SusGlobal Energy Corp. Reports Second Quarter 2019 Financial Results

TORONTO, ON / ACCESSWIRE / August 14, 2019 / SusGlobal Energy Corp. (OTCQB: SNRG), the developer of SusGro®, a revolutionary pathogen-free organic liquid fertilizer, today announced financial results for the second quarter ended June 30, 2019 and provided an update on its operational progress.

Recent Highlights

  • The Company completed the business acquisition of 1684567 Ontario Inc., effective May 24, 2019 including all assets and waste management contracts
  • Through the business acquisition of 1684567 Ontario Inc., the Company now owns the property upon which the organic composting facility is situated comprising 42.18 acres
  • The Company made application to register the Trademarks SusGro,™ Earth’s Journey™ Compost, Leaders
  • in the In The Circular Economy™ and Caring for Earth’s Journey™
  • Revenue increased by over 67% during the second quarter of 2019 compared to the second quarter of 2018

“We continued to work with customers to 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, and producing regenerative products, we expect to see increasing tipping fees and compost sales in 2019,” said Marc Hazout, Executive Chairman and President 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 Second Quarter Financial Results

For the second quarter ended June 30, 2019, SusGlobal recorded:

  • Revenue of $381,834
  • Cost of sales of $304,618
  • Operating expenses of $780,167 (GAAP), comprised of $332,500 of stock-based compensation, $150,407 of interest expense and $297,260 in various other expenses including professional fees, office and administration and other operating expenses
  • Net loss of $702,951, or $0.02 loss per basic and diluted share
  • Adjusted EBITDA (a non-GAAP financial measure) loss of $60,729
  • $5,400,565 in total assets at the end of the second quarter, with debt of $6,714,186

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.

Consolidated Balance Sheets 
As at June 30, 2019 and December 31, 2018 
(Expressed in United States Dollars) 
(unaudited)

  June 30,
2019
  December 31,
2018
 
ASSETS      
Current Assets      
Cash and cash equivalents $25,140  $42,711 
Trade receivables  157,322   129,981 
Government remittances receivable  17,925    
Inventory  24,738   18,550 
Prepaid expenses and deposits  33,109   23,172 
         
Total Current Assets  258,234   214,414 
         
Intangible Assets  235,926   135,189 
Long-lived Assets, net  4,906,405   3,361,110 
Long-Term Assets  5,142,331   3,496,299 
Total Assets $5,400,565  $3,710,713 
         
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY        
Current Liabilities        
Accounts payable $618,956  $353,728 
Government remittances payable     35,169 
Accrued liabilities  713,443   646,003 
Current portion of long-term debt  3,844,309   3,727,778 
Current portion of obligations under capital lease  90,933   81,109 
Convertible promissory notes  1,248,299    
Mortgage payable  1,301,161    
Loans payable to related parties  57,308   201,575 
         
Total Current Liabilities  7,874,409   5,045,362 
         
Long-Term Liabilities        
Obligations under capital lease  172,176   207,599 
         
Total Long-term Liabilities  172,176   207,599 
Total Liabilities  8,046,585   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
  4,250   4,031 
Additional paid-in capital  7,180,841   5,754,260 
Subscriptions payable     4,600 
Stock compensation reserve  665,000   1,330,000 
Accumulated deficit  (10,337,807)   (8,554,312)
Accumulated other comprehensive loss  (158,304)   (80,827)
         
Stockholders’ deficiency  (2,646,020)   (1,542,248)
         
Total Liabilities and Stockholders’ Deficiency $5,400,565  $3,710,713 

SusGlobal Energy Corp.
Consolidated Statements of Operations and Comprehensive Loss
For the three-month periods ended June 30, 2019 and 2018
(Expressed in United States Dollars)
(unaudited)

  For the three-month periods ended 
  June 30,
2019
  June 30,
2018
 
       
Revenue  $381,834   $227,423 
         
Total cost of sales  304,618   324,417 
         
Gross profit  77,216   35,727 
         
Operating expenses        
Management compensation-stock- based compensation  332,500   1,582,500 
Management compensation-fees  80,720   83,584 
Marketing  (33,323)    
Professional fees  72,269   76,220 
Interest expense  150,407   91,779 
Office and administration  46,380   12,501 
Rent and occupancy  34,820   34,716 
Insurance  13,951   15,466 
Filing fees  16,414   3,581 
Amortization of financing costs  53,768    
Directors’ compensation  9,748   774 
Repairs and maintenance  2,493   10,760 
Total operating expenses  780,167   1,911,881 
         
Net loss  (702,951)   (1,826,935)
Other comprehensive loss        
Foreign exchange loss  (49,972)   (7,300)
         
Comprehensive loss  $(752,923)   $(1,834,235)
         
Net loss per share-basic and diluted  $(0.02)   $(0.05)
         
Weighted average number of common shares outstanding- basic and diluted  42,460,795   39,090,613 

SusGlobal Energy Corp.|
Consolidated Reconciliation of Non-GAAP Information
For the three-month periods ended June 30, 2019 and 2018
(Expressed in United States Dollars)
(Unaudited)

  For the three-month periods ended 
  June 30,
2019
  June 30,
2018
 
Net loss (GAAP) $(702,951)  $(1,826,935)
Add the following items:        
Interest expense  150,407   91,779 
Depreciation and amortization  159,315   102,187 
Stock-based compensation  332,500   1,582,500 
         
         
Adjusted EBITDA (non-GAAP) $(60,729)  $(50,469)
         
         

SOURCE: SusGlobal Energy Corp.

Share on facebook
Share on google
Share on twitter
Share on linkedin
Scroll to Top