TORONTO, ON / ACCESSWIRE / April 14, 2020 / SusGlobal Energy Corp. (OTCQB: SNRG), the developer of SusGro™, a revolutionary pathogen-free organic liquid fertilizer, today announced financial results for the fourth quarter and full year ended December 31, 2019 and provided an update on its operational progress.
Recent Highlights
- During the quarter, the Company extended a contract with AIM Waste Management Inc., for the processing of source separated organics, to December 31, 2020.
- The Company is expected to exercise, in Q2-2020, 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.
- Revenue for the three-month period ended December 31, 2019 compared to the three-month period ended December 31, 2018 remained relatively stable, but revenue increased by over 38.4% during the year ended December 31, 2019 compared to the year-ended December 31, 2018.
We continued to work with customers and bring further products to market, while pursuing regulatory certifications and additional municipal contracts. 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 have increasing confidence in a revenue ramp 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 increasing shareholder value."
Unaudited 2019 Fourth Quarter Financial Results
For the fourth quarter ended December 31, 2019, SusGlobal recorded:
- Revenue of $358,498 for the three-month period ended December 31, 2019 compared to $360,568 for the three-month period ended December 31, 2018.
- Cost of sales of $348,537 for the three-month period ended December 31, 2019 compared to $297,808 for the three-month period ended December 31, 2018.
- Operating expenses of $693,246 for the three-month period ended December 31, 2019 (GAAP), comprised of $250,400 of stock-based compensation, $178,837 of interest expense, $93,584 of amortization of finance fees and $170,425 in various other expenses including professional fees, office and administration and other operating expenses, compared to $814,951 for the three-month period ended December 31, 2018.
- Net loss of $683,285, or $0.01 loss per basic and diluted share, for the three-month period ended December 31, 2019 compared to $752,191 or $0.02 loss per basic and diluted share, for the three-month period ended December 31, 2018.
- Adjusted EBITDA (a non-GAAP financial measure) loss of $54,350 for the three-month period ended December 31, 2019 compared to a loss of $209,154 for the three-month period ended December 31, 2018.
- $5,707,343 in total assets at the end of the fourth quarter, with debt of $7,421,030.
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 December 31, 2019 and 2018
(Expressed in United States Dollars)
|
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2019 | 2018 | ||||||
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|
ASSETS
|
||||||||
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Current Assets
|
||||||||
|
Cash and cash equivalents
|
$ | 7,926 | $ | 42,711 | ||||
|
Restricted cash-funds held in trust
|
467,798 | - | ||||||
|
Trade receivables
|
121,276 | 129,981 | ||||||
|
Government remittances receivable
|
38,578 | 9,194 | ||||||
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Other receivables
|
20,624 | - | ||||||
|
Inventory
|
5,389 | 18,550 | ||||||
|
Prepaid expenses and deposits
|
46,028 | 23,172 | ||||||
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Total Current Assets
|
707,619 | 223,608 | ||||||
|
|
||||||||
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Intangible Assets
|
237,271 | 135,189 | ||||||
|
Long-lived Assets, net
|
4,762,453 | 3,361,110 | ||||||
|
Total Assets
|
$ | 5,707,343 | $ | 3,719,907 | ||||
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LIABILITIES AND STOCKHOLDERS' DEFICIENCY
|
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Current Liabilities
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Accounts payable
|
$ | 958,313 | $ | 353,728 | ||||
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Government remittances payable
|
35,187 | 44,363 | ||||||
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Accrued liabilities
|
487,592 | 646,003 | ||||||
|
Advance
|
3,255 | - | ||||||
|
Deferred revenue
|
9,239 | - | ||||||
|
Current portion of long-term debt
|
3,859,401 | 3,727,778 | ||||||
|
Current portion of obligations under capital lease
|
218,069 | 81,109 | ||||||
|
Convertible promissory notes
|
1,406,029 | - | ||||||
|
Mortgage payable
|
1,934,276 | - | ||||||
|
Loans payable to related parties
|
- | 201,575 | ||||||
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Total Current Liabilities
|
8,911,361 | 5,054,556 | ||||||
|
Obligations under capital lease
|
- | 207,599 | ||||||
|
Total Long-term Liabilities
|
- | 207,599 | ||||||
|
Total Liabilities
|
8,911,361 | 5,262,155 | ||||||
|
Stockholders' Deficiency
|
||||||||
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Preferred stock, $.0001 par value, 10,000,000 authorized, none issued and outstanding
|
||||||||
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Common stock, $.0001 par value, 150,000,000 authorized, 51,784,504 (2018- 40,299,531) shares issued and outstanding
|
5,180 | 4,031 | ||||||
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Additional paid-in capital
|
7,450,091 | 5,754,260 | ||||||
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Subscriptions payable
|
- | 4,600 | ||||||
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Stock compensation reserve
|
1,000,000 | 1,330,000 | ||||||
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Accumulated deficit
|
(11,449,497) | (8,554,312 | ) | |||||
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Accumulated other comprehensive loss
|
(209,792) | (80,827 | ) | |||||
|
|
||||||||
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Total stockholders' deficiency
|
(3,204,018) | (1,542,248 | ) | |||||
|
|
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Total Liabilities and Stockholders' Deficiency
|
$ | 5,707,343 | $ | 3,719,907 | ||||
SusGlobal Energy Corp.
