Loop Industries Q1 2026 Earnings Call Transcript

Quartr
Provided by Quartr
July 16, 2025

Key Takeaways

  • Positive Sentiment: Loop Industries confirmed $176 million CapEx for its India Infinite Loop facility (with a $95 million technology install cost, lowest in the industry), narrowing site selection to two Gujarat locations.
  • Positive Sentiment: Ongoing offtake discussions with leading global apparel brands for textile-to-textile recycled polyester and European beverage companies for high-quality rPET leverage India’s low-cost structure to offer competitive pricing on 100% recycled virgin-quality PET.
  • Positive Sentiment: Modularization plan underway to build process modules in India—signing a $1.5 million engineering contract—aims for a ~50% CapEx reduction for European facilities by shipping Lego-style modules.
  • Positive Sentiment: Financial discipline delivered a 46% YoY reduction in cash operating expenses to $2.6 million in Q1, with cash used in operations of $3.1 million and ending liquidity of $12.3 million.
  • Negative Sentiment: Loop faces a ~$15 million funding gap for its India JV equity contribution (totaling $25 million), planning to fill it via government grants, engineering revenues, licensing fees and new capital.
AI Generated. May Contain Errors.
Earnings Conference Call
Loop Industries Q1 2026
00:00 / 00:00

There are 8 speakers on the call.

Speaker 5

Morning, ladies and gentlemen. Thank you for standing by. Welcome to Loop Industries' first quarter fiscal 2026 corporate update call. My name is Emily, and I'll be coordinating your call today. After the presentation, you'll have the opportunity to ask any questions or issues in doing so by pressing the star followed by the number one on your telephone keypad. This conference is being recorded today, Wednesday, July 16, 2025. The earnings release accompanying this call was issued after the market closed yesterday, Tuesday, July 15, 2025. On our call today are Loop Industries' Chief Executive Officer, Daniel Solomita, Interim Chief Financial Officer, Nicolas Lafond, and Kevin O'Dowd, Head of Investor Relations. I would now like to turn the conference over to Kevin O'Dowd to read a disclaimer regarding forward-looking statements.

Speaker 7

Thank you, operator. Before we begin, please note that today's discussion will include forward-looking statements within the meaning of U.S. security law. These statements relate to our expectations, projections, beliefs, future plans and strategies, anticipated events, and other performance matters. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied. For a complete discussion of these risks and uncertainties, please refer to the risk factors and forward-looking statements section in our most recent annual Form 10-K, our quarterly report and the 10-Q filed yesterday with the SEC, and our earnings press release issued yesterday. These documents are available at www.sec.gov or directly from our investor relations team. With that, I'll now turn the call over to Daniel Solomita, Founder and Chief Executive Officer of Loop Industries.

Operator

Thank you very much, Kevin. Good morning, everyone. We continue to make steady progress towards groundbreaking of Infinite Loop manufacturing facilities in both India and Europe, both regions working with excellent local JV partners with whom we are fully aligned as we advance to the next stage of strategic development. Let's start with Infinite Loop India. Our off-take discussions are progressing well with leading global apparel brands and CPG brands. For the apparel company, we are offering a textile-to-textile solution, meaning we recycle waste textiles and turn that into brand new polyester fiber, which they then incorporate into their clothing. Most of these apparel brands need a solution to be able to incorporate more sustainable materials into their clothing. Today, they're using mechanical recycling, which is basically coming from water bottles and turning that into fibers. That's the way of the past.

Operator

Bottles need to stay within the bottle, and the textile companies recognize that they need a solution for textile-to-textile recycling. That's where Loop comes in. The ability for us to recycle textile waste, removing all coloring dyes, all other types of impurities, and providing them with virgin-quality polyester fiber is a huge advantage for the apparel brands. There's a plentiful amount of waste polyester fiber available in India for us to be processing at the facility due to India's textile industry. On the CPG side, the consumer packaged goods companies today, European beverage brands are in need of high-quality recycled PET. The quality of the mechanical recycled PET that they're using today is getting worse, and the quality is very low, affecting their packaging. They really need to find a solution for being able to incorporate more recycled material but getting high-quality material.

Operator

This is a trend that we're going to continue to see. As more mechanical recycling comes on board, the quality of the artifact that they're producing is getting worse and worse. Eventually, because there's only a certain amount of cycles that a bottle can go through until that bottle is no longer usable to do mechanical recycling. That's where Loop's technology steps in. Loop's technology obviously provides very good quality, top-quality PET resin for the brands coming from the waste material. No matter what the incoming feedstock quality is, we always produce the top-quality output. A lot of European beverage brands are looking to Loop to be able to provide them with that high-quality PET made from 100% recycled content.

