Loop Industries, Inc. Fair Value Disclosure
The following table presents the fair value of the Company’s financial liabilities at February 28, 2021 and February 29, 2020:
| Fair Value Measurements as at February 28, 2021 | ||||||||||||
| Carrying Amount | Fair Value | Level in the hierarchy | ||||||||||
| Financial liabilities measured at amortized cost: | ||||||||||||
| Long-term debt | $ | 2,454,123 | $ | 2,464,540 | Level 2 | |||||||
| Fair Value Measurements at February 29, 2020 | ||||||||||||
| Carrying Amount | Fair Value | Level in the hierarchy | ||||||||||
| Long-term debt | $ | 2,290,152 | $ | 2,314,117 | Level 2 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2021 | Jun 1, 2021 | Showing above |
| 2020 | May 5, 2020 | |
| 2019 | May 8, 2019 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.