SusGlobal Energy Corp. Reports Second Quarter 2021 Financial Results
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SusGlobal Energy Corp. Reports Second Quarter 2021 Financial Results

Tuesday, August 17, 2021 4:00 PM
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Earnings
SusGlobal Energy Corp.

TORONTO, ON / ACCESSWIRE / August 17, 2021 / 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 second quarter ended June 30, 2021 and provided an update on its operational progress.

Recent Highlights

  • On February 10, 2021, the Company signed an Agreement of Purchase and Sale (the "APS") for certain assets for $3,630,600 (C$4,500,000), including a vendor take-back mortgage of $1,613,600 (C$2,000,000) at an annual interest rate of 2% maturing two years after closing. A deposit of $161,360 (C$200,000) was paid by the Company on February 10, 2021. The APS was amended on April 8, 2021, to revise the closing date to June 4, 2021, subject to successful completion of the due diligence process and the completion of the Phase II Environmental Site Assessment at a cost of $40,179 (C$49,800), plus applicable harmonized sales taxes, expected on or before May 19, 2021. On May 20, 2021, the Company and the vendor signed a waiver and amending agreement, waiving the due diligence process and revising the closing date to June 16, 2021. A second deposit of $121,020 (C$150,000) was paid by the Company on June 1, 2021. The APS was amended on August 3, 2021, to revise the closing date to August 17, 2021 and the Company will receive a $302,550 (C$375,000) credit on closing for certain deficiencies. In addition, the Company will issue 300,000 common shares to the vendor on closing. To finance the closing, the Company increased its 1st mortgage by $1,532,920 (C$1,900,000). The funds are being held in escrow on August 16, 2021.
  • On July 2, 2021, the Company revised a letter of intent with the vendors for the purchase of the shares of their two corporations which own proprietary processes, manufacture liquid organic fertilizers and other products. The transaction is set to close on August 31, 2021 with a total purchase price of $16,136,000 (C$20,000,000), which will consist of cash of $8,068,000 (C$10,000,000) and common shares of the Company having a value of $8,068,000 (C$10,000,000).

Revenue decreased by 44.43% during the second quarter of 2021 to $212,632 compared to the second quarter of 2020 in the amount of $382,639, primarily due to changes in the customer base including an expiring contract at prior year-end and reductions in certain waste disposed of by several customers.

"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 this year," said Marc Hazout, Executive Chairman, President and CEO of SusGlobal Energy Corp. "Our goal is to complete our regional strategy with a second facility and the commercialization of our proprietary organic liquid fertilizer in order to increase revenue and cash flow, maximizing shareholder value with an objective to up-list to a major exchange."

Unaudited 2021 Second Quarter Financial Results

For the second quarter ended June, 2021, SusGlobal recorded:

  • Revenue of $212,632.
  • Cost of sales of $290,676.
  • Operating expenses of $719,917, comprised of $168,718 of interest expenses, $147,134 of management compensation, including stock-based compensation of $54,259, $122,543 of amortization of financing costs, $82,747 of marketing, $70,844 of professional fees, $36,580 of rent and occupancy, $29,620 of office and administration and other operating expenses totalling $61,731.
  • Net loss of $797,961, or $0.01 loss per share- basic and diluted.
  • Adjusted EBITDA (a non-GAAP financial measure) loss of $286,609.
  • $6,059,564 in total assets and $9,914,442 in total liabilities at the end of the second quarter.

About SusGlobal Energy Corp.

SusGlobal Energy Corp., 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. 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: https://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 June 30, 2021 and December 31, 2020
(Expressed in United States Dollars)
(unaudited)
  June 30,  December 31, 
  2021  2020 
ASSETS        
Current Assets        
Cash
 21,423  6,457 
Trade receivables
  74,097   182,871 
Government remittances receivable
  6,441   3,746 
Inventory
  35,983   24,740 
Prepaid expenses and deposits
  692,648   94,131 
Deferred assets
  -   215,953 
Total Current Assets
  830,592   527,898 
 
        
Intangible Assets
  196,177   188,180 
Long-lived Assets, net
  5,032,795   5,042,225 
Long-Term Assets
  5,228,972   5,230,405 
Total Assets
 6,059,564  5,758,303 
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
        
