SusGlobal Energy Corp. Reports Third Quarter 2019 Financial Results

TORONTO, Ontario – December 2, 2019 – SusGlobal Energy Corp. (OTCQB: SNRG), the developer of SusGro®, a revolutionary pathogen-free organic liquid fertilizer, announced financial results for the third quarter ended September 30, 2019 and provided an update on its operational progress.

Recent Highlights

  • The Company is committed to exercise 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.
  • The Company renewed the Region of Peel Purchase Order in November 2019
  • The Company was awarded the Northumberland County Source Separated Organics contract in October 2019
  • Revenue increased by over 39% during the third quarter of 2019 compared to the third quarter of 2018

“We continued to work with customers and bring further products to market, while pursuing regulatory certifications. 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 expect to see increasing tipping fees and compost sales 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 bringing new processing sites into operation.”

Unaudited 2019 Third Quarter Financial Results

For the third quarter ended September 30, 2019, SusGlobal recorded:

  • Revenue of $390,723
  • Cost of sales of $235,723
  • Operating expenses of $583,405 (GAAP), comprised of $85,000 of stock-based compensation, $152,952 of interest expense and $345,453 in various other expenses including professional fees, office and administration, amortization of financing costs and other operating expenses
  • Net loss of $428,405, or $0.01 loss per basic and diluted share
  • Adjusted EBITDA (a non-GAAP financial measure) income of $7,070
  • $5,191,623 in total assets at the end of the third quarter, with debt of $6,726,038

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 September 30, 2019 and December 31, 2018 
(Expressed in United States Dollars) 
(unaudited)

September 30, 2019 December 31, 2018
ASSETS
Current Assets
Cash and cash equivalents $42,711
Trade receivables $149,933 129,981
Inventory 27,538 18,550
Prepaid expenses and deposits 18,367 23,172
Total Current Assets 195,838 214,414
Intangible Assets  232,796 135,189
Long-lived Assets, net  4,762,989 3,361,110
Long-Term Assets 4,995,785 3,496,299
Total Assets $5,191,623 $3,710,713
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
Current Liabilities
Bank indebtedness $7,350 $-
Accounts payable 708,940 353,728
Government remittances payable 23,529 35,169
Accrued liabilities 602,916 646,003
Advance 21,166
Current portion of long-term debt 3,785,210 3,727,778
Current portion of obligations under capital lease 235,222 81,109
Convertible promissory notes 1,370,683
Mortgage payable 1,306,407
Loans payable to related parties 201,575
Total Current Liabilities 8,061,423 5,045,362
Long-Term Liabilities
Obligations under capital lease 207,599
 
Total Long-term Liabilities 207,599
Total Liabilities 8,061,423 5,252,961
Stockholders’ Deficiency
Preferred stock, $.0001 par value, 10,000,000 authorized, none issued and outstanding
Common stock, $.0001 par value, 150,000,000 authorized, 42,484,531 (2018- 40,299,531) shares issued and outstanding
4,439 4,031
Additional paid-in capital 7,274,449 5,754,260
Subscriptions payable 4,600
Stock compensation reserve 750,000 1,330,000
Accumulated deficit (10,766,212) (8,554,312)
Accumulated other comprehensive loss (132,476) (80,827)
Stockholders’ deficiency (2,869,800) (1,542,248)
Total Liabilities and Stockholders’ Deficiency $5,191,623 $3,710,713

 

SusGlobal Energy Corp.
Consolidated Statements of Operations and Comprehensive Loss
For the three-month periods ended September 30, 2019 and 2018
(Expressed in United States Dollars)
(unaudited)

For the three-month periods ended
September 30, 2019   September 30, 2018
Revenue $390,723 $279,394
Total cost of sales 235,723 246,369
 
Gross profit 155,000 33,025
 
Operating expenses  
Management compensation-stock- based compensation 85,000 332,500
Management compensation-fees 81,800 82,619
Marketing 5,785
Professional fees 63,357 246,245
Interest expense 152,952  90,939
Office and administration 62,906 39,182
Rent and occupancy 33,024 54,925
Insurance 17,508 14,172
Filing fees 2,546 1,479
Amortization of financing costs 88,956
Directors’ compensation (14,648) 766
Repairs and maintenance 4,219 1,471
Total operating expenses 583,405 864,298
 
Net loss (428,405) (831,273)
Other comprehensive loss  
Foreign exchange gain (loss) 25,828 (27,107)
 
Comprehensive loss ($402,577) (858,380)
 
Net loss per share-basic and diluted ($0.01) $(0.02)
 
Weighted average number of common shares outstanding- basic and diluted 43,082,783 40,003,672

 

SusGlobal Energy Corp.

Consolidated Reconciliation of Non-GAAP Information

For the three-month periods ended September 30, 2019 and 2018

(Expressed in United States Dollars)

(Unaudited)

For the three-month periods ended 
        September 30, 2019         September 30, 2018
Net loss (GAAP)    $ (428,405)   $ (831,273)
Add the following items:
Interest expense 152,952   90,939
Depreciation and amortization 108,567   100,860
Stock-based compensation 85,000   332,500
Amortization of financing costs 88,956  
   
Adjusted EBITDA (non-GAAP)    $ 7,070   $ (306,974)

Contact

SusGlobal Energy Corp.
Marc Hazout, President and CEO

(416) 223-8500 or Toll Free: 1-866-512-7374
Email: [email protected]