2,357,769 3,091,214 Insurance 3,121,353 1,455,954 Other 750,319 373,037 $ 9,368,052 $ 6,726,339 (1) Includes stock-based compensation expense. In the nine-month period ended November 30, 2021, the Company recorded RSU forfeitures for an amount of $935,837 (2020 – $4,005) as a net reversal of stock-based compensation.

ShareBased Payments

ShareBased Payments	9 Months Ended
	Nov. 30, 2021
ShareBased Payments
16. Share-Based Payments	16. Share-based Payments Stock Options During the three-month period ended November 30, 2021, the Company granted no stock options (2020 – nil), 17,081 options were exercised with a weighted average exercise price of $0.80 (2020 – nil), no stock options were forfeited (2020 – nil) and no stock options expired (2020 – nil). During the nine-month period ended November 30, 2021, the Company granted no stock options (2020 – nil), 17,081 options were exercised with a weighted average exercise price of $0.80 (2020 – nil), no stock options were forfeited (2020 – nil) and no stock options expired (2020 – nil). The Company applies the fair value method of accounting for stock-based compensation awards granted. Fair value is calculated based on a Black-Scholes option pricing model. There were no new issuances of stock options for the three- and nine-month periods ended November 30, 2021 and 2020. The total number of stock options outstanding as at November 30, 2021 was 1,570,000 (2020 – 1,587,081) with a weighted average exercise price of $6.87 (2020 - $6.81), of which 1,286,667 were exercisable (2020 – 986,248) with a weighted average exercise price of $7.48 (2020 – $8.18). During the three-month periods ended November 30, 2021 and 2020, stock-based compensation expense attributable to stock options amounted to $311,004 and $551,720, respectively, and is included in operating expenses. During the nine-month periods ended November 30, 2021 and 2020, stock-based compensation expense attributable to stock options amounted to $1,203,975 and $1,662,155, respectively, and is included in operating expenses. Restricted Stock Units During the three-month period ended November 30, 2021, the Company granted 62,638 restricted stock units (“RSUs”) (2020 – 57,859) with a weighted average fair value of $13.64 (2020 – $12.96), settled 200,000 RSUs (2020 – 200,000) with a weighted average fair value of $0.80 (2020 – $0.80) and 17,988 RSUs were forfeited (2020 – nil) with a weighted average fair value of $8.73 (2020 – nil). During the nine-month period ended November 30, 2021, the Company granted 349,580 restricted stock units (“RSUs”) (2020 – 180,232) with a weighted average fair value of $10.16 (2020 – $10.18), settled 231,660 RSUs (2020 – 224,436) with a weighted average fair value of $1.90 (2020 – $1.78) and 313,512 RSUs were forfeited (2020 – 2,989) with a weighted average fair value of $7.97 (2020 – $8.78). The Company applies the fair value method of accounting for awards granted through the issuance of restricted stock units. Fair value is calculated based on the closing share price at grant date multiplied by the number of restricted stock unit awards granted. The total number of RSUs outstanding as at November 30, 2021 was 4,014,928 (2020 – 4,171,609), of which 525,313 were vested (2020 – 691,327). During the three-month periods ended November 30, 2021 and 2020, stock-based compensation attributable to RSUs amounted to $331,005 and $345,274, respectively, and is included in operating expenses. During the nine-month periods ended November 30, 2021 and 2020, stock-based compensation attributable to RSUs amounted to $157,769 and $1,028,152, respectively, and is included in operating expenses. During the nine-month period ended November 30, 2021, the Company recorded a reversal of expenses for forfeitures for a total of $963,022 (2020 – $4,005). Stock-Based Compensation Expenses During the three-month periods ended November 30, 2021 and 2020, stock-based compensation included in research and development expenses amounted to $362,435 and $350,393, respectively, and in general and administrative expenses amounted to $279,574 and $546,601, respectively. During the nine-month periods ended November 30, 2021 and 2020, stock-based compensation included in research and development expenses amounted to $1,152,506 and $1,054,682, respectively, and in general and administrative expenses amounted to $209,236 and $1,720,067, respectively. Stock-based compensation included in general and administrative expenses in the nine-month period ended November 30, 2021 includes reversal of expenses for forfeitures for a total of $935,837 (2020 – $4,005).

Equity Incentive Plan

Equity Incentive Plan	9 Months Ended
	Nov. 30, 2021
Equity Incentive Plan
17. Equity Incentive Plan	17. Equity Incentive Plan On July 6, 2017, the Company adopted the 2017 Equity Incentive Plan (the “Plan”). The Plan permits the granting of warrants, stock options, stock appreciation rights and restricted stock units to employees, directors and consultants of the Company. A total of 3,000,000 shares of common stock were initially reserved for issuance under the Plan at July 6, 2017, with annual automatic share reserve increases, as defined in the Plan, amounting to the lessor of (i) 1,500,000 shares, (ii) 5% of the outstanding shares on the last day of the immediately preceding fiscal year, or (iii) or such number of shares determined by the Administrator of the Plan, effective March 1, 2018. On March 1, 2021 and 2020, the Board of Directors opted to waive the annual share reserve increase. The Plan is administered by the Board of Directors who designates eligible participants to be included under the Plan, the number of awards granted, the share price pursuant to the awards and the vesting conditions and period. The awards, when granted, will have an exercise price of no less than the estimated fair value of shares at the date of grant and a life not exceeding 10 years from the grant date. However, where a participant, at the time of the grant, owns stock representing more than 10% of the voting power of the Company, the life of the options shall not exceed 5 years. The following table summarizes the continuity of the Company’s Equity Incentive Plan units during the nine-month periods ended November 30, 2021 and 2020: 2021 2020 Number of units Number of units Outstanding, beginning of period 1,083,412 1,300,518 Share reserve increase - - Units granted (349,580 ) (183,621 ) Units forfeited 313,512 2,989 Units expired - - Outstanding, end of period 1,047,344 1,119,886