Current Liabilities
        
Accounts payable
 883,781  1,073,454 
Government remittances payable
  239,342   229,358 
Accrued liabilities
  820,847   1,206,618 
Advance
  -   15,460 
Deferred revenue
  -   4,790 
Current portion of long-term debt
  6,532,597   6,327,520 
Current portion of obligations under capital lease
  138,364   375,140 
Convertible promissory notes
  848,022   1,092,100 
Loan payable to related party
  -   33,772 
Total Current Liabilities
  9,462,953   10,358,212 
Long-term debt
  198,223   78,540 
Obligations under capital lease
  168,517   - 
Deferred tax liability
  84,749   82,501 
Total Long-term Liabilities
  451,489   161,041 
Total Liabilities
  9,914,442   10,519,253 
         
Stockholders' Deficiency
        
Preferred stock, $.0001 par value, 10,000,000 authorized, none issued and outstanding
Common stock, $.0001 par value, 150,000,000 authorized, 89,184,951 (2020- 82,860,619) shares issued and outstanding
  9,184   8,288 
Additional paid-in capital
  11,171,385   9,045,187 
Shares to be issued
  -   8,580 
Accumulated deficit
  (14,573,090)  (13,468,794)
Accumulated other comprehensive loss
  (462,357)  (354,211)
         
Stockholders' deficiency
  (3,854,878)  (4,760,950)
         
Total Liabilities and Stockholders' Deficiency
 6,059,564  5,758,303 
         
SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss 
For the three-month periods ended June 30, 2021 and 2020
(Expressed in United States Dollars)
(Unaudited)
  For the three-month periods ended 
  June 30,  June 30, 
  2021  2020 
Revenue
 212,632  382,639 
         
Cost of Sales
        
Opening inventory
  45,923   4,071 
Depreciation
  135,539   121,158 
Direct wages and benefits
  65,390   85,063 
Equipment rental, delivery, fuel and repairs and maintenance
  69,280   96,854 
Utilities
  (10,845)  7,963 
Outside contractors
  21,372   1,706 
   326,659   316,815 
Less: closing inventory
  (35,983)  - 
Total cost of sales
  290,676   316,815 
         
Gross (loss) profit
  (78,044)  65,824 
         
Operating expenses
        
Management compensation-stock- based
        
compensation
  54,259   - 
Management compensation-fees
  92,875   49,825 
Marketing
  82,747   (2,917)
Professional fees
  70,844   107,887 
Interest expense and default amounts
  168,718   283,409 
Office and administration
  29,620   77,000 
Rent and occupancy
  36,580   28,763 
Insurance
  16,385   23,921 
Filing fees
  17,188   8,266 
Amortization of financing costs
  122,543   30,471 
Directors' compensation
  12,672   1,853 
Stock-based compensation
  28,209   - 
Repairs and maintenance
  (5,402)  2,453 
Foreign exchange income
  (7,321)  (84,635)
Total operating expenses
  719,917   526,296 
         
Net loss from operating activities
  (797,961)  (460,472)
Other loss
  -   (58,704)
Net loss before deferred taxes recovery
  (797,961)  (519,176)
Deferred taxes recovery
  -   196,005 
Net loss
  (797,961)  (323,171)
Other comprehensive loss
        
Foreign exchange loss
  (46,954)  (157,805)
         
Comprehensive loss
 (844,915) (480,976)
         
Net loss per share-basic and diluted
 (0.01) (0.01)
         
Weighted average number of common shares outstanding- basic and diluted
  92,767,400   63,853,597 
         
SusGlobal Energy Corp.
Interim Condensed Consolidated Reconciliation of Non-GAAP Information
For the three-month periods ended June 30, 2021 and 2020
(Expressed in United States Dollars)
(Unaudited)
  For the three-month periods ended 
  June 30, 2021  June 30, 2020 
Net loss (GAAP)
 (797,961) (323,171)
Add the following items:
        
Interest expense
  168,718   283,409 
Depreciation and amortization
  137,623   124,070 
Stock-based compensation
  82,468   - 
Amortization of financing costs
  122,543   30,471 
Adjusted EBITDA (non-GAAP)
 (286,609) 114,779 
         

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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