Skip to main content

SusGlobal Energy Corp. Reports First Quarter 2022 Financial Results

By: Newsfile

Toronto, Ontario--(Newsfile Corp. - May 24, 2022) - SusGlobal Energy Corp. (OTCQB: SNRG) ("SusGlobal") or (the "Company"), 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, 2022 and provided an update on its operational progress.

Recent Highlights

  • On November 3, 2021, the Company announced that its wholly-owned subsidiary SusGlobal Energy Belleville Ltd. ("SusGlobal Belleville") signed an Offset Development and Marketing Agreement with Blue Source Canada ULC ("Bluesource") to develop and market greenhouse gas offset credits from the Company's 49-acre Organic & Non-Hazardous Waste Processing & Composting Facility in Belleville, Ontario, in order for the Company to monetize and realize benefits from its voluntary activities. This monetization is an exciting development for the Company's mission to reduce organic wastes from wood, leaf and yard material, treated municipal sewage waste (biosolids), residential curbside green bin material or source separated organics ("SSO") and paper sludge otherwise destined for landfills, allowing the Company to expand this mission. Bluesource has pioneered creative solutions to climate change for over 20 years. The Company expects to monetize in Q2, 2022.
  • On January 5, 2022, the Company announced that SusGlobal Belleville has received Licence # 2984, at Pt. Lot 20, Conc. 8, Geographic Township of Thurlow, City of Belleville, Hastings County, approved by The Ministry of Northern Development, Mines, Natural Resources and Forestry ("NDMNRF") to operate a pit above water under Section 18(3)1 of the Aggregate Resources Act ("ARA") for a 2.66 hectare site with a tonnage condition authorizing removal of 20,000 tonnes of aggregate annually from the site.
  • On March 14, 2022, the Company announced that its wholly owned subsidiary, SusGlobal Energy Canada Corp. ("SusGlobal Canada"), entered into a non-binding letter of intent to acquire a soil media, plant nutrients, and amendments producer approved for organic use and specifically formulated for producing high-quality fruit and flowering crops (the "Target") for an aggregate purchase price of US$15,584,000 (CA$20,000,000) (the "Acquisition"). As a condition of the Acquisition, SusGlobal Canada will make a US$3,896,000 (CA$5,000,000) working capital investment into the Target and provided a US$157,018 (CA$200,000) deposit (the "Deposit") on March 8, 2022. SusGlobal Canada has prepared definitive transaction documents including a Share Purchase Agreement (the "SPA") for all of the shares of Target. If the closing of the Acquisition does not occur by an agreed upon date in June 2022, the Deposit shall be refunded to SusGlobal Canada.
  • On March 21, 2022, the Company received Building Permit No. 21 158028 00 I3 from the City of Hamilton Building Division and on March 29th the Company announced that its wholly-owned subsidiary, SusGlobal Energy Hamilton Ltd., commenced the development of its 51,535 square foot facility on 3.26 acres located at 520 Nash Road North, in Hamilton, Ontario, which includes an Environmental Compliance Approval ("ECA") to process up to 65,884 metric tonnes per annum of organic waste into regenerative products as part of the Company's circular economy model and continued climate change initiatives. Completion of the second facility is on track and slated for Q3, 2022. This facility is expected to generate, starting in 2023, an annual revenue run rate of US$105,192,000 (CA$135,000,000), based on 12,000 Metric Tonnes of organic waste processing or 18.5% of the ECA capacity in the first 12 months of processing.

Revenue decreased by 25.01% during the first quarter of 2022 to $144,470 compared to the first quarter of 2021 in the amount of $192,660, from decreased business from the Company's organic waste processing and composting facility.

"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 this year," said Marc Hazout, Executive Chairman, President and CEO of SusGlobal Energy Corp. "Our goal is to complete the acquisition strategy and have our second facility commence 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 2022 First Quarter Financial Results

For the first quarter ended March 31, 2022, SusGlobal recorded:

  • Revenue of $144,470.
  • Cost of sales of $405,635.
  • Operating expenses of $1,305,913, comprised primarily of $376,488 of marketing expenses, $261,652 of professional fees, $191,243 of interest expense, 178,582 of total management compensation, $130,512 of stock-based compensation and $60,577 of office and administration expenses.
  • Net loss of $2,863,226, or $0.03 loss per share- basic and diluted.
  • Included in the other (loss) income for the period was a charge of $1,296,148 on the revaluation of the convertible promissory notes.
  • Adjusted EBITDA (a non-GAAP financial measure) loss of $1,095,262.
  • $9,966,872 in total assets and $17,365,862 in total current liabilities at the end of the first quarter.

About SusGlobal Energy Corp.

SusGlobal Energy Corp., the developer of SusGro™, an award winning and revolutionary pathogen free organic liquid fertilizer, is an industrial, environmental and agricultural biotechnology company focused on acquiring, developing, and monetizing a portfolio of proprietary technologies in the waste to energy and regenerative product applications globally. It is management's objective to grow SusGlobal into a significant sustainable waste to energy and regenerative products provider and a trusted brand for the fertilizer, soil and aquaculture market, as LEADERS IN THE CIRCULAR ECONOMY®. For more information, please visit the Company's website at: www.susglobalenergy.com

In accordance with SEC Regulation G, the non-GAAP measurements in this press release have been reconciled to the nearest GAAP measurement, which can be viewed under the heading "Interim Condensed Consolidated Reconciliation of Non-GAAP Information" in the financial table included in this press release.