Operator

The advantage of India's low-cost structure is that it allows us to provide the highest quality PET made from 100% recycled content to our customers at very competitive prices while achieving attractive economic returns for Loop and generating strong cash flow to fund future capacity. Those are really the key elements for this, providing the customers with the highest quality PET made from 100% recycled content. Today, because of India's low-cost structure, we can provide them at very competitive pricing. The $176 million CAPEX was confirmed by Pata, the engineering firm who did the seed study. That CAPEX number includes a polymerization unit to recompile the DMP and the MEG into PET, land acquisition, and all financing costs through startup. If we remove all of those costs, the total install cost of Loop's technology is $95 million, which is by far the lowest cost in the industry.

Operator

Price selection has been narrowed to two locations in Gujarat, and we'll be finalizing which land we'll be choosing very shortly. The economics for Loop on the project, in addition to the JV returns, of which we own 50%, will be further enhanced by licensing fees for Loop. Loop sees a 5% licensing fee for technology and customer sale, as well as engineering fees. We signed a $1.5 million engineering contract with the Indian joint venture to provide engineering support for the next stage of engineering, the detailed engineering and construction. Infinite Loop Europe, Sofiège is seeking to advance the timing of the project under their newly appointed CEO Yves Bertrand and his dedication to advancing the project. Right now, we are supporting them in the site selection, which is their immediate focus. The site selection is focusing mainly on Western Europe.

Operator

Our team is supporting them as we look through the different pieces of land to find the optimal piece of land. Once that piece of land is identified, then we'll start working on the engineering for the project and on the modularization. The engineering is going to be done in a modular fashion, where the modules are going to be built in India. We're bringing India's low-cost manufacturing, low CAPEX, and exporting that to other parts of the world. In this case, it's going to be Europe. We are working with a leading company in India for modularization with significant experience in the chemical industry. The modules for Loop's technology will be built in India and shipped to Europe, or we can ship them to any location in the world. They're assembled like Lego blocks on site.

Operator

It will significantly increase the CAPEX efficiency for the project for Loop's technology anywhere in the world. The initial estimate is that the CAPEX would be a 50% reduction versus if we would be doing it as a fixed build. That's a significant savings. Again, a perfectly provisioned Loop technology to deliver high-end quality PET resin or polyester fiber to the customers with extremely competitive prices. I'm more happy with the modularization progress that's going on right now. In addition to the shared project economics in Europe, Loop will generate additional revenue from providing the modular solution from engineering services and two other milestone payments coming from that first European facility. With that, I'll turn it over to Nicolas Lafond for some update on the financials.

Speaker 3

Thank you, Daniel. There are two key items I'd like to highlight from our Q1 fiscal 2026 financial results filed last evening. First, we continued our disciplined approach to managing expenses and preserving cash. Cash operating expenses for the quarter were $2.6 million, representing a reduction of $2.2 million or 46% compared to the same quarter last year. Cash used in operating activities for the quarter was $3.1 million, including working capital outflows of $0.8 million. These outflows reflect the timing of certain payments early in the fiscal year from which we will benefit later on. Second, we ended the quarter with available liquidity of $12.3 million. Our objective is to secure sufficient financing to fund Loop's equity contribution for India and our operating cash burn through to the startup of the Indian facility. Anticipated sources include government funding and engineering revenues in addition to new capital.

Speaker 3

I'll now return the call to Daniel for his closing remarks before we open the line for questions.

Operator

Thank you, Nick. In conclusion, we're in excellent positions to move to the next stage of strategic development of the Infinite Loop manufacturing facilities. The first facility in India has by far the most attractive economics of any project that we've considered. We have a great JV partner. The modularization brings a really differentiating factor where, because of the lower cost CAPEX, now you can see an acceleration of the amount of projects that can be built because we can offer really competitive prices and maintain low high returns, which is key to all of these projects. We have a great partner and a great relationship with our European partners, advancing together in lockstep. The long-term vision is to drive significant shareholder value creation through continuing rolling out these manufacturing facilities. As we said, we have licensing revenue, engineering revenue, modularization revenue, and obviously a share in the project economics.

