TORONTO, ON / ACCESSWIRE / May 25, 2021 / SusGlobal Energy Corp. ("SusGlobal") or (the "Company") (OTCQB:SNRG), 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:

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 March 31, 2021 and December 31, 2020
(Expressed in United States Dollars)

  March 31,     December 31,  
  2021     2020  
Current Assets
  166,998     6,457  
Trade receivables
    67,781       182,871  
Government remittances receivable
    5,832       3,746  
Other receivable
    52,559       -  
    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  
Current Liabilities
Accounts payable
  1,111,461     1,073,454  
Government remittances payable
    259,568       229,358  
Accrued liabilities
    979,119       1,206,618  
    -       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)

  For the three-month periods ended  
  March 31,     March 31,  
  2021     2020  
  192,660     350,197  
Cost of Sales
Opening inventory
    24,740       5,389  
    136,560       113,109  
Direct wages and benefits
    71,059       76,183  
Equipment rental, delivery, fuel and repairs and maintenance
    105,893       61,302  
    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
    54,259       -  
Management compensation-fees
    90,049       51,357  
    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  
    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)

  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 )

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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