Warrants

Warrants	9 Months Ended
	Nov. 30, 2021
Warrants
18. Warrants	18. Warrants During the nine-month period ended November 30, 2021, the Company issued warrants to purchase 7,550,698 shares of our common stock. 25,000 warrants were exercised with a weighted average exercise price of $9.43 and no warrants were forfeited, nor expired in the nine-month period ended November 30, 2021. The table below summarizes the warrants granted during the nine-month period ended November 30, 2021: Number of warrants Exercise Price Expiration date 4,714,813 $ 15.00 July 29, 2024 2,357,407 20.00 (1) 461,298 11.00 June 14, 2022 17,180 $ 11.00 August 26, 2024 (1) Expiration date is the earlier of (A) the date that is the third anniversary of the First Plant Milestone (as defined in the Second Tranche Warrants), (B) the expiration of the JV Negotiation Period (as defined in the Second Tranche Warrants), provided that the Joint Venture Transaction Agreements (as defined in the Second Tranche Warrants) have not been executed by the expiration of the JV Negotiation Period and (C) the third anniversary of the BDP Date (as defined in the Second Tranche Warrants), provided that the First Plant Milestone has not occurred as of such date. During the nine-month period ended November 30, 2020, the Company issued, in exchange for consulting services, a warrant to purchase 25,000 shares of our common stock at the price of $9.43 per share expiring May 12, 2022 and warrants to issue 200,000 shares of our common stock with an exercise price of $11.00 expired. During the nine-month periods ended November 30, 2020, 159,664 warrants were exercised at the price of $8.55 per share and 30,864 warrants were exercised at the price of $9.32 per share. No warrants were forfeited in the nine-month period ended November 30, 2020.

Interest and Other Finance Cost

Interest and Other Finance Costs	9 Months Ended
	Nov. 30, 2021
Interest and Other Finance Costs
19. Interest and Other Finance Costs	19. Interest and Other Finance Costs Interest and other finance costs for the three-month periods ended November 30, 2021 and 2020 are as follows: 2021 2020 Interest on long-term debt $ 32,718 $ 19,185 Accretion expense 16,937 9,387 Loss (gain) on revaluation of foreign exchange contracts - (70,427 ) $ 49,655 $ (41,855 ) Interest and other finance costs for the nine-month periods ended November 30, 2021 and 2020 are as follows: 2021 2020 Interest on long-term debt $ 74,832 $ 57,917 Accretion expense 38,512 27,044 Loss (gain) on revaluation of foreign exchange contracts - (58,945 ) $ 113,344 $ 26,016 There were no foreign exchange contracts outstanding as of November 30, 2021.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Nov. 30, 2021
Commitments and Contingencies
20. Commitments and Contingencies	20. Commitments and Contingencies Contingencies On October 13, 2020, the Company and certain of its officers were named as defendants in a proposed class-action lawsuit filed in the United States District Court for the Southern District of New York, captioned Olivier Tremblay, Individually and on Behalf of All Other Similarly Situated v. Loop Industries, Inc., Daniel Solomita, and Nelson Gentiletti On October 28, 2020, the Company and certain of its officers were named as defendants in a second proposed class-action lawsuit filed in the United States District Court for the Southern District of New York, captioned Michelle Bazzini, Individually and on Behalf of All Other Similarly Situated v. Loop Industries, Inc., Daniel Solomita, and Nelson Gentiletti On January 4, 2021, the United States District Court for the Southern District of New York rendered a stipulation and order granting the consolidation of the two class-action lawsuits filed in New York as In re Loop Industries, Inc. Securities Litigation Plaintiffs served a consolidated amended complaint on February 18, 2021 which alleges defendants violated Sections 10(b) and 20(a) and Rule 10b-5 of the Securities Exchange Act of 1934 by making materially false and/or misleading statements, as well as allegedly failing to disclose material adverse facts about the Company’s business, operations, and prospects, which caused the Company’s securities to trade at artificially inflated prices. The consolidated amended complaint relies on the October 13, 2020 report published by a third party regarding the Company to support their allegations. Defendants served a motion to dismiss the consolidated amended complaint on April 27, 2021. Plaintiffs’ opposition to the motion to dismiss was served on May 27, 2021 and Defendants’ reply in support of the motion to dismiss was served on June 11, 2021. On October 13, 2020, the Company, Loop Canada Inc. and certain of their officers and directors were named as defendants in a proposed securities class action filed in the Superior Court of Québec (District of Terrebonne, Province of Québec, Canada), in file no. 700-06-000012-205. The Application for authorization of a class action and for authorization to bring an action pursuant to section 225.4 of the Québec Securities Act Management believes that these cases lack merit and intends to defend them vigorously. No amounts have been provided for in the consolidated financial statements with respect to these claims. Management has not yet determined what effect these lawsuits may have on its financial position or results of operations as they are still in the preliminary stages.