Operator

We have very strong relationships with all of the different customers that are looking for high-quality PET resin and polyester fiber coming from Loop's technology. I think we'll be more excited about the future of Loop. With that, I'll open up the line to questions.

Speaker 5

Thank you. We will now begin the question and answer session. As a reminder, if you would like to ask a question today, please do so now by pressing star followed by the number one on your telephone keypad. If you change your mind or you feel like your question has already been answered, you can press star followed by two to withdraw yourself from the queue. Our first question today comes from the line of Jerry Foley with ROTH Capital Partners. Please go ahead.

Speaker 1

Good morning, Daniel. Thanks for taking my call.

Speaker 4

Good morning, Gerard.

Speaker 1

I wanted to see if we could touch upon the off-take agreements, maybe go into a little bit more detail. Do you have an idea of maybe potential timing, and what we should think about that? Secondarily, does signing any of the CPG agreements need to coincide with any stages of the India project moving forward?

Operator

The customer contracts, you know, we've been advancing discussions with customers steadily over the past few months, especially since the CAPEX number was confirmed. We have a confirmed, you know, profitability range that we want to maintain with this. Things are going really well on the customer side. Signing off on contracts is taking, you know, sometimes a little bit longer as there's a lot of steps internally in today's world. You know, with higher inflation, people are a little bit more, not cautious, but I'd say there's more internal steps that have to be done to get contracts fully executed and fully signed, especially for contracts that we are negotiating, which are longer-term contracts. It's not usually these CPG brands buy either spot price or one-year contracts. We're asking for longer length contracts between three to five years in length.

Operator

Those are certain things that internally we have to have acceptance from senior management for these types of things. The pricing, because we're really competitive in pricing because of the low-cost structure in India, really is not an issue where we, you know, the pricing is well aligned with the needs of the customers. That's a big advantage that we have. There's a take-or-pay element to our contracts. If the customer would not take the volume for any reason, they would be penalized to a certain amount. It could be 40% of the value of the contract, could be 100% value of the contract. That's another thing. You want to make sure that these contracts are very bankable. We are looking to sell out a certain portion of the facility prior to starting up the facilities. Securing the debt financing for the facility is easier to have.

Operator

The terms would be better on the debt financing when you have a certain percentage of the contracts secure. That's our immediate goal. Yeah, and we have line of sight on that. We're very confident in being able to execute on that.

Speaker 1

Gotcha. Just a couple more, maybe a little bit more detailed questions from the contractor. Previously, you looked at, I don't know, cost plus for the right term to use, but with the previous contracts as you discussed, you would have your input cost plus, we'll say the conversion cost plus a markup. So you have some stability on the margins. Will the contract have a similar structure as that?

Operator

The one advantage that we're giving to customers, customers like predictability. Customers like to know that for three years, this is how much they're going to pay and not have the ups and downs of the cycles. Potential wars or oil disruption or whatever it can be that's going to affect the prices. Because of the Indian low-cost structure and the security on our supply, those variations are important when your raw materials can fluctuate tremendously. That's where you would put in a cost plus structure or an index plus structure. In India, there's plentiful waste available, and we're locking it because no one else can recycle the type of material that we're recycling. We can lock in fixed prices on our feedstock. Then we can lock in fixed prices for the customers. Today, we're actually offering customers fixed price contracts, which is a huge benefit.

Operator

To offset some of the longer-term or offset the liability they have to pay, we offer them a fixed price for, let's say, three years or five years. It's a big advantage for them that it involves their predictability of their cost. That's the way we're selling the material in India. In Europe, you may go back to that cost plus because there could be more variations. In India, fixed price contracts, and the customers really appreciate that.

Speaker 1

Got it. One more question. Just maybe, you know, next few steps. Obviously, CPG contracts or apparel, and that helps drive the financing aspect. Maybe next few steps would, you know, contract financing. What would be some other areas that we should keep an eye on going forward?

Operator

The JV has hired KPMG to syndicate out the debt financing. They've already prepared what they call a detailed project report, and they're already presenting this to Indian banks and other banks. EDC in Canada, the Export Development Canada, is interested in supporting because of Loop's technology and bringing that worldwide. We've already begun that debt financing worksheet. As the customer contracts come in, this brings more credibility to the story and it proves the economics that we've shown the banks. That's well underway. The land selection, we have two pieces of land that we zeroed in on in Gujarat, in the Dahej region, which is where a plentiful amount of waste textile feedstock and waste bottle feedstock is available. Now we're just looking at negotiating the final terms for either of those two pieces, and we should have a conclusion of that very shortly. That's another milestone.

