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Toronto, Ontario–(Newsfile Corp. – May 25, 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 first quarter ended March 31, 2021 and provided an update on its operational progress.

Recent Highlights

  • On February 10, 2021, the Company signed an Agreement of Purchase and Sale (the “APS”) for certain assets for $3,578,400 (C$4,500,000), including a vendor take-back mortgage of $1,590,400 (C$2,000,000) at an annual interest rate of 2% maturing two years after closing. A deposit of $159,040 (C$200,000) was paid by the Company on February 10, 2021. The APS was amended on April 8, 2021, to revise the closing date to 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 $39,601 (C$49,800), plus applicable harmonized sales taxes, expected on or before May 19, 2021. On May 20, 2021, the Company and the vendor signed a waiver and amending agreement, waiving the due diligence process and revising the closing date to June 16, 2021.
  • On April 8, 2021, the Company completed the purchase of its International Prostar Truck and Trout River Hy-Cube, 53ft wide with a 125.5 cubic yard capacity hauling trailer for a total purchase price of $173,622 (C$218,338), plus the applicable harmonized sales taxes and administrative costs. The Company paid deposits of $39,118 (C$49,193) on this purchase and financed the balance over a period of forty-eight months at a monthly principal and interest payment of $3,659 (C$4,601) at an interest rate of 4.95% per annum.
  • On May 7, 2021, the Company received a signed letter of intent for the purchase of the shares of two corporations which own proprietary processes, manufacture liquid organic fertilizers and other products. The total purchase price will be $15,904,000 (C$20,000,000) consisting of fifty percent in cash and fifty percent in common stock of the Company. The transaction is set to close on August 31, 2021.

Revenue decreased by 44.99% during the first quarter of 2021 to $192,660 compared to the first quarter of 2020 in the amount of $350,197, primarily due to changes in the customer base including an expiring contract at prior year-end and reductions in certain waste disposed of by several customers.

“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 2021 First Quarter Financial Results

For the first quarter ended March 31, 2021, SusGlobal recorded:

  • Revenue of $192,660.
  • Cost of sales of $310,592.
  • Operating expenses of $593,212, comprised of $163,874 of interest expenses, $144,308 of management compensation, including stock-based compensation of $54,259, $75,215 of office and administration, $64,402 of professional fees, $45,727 of marketing expenses, $32,339 of rent and occupancy and other operating expenses totalling $67,347.
  • Other income of $404,809 consisting of gain on the forgiveness of conversion promissory notes of $359,460 and a gain on the disposal of a long-lived asset of $45,349.
  • Net loss of $306,335, or $0.01 loss per share- basic and diluted.
  • Adjusted EBITDA (a non-GAAP financial measure) income of $72,179.
  • $6,108,081 in total assets and $9,772,324 in total liabilities at the end of the first quarter.

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.
Interim Condensed Consolidated Balance Sheets
As at March 31, 2021 and December 31, 2020
(Expressed in United States Dollars)
(unaudited)

            March 31,     December 31,  
            2021     2020  
  ASSETS                  
  Current Assets                  
  Cash       $ 166,998   $ 6,457  
  Trade receivables       67,781     182,871  
  Government remittances receivable       5,832     3,746  
  Other receivable       52,559      
  Inventory         45,923     24,740  
  Prepaid expenses and deposits       442,500     94,131  
  Deferred assets       214,704     215,953  
  Total Current Assets       996,297     527,898  
                     
  Intangible Assets       193,158     188,180  
  Long-lived Assets, net       4,918,626     5,042,225  
  Long-Term Assets       5,111,784     5,230,405  
  Total Assets     $ 6,108,081   $ 5,758,303  
  LIABILITIES AND STOCKHOLDERS’ DEFICIENCY              
  Current Liabilities                
  Accounts payable     $ 1,111,461   $ 1,073,454  
  Government remittances payable       259,568     229,358  
  Accrued liabilities       979,119     1,206,618  
  Advance             15,460  
  Deferred revenue       2,756     4,790  
  Current portion of long-term debt       6,404,823     6,327,520  
  Current portion of obligations under capital lease     177,830     375,140  
  Convertible promissory notes       479,000     1,092,100  
  Loan payable to related party       18,290     33,772  
  Total Current Liabilities       9,432,847     10,358,212  
  Long-term debt         79,520     78,540  
  Obligations under capital lease       176,427      
  Deferred tax liability       83,530     82,501  
  Total Long-term Liabilities       339,477     161,041  
  Total Liabilities         9,772,324     10,519,253  
                     
