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

TORONTO, Ontario – 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)

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: [email protected]