SusGlobal Energy Corp. Reports Third Quarter 2020 Financial Results
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SusGlobal Energy Corp. Reports Third Quarter 2020 Financial Results

Wednesday, November 18, 2020 1:50 PM
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TORONTO, ON / ACCESSWIRE / November 18, 2020 / SusGlobal Energy Corp. ("SusGlobal") or (the "Company") (OTCQB:SNRG), the developer of SusGro, a revolutionary pathogen-free organic liquid fertilizer and LEADERS IN THE CIRCULAR ECONOMY®, today announced financial results for the third quarter ended September 30, 2020 and provided an update on its operational progress.

Recent Highlights

  • On July 16, 2020, the Company received a Certificate of Registration from the United States Patent and Trademark Office ("USPTO") for the trademark LEADERS IN THE CIRCULAR ECONOMY (the "Mark"). The Mark was registered under Registration Number 6,098,063 on July 7, 2020 on the Supplemental Register. The registration will be in effect for an initial term of ten years, expiring on July 7, 2030, with the option of renewing the registration for successive ten-year terms. Now that the Mark is registered, it is permitted to use indicia of registration (e.g. ®, or phrases such as "Reg. U.S. Pat. and T.M. Office").
  • On September 30, 2020, the Company was chosen by The Finnish Innovation Fund Sitra ("Sitra"), as one of 39 inspiring circular economy solutions from around the globe during the World Circular Economy Forum Online ("WCEFonline"), September 29-30, 2020. Sitra compiled a list of inspiring circular economy innovations from around the world to inspire organizations and businesses to take part in the circular transition. The result is an extensive list containing 39 inspiring circular economy solutions. With examples from six continents, these solutions range from circular fashion to magnetic ink and from upcycling solar panel waste to podcasts and games demonstrating a circular economy in practice, including SusGlobal.
  • On November 12, 2020, the Company through its wholly-owned real property subsidiary, 1684567 Ontario Inc. ("1684567"), acquired the additional lands described in the share purchase agreement of 1684567 from May of 2019 (the "SPA") which includes a 6.60-acre licensed gravel pit and a .20-acre right of way totaling 6.8 acres of property (the "Property") located at 704 Phillipston Road, in Belleville, Ontario, Canada. SusGlobal is now the owner of a 49-acre land parcel at its Belleville, Ontario facility and will continue producing its Earth's Journey® Organic Compost by processing 70,000 tonnes per annum of organic waste, with an additional 50,000 tonnes per annum organic waste processing and transfer site approved under the existing Environmental Compliance Approval (the "ECA") and Site Plan.
  • Revenue increased by 12.49% during the third quarter of 2020 to $439,507 compared to the third quarter of 2019 in the amount of $390,723, from increased business from the Company's organic waste processing and composting facility.

"We continue to process municipal organic waste streams, diverting them from landfills, while producing regenerative products such as Earth's Journey® Organic Compost, as part of our Circular Economy model. We have confidence in a revenue ramp up for next year," said Marc Hazout, Executive Chairman, President and CEO of SusGlobal Energy Corp. "Our goal is to increase revenue and cash flow to fund further growth, increasing shareholder value with an objective to up-list to a major exchange."

Unaudited 2020 Third Quarter Financial Results

For the third quarter ended September 30, 2020, SusGlobal recorded:

  • Revenue of $439,507.
  • Cost of sales of $307,665.
  • Operating expenses of $561,879 (GAAP), comprised of $258,796 of interest expenses, $102,769 of professional fees, $56,637 in directors' compensation, $51,812 of management compensation, $33,473 of foreign exchange income, and $125,338 of other expenses, including, office and administration, rent and occupancy, amortization of financing fees and other operating expenses.
  • Net loss of $429,046, or $0.01 loss per share- basic and diluted.
  • Adjusted EBITDA (a non-GAAP financial measure) loss of $16,670.
  • $5,321,974 in total assets at the end of the third quarter, with total liabilities of $9,796,346

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 applications globally including Earth's Journey® Organic Compost. 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® and Caring for Earth's Journey®. 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 September 30, 2020 and December 31, 2019
(Expressed in United States Dollars)
(unaudited)

             
 
  September 30, 2020     December 31, 2019  
 
           
ASSETS
           
Current Assets
           
Cash and cash equivalents
  5,028     7,926  
Restricted cash-funds held in trust
    -       467,798  
Trade receivables
    234,677       121,276  
Government remittances receivable
    7,267       38,578  
Other receivables
    -       20,624  
Inventory
    -       5,389  
Prepaid expenses and deposits
    36,625       46,028  
Total Current Assets
    283,597       707,619  
 
