SusGlobal Energy Corp. Reports Third Quarter 2019 Financial Results

TORONTO, ON / ACCESSWIRE / 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: info@susglobalenergy.com

SOURCE: SusGlobal Energy Corp.

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