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.
Interim Condensed Consolidated Balance Sheets
As at March 31, 2022 and December 31, 2021
(Expressed in United States Dollars)
(unaudited)



March 31,

December 31, 


2022

2021 
ASSETS





Current Assets





Cash$36,058
$36,033
Trade receivables
47,380

59,665
Government remittances receivable
82,028

13,265
Inventory
16,806

20,582
Prepaid expenses and deposits
756,936

163,343 
Total Current Assets
939,208

292,888 


 

 
Long-lived Assets, net
9,027,664

8,278,833 
Long-Term Assets
9,027,664

8,278,833 
Total Assets$9,966,872
$8,571,721 
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
 

 
Current Liabilities
 

 
Accounts payable $1,922,316
$1,085,235
Government remittances payable
285,573

262,047
Accrued liabilities
1,127,852

942,241
Current portion of long-term debt
7,876,242

7,765,421
Current portion of obligations under capital lease
89,953

91,047
Convertible promissory notes
6,063,926

3,798,516 
Total Current Liabilities
17,365,862

13,944,507 
Long-term debt
1,767,933

1,752,271
Obligations under capital lease
116,670

130,086
Deferred tax liability
75,003

73,925 
Total Long-term Liabilities
1,959,606

1,956,282 
Total Liabilities
19,325,468

15,900,789 


 

 
Stockholders' Deficiency
 

 
Preferred stock, $.0001 par value, 10,000,000 authorized, none issued and outstanding Common stock, $.0001 par value, 150,000,000 authorized, 97,208,547 (2021- 92,983,547) shares issued and outstanding
9,725

9,302
Additional paid-in capital
12,267,938

11,272,599
Shares to be issued
40,100

59,640
Accumulated deficit
(21,197,875)
(18,334,649)
Accumulated other comprehensive loss
(478,484)
(335,960)


 

 
Stockholders' deficiency
(9,358,596)
(7,329,068)


 

 
Total Liabilities and Stockholders' Deficiency$9,966,872
$8,571,721 

 

SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss
For the three-month periods ended March 31, 2022 and 2021
(Expressed in United States Dollars)
(unaudited)

For the three-month periods ended 


March 31,
2022


March 31,
2021
 
Revenue$144,470
$192,660


 

 
Cost of Sales
 

 
Opening inventory
20,582

24,740
Depreciation
116,203

136,560
Direct wages and benefits
52,088

71,059
Equipment rental, delivery, fuel and repairs and maintenance
170,188

105,893
Utilities
38,812

18,263 
Outside contractors
24,568

- 


422,441

356,515
Less: closing inventory
(16,806)
(45,923)
Total cost of sales
405,635

310,592


 

 
Gross (loss)
(261,165)
(117,932)


 

 
Operating expenses
 

 
Management compensation-stock- based
 

 
compensation
60,113

54,259
Management compensation-fees
118,469

90,049
Marketing
376,488

45,727
Professional fees
261,652

69,402
Interest expense
191,243

163,874
Office and administration
60,577

75,215
Rent and occupancy
50,925

32,339
Insurance
28,838

15,002
Filing fees
54,175

18,959
Amortization of financing costs
33,532

13,578
Directors' compensation
14,809

10,664
Stock-based compensation
130,512

8,073
Repairs and maintenance
2,329

13,189
Foreign exchange (income)
(77,749)
(12,118)
Total operating expenses
1,305,913

598,212 


 

 
Net loss from operating activities
(1,567,078)
(716,144)
Other (expense) income
(1,296,148)
323,612
Net loss
(2,863,226)
(392,532)
Other comprehensive (loss)
 

 
Foreign exchange (loss)
(142,524)
(61,192)


 

 
Comprehensive loss$(3,005,750)$(453,724)


 

 
Net loss per share-basic and diluted$(0.03)$(0.01)


 

 
Weighted average number of common shares outstanding- basic and diluted
95,990,936

86,818,361 

 

SusGlobal Energy Corp.
Interim Condensed Consolidated Reconciliation of Non-GAAP Information
For the three-month periods ended March 31, 2022 and 2021
(Expressed in United States Dollars)
(Unaudited)


 
For the three-month periods ended

  March 31, 2022
March 31,
2021
 
Net loss (GAAP) $(2,863,226)$(392,532)
Add the following items: 
 

 
Interest expense 
191,243

163,874
Depreciation and amortization 
116,529

137,751
Stock-based compensation  
130,512

8,073
Amortization of financing costs 
33,532

13,578
Loss on revaluation of convertible promissory notes 
1,296,148

81,197 
Adjusted EBITDA (non-GAAP)  $(1,095,262)$11,941 

 

Contact

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/125063

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.