SusGlobal Energy Corp. Reports Third Quarter 2020 Financial Results

TORONTO, Ontario – November 18, 2020 – SusGlobal Energy Corp. (“SusGlobal”) or (the “Company”) (OTCQB: SNRG), the developer of SusGro™, a revolutionary pathogen-free organic liquid fertilizer and LEADERS IN THE CIRCULAR ECONOMY®, today announced financial results for the third quarter ended September 30, 2020 and provided an update on its operational progress.

Recent Highlights

  • On September 30, 2020, the Company was chosen by The Finnish Innovation Fund Sitra (“Sitra”), as one of 39 inspiring circular economy solutions from around the globe during the World Circular Economy Forum Online (“WCEFonline”), September 29-30, 2020. Sitra compiled a list of inspiring circular economy innovations from around the world to inspire organizations and businesses to take part in the circular transition. The result is an extensive list containing 39 inspiring circular economy solutions. With examples from six continents, these solutions range from circular fashion to magnetic ink and from upcycling solar panel waste to podcasts and games demonstrating a circular economy in practice, including SusGlobal.
  • On November 12, 2020, the Company through its wholly-owned real property subsidiary, 1684567 Ontario Inc. (“1684567”), acquired the additional lands described in the share purchase agreement of 1684567 from May of 2019 (the “SPA”) which includes a 6.60-acre licensed gravel pit and a .20-acre right of way totaling 6.8 acres of property (the “Property”) located at 704 Phillipston Road, in Belleville, Ontario, Canada. SusGlobal is now the owner of a 49-acre land parcel at its Belleville, Ontario facility and will continue producing its Earth’s Journey® Organic Compost by processing 70,000 tonnes per annum of organic waste, with an additional 50,000 tonnes per annum organic waste processing and transfer site approved under the existing Environmental Compliance Approval (the “ECA”) and Site Plan.
  • Revenue increased by 12.49% during the third quarter of 2020 to $439,507 compared to the third quarter of 2019 in the amount of $390,723, from increased business from the Company’s organic waste processing and composting facility.  

“We continue to process municipal organic waste streams, diverting them from landfills, while producing regenerative products such as Earth’s Journey® Organic Compost, as part of our Circular Economy model. We have confidence in a revenue ramp up for next year,” said Marc Hazout, Executive Chairman, President and CEO of SusGlobal Energy Corp. “Our goal is to increase revenue and cash flow to fund further growth, increasing shareholder value with an objective to up-list to a major exchange.”
Unaudited 2020 Third Quarter Financial Results
For the third quarter ended September 30, 2020, SusGlobal recorded: 

  • Revenue of $439,507.
  • Cost of sales of $307,665.
  • Operating expenses of $561,879 (GAAP), comprised of $258,796 of interest expenses, $102,769 of professional fees, $56,637 in directors’ compensation, $51,812 of management compensation, $33,473 of foreign exchange income, and $125,338 of other expenses, including, office and administration, rent and occupancy, amortization of financing fees and other operating expenses.
  • Net loss of $429,046, or $0.01 loss per share- basic and diluted.
  • Adjusted EBITDA (a non-GAAP financial measure) loss of $16,670.
  • $5,321,974 in total assets at the end of the third quarter, with total liabilities of $9,796,346

 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 applications globally including Earth’s Journey® Organic Compost. 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® and Caring for Earth’s Journey®. 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 September 30, 2020 and December 31, 2019
(Expressed in United States Dollars)
(unaudited)

 

 

September 30, 2020

 

 

December 31, 2019

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

$

5,028

 

$

7,926

 

Restricted cash-funds held in trust

 

 

 

467,798

 

Trade receivables

 

234,677

 

 

121,276

 

Government remittances receivable

 

7,267

 

 

38,578

 

Other receivables

 

 

 

20,624

 

Inventory

 

 

 

5,389

 

Prepaid expenses and deposits

 

36,625

 

 

46,028

 

Total Current Assets

 

283,597

 

 

707,619

 

 

 

 

 

 

 

 

Intangible Assets

 

255,322

 

 

237,271

 

Long-lived Assets, net

 

4,783,055

 

 

4,762,453

 

Total Assets

$

5,321,974

 

$

5,707,343

 

LIABILITIES AND STOCKHOLDERS’ DEFICIENCY

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable

$

1,187,497

 

$

958,313

 

Government remittances payable

 

167,137

 

 

35,187

 

Accrued liabilities

 

741,996

 

 

487,592

 

Advance

 

61,805

 

 

3,255

 

Deferred revenue

 

4,573

 

 

9,239

 

Current portion of long-term debt

 

5,594,538

 

 

5,793,677

 

Current portion of obligations under capital lease

 

409,660

 

 

218,069

 

Convertible promissory notes

 

1,520,433

 

 

1,406,029

 

Loans payable to related party

 

48,731

 

 

 

 

 

 

 

