SusGlobal Energy Corp. Reports First Quarter 2020 Financial Results

TORONTO, Ontario – 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:

 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

– 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)


March 31, 2020 December 31, 2019
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
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)


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)


                         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 )



SusGlobal Energy Corp.
Marc Hazout, President and CEO

(416) 223-8500 or Toll Free: 1-866-512-7374