Subsequent event

Subsequent event	9 Months Ended
	Nov. 30, 2021
Subsequent event
21. Subsequent event	21. Subsequent event Commitment to purchase of machinery and equipment In December 2021, the Company entered into an agreement for the purchase of long lead machinery and equipment in connection with the construction of our Infinite Loop™ manufacturing facility in Bécancour, Québec for up to $8,546,000 over the next 13 months, subject to various terms and conditions. Pursuant to the agreement, the Company has paid a cash deposit of $2,136,500.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Nov. 30, 2021
Summary of Significant Accounting Policies
Use of estimates	The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include estimates for depreciable lives of property, plant and equipment, intangible assets, analysis of impairments of long-lived assets and intangible assets as well as the carrying value of our joint venture investment, assets held for sale, accruals for potential liabilities, assumptions made in calculating the fair value of stock-based compensation and other equity instruments, and the assessment of performance conditions for stock-based compensation awards and the judgment in the assessment. The COVID-19 pandemic has disrupted business operations for us and our customers, suppliers, vendors and other parties with whom we do business, and such disruptions are expected to continue for an indefinite period of time. The uncertain duration of these measures has had and may continue to have an effect on our development and commercialization efforts. Although the Company continues to monitor the situation and may adjust the Company’s current policies as more information and public health guidance continues to evolve, the COVID-19 pandemic is ongoing, and its dynamic nature, including uncertainties relating to the ultimate spread of the virus, the severity of the disease, the duration of the outbreak and actions that may be taken by governmental authorities to contain the outbreak or to treat its impact, makes it difficult to assess whether there will be further impact on the development and commercialization of the Company’s technology which could have a material adverse effect on the Company’s results of operations and cash flows.
Stock-based compensation	The Company periodically issues stock options, warrants and restricted stock units to employees and non-employees in non-capital raising transactions for services and financing expenses. The Company accounts for stock options granted to employees based on the authoritative guidance provided by the FASB wherein the fair value of the award is measured on the grant date and where there are no performance conditions, recognized as compensation expense on the straight-line basis over the vesting period and where performance conditions exist, recognize compensation expense when it becomes probable that the performance condition will be met. Forfeitures on share-based payments are accounted for by recognizing forfeitures as they occur. The Company accounts for stock options and warrants granted to non-employees in accordance with the authoritative guidance of the FASB wherein the fair value of the stock compensation is based upon the measurement date determined as the earlier of the date at which either a) a commitment is reached with the counterparty for performance or b) the counterparty completes its performance. The Company estimates the fair value of restricted stock unit awards to employees and directors based on the closing market price of its common stock on the date of grant. The fair value of the stock options granted is estimated using the Black-Scholes-Merton Option Pricing (“Black-Scholes”) model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options, and future dividends. Stock-based compensation expense is recorded based on the value derived from the Black-Scholes model and on actual experience. The assumptions used in the Black-Scholes model could materially affect stock-based compensation expenses recorded in the current and future periods.
Research and development expenses	Research and development expenses relate primarily to process development and design, testing of preproduction samples, purchases of machinery and equipment for the small-scale Terrebonne production facility (the “Terrebonne Facility”), compensation, and consulting fees, and are expensed as incurred. Total research and development expenses recorded during the nine-month periods ended November 30, 2021 and 2020 amounted to $20,757,937 and $10,504,093, respectively, and are net of government research and development tax credits and government grants from the federal and provincial taxation authorities accrued and recorded based on qualifying expenditures incurred during the fiscal periods.
Assets held for sale	Assets are classified as held for sale when they met the criteria set out in ASC 360-10-45-9 Long-lived assets classified as held for sale · Management, having the authority to approve the action, commits to a plan to sell the asset; · The asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; · An active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; · The sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year; · The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and · Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When the criteria are met, the assets are presented at the lesser of fair market value, net of selling costs, and cost in current assets.
Foreign currency translations and transactions	The accompanying consolidated financial statements are presented in U.S. dollars, the reporting currency of the Company. Assets and liabilities of subsidiaries that have a functional currency other than that of the Company are translated to U.S. dollars at the exchange rate as at the balance sheet date. Income and expenses are translated at the average exchange rate of the period. The resulting translation adjustments are included in other comprehensive income (loss) (“OCI”). As a result, foreign currency exchange fluctuations may impact operating expenses. The Company currently is not engaged in any currency hedging activities. For transactions and balances, monetary assets and liabilities denominated in foreign currencies are translated into the functional currency of the entity at the prevailing exchange rate at the reporting date. Non-monetary assets and liabilities, and revenue and expense items denominated in foreign currencies are translated into the functional currency using the exchange rate prevailing at the dates of the respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the consolidated statements of operations and comprehensive loss, except for gains or losses arising from the translation of intercompany balances denominated in foreign currencies that forms part in the net investment in the subsidiary which are included in OCI.
Net earnings (loss) per share	The Company computes net loss per share in accordance with FASB ASC 260, Earnings Per Share For the nine-month periods ended November 30, 2021 and 2020, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an antidilutive effect. As at November 30, 2021, the potentially dilutive securities consisted of 1,570,000 outstanding stock options (2020 – 1,587,081), 4,014,928 outstanding restricted stock units (2020 – 4,171,609), and 11,659,418 outstanding warrants (2020 – 4,693,802).
Recently issued accounting pronouncements not yet adopted	In November 2021, the FASB issued ASU 2021-10, “Disclosures by Business Entities about Government Assistance”. This ASU provided guidance to increase the transparency of government assistance including the disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. Under the new guidance, an entity is required to provide the following annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy: (1) information about the nature of the transactions and the related accounting policy used to account for the transactions, (2) the line items on the balance sheet and income statement that are affected by the transactions, and the amounts applicable to each financial statement line item and, (3) significant terms and conditions of the transactions, including commitments and contingencies. This update is effective for fiscal years beginning after December 15, 2021. We do not expect this accounting guidance to materially impact our results of operations or financial position.

