SusGlobal Energy Corp. Reports First Quarter 2020 Financial Results

SusGlobal Energy Corp.

Companies Mentioned:

Primary Exchange: OTCQB
Under the Symbol: SNRG

SusGlobal Energy Corp. Reports First Quarter 2020 Financial Results

Wednesday, May 20, 2020 11:25 AM

TORONTO, ON / ACCESSWIRE / May 20, 2020 / SusGlobal Energy Corp. (OTCQB:SNRG), the developer of SusGro, a revolutionary pathogen-free organic liquid fertilizer, today announced financial results for the first quarter ended March 31, 2020 and provided an update on its operational progress.

Recent Highlights

  • On January 15, 2020, the Independent Electrical System Operator (the "IESO") pre-approved the Company's Save on Energy Retrofit Program Application (the "Program"). The total cost of the Program is estimated at $83,666 ($118,692 CAD). On successful completion, the Company expects to receive a hydro grant from the IESO of approximately 50% of the total cost of the Program, or $42,175 ($59,831 CAD). The Program is designed to realize a savings of approximately 50% in hydro costs annually, with an overall return on investment estimated at 125%.
  • On March 23, 2020, the Company and BDO Canada Limited ("BDO") signed a settlement and mutual release agreement, with respect to the purchase of certain assets of Astoria Organic Matters Ltd., and Astoria Organic Matters Canada LP ("Astoria"), through the court appointed receiver, BDO, on September 15, 2017. In exchange, BDO credited the Company for certain charges levied by the City of Belleville, Ontario, Canada, totaling $13,808 ($19,589 CAD) and, released the 529,970 shares of common stock issued to BDO in connection with the above noted purchase, for a net cash settlement of $7,049 ($10,000 CAD).
  • Revenue increased by over 38% during the first quarter of 2020 compared to the first quarter of 2019, including the new revenue from the Company's new garbage collection and landfill management operations, in the amount of $51,155.

"We continue to pursue additional municipal contracts to process organic waste streams, diverting them from landfills, while producing regenerative products as part of our Circular Economy model. We have increasing confidence in a revenue ramp up this year," said Marc Hazout, Executive Chairman, President and CEO of SusGlobal Energy Corp. "Our goal is to drive revenue and cash flow as quickly as possible as we focus on increasing shareholder value with an objective to up-list to a major exchange."

Unaudited 2020 First Quarter Financial Results

For the first quarter ended March 31, 2020, SusGlobal recorded:

  • Revenue of $350,197.
  • Cost of sales of $293,762.
  • Operating expenses of $811,725 (GAAP), comprised of $312,291 of interest expenses, $92,538 of amortization of financing costs, $150,095 of foreign exchange loss, and $256,801 of other expenses, including professional fees, office and administration, rent and occupancy and other operating expenses.
  • Net loss of $755,290, or $0.01 loss per basic and diluted share.
  • Adjusted EBITDA (a non-GAAP financial measure) loss of $235,529.
  • $5,452,807 in total assets at the end of the first quarter, with total debt of $9,026,499

About SusGlobal Energy Corp.

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.

- Financial Tables Follow -

SusGlobal Energy Corp.
Interim Condensed Consolidated Balance Sheets
As at March 31, 2020 and December 31, 2019
(Expressed in United States Dollars)
(unaudited)

             
 
  March 31, 2020     December 31, 2019  
 
           
ASSETS
           
Current Assets
           
Cash and cash equivalents
  $ 15,002     $ 7,926  
Restricted cash-funds held in trust
    390,138       467,798  
Trade receivables
    173,791       121,276  
Government remittances receivable
    31,745       38,578  
Other receivables
    13,808       20,624  
Inventory
    4,071       5.389  
Prepaid expenses and deposits
    30,609       46,028  
Total Current Assets
    659,164       707,619  
 
               
Intangible Assets
    219,237       237,271  
Long-lived Assets, net
    4,574,406       4,762,453  
Total Assets
  $ 5,452,807     $ 5,707,343  
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
               
