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SusGlobal Energy Corp. Reports Fourth Quarter and Full Year 2020 Financial Results

TORONTO, ON / ACCESSWIRE / April 16, 2021 / 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 fourth quarter and full-year ended December 31, 2020 and provided an update on its operational progress.

Recent Highlights

On November 24, 2020, the Company received a Certificate of Registration from the United States Patent and Trademark Office ("USPTO") for the trademark EARTH'S JOURNEY® and the trademark CARING FOR EARTH'S JOURNEY® (the "Marks"). The Marks were registered under Registration Number 6,197,171 and Registration Number 6,195,955 on November 10, 2020 on the Supplemental Register. The registrations will be in effect for an initial term of ten years, expiring on November 10, 2030, with the option of renewing the registrations for successive ten-year terms. Now that the Marks are registered, it is permitted to use indicia of registration (e.g., ®, or phrases such as "Reg. U.S. Pat. and T.M. Office").

On January 19 and January 20 of 2021, the Company signed payoff agreements for all its outstanding convertible notes totaling US$1.52 Million. Certain notes were paid from proceeds of a loan and a direct equity investment from Travellers International Inc., a company controlled by the Company's Executive Chairman, President, and CEO.

On February 1, 2021, the Company completed the Ydro Process® integration into the Company's proprietary Organic Waste Processing and Composting Facility at its wholly-owned subsidiary SusGlobal Energy Belleville Ltd. ("SusGlobal Bellville"). TradeWorks Environmental's Ydro Process®, a biotechnology used in composting applications to improve and advance the overall performance and efficiency of the system, was integrated into the existing SusGlobal Belleville operations by applying the Ydro Series® Microorganisms product during the preparation stage of the batches in the appropriate Gore® system windrows.

On February 10, 2021, the Company signed an Agreement of Purchase and Sale (the "APS") for certain assets located in Hamilton, Ontario, for $3,534,300 (C$4,500,000). A deposit of $157,080 (C$200,000) was paid by the Company on February 10, 2021. The APS is expected to close on June 4, 2021, subject to successful completion of the due diligence process and the completion of the Phase II Environmental Site Assessment at a cost of $39,113 (C$49,800), plus applicable harmonized sales taxes, expected on or before May 19, 2021.

On March 4, 2021, the Company signed a Capital Market Advisory Agreement (the "Agreement") with Exchange Listing, LLC ("Exchange Listing") to provide advisory services with respect to the Company's initiative to list its shares of Common Stock on the Nasdaq Capital Market. Exchange Listing provides companies with cost-effective and efficient direct access to one-stop solutions in the strategic planning and implementation of listing on senior exchanges such as NASDAQ or NYSE. Focusing on company-specific structuring to meet listing requirements, Exchange Listing serves as the primary point of contact with the exchange, investment bankers, and lawyers throughout the listing process. With extensive experience in investment banking, securities law, corporate governance, and business management, Exchange Listing and its strategic partners facilitate its clients' listing and capital markets objectives.

On April 8, 2021, the Company took delivery of an International Prostar Truck and a Trout River Steel Hy-Cube, 53ft with 125.5 cubic yard capacity hauling Trailer for a total purchase price of $193,775 (C$246,722). The Truck and Trailer are being used predominately for the transportation, reprocessing, and beneficial use of mid-sized compost screenings from the Region of Peel Purchase Order received November 20, 2020 and to backhaul compost to customers.

Revenue increased by 20.58% during the fourth quarter of 2020 to $432,263 compared to the fourth quarter of 2019 in the amount of $358,498, 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 this year," said Marc Hazout, Executive Chairman, President, and CEO of SusGlobal Energy Corp. "Our goal is to complete our regional strategy with a second facility and the commercialization of our proprietary organic liquid fertilizer in order to increase revenue and cash flow, maximizing shareholder value with an objective to up-list to a major exchange."

Unaudited 2020 Fourth Quarter Financial Results

For the fourth quarter ended December 31, 2020, SusGlobal recorded:

Revenue of $432,263.

Cost of sales of $605,998.

Operating expenses of $512,934 comprised of $297,381 of interest expenses, $90,134 of professional fees, $56,571 of stock-based compensation, $54,125 of office and administration, $52,930 of management compensation, $30,665 of rent and occupancy, offset by a reduction of other expenses of $68,872, primarily foreign exchange income and director compensation.

Net loss of $504,807, or $0.01 loss per share- basic and diluted.

Adjusted EBITDA (a non-GAAP financial measure) income of $4,689.

$5,758,303 in total assets at the end of the year, with total liabilities of $10,519,253.

About SusGlobal Energy Corp.

