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| Press Release

SusGlobal Energy Corp. Reports Third Quarter 2019 Financial Results

TORONTO, ON / ACCESSWIRE / December 2, 2019 / SusGlobal Energy Corp. (OTCQB:SNRG), the developer of SusGro®, a revolutionary pathogen-free organic liquid fertilizer, announced financial results for the third quarter ended September 30, 2019 and provided an update on its operational progress.

Recent Highlights

  • The Company is committed to exercise 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.
  • The Company renewed the Region of Peel Purchase Order in November 2019
  • The Company was awarded the Northumberland County Source Separated Organics contract in October 2019
  • Revenue increased by over 39% during the third quarter of 2019 compared to the third quarter of 2018

"We continued to work with customers and 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 streams and diverting them from landfills, while producing regenerative products. We expect to see increasing tipping fees and compost sales 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 bringing new processing sites into operation."

Unaudited 2019 Third Quarter Financial Results

For the third quarter ended September 30, 2019, SusGlobal recorded:

  • Revenue of $390,723
  • Cost of sales of $235,723
  • Operating expenses of $583,405 (GAAP), comprised of $85,000 of stock-based compensation, $152,952 of interest expense and $345,453 in various other expenses including professional fees, office and administration, amortization of financing costs and other operating expenses
  • Net loss of $428,405, or $0.01 loss per basic and diluted share
  • Adjusted EBITDA (a non-GAAP financial measure) income of $7,070
  • $5,191,623 in total assets at the end of the third quarter, with debt of $6,726,038

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 September 30, 2019 and December 31, 2018
(Expressed in United States Dollars)
(unaudited)

             
 
  September 30, 2019     December 31, 2018  
ASSETS
           
Current Assets
           
Cash and cash equivalents
  $ -     $ 42,711  
Trade receivables
    149,933       129,981  
Inventory
    27,538       18,550  
Prepaid expenses and deposits
    18,367       23,172  
 
               
Total Current Assets
    195,838       214,414  
 
               
Intangible Assets
    232,796       135,189  
Long-lived Assets, net
    4,762,989       3,361,110  
Long-Term Assets
    4,995,785       3,496,299  
Total Assets
  $ 5,191,623     $ 3,710,713  
 
               
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
               
Current Liabilities
               
Bank indebtedness
  $ 7,350     $ -  
Accounts payable
    708,940       353,728  
Government remittances payable
    23,529       35,169  
Accrued liabilities
    602,916       646,003  
Advance
    21,166       -  
Current portion of long-term debt
    3,785,210       3,727,778  
Current portion of obligations under capital lease
    235,222       81,109  
Convertible promissory notes
    1,370,683       -  
Mortgage payable
    1,306,407       -  
Loans payable to related parties
    -       201,575  
 
               
Total Current Liabilities
    8,061,423       5,045,362  
 
               
Long-Term Liabilities
               
Obligations under capital lease
    -       207,599  
 
               
Total Long-term Liabilities
    -       207,599  
Total Liabilities
    8,061,423       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
    4,439       4,031  
Additional paid-in capital
    7,274,449       5,754,260  
Subscriptions payable
    -       4,600  
Stock compensation reserve
    750,000       1,330,000  
Accumulated deficit
    (10,766,212)       (8,554,312 )
Accumulated other comprehensive loss
    (132,476)       (80,827 )
 
               
Stockholders' deficiency
    (2,869,800)       (1,542,248 )
 
               
Total Liabilities and Stockholders' Deficiency
  $ 5,191,623     $ 3,710,713  
                 

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

 
  For the three-month periods ended  
 
  September 30, 2019     September 30, 2018  
 
           
Revenue
  390,723     279,394  
 
               
Total cost of sales
    235,723       246,369  
 
               
Gross profit
    155,000       33,025  
 
               
Operating expenses
               
Management compensation-stock- based compensation
    85,000       332,500  
Management compensation-fees
    81,800       82,619  
Marketing
    5,785       -  
Professional fees
    63,357       246,245  
Interest expense
    152,952       90,939  
Office and administration
    62,906       39,182  
Rent and occupancy
    33,024       54,925  
Insurance
    17,508       14,172  
Filing fees
    2,546       1,479  
Amortization of financing costs
    88,956       -  
Directors' compensation
    (14,648)       766  
Repairs and maintenance
    4,219       1,471  
Total operating expenses
    583,405       864,298  
 
               
Net loss
    (428,405       (831,273 )
Other comprehensive loss
               
Foreign exchange gain (loss)
    25,828       (27,107 )
 
               
Comprehensive loss
  (402,577       (858,380 )
 
               
Net loss per share-basic and diluted
  (0.01       (0.02 )
 
               
Weighted average number of common shares outstanding- basic and diluted
    43,082,783       40,003,672  
 
               

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

 
  For the three-month periods ended  
 
  September 30, 2019     September 30, 2018  
Net loss (GAAP)
  (428,405)     (831,273 )
Add the following items:
               
Interest expense
    152,952       90,939  
Depreciation and amortization
    108,567       100,860  
Stock-based compensation
    85,000       332,500  
Amortization of financing costs
    88,956       -  
 
               
Adjusted EBITDA (non-GAAP)
  7,070     (306,974 )
 
               
 

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/568735/SusGlobal-Energy-Corp-Reports-Third-Quarter-2019-Financial-Results

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