               
Intangible Assets
    255,322       237,271  
Long-lived Assets, net
    4,783,055       4,762,453  
Total Assets
  5,321,974     5,707,343  
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
               
Current Liabilities
               
Accounts payable
  1,187,497     958,313  
Government remittances payable
    167,137       35,187  
Accrued liabilities
    741,996       487,592  
Advance
    61,805       3,255  
Deferred revenue
    4,573       9,239  
Current portion of long-term debt
    5,594,538       5,793,677  
Current portion of obligations under capital lease
    409,660       218,069  
Convertible promissory notes
    1,520,433       1,406,029  
Loans payable to related party
    48,731       -  
 
               
Total Current Liabilities
    9,736,370       8,911,361  
Long-term debt
    59,976       -  
Total Long-term Liabilities
    59,976       -  
Total Liabilities
    9,796,346       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, 79,372,643 (December 31, 2019- 51,784,504) shares issued and outstanding
    7,940       5,180  
Additional paid-in capital
    8,628,336       7,450,091  
Stock compensation reserve
    -       1,000,000  
Accumulated deficit
    (12,963,987)       (11,449,497 )
Accumulated other comprehensive loss
    (146,661)       (209,792 )
 
               
Total stockholders' deficiency
    (4,474,372)       (3,204,018 )
 
               
Total Liabilities and Stockholders' Deficiency
  5,321,974     5,707,343  
                 

SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss
For the three-month periods ended September 30, 2020 and 2019
(Expressed in United States Dollars)
(unaudited)

       
 
  For the three-month periods ended  
 
  September 30, 2020     September 30, 2019  
Revenue
  439,507     390,723  
 
               
Cost of Sales
               
Opening inventory
    -       24,738  
Depreciation
    133,467       105,990  
Direct wages and benefits
    90,475       71,347  
Equipment rental, delivery, fuel and repairs and maintenance
    52,652       24,053  
Utilities
    27,185       19,309  
Outside contractors
    3,886       17,824  
 
    307,665       263,261  
Less: closing inventory
    -       (27,538 )
Total cost of sales
    307,665       235,723  
 
               
Gross profit
    131,842       155,000  
 
               
Operating expenses
               
Management compensation-stock- based compensation
    -       85,000  
Management compensation-fees
    51,812       81,800  
Marketing
    -       5,785  
Professional fees
    102,769       63,357  
Interest expense and default payments
    258,796       152,952  
Office and administration
    50,042       53,842  
Rent and occupancy
    32,420       33,024  
Insurance
    10,056       17,508  
Filing fees
    12,957       2,546  
Amortization of financing costs
    18,677       88,956  
Directors' compensation
    56,637       (14,648 )
Repairs and maintenance
    1,186       4,219  
Foreign exchange (income) loss
    (33,473)       9,064  
Total operating expenses
    561,879       583,405  
 
               
Net Loss from operating activities
    (430,037)       (428,405 )
Land option expired
    (424)       -  
Net loss before deferred taxes recovery
    (430,461)       (428,405 )
Deferred taxes recovery
    1,415       -  
Net Loss
    (429,046)       (428,405 )
Other comprehensive loss
               
Foreign exchange loss
    (80,703)       (25,828 )
 
               
Comprehensive loss
  (509,749)     (402,577 )
 
               
Net loss per share-basic and diluted
  (0.01)     (0.01 )
 
               
Weighted average number of common shares outstanding- basic and diluted
    69,871,179       43,082,783  
                 

SusGlobal Energy Corp.
Interim Condensed Consolidated Reconciliation of Non-GAAP Information
For the three-month periods ended September 30, 2020 and 2019
(Expressed in United States Dollars)
(Unaudited)

       
 
  For the three-month periods ended  
 
  September 30, 2020     September 30, 2019  
Net loss (GAAP)
  (429,046)     (428,405 )
Add the following items:
               
Interest expense
    258,796       152,952  
Depreciation and amortization
    134,903       108,566  
Stock-based compensation and shares issued for professional services
    -       85,000  
Amortization of financing costs
    18,677       88,956  
Adjusted EBITDA (non-GAAP)
  (16,670)     7,069  
                 

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.

SusGlobal Energy Corp.
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