Sales Tax Tax Credits and Oth_2

Sales Tax Tax Credits and Other Receivables (Tables)	9 Months Ended
	Nov. 30, 2021
Sales Tax Tax Credits and Other Receivables
Sales tax, tax credits and other receivables	November 30, 2021 February 28, 2021 Sales tax $ 502,180 $ 1,155,504 Research and development tax credits 208,256 435,467 Other receivables 114,948 172,864 $ 825,384 $ 1,763,835

Prepaid Expenses and Deposits (

Prepaid Expenses and Deposits (Tables)	9 Months Ended
	Nov. 30, 2021
Prepaid Expenses and Deposits
Prepaid expenses	November 30, 2021 February 28, 2021 Cash deposits on machinery and equipment $ 739,863 $ 379,395 Insurance 1,073,650 - Other 176,457 230,387 $ 1,989,970 $ 609,782

Assets held for sale (Tables)

Assets held for sale (Tables)	9 Months Ended
	Nov. 30, 2021
Assets held for sale
Summarizes cost of assets held for sale	Description Balance sheet line item Cost Land held for sale Assets held for sale $ 3,364,373 Infinite Loop ™ Property, plant and equipment, net 1,391,556 $ 4,755,929

Property Plant and Equipment (T

Property Plant and Equipment (Tables)	9 Months Ended
	Nov. 30, 2021
Property Plant and Equipment
Property, plant and equipment	As at November 30, 2021 Cost Accumulated depreciation, write-down and impairment Net book value Building $ 1,939,801 $ (248,333 ) $ 1,691,468 Land 1,632,003 - 1,632,003 Building and Land Improvements 2,797,984 (754,713 ) 2,043,271 Machinery and equipment 6,514,252 (6,514,252 ) - Office equipment and furniture 294,146 (120,209 ) 173,937 $ 13,178,186 $ (7,637,507 ) $ 5,540,679 As at February 28, 2021 Cost Accumulated depreciation, write-down and impairment Net book value Building $ 1,954,345 $ (201,589 ) $ 1,752,756 Land 241,578 - 241,578 Building and Land Improvements 1,804,872 (474,114 ) 1,330,758 Machinery and equipment 6,514,252 (6,514,252 ) - Office equipment and furniture 292,946 (104,987 ) 187,959 $ 10,807,993 $ (7,294,942 ) $ 3,513,051

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Nov. 30, 2021
Fair Value of Financial Instruments
Fair value of financial instruments	Fair Value as at November 30, 2021 Carrying Amount Fair Value Level in the hierarchy Instruments carried at amortized cost: Long-term debt $ 4,204,573 $ 4,219,305 Level 2 Fair Value at February 28, 2021 Carrying Amount Fair Value Level in the hierarchy Instruments carried at amortized cost: Long-term debt $ 2,454,123 $ 2,464,540 Level 2

Accounts Payable and Accrued _2

Accounts Payable and Accrued Liabilities (Tables)	9 Months Ended
	Nov. 30, 2021
Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities	November 30, 2021 February 28, 2021 Trade accounts payable $ 2,513,404 $ 5,082,736 Accrued construction costs 902,325 - Accrued employee compensation 1,187,977 970,154 Accrued engineering fees 312,155 535,359 Accrued professional fees 288,966 1,270,628 Other accrued liabilities 217,559 265,988 $ 5,422,386 $ 8,124,865

LongTerm Debt (Tables)

LongTerm Debt (Tables)	9 Months Ended
	Nov. 30, 2021
LongTerm Debt
Long-term debt	November 30, 2021 February 28, 2021 Investissement Québec financing facility : Principal amount $ 3,595,998 $ 1,741,612 Unamortized discount (366,219 ) (268,192 ) Accrued interest 85,566 42,588 Total Investissement Québec financing facility 3,315,345 1,516,008 Term loan Principal amount 889,228 938,116 Less: current portion (889,228 ) (938,116 ) Total term loan, net of current portion - - Long-term debt, net of current portion $ 3,315,345 $ 1,516,008
Principal repayments	Years ending Amount February 28, 2022 $ 889,228 February 28, 2023 - February 29, 2024 513,705 February 28, 2025 513,705 February 28, 2026 513,705 Thereafter 2,054,881 Total $ 4,485,224

Stockholders Equity (Tables)

Stockholders Equity (Tables)	9 Months Ended
	Nov. 30, 2021
Stockholders' Equity
Common stock	For the nine months ended November 30, 2021 Number of shares Amount Balance, February 28, 2021 42,413,691 $ 4,242 Issuance of shares upon settlement of restricted stock units 231,660 24 Issuance of shares for cash 4,714,813 471 Issuance of shares upon exercise of warrants 11,666 1 Issuance of shares upon exercise of options 16,226 2 Balance, November 30, 2021 47,388,056 $ 4,740 For the nine months ended November 30, 2020 Number of shares Amount Balance, February 29, 2020 39,910,774 $ 3,992 Issuance of shares for cash 2,087,000 209 Issuance of shares upon the exercise of warrants 190,529 19 Issuance of shares upon settlement of restricted stock units 224,436 22 Balance, November 30, 2020 42,412,739 $ 4,242
Summarizes the allocation of the aggregate purchase price	Common stock $ 34,622,854 First Tranche Warrants 13,158,981 Second Tranche Warrants 7,167,195 Third Tranche Warrants 1,135,274 $ 56,084,304

Research and Development Expe_2

Research and Development Expenses (Tables)	9 Months Ended
	Nov. 30, 2021
Research and Development Expenses
Research and development expenses	November 30, 2021 November 30, 2020 Machinery and equipment expenditures $ 2,599,758 $ 2,325,540 Employee compensation 1,786,765 1,214,434 External engineering 1,585,512 2,224,910 Plant and laboratory operating expenses 665,893 515,395 Other 197,376 (5,996 ) $ 6,835,304 $ 6,274,283 November 30, 2021 November 30, 2020 Machinery and equipment expenditures $ 7,707,882 $ 2,325,540 Employee compensation 5,365,581 3,094,151 External engineering 5,040,342 3,241,959 Plant and laboratory operating expenses 2,064,403 1,385,892 Other 579,729 456,551 $ 20,757,937 $ 10,504,093

