TORONTO, ON / ACCESSWIRE / August 14, 2019 / SusGlobal Energy Corp. (OTCQB: SNRG), the developer of SusGro®, a revolutionary pathogen-free organic liquid fertilizer, today announced financial results for the second quarter ended June 30, 2019 and provided an update on its operational progress.
Recent Highlights
- The Company completed the business acquisition of 1684567 Ontario Inc., effective May 24, 2019 including all assets and waste management contracts
- Through the business acquisition of 1684567 Ontario Inc., the Company now owns the property upon which the organic composting facility is situated comprising 42.18 acres
- The Company made application to register the Trademarks SusGro,™ Earth’s Journey™ Compost, Leaders
- in the In The Circular Economy™ and Caring for Earth’s Journey™
- Revenue increased by over 67% during the second quarter of 2019 compared to the second quarter of 2018
“We continued to work with customers to bring further products to market, while pursuing regulatory certifications. We believe we are making the necessary strategic steps to capture the immense opportunity of processing organic waste, and producing regenerative products, we expect to see increasing tipping fees and compost sales in 2019,” said Marc Hazout, Executive Chairman and President of SusGlobal Energy Corp. “Our goal is to drive revenue and cash flow as quickly as possible as we focus on bringing new processing sites into operation.”
Unaudited 2019 Second Quarter Financial Results
For the second quarter ended June 30, 2019, SusGlobal recorded:
- Revenue of $381,834
- Cost of sales of $304,618
- Operating expenses of $780,167 (GAAP), comprised of $332,500 of stock-based compensation, $150,407 of interest expense and $297,260 in various other expenses including professional fees, office and administration and other operating expenses
- Net loss of $702,951, or $0.02 loss per basic and diluted share
- Adjusted EBITDA (a non-GAAP financial measure) loss of $60,729
- $5,400,565 in total assets at the end of the second quarter, with debt of $6,714,186
SusGlobal Energy Corp. (OTCQB: SNRG) the developer of SusGro™, a revolutionary pathogen-free organic liquid fertilizer is a renewables company focused on acquiring, developing and monetizing a portfolio of proprietary technologies in the waste to energy and regenerative products application globally. It is management's objective to grow SusGlobal into a significant sustainable waste to energy and regenerative products provider, as Leaders in The Circular Economy™. For more information, please visit the Company's website at: www.susglobalenergy.com
Safe Harbor Statement
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's objectives. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, lack of sufficient financial resources; variations in market conditions, currency and our stock; the Company's ability to obtain any necessary permits, approvals, consents or authorizations required for its activities; the Company's ability to produce energy, biogas, compost or organic fertilizer from its properties successfully or profitably, to continue its projected growth, or to be fully able to implement its business strategies and other risk factors described in the Company's filings with the U.S. Securities and Exchange Commission, which may be viewed at www.sec.gov.
Consolidated Balance Sheets
As at June 30, 2019 and December 31, 2018
(Expressed in United States Dollars)
(unaudited)
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June 30, 2019 |
December 31, 2018 |
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ASSETS
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Current Assets
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Cash and cash equivalents
|
$ | 25,140 | $ | 42,711 | ||||
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Trade receivables
|
157,322 | 129,981 | ||||||
|
Government remittances receivable
|
17,925 | - | ||||||
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Inventory
|
24,738 | 18,550 | ||||||
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Prepaid expenses and deposits
|
33,109 | 23,172 | ||||||
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||||||||
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Total Current Assets
|
258,234 | 214,414 | ||||||
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Intangible Assets
|
235,926 | 135,189 | ||||||
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Long-lived Assets, net
|
4,906,405 | 3,361,110 | ||||||
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Long-Term Assets
|
5,142,331 | 3,496,299 | ||||||
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Total Assets
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$ | 5,400,565 | $ | 3,710,713 | ||||
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LIABILITIES AND STOCKHOLDERS' DEFICIENCY
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Current Liabilities
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Accounts payable
|
$ | 618,956 | $ | 353,728 | ||||
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Government remittances payable
|
- | 35,169 | ||||||
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Accrued liabilities
|
713,443 | 646,003 | ||||||
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Current portion of long-term debt
|
3,844,309 | 3,727,778 | ||||||
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Current portion of obligations under capital lease
|
90,933 | 81,109 | ||||||
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Convertible promissory notes
|
1,248,299 | - | ||||||
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Mortgage payable
|
1,301,161 | - | ||||||
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Loans payable to related parties
