Loop Industries, Inc. - 10-Q filing on 2021-10-15

Research and Development Expenses

6 Months Ended

Aug. 31, 2021

14. Research and Development Expenses

Research and development expenses for the three-month periods ended August 31, 2021 and 2020 were as follows:

	August 31, 2021		August 31, 2020
Machinery and equipment expenditures	$	2,485,232	$	-
Employee compensation		1,492,688		1,060,669
External engineering		551,381		942,117
Plant and laboratory operating expenses		707,043		584,394
Other		48,453		162,042
	$	5,284,797	$	2,749,222

Research and development expenses for the six-month periods ended August 31, 2021 and 2020 were as follows:

	August 31, 2021		August 31, 2020
Machinery and equipment expenditures	$	5,108,125	$	-
Employee compensation		3,578,816		1,879,717
External engineering		3,454,829		1,017,049
Plant and laboratory operating expenses		1,398,510		870,497
Other		382,352		462,547
	$	13,922,632	$	4,229,810

During the six-month period ended August 31, 2021, we recorded research and development tax credits of $152,391 as a reduction of research and development expenses and an expense of $267,743 in the six-month period ended August 31, 2020. The expense in the six-month period ended August 31, 2020 was due to a revision of research and development tax credits by Canadian tax authorities. During the six-month period ended August 31, 2021, we recorded no government grants as a reduction of research and development expenses (2020 – $191,439).