General and Administrative Ex_2

General and Administrative Expenses (Tables)	9 Months Ended
	Nov. 30, 2021
General and Administrative Expenses
General and Administrative expenses	November 30, 2021 November 30, 2020 Professional fees $ 650,164 $ 1,164,004 Employee compensation 1,028,242 945,889 Insurance 1,193,554 480,013 Other 219,295 134,110 $ 3,091,255 $ 2,724,016 November 30, 2021 November 30, 2020 Professional fees $ 3,138,611 $ 1,806,134 Employee compensation (1) 2,357,769 3,091,214 Insurance 3,121,353 1,455,954 Other 750,319 373,037 $ 9,368,052 $ 6,726,339

Equity Incentive Plan (Tables)

Equity Incentive Plan (Tables)	9 Months Ended
	Nov. 30, 2021
Equity Incentive Plan
Equity incentive plan	2021 2020 Number of units Number of units Outstanding, beginning of period 1,083,412 1,300,518 Share reserve increase - - Units granted (349,580 ) (183,621 ) Units forfeited 313,512 2,989 Units expired - - Outstanding, end of period 1,047,344 1,119,886

Warrants (Tables)

Warrants (Tables)	9 Months Ended
	Nov. 30, 2021
Accounts Payable and Accrued Liabilities
Summarizes the warrants of granted	Number of warrants Exercise Price Expiration date 4,714,813 $ 15.00 July 29, 2024 2,357,407 20.00 (1) 461,298 11.00 June 14, 2022 17,180 $ 11.00 August 26, 2024

Interest and Other Financial Co

Interest and Other Financial Costs (Tables)	9 Months Ended
	Nov. 30, 2021
Sales Tax Tax Credits and Other Receivables
Interest and other financial costs	2021 2020 Interest on long-term debt $ 32,718 $ 19,185 Accretion expense 16,937 9,387 Loss (gain) on revaluation of foreign exchange contracts - (70,427 ) $ 49,655 $ (41,855 ) 2021 2020 Interest on long-term debt $ 74,832 $ 57,917 Accretion expense 38,512 27,044 Loss (gain) on revaluation of foreign exchange contracts - (58,945 ) $ 113,344 $ 26,016

The Company Basis of Presenta_2

The Company Basis of Presentation (Details Narrative)	Nov. 30, 2021
Indorama Loop Technologies, LLC [Member]
Ownership, percentage	50.00%

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2021	Nov. 30, 2020
Research and development expenses	$ 6,835,304	$ 6,274,283	$ 20,757,937	$ 10,504,093
Restricted Stock Units
Antidilutive securities			4,014,928	4,171,609
Warrants
Antidilutive securities			11,659,418	4,693,802
Stock Options [Member]
Antidilutive securities			1,570,000	1,587,081

Sales Tax Tax Credits and Oth_3

Sales Tax Tax Credits and Other Receivables (Details) - USD ($)	Nov. 30, 2021	Feb. 28, 2021
Sales Tax Tax Credits and Other Receivables
Sales tax	$ 502,180	$ 1,155,504
Research and development tax credits	208,256	435,467
Other receivables	114,948	172,864
Sales tax, research and development tax credits and other receivables	$ 825,384	$ 1,763,835

Sales Tax Tax Credits and Oth_4

Sales Tax Tax Credits and Other Receivables (Details Narrative)	9 Months Ended
	Nov. 30, 2021USD ($)
Sales Tax Tax Credits and Other Receivables
Reimbursable research and development tax credits	$ 327,429

Prepaid Expenses and Deposits_2

Prepaid Expenses and Deposits (Details) - USD ($)	Nov. 30, 2021	Feb. 28, 2021
Prepaid Expenses and Deposits
Cash Deposits on machinery and equipment	$ 739,863	$ 379,395
Insurance	1,073,650	0
Other	176,457	230,387
Prepaid expenses	$ 1,989,970	$ 609,782

Prepaid Expenses and Deposits_3

Prepaid Expenses and Deposits (Details Narrative) - USD ($)	9 Months Ended
	Nov. 30, 2020	Nov. 30, 2021	Feb. 28, 2021
Prepaid Expenses and Deposits
Cash Deposits on machinery and equipment		$ 739,863	$ 379,395
Non refundable deposits on machinery and equipment	$ 101,590

Assets held for sale (Details)

Assets held for sale (Details)	9 Months Ended
	Nov. 30, 2021USD ($)
Total Assets held for sale	$ 4,755,929
Property, plant and equipment, net [Member]
Total Assets held for sale	$ 1,391,556
Assets Held-for-sale, Description	Assets held for sale
Assets held for sale [Member]
Total Assets held for sale	$ 3,364,373
Assets Held-for-sale, Description	Property, plant and equipment, net

Assets held for sale (Details N

Assets held for sale (Details Narrative) - USD ($) $ in Millions	6 Months Ended	9 Months Ended
	Aug. 31, 2021	Nov. 30, 2021
Assets held for sale (Details)
Land acquired descriprtion	On May 27, 2021, we acquired land in Bécancour, Québec for cash of $4.8 million (CDN $5.9 million).
Land acquired for cash, amount	$ 4.8	$ 4.8