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57,308 | 201,575 | ||||||
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Total Current Liabilities
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7,874,409 | 5,045,362 | ||||||
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Long-Term Liabilities
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Obligations under capital lease
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172,176 | 207,599 | ||||||
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Total Long-term Liabilities
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172,176 | 207,599 | ||||||
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Total Liabilities
|
8,046,585 | 5,252,961 | ||||||
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Stockholders' Deficiency
|
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Preferred stock, $.0001 par value, 10,000,000 authorized, none issued and outstanding
Common stock, $.0001 par value, 150,000,000 authorized, 42,484,531 (2018- 40,299,531) shares issued and outstanding |
4,250 | 4,031 | ||||||
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Additional paid-in capital
|
7,180,841 | 5,754,260 | ||||||
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Subscriptions payable
|
- | 4,600 | ||||||
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Stock compensation reserve
|
665,000 | 1,330,000 | ||||||
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Accumulated deficit
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(10,337,807) | (8,554,312 | ) | |||||
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Accumulated other comprehensive loss
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(158,304) | (80,827 | ) | |||||
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Stockholders' deficiency
|
(2,646,020) | (1,542,248 | ) | |||||
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Total Liabilities and Stockholders' Deficiency
|
$ | 5,400,565 | $ | 3,710,713 | ||||
SusGlobal Energy Corp.
Consolidated Statements of Operations and Comprehensive Loss
For the three-month periods ended June 30, 2019 and 2018
(Expressed in United States Dollars)
(unaudited)
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|
For the three-month periods ended | |||||||
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June 30, 2019 |
June 30, 2018 |
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Revenue
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$381,834 | $227,423 | ||||||
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Total cost of sales
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304,618 | 324,417 | ||||||
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Gross profit
|
77,216 | 35,727 | ||||||
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Operating expenses
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Management compensation-stock- based compensation
|
332,500 | 1,582,500 | ||||||
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Management compensation-fees
|
80,720 | 83,584 | ||||||
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Marketing
|
(33,323) | - | ||||||
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Professional fees
|
72,269 | 76,220 | ||||||
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Interest expense
|
150,407 | 91,779 | ||||||
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Office and administration
|
46,380 | 12,501 | ||||||
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Rent and occupancy
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34,820 | 34,716 | ||||||
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Insurance
|
13,951 | 15,466 | ||||||
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Filing fees
|
16,414 | 3,581 | ||||||
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Amortization of financing costs
|
53,768 | - | ||||||
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Directors' compensation
|
9,748 | 774 | ||||||
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Repairs and maintenance
|
2,493 | 10,760 | ||||||
|
Total operating expenses
|
780,167 | 1,911,881 | ||||||
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Net loss
|
(702,951) | (1,826,935 | ) | |||||
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Other comprehensive loss
|
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Foreign exchange loss
|
(49,972) | (7,300 | ) | |||||
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Comprehensive loss
|
$(752,923) | $(1,834,235 | ) | |||||
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Net loss per share-basic and diluted
|
$(0.02) | $(0.05 | ) | |||||
|
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Weighted average number of common shares outstanding- basic and diluted
|
42,460,795 | 39,090,613 | ||||||
SusGlobal Energy Corp.|
Consolidated Reconciliation of Non-GAAP Information
For the three-month periods ended June 30, 2019 and 2018
(Expressed in United States Dollars)
(Unaudited)
|
|
For the three-month periods ended | |||||||
|
|
June 30, 2019 |
June 30, 2018 |
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Net loss (GAAP)
|
$ | (702,951) | $ | (1,826,935 | ) | |||
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Add the following items:
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Interest expense
|
150,407 | 91,779 | ||||||
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Depreciation and amortization
|
159,315 | 102,187 | ||||||
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Stock-based compensation
|
332,500 | 1,582,500 | ||||||
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Adjusted EBITDA (non-GAAP)
|
$ | (60,729) | $ | (50,469 | ) | |||
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SOURCE: SusGlobal Energy Corp.