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: info@susglobalenergy.com
SOURCE: SusGlobal Energy Corp.
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