Property Plant and Equipment (D

Property Plant and Equipment (Details) - USD ($)	Nov. 30, 2021	Feb. 28, 2021
Property, plant and equipment, gross	$ 13,178,186	$ 10,807,993
Less: accumulated depreciation, write-down and impairment	(7,637,507)	(7,294,942)
Property, plant and equipment, net	5,540,679	3,513,051
Land [Member]
Property, plant and equipment, gross	1,632,003	241,578
Less: accumulated depreciation, write-down and impairment	0	0
Property, plant and equipment, net	1,632,003	241,578
Building [Member]
Property, plant and equipment, gross	1,939,801	1,954,345
Less: accumulated depreciation, write-down and impairment	(248,333)	(201,589)
Property, plant and equipment, net	1,691,468	1,752,756
Building and Land Improvements [Member]
Property, plant and equipment, gross	2,797,984	1,804,872
Less: accumulated depreciation, write-down and impairment	(754,713)	(474,114)
Property, plant and equipment, net	2,043,271	1,330,758
Machinery and Equipment [Member]
Property, plant and equipment, gross	6,514,252	6,514,252
Less: accumulated depreciation, write-down and impairment	(6,514,252)	(6,514,252)
Property, plant and equipment, net	0	0
Office Equipment and Furniture [Member]
Property, plant and equipment, gross	294,146	292,946
Less: accumulated depreciation, write-down and impairment	(120,209)	(104,987)
Property, plant and equipment, net	$ 173,937	$ 187,959

Property Plant and Equipment _2

Property Plant and Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended
	Nov. 30, 2021	Nov. 30, 2020	Aug. 31, 2021	Nov. 30, 2021	Nov. 30, 2020
Property Plant and Equipment
Depreciation expense	$ 114,799	$ 93,006		$ 351,589	$ 624,189
Cost of incurred civil construction	$ 902,325
Land acquired for cash, amount			$ 4,800,000	$ 4,800,000

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2021	Nov. 30, 2020	Feb. 28, 2021
Intangible Assets
Intangible assets	$ 1,081,447		$ 1,081,447		$ 794,894
Additions to intangible assets			348,017	$ 452,758
Amortization expense	$ 20,236	$ 11,301	$ 56,216	$ 30,165

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($)	Nov. 30, 2021	Feb. 28, 2021
Total liabilities	$ 9,626,959	$ 10,578,989
Long-term Debt [Member] | Level 2 [Member]
Total liabilities	4,204,573	2,454,123
Fair value	$ 4,219,305	$ 2,464,540

Accounts Payable and Accrued _3

Accounts Payable and Accrued Liabilities (Details) - USD ($)	Nov. 30, 2021	Feb. 28, 2021
Accounts Payable and Accrued Liabilities
Trade accounts payable	$ 2,513,404	$ 5,082,736
Accrued construction costs	902,325	0
Accrued employee compensation	1,187,977	970,154
Accrued engineering fees	312,155	535,359
Accrued professional fees	288,966	1,270,628
Other accrued liabilities	217,559	265,988
Accounts payable and accrued liabilities	$ 5,422,386	$ 8,124,865

Joint Venture (Details Narrativ

Joint Venture (Details Narrative) - USD ($)	9 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Joint Venture
Investment in joint venture	$ 0	$ 650,000
Equity method investment, carrying value	$ 1,500,000

LongTerm Debt (Details)

LongTerm Debt (Details) - USD ($)	Nov. 30, 2021	Feb. 28, 2021
Long-term debt, net of current portion	$ 3,315,345	$ 1,516,008
Principal amount	4,485,224
Less: current portion	(889,228)	(938,116)
Investissement Qu?bec Financing Facility [Member]
Long-term debt, net of current portion	3,315,345	1,516,008
Principal amount	3,595,998	1,741,612
Unamortized discount	(366,219)	(268,192)
Accrued interest	85,566	42,588
Term Loan [Member]
Long-term debt, net of current portion	0	0
Principal amount	889,228	938,116
Less: current portion	$ (889,228)	$ (938,116)

LongTerm Debt (Details 1)

LongTerm Debt (Details 1)	Nov. 30, 2021USD ($)
LongTerm Debt
February 28, 2022	$ 889,228
February 28, 2023	0
February 29, 2024	513,705
February 28, 2025	513,705
February 28, 2026	513,705
Thereafter	2,054,881
Total	$ 4,485,224

LongTerm Debt (Details Narrativ

LongTerm Debt (Details Narrative)	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 24, 2018USD ($)	Nov. 30, 2021USD ($)$ / sharesshares	Nov. 30, 2020USD ($)	Nov. 30, 2021USD ($)$ / shares	Nov. 30, 2020USD ($)	Aug. 26, 2021USD ($)	Feb. 21, 2020USD ($)integer
Repayment of long-term debt				$ 41,041	$ 32,781
Warrants
Warrant exercise price | $ / shares		$ 9.43		$ 9.43
Investissement Qu?bec Financing Facility [Member]
Ramaining financing facility						$ 3,645,875
Interest expense		$ 21,704	$ 10,003	$ 44,098	28,816
Maximum financing facility							$ 3,595,998
Disbursement from financing facility						1,868,954	$ 1,727,043
Interest rate on loan							2.36%
Number of monthly installments | integer							84
Fair value of the loan for the disbursement						$ 1,750,395	$ 1,354,408
Discount rate						3.95%	5.45%
Loan fees							$ 35,960
Debt discount						$ 139,390	$ 290,714
Accretion expense		$ 16,723	9,387	$ 38,295	27,045
Investissement Qu?bec Financing Facility [Member] | Warrants
Warrant exercise price | $ / shares		$ 11		$ 11
Warrants issued to purchase common stock, amount		$ 359,600
Warrant term		3 years
Investissement Qu?bec Financing Facility [Member] | First Disbursement Warrant [Member]
Warrant exercise price | $ / shares		$ 11		$ 11
Warrants issued to purchase common stock, shares | shares		15,153
Fair value of warrant		$ 77,954		$ 77,954
Investissement Qu?bec Financing Facility [Member] | Second Disbursement Warrant [Member]
Warrant exercise price | $ / shares		$ 11		$ 11
Warrants issued to purchase common stock, shares | shares		17,180
Fair value of warrant		$ 69,323		$ 69,323
Term Loan [Member]
Repayment of long-term debt		13,680	13,497	41,041	32,781
Loan amount	$ 1,109,614
Loan, term	20 years
Loan, interest rate description	prime rate plus 1.5%
Monthly repayment of loan	$ 4,560
Interest paid		$ 11,010	$ 9,172	$ 30,506	$ 29,102