  Stockholders’ Deficiency                
  Preferred stock, $.0001 par value, 10,000,000 authorized, none issued and outstanding            
  Common stock, $.0001 par value, 150,000,000 authorized, 89,184,951 (2020- 82,860,619) shares issued and outstanding   8,920     8,288  
  Additional paid-in capital       10,451,369     9,045,187  
  Shares to be issued       66,000     8,580  
  Accumulated deficit       (13,775,129 )   (13,468,794 )
  Accumulated other comprehensive loss     (415,403 )   (354,211 )
                     
  Stockholders’ deficiency       (3,664,243 )   (4,760,950 )
                     
  Total Liabilities and Stockholders’ Deficiency   $ 6,108,081   $ 5,758,303  

 

SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss
For the three-month periods ended March 31, 2021 and 2020
(Expressed in United States Dollars)
(Unaudited)

          For the three-month periods ended
            March 31,     March 31,  
            2021     2020  
                     
  Revenue       $ 192,660   350,197  
                     
  Cost of Sales                  
  Opening inventory         24,740     5,389  
  Depreciation         136,560     113,109  
  Direct wages and benefits         71,059     76,183  
  Equipment rental, delivery, fuel and repairs and maintenance   105,893     61,302  
  Utilities         18,263     38,277  
  Outside contractors             3,573  
            356,515     297,833  
  Less: closing inventory         (45,923 )   (4,071 )
  Total cost of sales         310,592     293,762  
                     
  Gross (loss) profit         (117,932 )   56,435  
                     
  Operating expenses                  
  Management compensation-stock- based compensation       54,259      
  Management compensation-fees       90,049     51,357  
  Marketing         45,727     2,917  
  Professional fees         64,402     81,448  
  Interest expense and default amounts       163,874     312,291  
  Office and administration       75,215     55,685  
  Rent and occupancy       32,339     28,297  
  Insurance         15,002     18,179  
  Filing fees         18,959     13,880  
  Amortization of financing costs       13,578     92,538  
  Directors’ compensation       10,664     (1,420 )
  Stock-based compensation       8,073      
  Repairs and maintenance       13,189     6,458  
  Foreign exchange (income) loss       (12,118 )   150,095  
  Total operating expenses       593,212     811,725  
                     
  Net loss from operating activities       (711,144 )   (755,290 )
  Other income         404,809      
  Net loss         (306,335 )   (755,290 )
  Other comprehensive (loss) income                
  Foreign exchange (loss) gain       (61,192 )   301,639  
                     
  Comprehensive loss     $  (367,527 ) $ (453,651 )
                     
  Net loss per share-basic and diluted   $ (0.01 ) $ (0.01 )
                     
  Weighted average number of common shares outstanding- basic and diluted     86,818,361     57,441,740  

 

SusGlobal Energy Corp.
Interim Condensed Consolidated Reconciliation of Non-GAAP Information
For the three-month periods ended March 31, 2021 and 2020
(Expressed in United States Dollars)
(Unaudited)

          For the three-month periods ended 
      March 31, 2021         March 31, 2020  
  Net loss (GAAP)   $ (306,335 )   $ (755,290 )
  Add the following items:            
     Interest expense     163,874         312,291  
     Depreciation and amortization   138,730         114,932  
     Stock-based compensation   62,332          
     Amortization of financing costs   13,578       92,538  
  Adjusted EBITDA (non-GAAP) $ 72,179       $ (235,529)  

 

Contact

SusGlobal Energy Corp.
Marc Hazout, President and CEO
(416) 223-8500 or Toll Free: 1-866-512-7374
Email: [email protected]

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/85037

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