Current Liabilities
               
Accounts payable
  $ 951,664     $ 958,313  
Government remittances payable
    68,695       35,187  
Accrued liabilities
    648,165       487,592  
Advance
    -       3,255  
Deferred revenue
    16,214       9,239  
Current portion of long-term debt
    3,533,565       3,859,401  
Current portion of obligations under capital lease
    440,364       218,069  
Convertible promissory notes
    1,485,673       1,406,029  
Mortgage payable
    1,811,669       1,934,276  
Loans payable to related party
    70,490       -  
Total Liabilities
    9,026,499       8,911,361  
Stockholders' Deficiency
               
Preferred stock, $.0001 par value, 10,000,000 authorized, none issued and outstanding
               
Common stock, $.0001 par value, 150,000,000 authorized, 60,501,830 (December 31, 2019- 51,784,504) shares issued and outstanding
    6,052       5,180  
Additional paid-in capital
    8,525,946       7,450,091  
Subscriptions payable
    7,250       -  
Stock compensation reserve
    -       1,000,000  
Accumulated deficit
    (12,204,787)       (11,449,497 )
Accumulated other comprehensive income (loss)
    91,847       (209,792 )
 
               
Total stockholders' deficiency
    (3,573,692)       (3,204,018 )
 
               
Total Liabilities and Stockholders' Deficiency
  $ 5,452,807     $ 5,707,343  
                 

SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss
For the three-month periods ended March 31, 2020 and 2019
(Expressed in United States Dollars)
(unaudited)

       
 
  For the three-month periods ended  
 
 
  March 31, 2020     March 31, 2019  
Revenue
  $ 350,197     $ 253,138  
 
               
Cost of Sales
               
Opening inventory
    5,389       18,550  
Depreciation
    113,109       95,754  
Direct wages and benefits
    76,183       49,365  
Equipment rental, delivery, fuel and repairs and maintenance
    61,302       99,566  
Utilities
    38,277       27,531  
Outside contractors
    3,573       105  
 
    297,833       290,871  
Less: closing inventory
    (4,071)       (26,409 )
Total cost of sales
    293,762       264,462  
 
               
Gross profit (loss)
    56,435       (11,324 )
 
               
Operating expenses
               
Management compensation-stock- based compensation
    -       332,500  
Management compensation-fees
    51,357       81,238  
Marketing
    2,917       280,000  
Professional fees
    81,448       134,702  
Interest expense and default payments
    312,291       105,023  
Office and administration
    55,685       58,182  
Rent and occupancy
    28,297       24,241  
Insurance
    18,179       14,059  
Filing fees
    13,880       12,683  
Amortization of financing costs
    92,538       11,997  
Directors' compensation
    (1,420)       2,952  
Repairs and maintenance
    6,458       2,261  
Foreign exchange loss
    150,095       9,382  
Total operating expenses
    811,725       1,069,220  
 
               
Net Loss
    (755,290)       (1,080,544 )
                 
Other comprehensive loss
               
                 
Foreign exchange gain (loss)
    301,639       (27,505 )
 
               
Comprehensive loss
  $ (453,651)     $ (1,108,049 )
 
               
Net loss per share-basic and diluted
  $ (0.01)     $ (0.03 )
 
               
Weighted average number of common shares outstanding- basic and diluted
    57,441,740       41,291,864  
                 

SusGlobal Energy Corp.
Interim Condensed Consolidated Reconciliation of Non-GAAP Information
For the three-month periods ended March 31, 2020 and 2019
(Expressed in United States Dollars)
(Unaudited)

       
 
  For the three-month periods ended  
 
  March 31, 2020     March 31, 2019  
Net loss (GAAP)
  $ (755,290)     $ (1,080,544 )
Add the following items:
               
Interest expense
    312,291       105,023  
Depreciation and amortization
    114,932       101,415  
Stock-based compensation and shares issued for professional services
    -       385,500  
Amortization of financing costs
    92,538       11,997  
Adjusted EBITDA (non-GAAP)
  $ (235,529)     $ (476,609 )
                 

Contact

SusGlobal Energy Corp.
Marc Hazout, President and CEO
(416) 223-8500 or Toll Free: 1-866-512-7374
Email: [email protected]

SOURCE: SusGlobal Energy Corp.


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