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - $ / shares	Jul. 13, 2018	Nov. 30, 2021	Nov. 30, 2021	Apr. 30, 2020
Shares granted		0	0
President and Chief Executive Officer
Shares granted	4,000,000
Closing price per share				$ 7.74
President and Chief Executive Officer | Restricted Stock Units
Shares granted	4,000,000

Stockholders Equity (Details)

Stockholders Equity (Details) - USD ($)	Oct. 15, 2020	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2021	Nov. 30, 2020
Balance, amount		$ 69,004,648	$ 31,593,424	$ 32,824,524	$ 38,463,708
Issuance of shares upon settlement of restricted stock units, shares	200,000			231,660	24,436
Issuance of shares for cash, shares				4,714,813
Issuance of shares upon exercise of warrants, shares				11,666	192,529
Issuance of shares upon exercise of options, shares		17,081	0	16,226	0
Balance, amount		$ 59,534,941	$ 45,034,851	$ 59,534,941	$ 45,034,851
Common Stock [Member]
Balance, shares				42,413,691	39,910,774
Balance, amount				$ 4,242	$ 3,992
Issuance of shares upon settlement of restricted stock units, shares				231,660	224,436
Issuance of shares upon settlement of restricted stock units, amount				$ 24	$ 22
Issuance of shares for cash, shares				4,714,813	2,087,000
Issuance of shares for cash, amount				$ 471	$ 209
Issuance of shares upon exercise of warrants, shares				11,666	190,529
Issuance of shares upon exercise of warrants, amount				$ 1	$ 19
Issuance of shares upon exercise of options, shares				16,226
Issuance of shares upon exercise of options, amount				$ 2
Balance, shares		47,388,056	42,412,739	47,388,056	42,412,739
Balance, amount		$ 4,740	$ 4,242	$ 4,740	$ 4,242

Stockholders' Equity (Details 1

Stockholders' Equity (Details 1)	Nov. 30, 2021USD ($)
Aggregate purchase price, net of issuance costs	$ 56,084,304
Common Stock [Member]
Aggregate purchase price, net of issuance costs	34,622,854
First Tranche Warrants [Member]
Aggregate purchase price, net of issuance costs	13,158,981
Second Tranche Warrants [Member]
Aggregate purchase price, net of issuance costs	7,167,195
Third Tranche Warrants [Member]
Aggregate purchase price, net of issuance costs	$ 1,135,274

Stockholders Equity (Details Na

Stockholders Equity (Details Narrative) - USD ($)	Oct. 15, 2020	Oct. 01, 2020	Jul. 29, 2021	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2021	Nov. 30, 2020	Feb. 28, 2021	Sep. 23, 2020
Offering price per share				$ 12		$ 12
Issuance of shares upon the vesting of restricted stock units	200,000					231,660	24,436
Issuance of shares for cash, shares						4,714,813
Gross proceeds from issuance of shares with warrants						$ 56,577,756
Net proceeds from issuance of shares with warrant						$ 56,084,304
Issuance of shares upon exercise of warrants, shares						11,666	192,529
Issuance of shares upon exercise of options, shares				17,081	0	16,226	0
Common Stock issued		207,000		47,388,056		47,388,056		42,413,691	1,880,000
Offering price of common stock		$ 12.75		$ 0.0001		$ 0.0001		$ 0.0001	$ 12.75
Proceeds from issuance of common stock		$ 26,609,250
Warrant exercise price				$ 7.30	$ 7.05	$ 7.30	$ 7.05
SKGC Investment [Member]
Aggregate purchase price			$ 56,500,000
Shares of common stock sold			4,714,813
Issued and outstanding common stock, contribution				10.00%		10.00%
SKGC Investment [Member] | First Tranche Warrants [Member]
Issuance of shares for cash, shares			4,714,813
Warrant exercise price			$ 15
SKGC Investment [Member] | Second Tranche Warrants [Member]
Issuance of shares for cash, shares			2,357,407
Warrant exercise price			$ 20
SKGC Investment [Member] | Third Tranche Warrants [Member]
Issuance of shares for cash, shares			461,298
Warrant exercise price			$ 11

Research and Development Expe_3

Research and Development Expenses (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2021	Nov. 30, 2020
Research and development expenses	$ 6,835,304	$ 6,274,283	$ 20,757,937	$ 10,504,093
Employee Compensation [Member]
Research and development expenses	1,786,765	1,214,434	5,365,581	3,094,151
External Engineering [Member]
Research and development expenses	1,585,512	2,224,910	5,040,342	3,241,959
Plant and Laboratory Operating Expenses [Member]
Research and development expenses	665,893	515,395	2,064,403	1,385,892
Other [Member]
Research and development expenses	197,376	5,996	579,729	456,551
Machinery and Equipment [Member]
Research and development expenses	$ 2,599,758	$ 2,325,540	$ 7,707,882	$ 2,325,540

Research and Development Expe_4

Research and Development Expenses (Details Narrative) - USD ($)	9 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Summary of Significant Accounting Policies
Research and development, tax credits	$ 54,911	$ 151,379
Research and development, government grants		$ 200,738

