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Accounts Receivable

12 Months Ended

Feb. 28, 2025

3. Accounts Receivable

Accounts receivable as at February 28, 2025 and February 29, 2024 were as follows:

	February 28, 2025		February 29, 2024
Accounts receivable from customers	$	420	$	43
Research and development tax credits		121		160
Sales tax		89		75
Interest income receivable		-		70
Other receivables		9		3
	$	639	$	351

The Company is registered for the Canadian federal and provincial goods and services taxes. As such, the Company is obligated to collect from third parties and is entitled to claim sales taxes paid on its expenses and capital expenditures incurred in Canada.

In addition, Loop Canada Inc. is entitled to receive government assistance in the form of refundable and non-refundable research and development tax credits from the federal and provincial taxation authorities, based on qualifying expenditures incurred during the fiscal year. The refundable credits are from the provincial taxation authorities and are not dependent on its ongoing tax status or tax position and accordingly are not considered part of income taxes. The Company records refundable tax credits as a reduction of research and development expenses when the Company can reasonably estimate the amounts and it is more likely than not, they will be received. During the year ended February 28, 2025, the Company recorded tax credits of $85 (2024 – $263) as a reduction of research and development expenses and received $209 (2024 – $510) from taxation authorities for research and development tax credits, net of fees.

The Company is also eligible for non-refundable research and development tax credits from the federal taxation authorities which can be used as a reduction of income tax expense in any given year to the extent the Company has taxable income. The Company has not had taxable income since inception and has not been able to use these non-refundable federal research and development tax credits. During the year ended February 28, 2025, the Company was eligible for non-cash research and development tax credits in the amount of $347 (2024 – $432). These non-cash tax credits, which have an unlimited carry forward period are not recognized in the Company’s consolidated financial statements. As at February 28, 2025, the carry forward balance of non-cash research and development tax credits was $2,671 (2024 - $2,519).

Loop Canada Inc. is also eligible for refundable investment tax credits from the provincial taxation authorities based on qualifying expenditures for manufacturing equipment. The Company records refundable tax credits as a reduction of research and development expenses when the Company can reasonably estimate the amounts and it is more likely than not, they will be received. During the year ended February 28, 2025, the Company recorded investment tax credits of $5 (2024 – $56) as a reduction of research and development expenses and received $5 (2024 – $522) from taxation authorities for investment tax credits.