SusGlobal Energy Corp., 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. 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 https://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, 2020 and 2019
(Expressed in United States Dollars)

 
  2020     2019  
 
           
ASSETS
           
Current Assets
           
Cash
  $ 6,457     $ 7,926  
Restricted cash-funds held in trust
    -       467,798  
Trade receivables
    182,871       121,276  
Government remittances receivable
    3,746       38,578  
Other receivables
    -       20,624  
Inventory
    24,740       5,389  
Prepaid expenses and deposits
    94,131       46,028  
Deferred assets
    215,953       -  
Total Current Assets
    527,898       707,619  
 
               
Intangible Assets
    188.180       237,271  
Long-lived Assets, net
    5,042,225       4,762,453  
Total Assets
  $ 5,758,303     $ 5,707,343  
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
               
Current Liabilities
               
Accounts payable
  $ 1,073,454     $ 958,313  
Government remittances payable
    229,358       35,187  
Accrued liabilities
    1.206,618       487,592  
Advance
    15,640       3,255  
Deferred revenue
    4,790       9,239  
Current portion of long-term debt
    6,327,520       5,793,677  
Current portion of obligations under capital lease
    375,140       218,069  
Convertible promissory notes
    1,092,100       1,406,029  
Loans payable to related party
    33,772       -  
 
               
Total Current Liabilities
    10,358,212       8,911,361  
Long-term debt
    78,540       -  
Deferred tax liability
    82,501       -  
Total Long-term Liabilities
    161,041       -  
Total Liabilities
    10,519,253       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, 82,860,619 (December 31, 2019- 51,784,504) shares issued and outstanding
    8,288       5,180  
Additional paid-in capital
    9,045,187       7,450,091  
Shares to be issued
    8,580       -  
Stock compensation reserve
    -       1,000,000  
Accumulated deficit
    (13,468,794)       (11,449,497 )
Accumulated other comprehensive loss
    (354,211)       (209,792 )
 
               
Total stockholders' deficiency
    (4,760,950)       (3,204,018 )
 
               
Total Liabilities and Stockholders' Deficiency
  $ 5,758,303     $ 5,707,343  

SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss

For the three-month periods ended December 31, 2020 and 2019
(Expressed in United States Dollars)
(Unaudited)

 
  For the three-month periods ended  
 
  December 31, 2020     December 31, 2019  
Revenue
  $ 432,263     $ 358,498  
 
               
Cost of Sales
               
Opening inventory
    -       -  
Depreciation
    137,104       104,311  
Direct wages and benefits
    76,865       78,557  
Equipment rental, delivery, fuel and repairs, and maintenance
    401,304       95,071  
Utilities
    15,080       44,746  
Outside contractors
    385       3,703  
 
    630,738       326,388  
Less: closing inventory
    (24,740)       22,149  
Total cost of sales
    605,998       348,537  
 
               
Gross (loss) profit
    (173,735)       9,961  
 
               
Operating expenses
               
Management compensation-stock- based compensation
    -       250,000  
Management compensation-fees
    52,930       47,904  
Marketing
    -       1,453  
Professional fees
    90,134       38,252  
Interest expense and default payments
    297,381       178,837  
Office and administration
    54,125       78,224  
Rent and occupancy
    30,665       22,174  
Insurance
    16,776       21,848  
Filing fees
    10,993       6,675  
Amortization of financing costs
    11,880       93,584  
Directors' compensation (recovery)
    (19,451)       (2,744 )
Stock-based compensation
    56,571       -  
Repairs and maintenance
    1,110       671  
Foreign exchange (income)
    (90,180)       (43,632 )
Total operating expenses
    512,934       693,246  
 
               
Net Loss from operating activities
    (686,669)       (683,285 )
Other income
    239,405       -  
Net loss before deferred taxes recovery
    (447,264)       (683,285 )
Income taxes recovery
    (57,543)       -  
Net Loss
    (504,807)       (683,285 )
Other comprehensive loss
               
Foreign exchange loss
    (207,550)       (77,316 )
 
               
Comprehensive loss
  $ (712,357)     $ (760,601 )
 
               
Net loss per share-basic and diluted
  $ (0.01)     $ (0.01 )
 
               
Weighted average number of common shares outstanding- basic and diluted
    79,845,460       48,835,025  

SusGlobal Energy Corp.
Interim Condensed Consolidated Reconciliation of Non-GAAP Information

For the three-month periods ended December 31, 2020 and 2019
(Expressed in United States Dollars)
(Unaudited)

 
  For the three-month periods ended  
 
  December 31, 2020     December 31, 2019  
Net loss (GAAP)
  $ (504,807)     $ (683,285 )
Add the following items:
               
Interest expense
    297,381       178,837  
Depreciation and amortization
    143,664       106,114  
Stock-based compensation
    56,571       250,400  
Amortization of financing costs
    11,880       93,584  
Adjusted EBITDA (non-GAAP)
  $ 4,689     $ (54,350 )

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.


View source version on accesswire.com:
https://www.accesswire.com/640663/SusGlobal-Energy-Corp-Reports-Fourth-Quarter-and-Full-Year-2020-Financial-Results

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