Operator

The biggest milestones are going to be the customer contracts in place for the facilities. Those are going to be the big ones for us.

Speaker 1

Got it. Okay, great. I'll jump back in line. Thank you very much.

Operator

Just maybe one more thing on the customer contracts so that everybody's clear. The customer contract is between Loop and the CPG or the apparel company. We make the sale, and then there's a back-to-back contract that goes through the joint venture. The actual sale is between Loop and that company, and then Loop and the joint venture will have a back-to-back contract.

Speaker 5

Thank you. Our next question comes from Frederick, Nick, with ROTH Capital Partners. Please go ahead. Your line is now open.

Speaker 5

Hey, Daniel. Thanks for the question. I wanted to get some direction on Loop's capital intensity. A public dissolution recycler recently said that their facility in Thailand will have a gross CAPEX per pound of approximately $1.40 to $1.70. That's based off, I think, 130,000 tons per year. Where does Loop fall, from a gross, which means excluding financing and land, and net CAPEX per pound on the facility that they're building?

Operator

For Loop's technology, if you exclude land acquisition, financing costs, and we exclude the polymerization, which is putting the monomers back together, our costs per pound at 100, our facilities are 154 million pounds per year capacity. We would be at $0.61 per pound.

Speaker 1

Wow, okay. That's pretty high.

Operator

The CAPEX per pound would be $0.61 per pound produced.

Speaker 1

As we've analyzed, the bottom net basis is that on a net basis? Just to be clear.

Operator

Yeah, that's on a net basis. Exactly. That's excluding financing costs, excluding land costs, and excluding the polymerization costs. If you would add in the polymerization units, then we would be at $0.75 per pound. Loop's full technology is $0.61 per pound. If you're plugging into an existing facility that has polymerization, we're at $0.61 per pound. That's at 70, you know, that's at the current capacity. The beauty of Loop's technology is because there's really no proprietary equipment in the technology. It's basically, you know, reactors, filters, and distillation columns. The technology lends itself very well to scale. Future facilities like our India 2 facility, we're looking at, you know, a 50% increase in capacity. That $0.61 would even come down further from there as we scale to bigger facilities. Yeah, $0.61 per pound is today's number.

Speaker 1

That's huge. Appreciate the call. Thanks, Daniel. Jump back on the queue.

Operator

Thank you, Fady.

Speaker 5

Thank you. Our next question comes from Jonathan Norwood with Friends and Family of VMO. Please go ahead, Jonathan. Jonathan, your line is open. Please proceed with your question.

Speaker 5

Sorry, I was just muted there. Thanks for allowing me to have some questions here. Just a couple of follow-ups here on a question that Jerry asked about the off-take agreements. These are obviously long lead agreements because you're probably, say, three years away from being able to, I mean, maybe you can correct me on that, but by the time you get the facility up and running and producing products, it probably wasn't at about three years out. How do you, like what sort of oath, I guess, do you have or does the CPG company have, or the apparel company have in terms of Loop not meeting milestones from a construction perspective? Or what sort of oaths do you have in the event that, you know, the environment changes such that selling to a particular company would not be economic.

Operator

There are a couple of different points there to discuss. The facility would be up at the end of 2027. It's 18 months construction time, plus, let's say, six months of startup. We're 24 months away from, let's say, this fall. The plan is to have the facility up by the end of 2027. Customer contracts, there's a taker pay element. If we're producing the material, shipping it to them, if they do not want to accept the material, they have to pay us a penalty on the material, like I said, ranging between 40% of the contract up to 100% of the contract. It's a negotiation difference with every customer. If Loop is unable to deliver the material to the customer, there is no financial penalty to Loop.

Operator

Okay. If you guys, let's just say for whatever reason, you're unable to have this thing up and running in 18 months, let's just say it's the end of 2028 instead of the end of 2027. Could these guys, could they back out of the agreement? Is there anything that's tied to your ability to get the plant up and running by the end of 2027?

Operator

No, there's nothing tied to it.

Operator

Okay. All right. Just making sure on that. Because, I mean, we've seen in the past, and I know that, you know, we were essentially, I think initially it was sort of like bottle to bottle. We've seen like Coke and Pepsi sign up and then subsequently drop off. I'm just wondering, like I just want to be mindful of that and how a delay in the construction of the project could potentially, because it's been a long time to get this thing up and running. I just want to make sure that these guys, you know, they don't have the ability to pull the plug sort of halfway through construction or anything of that nature. That's fine.