 

 

 

Total Current Liabilities

 

9,736,370

 

 

8,911,361

 

Long-term debt

 

59,976

 

 

 

Total Long-term Liabilities

 

59,976

 

 

 

Total Liabilities

 

9,796,346

 

 

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, 79,372,643 (December 31, 2019- 51,784,504) shares issued and outstanding

 

7,940

 

 

5,180

 

Additional paid-in capital

 

8,628,336

 

 

7,450,091

 

Stock compensation reserve

 

 

 

1,000,000

 

Accumulated deficit

 

(12,963,987

)

 

(11,449,497

Accumulated other comprehensive loss

 

(146,661

)

 

(209,792

 

 

 

 

 

 

 

Total stockholders’ deficiency

 

(4,474,372

)

 

(3,204,018

 

 

 

 

 

 

 

Total Liabilities and Stockholders’ Deficiency

$

5,321,974

 

$

5,707,343

 

SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss
For the three-month periods ended September 30, 2020 and 2019
(Expressed in United States Dollars)
(unaudited)

                                                                                                                                                                                                         

For the three-month periods ended

 

 

 

 

September 30, 2020

 

 

September 30, 2019

 

Revenue

$

439,507

 

$

390,723

 

 

 

 

 

 

 

 

 

 

Cost of Sales

 

 

 

 

 

 

 

Opening inventory

 

 

 

24,738

 

 

Depreciation

 

133,467

 

 

105,990

 

 

Direct wages and benefits

 

90,475

 

 

71,347

 

 

Equipment rental, delivery, fuel and repairs and maintenance

 

52,652

 

 

24,053

 

 

Utilities

 

27,185

 

 

19,309

 

 

Outside contractors

 

3,886

 

 

17,824

 

 

 

 

307,665

 

 

263,261

 

 

Less: closing inventory

 

 

 

(27,538

)

 

Total cost of sales

 

307,665

 

 

235,723

 

 

 

 

 

 

 

 

 

 

Gross profit

 

131,842

 

 

155,000

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

Management compensation-stock- based compensation

 

 

 

85,000

 

 

Management compensation-fees

 

51,812

 

 

81,800

 

 

Marketing

 

 

 

5,785

 

 

Professional fees

 

102,769

 

 

63,357

 

 

Interest expense and default payments

 

258,796

 

 

152,952

 

 

Office and administration

 

50,042

 

 

53,842

 

 

Rent and occupancy

 

32,420

 

 

33,024

 

 

Insurance

 

10,056

 

 

17,508

 

 

Filing fees

 

12,957

 

 

2,546

 

 

Amortization of financing costs

 

18,677

 

 

88,956

 

 

Directors’ compensation

 

56,637

 

 

(14,648

)

 

Repairs and maintenance

 

1,186

 

 

4,219

 

 

Foreign exchange (income) loss

 

(33,473

)

 

9,064

 

 

Total operating expenses

 

561,879

 

 

583,405

 

 

 

 

 

 

 

 

 

 

Net Loss from operating activities

 

(430,037

)

 

(428,405

)

 

Land option expired

 

(424

)

 

 

 

Net loss before deferred taxes recovery

 

(430,461

)

 

(428,405

)

 

Deferred taxes recovery

 

1,415

 

 

 

 

Net Loss

 

(429,046

)

 

(428,405

)

 

 Other comprehensive loss

 

 

 

 

 

 

 

Foreign exchange loss

 

(80,703

)

 

(25,828

)

 

 

 

 

 

 

 

 

 

Comprehensive loss

$

(509,749

)

$

(402,577

)

 

 

 

 

 

 

 

 

 

Net loss per share-basic and diluted

$

(0.01

)

$

(0.01

)

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding- basic and diluted

 

69,871,179

 

 

43,082,783

 

 

SusGlobal Energy Corp.
Interim Condensed Consolidated Reconciliation of Non-GAAP Information
For the three-month periods ended September 30, 2020 and 2019
(Expressed in United States Dollars)
(Unaudited)

 

 

 

 

 

 

 

 

 

 

  

                         For the three-month periods ended

 

  

        September 30, 2020

 

 

      September 30, 2019

 

Net loss (GAAP)

  

$

(429,046

)

 

$

(428,405

Add the following items:

  

 

 

 

 

 

 

 

Interest expense

  

 

258,796

 

 

 

152,952

 

Depreciation and amortization

  

 

134,903

 

 

 

108,566

 

Stock-based compensation and shares issued for professional services

 

 

 

 

 

85,000

 

Amortization of financing costs

  

 

18,677

 

 

 

88,956

 

Adjusted EBITDA (non-GAAP)          

 

$

(16,670)

 

 

$

7,069

 

Contact

SusGlobal Energy Corp. 
Marc Hazout, President and CEO
(416) 223-8500 or Toll Free: 1-866-512-7374 
Email: info@susglobalenergy.com