SusGlobal Energy Corp. Reports Fourth Quarter and Full Year 2019 Financial Results

TORONTO, ON / ACCESSWIRE / April 14, 2020 / SusGlobal Energy Corp. (OTCQB: SNRG), the developer of SusGro, a revolutionary pathogen-free organic liquid fertilizer, today announced financial results for the fourth quarter and full year ended December 31, 2019 and provided an update on its operational progress.

Recent Highlights

  • During the quarter, the Company extended a contract with AIM Waste Management Inc., for the processing of source separated organics, to December 31, 2020.
  • The Company is expected to exercise, in Q2-2020, the “Additional Lands Option” under the terms of the Share Purchase Agreement (“SPA”) acquisition of 1684567 Ontario Inc. which closed May 28, 2019. The details of the SPA are found in the Current Report on Form 8-K that the Company filed with the Securities and Exchange Commission on May 30, 2019.
  • Revenue for the three-month period ended December 31, 2019 compared to the three-month period ended December 31, 2018 remained relatively stable, but revenue increased by over 38.4% during the year ended December 31, 2019 compared to the year-ended December 31, 2018.

We continued to work with customers and bring further products to market, while pursuing regulatory certifications and additional municipal contracts. We believe we are making the necessary strategic steps to capture the immense opportunity of processing organic waste streams and diverting them from landfills, while producing regenerative products. We have increasing confidence in a revenue ramp in 2020,” 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.”

Unaudited 2019 Fourth Quarter Financial Results

For the fourth quarter ended December 31, 2019, SusGlobal recorded:

  • Revenue of $358,498 for the three-month period ended December 31, 2019 compared to $360,568 for the three-month period ended December 31, 2018.
  • Cost of sales of $348,537 for the three-month period ended December 31, 2019 compared to $297,808 for the three-month period ended December 31, 2018.
  • Operating expenses of $693,246 for the three-month period ended December 31, 2019 (GAAP), comprised of $250,400 of stock-based compensation, $178,837 of interest expense, $93,584 of amortization of finance fees and $170,425 in various other expenses including professional fees, office and administration and other operating expenses, compared to $814,951 for the three-month period ended December 31, 2018.
  • Net loss of $683,285, or $0.01 loss per basic and diluted share, for the three-month period ended December 31, 2019 compared to $752,191 or $0.02 loss per basic and diluted share, for the three-month period ended December 31, 2018.
  • Adjusted EBITDA (a non-GAAP financial measure) loss of $54,350 for the three-month period ended December 31, 2019 compared to a loss of $209,154 for the three-month period ended December 31, 2018.
  • $5,707,343 in total assets at the end of the fourth quarter, with debt of $7,421,030.

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.
Consolidated Balance Sheets
As at December 31, 2019 and 2018
(Expressed in United States Dollars)

 
  2019     2018  
 
           
ASSETS
           
Current Assets
           
Cash and cash equivalents
  $ 7,926     $ 42,711  
Restricted cash-funds held in trust
    467,798        
Trade receivables
    121,276       129,981  
Government remittances receivable
    38,578       9,194  
Other receivables
    20,624        
Inventory
    5,389       18,550  
Prepaid expenses and deposits
    46,028       23,172  
Total Current Assets
    707,619       223,608  
 
               
Intangible Assets
    237,271       135,189  
Long-lived Assets, net
    4,762,453       3,361,110  
Total Assets
  $ 5,707,343     $ 3,719,907  
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
               
Current Liabilities
               
Accounts payable
  $ 958,313     $ 353,728  
Government remittances payable
    35,187       44,363  
Accrued liabilities
    487,592       646,003  
Advance
    3,255        
Deferred revenue
    9,239        
Current portion of long-term debt
    3,859,401       3,727,778  
Current portion of obligations under capital lease
    218,069       81,109  
Convertible promissory notes
    1,406,029        
Mortgage payable
    1,934,276        
Loans payable to related parties
          201,575  
Total Current Liabilities
    8,911,361       5,054,556  
Obligations under capital lease
          207,599  
Total Long-term Liabilities
          207,599  
Total Liabilities
    8,911,361       5,262,155  
Stockholders’ Deficiency
               
Preferred stock, $.0001 par value, 10,000,000 authorized, none issued and outstanding
               
Common stock, $.0001 par value, 150,000,000 authorized, 51,784,504 (2018- 40,299,531) shares issued and outstanding
    5,180       4,031  
Additional paid-in capital
    7,450,091       5,754,260  
Subscriptions payable
          4,600  
Stock compensation reserve
    1,000,000       1,330,000  
Accumulated deficit
    (11,449,497)       (8,554,312 )
Accumulated other comprehensive loss
    (209,792)       (80,827 )
 
               
Total stockholders’ deficiency
    (3,204,018)       (1,542,248 )
 
               
Total Liabilities and Stockholders’ Deficiency
  $ 5,707,343     $ 3,719,907  
                 

SusGlobal Energy Corp.
Consolidated Statements of Operations and Comprehensive Loss

For the three-month periods ended December 31, 2019 and 2018
(Expressed in United States Dollars)
(unaudited)

 
  For the
three-month
periods ended
 
 
  December 31,
2019
    December 31,
2018
 
Revenue
  $ 358,498     $ 360,568  
 
               
Cost of Sales
               
Opening inventory
    27,538       73,795  
Depreciation
    104,311       96,488  
Direct wages and benefits
    78,577       49,144  
Equipment rental, delivery, fuel and repairs and maintenance
    95,071       31,725  
Utilities
    44,746       48,733  
Outside contractors
    3,703       16,473  
 
    353,926       316,358  
Less: closing inventory
    (5,389)       (18,550 )
Total cost of sales
    348,537       297,808  
 
               
Gross profit
    9,961       62,760  
 
               
Operating expenses
               
Management compensation-stock- based compensation
    250,000       332,500  
Management compensation-fees
    47,904       81,803  
Professional fees
    38,252       91,170  
Marketing
    1,453        
Interest expense
    178,837       92,251  
Rent and occupancy
    22,174       22,299  
Insurance
    21,848       10,814  
Office and administration
    34,592       79,373  
Filing fees
    6,675       20,199  
Amortization of financing costs
    93,584        
Repairs and maintenance
    671       11,785  
Directors’ compensation
    (2,744)       72,757  
Total operating expenses
    693,246       814,951  
 
               
Net Loss
    (683,285)       (752,191 )
Other comprehensive loss
               
Foreign exchange (loss) gain
    (77,316)       73,359  
 
               
Comprehensive loss
  $ (760,601)     $ (678,832 )
 
               
Net loss per share-basic and diluted
  $ (0.01)     $ (0.02 )
 
               
Weighted average number of common shares outstanding- basic and diluted
    48,835,025       40,191,830  
                 

SusGlobal Energy Corp.
|Consolidated Reconciliation of Non-GAAP Information
For the three-month periods ended December 31, 2019 and 2018
(Expressed in United States Dollars)
(Unaudited)

 
  For the
three-month
periods ended
 
 
  December 31,
2019
    December 31,
2018
 
Net loss (GAAP)
  $ (683,285)     $ (752,191 )
Add the following items:
               
Interest expense
    178,837       92,251  
Depreciation and amortization
    106,114       98,286  
Stock-based compensation
    250,400       352,500  
Amortization of financing costs
    93,584        
Adjusted EBITDA (non-GAAP)
  $ (54,350)     $ (209,154 )
 
               

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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