Operator

I think we'll be clarified that that processing plans in your in the past when you had a contract with Coke and Pepsi, it was for a Coke and Pepsi didn't pull the contract. It is that Loop didn't wasn't able to deliver the facility, which we're talking about was 2018, which was a facility in 2018, that we were looking at doing in Spartanburg, South Carolina. No contract was ever pulled. It was that Loop was unable.

Operator

Yeah, no, I thought it was.

Operator

We're talking about seven years ago, right? It's a completely different project and completely different economics, and, you know, a very different customer base. Yeah, the fact of the matter was that we did not build the plant in Spartanburg, and that's why the contract fell off. If you have a certain contract for a certain facility and it doesn't get built, if the facility is built and operating, then the customers are locked into buying the volumes.

Operator

Okay. No, that makes sense. On the equity contributions that's required by Loop for the India facility, can you remind us of how much that is and what the timeline for having to inject that amount is?

Operator

The total amount would be $25 million. Part of it will be paid for with polymerization equipment that we had bought for a previous project. We'll be able to reuse that equipment. We also have a certain portion of that committed by a government entity here in Quebec. The timing for that is probably sometime in the fall once we have the land selected, so yeah, sometime towards the fall timeframe. Like we said, by the end of the year of breaking ground. At the time of breaking ground, that's when we would be needing all of the capital in place for the project.

Operator

What's the funding gap then between, I guess, the amount of cash that you'll have on hand at that time, the amount of capital that the government entity will be putting up, and then the amount that you have to effectively put in? What's that funding gap, and how do you anticipate coming up with that capital?

Operator

The funding gap for that facility is about $15 million. We have several different opportunities right now that we're evaluating for the $15 million. One thing I'm really excited about is the acceleration of the Sofiège project because we'll be touching engineering and modularization, revenue earlier. That will definitely help with the cash flow going forward for Loop's past position. The amount needed right now is $15 million.

Operator

Okay. Okay. On licensing, Daniel, can you give us an update on what the pipeline looks like for potential companies to license your IP? How active is that pipeline? Are there any hopefuls or people that are interested in that?

Operator

Yeah, I think with the, you know, once we've confirmed the CAPEX number in India and the modularization work that we've done, it really allows projects where before you were looking at these very capital-intensive projects of, you know, somewhere north of $500 million for a plus. Now that we're able to cut that number in half, let's say, for, you know, the Western world or North America or other higher-cost manufacturing companies, I think that opens the door to a lot more potential projects. Sofiège is very interested in building multiple of these facilities, but we want to start with one in Europe. They have a plan to roll out several of these facilities through their private equity arm. They have a new CEO, a dedicated CEO that's been hired just for this.

Operator

He's working diligently with my team on finding the optimal location and then bringing in the facility, bringing in the module. That modularization, I can't stress how much that modularization is going to help rapidly expand future facilities. There are other potential opportunities in Asia. There's potential opportunity in North America. We're looking at a whole bunch of different opportunities right now. India is going to be still the lowest cost facility we'll ever build. It's going to be India, and the economics are tremendous for us. The customer appetite for Indian material is strong. Shipping it to Europe or using it in other, you know, the textile supply chain is all done in either China, South Korea, Vietnam, or Taiwan. Having a facility in India supplying those countries is really important for us. We are definitely planning, we're buying enough land to have a second facility on-site in India.

Operator

The plan there is after the first facility, we have a year of operation to expand to the second facility. We could do 100,000 tons, about 50% capacity more than the current facility. That's going to be another really exciting opportunity to have that low-cost structure in India and continue building off of that.

Operator

No question. I mean, on paper, India seems to be the optimal place to locate one of these plants. I guess just one last question on the debt piece that your Indian partner has to come up with. It sounds like KPMG has been engaged to put together a syndicate. That's, I mean, is that an Indian-based thing? Typically in North America, you wouldn't expect to see an accounting firm putting together a syndicate. You'd have a bank that would be doing that. I'm not used to hearing KPMG organizing a syndicate. Is that a pretty standard thing in Asia? Maybe Kevin will know to answer that.

Operator

Our partner at Ester has built, they have three operating facilities, three PET operating facilities. The latest that they built was in 2021. This is the same, KPMG was the person they used for that debt syndication as well. We're following their lead. I'd say to be serious in that. We're following their lead, especially with the Indian banks.

