Toronto, Ontario--(Newsfile Corp. - April 15, 2021) - SusGlobal Energy Corp. (OTCQB: SNRG) ("SusGlobal") or (the "Company"), 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
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/80595
