Loop Energy Reports Q1 Financial Results: PO's Surpassing 2021, Company Maintains Large Cash on Hand Balance of $55.7M

Friday, May 6, 2022

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Burnaby, BC, May 6, 2022--(T-Net)--Loop Energy (TSX: LPEN) today reported consolidated financial results for the first quarter ending March 31, 2022.

As of the end of March:

Loop reports revenue of $0.2 million1, compared to $nil for the same period last year
24 purchase orders received, surpassing 2021 annual total of 19
Vehicles equipped with Loop's fuel cells had accumulated in field mileage of over 400,000 km
Loop added a second customer to enter the Scale Up Phase of its Customer Adoption Cycle - Tevva Motors Ltd.

Ben Nyland, President and CEO, Loop Energy

Ben Nyland, President and CEO said: "We are continuing to see traction in the market for our products. We started the year with the goal of tripling our 2021 purchase orders to 60 in 2022 and are delighted to report that as of March 31, 2022, we have already achieved 24 purchase orders. We continue to lay the foundation in 2022 to enable us to deliver against our projected future demand."

Q1 2022 Highlights

Revenues of $0.2 million, compared to $nil for the same period last year
24 purchase orders received versus 4 purchase orders in Q4 2021
Operating expenses of $6.1 million, compared to $3.9 million for the same period last year
Capital expenditures of $3.3 million, compared to $0.2 million for the same period last year
Net losses of $8.0 million, compared to $4.9 million for the same period last year
Cash and cash equivalents of $55.7 million in Q1 2022, compared to $67.0 million for the full year of 2021
Selected to receive $9.75 million interest-free federal loan funding from Pacific Economic Development Canada
Tevva Motors enters Scale Up Phase of Customer Adoption Cycle and selects Loop Energy as fuel cell supplier for 7.5 ton truck

Loop's 2022 Outlook

Targeting a tripling of purchase orders to reach sales of 60 fuel cell units
Targeting 750,000 km of accumulated mileage in customer vehicles
Expanding its presence in key markets, targeting a 20-fold increase in viewership at trade shows in 2022
Planning to introduce its next-generation 120 kW fuel cell in the second half of 2022, built from the larger e-flow plate which the company expects to result in cost reductions across its entire product range. Loop also expects the larger product offering will help expand the company's total addressable market (TAM) while reducing average cost per kW produced
Shanghai facility expected to be operational in Q2 - although this may be delayed by the current COVID related lockdowns in China. The lease agreement also includes an option that could enable the company to triple production space in Shanghai in the medium to long term
Loop continues to grow its engineering capability and production capacity in Burnaby, British Columbia with a stated objective of being able to demonstrate the ability to produce 200 fuel cell units per annum on a single-shift basis by the end of 2022

The Company's financial statements and management's discussion & analysis are available at investors.loopenergy.com, and www.sedar.com.

About Loop Energy Inc.

Loop Energy is a leading designer and manufacturer of fuel cell systems targeted for the electrification of commercial vehicles, including light commercial vehicles, transit buses and medium and heavy-duty trucks. Loop's products feature the Company's proprietary eFlow™ technology in the fuel cell stack's bipolar plates. eFlow™ is designed to enable commercial customers to achieve performance maximization and cost minimization. Loop works with OEMs and major vehicle sub-system suppliers to enable the production of hydrogen fuel cell electric vehicles.

All amounts are in CAD dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS).

Forward Looking Information

This press release may contain forward-looking statements with respect to us and the fuel cell industry. Such statements reflect our current expectations and projections regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control and could cause actual results and events to vary materially from those that are disclosed, or implied, by such forward-looking information. [ MORE ]

Forward Looking Information

Such risks and uncertainties include, but are not limited to, the ability of the Company to execute on its strategy and the factors discussed under "Risk Factors Company's Annual Information Form dated March 30, 2021. Also refer to the section entitled "Cautionary Statement Regarding Forward Looking Information" in our current Management's Discussion and Analysis for more information. Loop does not undertake to update, correct, or revise any forward-looking statements as a result of any new information, future events or otherwise, except as may be required by applicable law.

Non-IFRS Financial Measures

Product back-log is a non-IFRS financial measure intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with IFRS. In addition, this measure does not have a standardized meaning under IFRS and therefore may not be comparable to a similar measure presented by other companies. This non-IFRS measure is used by management, and we believe that it assists investors and other users of our financial reports in assessing our financial performance and monitoring our ongoing financial position.

Our product backlog represents the estimated aggregate value of all future conditional orders, binding and non-binding commitments and memorandums of understanding from customers who have placed at least one committed purchase order with us for at least one fuel cell stack or module with written intention (including binding and non-binding commitments) of follow-on unit orders. Our product backlog is currently comprised of a relatively limited number of contracts and a relatively limited number of customers and there can be no assurance that any such conditions will be fulfilled, or that our product backlog will be equal to our future revenues.

Given the relative immaturity of our industry and customer deployment programs, our product backlog is potentially vulnerable to risk of cancellation, deferral or non-performance by our customers for a variety of reasons, including: risks related to continued customer commitment to a fuel cell program; risks related to customer liquidity; credit risks; risks related to changes, reductions or eliminations in government policies, subsidies and incentives; risks related to macro-economic conditions including trade, public health (including the ongoing impact of the COVID-19 pandemic), and other geopolitical risks; risks related to slower market adoption; risks related to vehicle integration challenges; risks related to the development of effective hydrogen refueling infrastructure; risks related to the ability of our products to meet evolving market requirements; and supplier-related risks.

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Company Snapshot

Loop Energy

Vancouver (CleanTech & Energy)
20-49 Employees In BC (20-49 Employees Total)
Founded: 2001

Loop Energy provides zero-emission fuel cell power solutions for medium-to-heavy-duty transport applications.

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