Operator

Okay. Thanks for that. Let me ask the questions, guys. Take care.

Operator

Thank you.

Speaker 5

Thank you. Our next question comes from Marvin Wolff with Paradigm Capital. Marvin, please go ahead.

Speaker 2

All right. Can you hear me all right, guys?

Speaker 1

Yeah, I can hear you fine, Marvin.

Speaker 2

Yeah, okay. Very good. Yes, and thanks for taking the question this morning. I was wondering, could you give us more color on things surrounding the two sites you're looking at? Things like, you know, lead time on permits, are these fully greenfield sites, you know, all that kind of stuff. Here in Canada, you could close a site today and not be allowed to break ground for maybe a couple of years by the time you got through all the local regulations and whatnot. A little more color on that would be helpful if you could.

Operator

Yep. The permitting comes with the purchase of the facility. They're in industrial zones already, zoned for this type of an activity. We'll be with other chemical companies in the park. When you acquire the land through this process, we acquire the permitting as well. Once the land is acquired, we're ready to start constructing.

Speaker 2

Oh, very good. That includes everything. That includes utilities and everything.

Operator

Utilities depend, you know, like the utilities in our process is, you know, steam generation, electricity. Those types of things, you have to bring in a substation for the electricity, connected to the electrical, you know, output in the area. Some industrial parks have some utilities, some don't. That's a big part in deciding which location to use. A lot of that has to do with what utilities are available. In India, the utilities are mainly just, you know, roads, and there's nothing that would be for our process specifically. All of the utilities at these facilities in India, Loop would be providing all of the utilities. That CAPEX number has all the utilities costed into that. In Europe, it's a little bit different.

Operator

You can find industrial parks or industrial areas that have certain utilities that will have a common steam generation or they'll have a common wastewater treatment plant. That's not the case in India.

Speaker 2

Okay. How many megawatts of power do you need to operate the facility?

Operator

Less than five.

Speaker 2

Okay. Is that like a standard number you can easily get from the hydro or electricity provider?

Operator

Yeah. Our technology is, you know, the main source of energy used for our process is steam. The steam is used to heat and cool reactors, distillation column. Our technology is low energy, right, because we have a very low operating temperature in our reactor to be like 85 degrees Celsius. We don't use a lot of power consumption. The number one energy source for the steam generation is going to be rice husk. In India, it's a biomass, so very good for the environment. It's not coming from a coal plant or from other higher polluting sources. It's actually the peel of the rice that's used, or calippies, and they're used to generate the steam. It's going to be 100% biomass coming into the facility.

Speaker 2

Okay. That sounds great. What about the iron lead equipment? Have you ordered any yet, or is there any that you have to order soon here?

Operator

There is no real long lead equipment for our technology because basically, all of our technology is a chemical plant. It's reactors, stainless steel piping, heat exchangers, pumps, distillation columns, which are all fabricated within an eight-month lead time. There is no real true long lead time equipment. The longest lead time equipment would be the reactors for the polymerization, but we already have those in stock that we bought for a past project. We already have those ready, and they're already produced. There is really no long lead time equipment that we need to be mindful of to meet our deadline on startup of the facility at the end of 2027.

Speaker 2

On the polymerization unit you have sitting around somewhere, what's the dollar value that's being attributed to that for your contribution towards the $25 million in equity?

Operator

It's approximately $5 million.

Speaker 2

Okay. Listen, thanks very much for the color. I appreciate it. Waiting to see an announcement shortly on the site selection because I think that'll really get this ball rolling.

Operator

Yeah. Site selection and customers, I would say, are the big announcements coming. You know, customers are very, very important to have those, you know, top-quality CPG brands or apparel brands. Customers are just going to be key for this.

Speaker 2

Definitely. Remember where you used their name in a press release?

Operator

We've got, you know, in the past, we've signed contracts with CPG brands, and we've always announced them. I anticipate the same.

Speaker 2

it the same with the athletic company?

Operator

Yeah.

Speaker 2

Yeah, good, because that helps a lot too, right?

Operator

Sure.

Speaker 2

Thanks very much, Daniel.

Operator

Thank you.

Speaker 5

Thank you. At this time, we have no further questions. At this time, I'll turn the call back to the management team for any closing comments.

Operator

are no further questions. Thank you all very much for participating, and looking forward to giving the markets further updates as soon as we're available. Thank you very much.

Speaker 5

Thank you, everyone, for joining us today. This concludes our call, and you may now disconnect your line.

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