General and Administrative Ex_3

General and Administrative Expenses (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2021	Nov. 30, 2020
General and administrative expenses	$ 3,091,255	$ 2,724,016	$ 9,368,052	$ 6,726,339
Employee Compensation [Member]
General and administrative expenses	1,028,242	945,889	2,357,769	3,091,214
Professional fees [Member]
General and administrative expenses	650,164	1,164,004	3,138,611	1,806,134
Insurance [Member]
General and administrative expenses	1,193,554	480,013	3,121,353	1,455,954
Other [Member]
General and administrative expenses	$ 219,295	$ 134,110	$ 750,319	$ 373,037

General and Administrative Ex_4

General and Administrative Expenses (Details Narrative) - USD ($)	9 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Net reversal of stock-based compensation	$ 1,361,744	$ 2,774,749
Restricted Stock Units
Net reversal of stock-based compensation	$ 935,837	$ 4,005

Share-based Payments (Details N

Share-based Payments (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2021	Nov. 30, 2020
Stock options granted	0		0
Issuance of shares upon exercise of options, shares	17,081	0	16,226	0
Stock options exercised, weighted average exercise price	$ 0.80		$ 0.80
Stock options forfeited	0		0
Stock options expired	0		0
Issuances of stock options	0	0	0	0
Stock options outstanding	1,570,000	1,587,081	1,570,000	1,587,081
Stock options outstanding, weighted average exercise price	$ 6.87	$ 6.81	$ 6.87	$ 6.81
Stock options exercisable	1,286,667	986,248	1,286,667	986,248
Stock options exercisable, weighted average exercise price	$ 7.30	$ 7.05	$ 7.30	$ 7.05
Stock-based compensation expense	$ 311,004	$ 551,720	$ 1,203,975	$ 1,662,155
Research and Development Expenses
Restricted stock unit expense	362,435	350,393	1,152,506	1,054,682
General and Administrative Expenses
Restricted stock unit expense	$ 279,574	$ 546,601	209,236	1,720,067
Net reversal in stock-based compensation			$ 935,837	$ 4,005
Restricted Stock Units
Restricted stock units granted	62,638	57,859	349,580	180,232
Restricted stock units granted, weighted average exercise price	$ 10.16	$ 12.96	$ 13.64	$ 10.18
Restricted stock units settled	200,000	200,000	231,660	224,436
Restricted stock units settled, weighted average exercise price	$ 0.80	$ 0.80	$ 1.90	$ 1.78
Restricted stock units forfeited	17,988	0	313,512	2,989
Restricted stock units forfeited, weighted average exercise price	$ 8.73	$ 0	$ 7.97	$ 8.78
Restricted stock units outstanding	4,014,928	4,171,609	4,014,928	4,171,609
Restricted stock units vested		691,327	525,313
Restricted stock unit expense	$ 331,005	$ 345,274	$ 157,769	$ 1,028,152
Net reversal in expenses attributable to RSUs			$ 963,022	$ 4,005

Equity Incentive Plan (Details)

Equity Incentive Plan (Details) - Equity Incentive Plan - shares	9 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Outstanding, beginning of period	1,083,412	1,300,518
Share reserve increase	0	0
Units granted	(349,580)	(183,621)
Units forfeited	313,512	2,989
Units expired	0	0
Outstanding, end of period	1,047,344	1,119,886

Equity Incentive Plan (Details

Equity Incentive Plan (Details Narrative) - 2017 Equity Incentive Plan - shares	Jul. 06, 2017	Nov. 30, 2021
Common stock shares reserved for future issuance	3,000,000
Common stock shares reserved for future issuance annual increase	1,500,000
Expected life		10 years
Voting power percentage		10
Life of option		5 years
Common stock outstanding shares percentage	5

Warrants (Details)

Warrants (Details)	9 Months Ended
	Nov. 30, 2021USD ($)$ / shares
Warrants 1
Number of warrants | $	$ 4,714,813
Exercise Price | $ / shares	$ 15
Expiration date	Jul. 29, 2024
Warrants 2
Number of warrants | $	$ 2,357,407
Exercise Price | $ / shares	$ 20
Warrants 3
Number of warrants | $	$ 461,298
Exercise Price | $ / shares	$ 11
Expiration date	Jun. 14, 2022
Warrants 4
Number of warrants | $	$ 17,180
Exercise Price | $ / shares	$ 11
Expiration date	Aug. 26, 2024

Warrants (Details Narrative)

Warrants (Details Narrative) - USD ($)	9 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Warrants
Warrants to issue shares of common stock	200,000
Warrants to issue shares of common stock exercise price	$ 11
Warrant to purchase common stock shares for for consulting services	25,000
Warrant to purchase common stock shares for for consulting services, per share price	$ 9.43	$ 8.55
Warrants issued	7,550,698	159,664
Exercise Price	$ 9.43
Number of warrants	$ 25,000
Warrant 1 [Member]
Warrant to purchase common stock shares for for consulting services, per share price		$ 9.32
Warrants issued		30,864

Interest and Other Financial _2

Interest and Other Financial Costs (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2021	Nov. 30, 2020
Interest and Other Finance Costs
Interest on long-term debt	$ 32,718	$ 19,185	$ 74,832	$ 57,917
Accretion expense	16,937	9,387	38,512	27,044
Loss (gain) on revaluation of foreign exchange contracts	0	(70,427)	0	(58,945)
Interest and other finance costs	$ 49,655	$ (41,855)	$ 113,344	$ 26,016

Subsequent event (Details Narra

Subsequent event (Details Narrative) - Subsequent Event [Member]	1 Months Ended
	Dec. 31, 2021USD ($)
Cash deposits	$ 2,136,500
Description of construction	the purchase of long lead machinery and equipment in connection with the construction of our Infinite Loop™ manufacturing facility in Bécancour, Québec for up to $8,546,000 over the next 13 months