TORONTO, ON / ACCESSWIRE / August 19, 2020 / 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, 2020 and provided an update on its operational progress.

Recent Highlights

  • On May 27, 2020, the Company commenced The Ydro Process® integration into the existing operations at the Organic Waste Processing and Composting Facility of its wholly owned subsidiary SusGlobal Energy Belleville Ltd. applying the Ydro Series® Microorganisms product once during the preparation stage of the batches in the appropriate Gore® system windrows and continues to see positive results.
  • On July 16, 2020, the Company received a Certificate of Registration from the United States Patent and Trademark Office ("USPTO") for the trademark LEADERS IN THE CIRCULAR ECONOMY (the "Mark"). The Mark was registered under Registration Number 6,098,063 on July 7, 2020 on the Supplemental Register. The registration will be in effect for an initial term of ten years, expiring on July 7, 2030, with the option of renewing the registration for successive ten-year terms. Now that the Mark is registered, it is permitted to use indicia of registration (e.g. ®, or phrases such as "Reg. U.S. Pat. and T.M. Office").
  • Revenue remained relatively flat during the second quarter of 2020 in the amount of $382,639 compared to the second quarter of 2019 in the amount of $381,834, including the new revenue from the Company's new garbage collection and landfill management operations, in the amount of $49,544.
  • During the second quarter of 2020, the Company finalized the purchase price allocation related to the business acquisition of 1684567 Ontario Inc. ("1684567"), which closed on May 28, 2019.

"We continue to process municipal organic waste streams, diverting them from landfills, while producing regenerative products as part of our Circular Economy model. We have confidence in a revenue ramp up for next year," said Marc Hazout, Executive Chairman, President and CEO of SusGlobal Energy Corp. "Our goal is to increase revenue and cash flow as quickly as possible to payoff all outstanding convertible notes, increasing shareholder value with an objective to up-list to a major exchange."

Unaudited 2020 Second Quarter Financial Results

For the second quarter ended June 30, 2020, SusGlobal recorded:

  • Revenue of $382,639.
  • Cost of sales of $316,815.
  • Operating expenses of $526,296 (GAAP), comprised of $283,409 of interest expenses, $107,887 of professional fees, $49,825 of management compensation, $84,635 of foreign exchange income, and $169,810 of other expenses, including, office and administration, amortization of financing fees, rent and occupancy and other operating expenses.
  • During the second quarter, the land option the Company acquired on the business acquisition of 1684567 had expired and was written off.
  • Net loss of $323,171, or $0.01 loss per share- basic and diluted.
  • Adjusted EBITDA (a non-GAAP financial measure) income of $114,779.
  • $5,166,750 in total assets at the end of the second quarter, with total liabilities of $9,203,951

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:

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

- Financial Tables Follow -

SusGlobal Energy Corp.
Interim Condensed Consolidated Balance Sheets
As at June 30, 2020 and December 31, 2019
(Expressed in United States Dollars)

  June 30, 2020     December 31, 2019  
Current Assets
Cash and cash equivalents
  $ 12,637     $ 7,926  
Restricted cash-funds held in trust
    -       467,798  
Trade receivables
    115,454       121,276  
Government remittances receivable
    39,118       38,578  
Other receivables
    -       20,624  
    -       5,389  
Prepaid expenses and deposits
    68,461       46,028  
Total Current Assets
    235,670       707,619  
Intangible Assets
    242,988       237,271  
Long-lived Assets, net
    4,688,092       4,762,453  
Total Assets
  $ 5,166,750     $ 5,707,343  
Current Liabilities
Accounts payable
  $ 964,477     $ 958,313  
Government remittances payable
    116,201       35,187  
Accrued liabilities
    531,473       487,592  
    -       3,255  
Deferred revenue
    6,441       9,239  
Current portion of long-term debt
    5,476,357       5,793,677  
Current portion of obligations under capital lease
    420,063       218,069  
Convertible promissory notes
    1,556,855       1,406,029  
Loans payable to related party
    73,380       -  
Total Current Liabilities
    9,145,247       8,911,361  
Long-term debt
    58,704       -  
Total Long-term Liabilities
    58,704       -  
Total Liabilities
    9,203,951       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, 64,329,157 (December 31, 2019- 51,784,504) shares issued and outstanding
    6,435       5,180  
Additional paid-in capital
    8,544,263       7,450,091  
Subscriptions payable
    13,000       -  
Stock compensation reserve
    -       1,000,000  
Accumulated deficit
    (12,534,941)       (11,449,497 )
Accumulated other comprehensive loss
    (65,958)       (209,792 )
Total stockholders' deficiency
    (4,037,201)       (3,204,018 )
Total Liabilities and Stockholders' Deficiency
  $ 5,166,750     $ 5,707,343  

SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss
For the three-month periods ended June 30, 2020 and 2019
(Expressed in United States Dollars)

  For the three-month periods ended  
  June 30, 2020     June 30, 2019  
  $ 382,639     $ 381,834  
Cost of Sales
Opening inventory
    4,071       26,409  
    121,158       101,072  
Direct wages and benefits
    85,063       59,667  
Equipment rental, delivery, fuel and repairs and maintenance
    96,854       104,916  
    7,963       32,695  
Outside contractors
    1,706       4,597  
    316,815       329,356  
Less: closing inventory
    -       (24,738 )
Total cost of sales
    316,815       304,618  
Gross profit
    65,824       77,216  
Operating expenses
Management compensation-stock- based compensation
    -       332,500  
Management compensation-fees
    49,825       80,740  
    (2,917)       (33,323 )
Professional fees
    107,887       72,269  
Interest expense and default payments
    283,409       150,407  
Office and administration
    77,000       67,834  
Rent and occupancy
    28,763       34,820  
    23,921       13,951  
Filing fees
    8,266       16,414  
Amortization of financing costs
    30,471       53,768  
Directors' compensation
    1,853       9,748  
Repairs and maintenance
    2,453       2,493  
Foreign exchange income
    (84,635)       (21,454 )
Total operating expenses
    526,296       780,167  
Net Loss from operating activities
    (460,472)       (702,951 )
Land option expired
    (58,704)       -  
Net loss before deferred taxes recovery
    (519,176)       (702,951 )
Deferred taxes recovery
    196,005       -  
Net Loss
    (323,171)       (702,951 )
Other comprehensive loss
Foreign exchange loss
    (157,805)       (49,972 )
Comprehensive loss
  $ (480,976)     $ (752,923 )
Net loss per share-basic and diluted
  $ (0.01)     $ (0.02 )
Weighted average number of common shares outstanding- basic and diluted
    63,853,597       42,460,795  

SusGlobal Energy Corp.
Interim Condensed Consolidated Reconciliation of Non-GAAP Information
For the three-month periods ended June 30, 2020 and 2019
(Expressed in United States Dollars)

  For the three-month periods ended  
  June 30, 2020     June 30, 2019  
Net loss (GAAP)
  $ (323,171)     $ (702,951 )
Add the following items:
Interest expense
    283,409       150,407  
Depreciation and amortization
    124,070       105,546  
Stock-based compensation and shares issued for professional services
    -       332,500  
Amortization of financing costs
    30,471       53,768  
Adjusted EBITDA (non-GAAP)
  $ 114,779     $ (60,730 )


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

SOURCE: SusGlobal Energy Corp.

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