Consolidated Statements of Operations and Comprehensive Loss
For the three-month periods ended December 31, 2019 and 2018
(Expressed in United States Dollars)
(unaudited)
|
|
For the three-month periods ended |
|||||||
|
|
December 31, 2019 |
December 31, 2018 |
||||||
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Revenue
|
$ | 358,498 | $ | 360,568 | ||||
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|
||||||||
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Cost of Sales
|
||||||||
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Opening inventory
|
27,538 | 73,795 | ||||||
|
Depreciation
|
104,311 | 96,488 | ||||||
|
Direct wages and benefits
|
78,577 | 49,144 | ||||||
|
Equipment rental, delivery, fuel and repairs and maintenance
|
95,071 | 31,725 | ||||||
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Utilities
|
44,746 | 48,733 | ||||||
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Outside contractors
|
3,703 | 16,473 | ||||||
|
|
353,926 | 316,358 | ||||||
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Less: closing inventory
|
(5,389) | (18,550 | ) | |||||
|
Total cost of sales
|
348,537 | 297,808 | ||||||
|
|
||||||||
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Gross profit
|
9,961 | 62,760 | ||||||
|
|
||||||||
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Operating expenses
|
||||||||
|
Management compensation-stock- based compensation
|
250,000 | 332,500 | ||||||
|
Management compensation-fees
|
47,904 | 81,803 | ||||||
|
Professional fees
|
38,252 | 91,170 | ||||||
|
Marketing
|
1,453 | - | ||||||
|
Interest expense
|
178,837 | 92,251 | ||||||
|
Rent and occupancy
|
22,174 | 22,299 | ||||||
|
Insurance
|
21,848 | 10,814 | ||||||
|
Office and administration
|
34,592 | 79,373 | ||||||
|
Filing fees
|
6,675 | 20,199 | ||||||
|
Amortization of financing costs
|
93,584 | - | ||||||
|
Repairs and maintenance
|
671 | 11,785 | ||||||
|
Directors' compensation
|
(2,744) | 72,757 | ||||||
|
Total operating expenses
|
693,246 | 814,951 | ||||||
|
|
||||||||
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Net Loss
|
(683,285) | (752,191 | ) | |||||
|
Other comprehensive loss |
||||||||
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Foreign exchange (loss) gain
|
(77,316) | 73,359 | ||||||
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|
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Comprehensive loss
|
$ | (760,601) | $ | (678,832 | ) | |||
|
|
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Net loss per share-basic and diluted
|
$ | (0.01) | $ | (0.02 | ) | |||
|
|
||||||||
|
Weighted average number of common shares outstanding- basic and diluted
|
48,835,025 | 40,191,830 | ||||||
SusGlobal Energy Corp.
|Consolidated Reconciliation of Non-GAAP Information
For the three-month periods ended December 31, 2019 and 2018
(Expressed in United States Dollars)
(Unaudited)
|
|
For the three-month periods ended |
|||||||
|
|
December 31, 2019 |
December 31, 2018 |
||||||
|
Net loss (GAAP)
|
$ | (683,285) | $ | (752,191 | ) | |||
|
Add the following items:
|
||||||||
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Interest expense
|
178,837 | 92,251 | ||||||
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Depreciation and amortization
|
106,114 | 98,286 | ||||||
|
Stock-based compensation
|
250,400 | 352,500 | ||||||
|
Amortization of financing costs
|
93,584 | - | ||||||
|
Adjusted EBITDA (non-GAAP)
|
$ | (54,350) | $ | (209,154 | ) | |||
|
|
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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/585094/SusGlobal-Energy-Corp-Reports-Fourth-Quarter-and-Full-Year-2019-Financial-Results