Loop Industries, Inc. Stock Compensation Disclosure
19. Share-Based Payments
Stock Options
The following tables summarizes the continuity of the Company’s stock options during the years ended February 28, 2026 and February 28, 2025:
| 2026 | 2025 | |||||||||||||||
| Number of | Weighted average | Number of | Weighted average | |||||||||||||
| stock options | exercise price | stock options | exercise price | |||||||||||||
| Outstanding, beginning of year | 2,771,216 | $ | 5.25 | 2,772,000 | $ | 5.10 | ||||||||||
| Granted | 3,931,922 | 1.14 | 199,216 | 2.89 | ||||||||||||
| Exercised | (80,000 | ) | 0.80 | - | - | |||||||||||
| Forfeited | (180,000 | ) | 2.03 | (200,000 | ) | 0.80 | ||||||||||
| Expired | (200,000 | ) | 0.80 | - | - | |||||||||||
| Outstanding, end of year | 6,243,138 | $ | 2.96 | 2,771,216 | $ | 5.25 | ||||||||||
| Exercisable, end of year | 2,781,727 | $ | 5.00 | 2,040,000 | $ | 6.12 | ||||||||||
| 2026 | 2025 | |||||||||||||||
| Number of | Weighted average | Number of stock | Weighted average | |||||||||||||
| stock options | remaining | options | remaining | |||||||||||||
| Exercise price | outstanding | life (years) | outstanding | life (years) | ||||||||||||
| $0.80 | - | - | 280,000 | 0.75 | ||||||||||||
| $1.02 | 1,000,000 | 6.85 | - | - | ||||||||||||
| $1.16 | 2,701,922 | 6.10 | - | - | ||||||||||||
| $1.72 | 130,000 | 6.63 | - | - | ||||||||||||
| $2.68 | 972,000 | 6.75 | 972,000 | 7.75 | ||||||||||||
| $2.89 | 199,216 | 8.02 | 199,216 | 9.02 | ||||||||||||
| $3.11 | 160,000 | 7.08 | 240,000 | 8.08 | ||||||||||||
| $5.25 | 380,000 | 1.49 | 380,000 | 2.49 | ||||||||||||
| $12.00 | 700,000 | 1.54 | 700,000 | 2.54 | ||||||||||||
| Outstanding, end of year | 6,243,138 | 5.63 | 2,771,216 | 5.13 | ||||||||||||
| Exercisable, end of year | 2,781,727 | 4.65 | 2,040,000 | 4.04 | ||||||||||||
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. The principal components of the pricing model for the stock options granted in the years ended February 28, 2026 and February 28, 2025 were as follows:
| 2026 | 2025 | |||||||
| Exercise price | $ | 1.14 | $ | 2.89 | ||||
| Risk-free interest rate | - | 4.09 | % | |||||
| Expected dividend yield | 0 | % | 0 | % | ||||
| Expected volatility | - | 73 | % | |||||
| Expected life (years) | 3.5 - 5.5 years | 7 | ||||||
During the year ended February 28, 2026, stock-based compensation expense attributable to stock options amounted to $1,159 (2025 – $555).
Restricted Stock Units
The following table summarizes the continuity of the restricted stock units (“RSUs”) during the years February 28, 2026 and February 28, 2025:
| 2026 | 2025 | |||||||||||||||
| Number of | Weighted average | Number of | Weighted average | |||||||||||||
| units | fair value price | units | fair value price | |||||||||||||
| Outstanding, beginning of year | 4,466,958 | $ | 6.32 | 4,368,897 | $ | 6.53 | ||||||||||
| Granted | 328,081 | 1.33 | 213,046 | 2.10 | ||||||||||||
| Settled | (126,857 | ) | 2.90 | (91,355 | ) | 6.74 | ||||||||||
| Forfeited | (406,670 | ) | 2.97 | (23,630 | ) | 4.88 | ||||||||||
| Outstanding, end of year | 4,261,512 | $ | 6.36 | 4,466,958 | $ | 6.32 | ||||||||||
| Outstanding vested, end of year | 1,846,828 | $ | 5.72 | 1,761,421 | $ | 5.86 | ||||||||||
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 intrinsic value at grant date multiplied by the number of restricted stock unit awards granted.
During the year ended February 28, 2026, stock-based compensation attributable to RSUs amounted to $294 (2025 - $797).
Stock-Based Compensation Expense
During the year ended February 28, 2026, stock-based compensation included in research and development expenses amounted to $490 (2025 – $471), and in general and administrative expenses amounted to $963 (2025 – $881).
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 27, 2026 | Showing above |
| 2021 | Jun 1, 2021 | |
| 2020 | May 5, 2020 | |
| 2019 | May 8, 2019 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.