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SusGlobal Energy Corp. Reports Fourth Quarter and Full Year 2020 Financial Results

April 16, 2021 GMT
TORONTO, ON / ACCESSWIRE / April 16, 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 ...
TORONTO, ON / ACCESSWIRE / April 16, 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 ...

TORONTO, ON / ACCESSWIRE / April 16, 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 fourth quarter and full-year ended December 31, 2020 and provided an update on its operational progress.

Recent Highlights

On November 24, 2020, the Company received a Certificate of Registration from the United States Patent and Trademark Office ("USPTO") for the trademark EARTH'S JOURNEY® and the trademark CARING FOR EARTH'S JOURNEY® (the "Marks"). The Marks were registered under Registration Number 6,197,171 and Registration Number 6,195,955 on November 10, 2020 on the Supplemental Register. The registrations will be in effect for an initial term of ten years, expiring on November 10, 2030, with the option of renewing the registrations for successive ten-year terms. Now that the Marks are registered, it is permitted to use indicia of registration (e.g., ®, or phrases such as "Reg. U.S. Pat. and T.M. Office").

On January 19 and January 20 of 2021, the Company signed payoff agreements for all its outstanding convertible notes totaling US$1.52 Million. Certain notes were paid from proceeds of a loan and a direct equity investment from Travellers International Inc., a company controlled by the Company's Executive Chairman, President, and CEO.

On February 1, 2021, the Company completed the Ydro Process® integration into the Company's proprietary Organic Waste Processing and Composting Facility at its wholly-owned subsidiary SusGlobal Energy Belleville Ltd. ("SusGlobal Bellville"). TradeWorks Environmental's Ydro Process®, a biotechnology used in composting applications to improve and advance the overall performance and efficiency of the system, was integrated into the existing SusGlobal Belleville operations by applying the Ydro Series® Microorganisms product during the preparation stage of the batches in the appropriate Gore® system windrows.

On February 10, 2021, the Company signed an Agreement of Purchase and Sale (the "APS") for certain assets located in Hamilton, Ontario, for $3,534,300 (C$4,500,000). A deposit of $157,080 (C$200,000) was paid by the Company on February 10, 2021. The APS is expected to close on 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 $39,113 (C$49,800), plus applicable harmonized sales taxes, expected on or before May 19, 2021.

On March 4, 2021, the Company signed a Capital Market Advisory Agreement (the "Agreement") with Exchange Listing, LLC ("Exchange Listing") to provide advisory services with respect to the Company's initiative to list its shares of Common Stock on the Nasdaq Capital Market. Exchange Listing provides companies with cost-effective and efficient direct access to one-stop solutions in the strategic planning and implementation of listing on senior exchanges such as NASDAQ or NYSE. Focusing on company-specific structuring to meet listing requirements, Exchange Listing serves as the primary point of contact with the exchange, investment bankers, and lawyers throughout the listing process. With extensive experience in investment banking, securities law, corporate governance, and business management, Exchange Listing and its strategic partners facilitate its clients' listing and capital markets objectives.

On April 8, 2021, the Company took delivery of an International Prostar Truck and a Trout River Steel Hy-Cube, 53ft with 125.5 cubic yard capacity hauling Trailer for a total purchase price of $193,775 (C$246,722). The Truck and Trailer are being used predominately for the transportation, reprocessing, and beneficial use of mid-sized compost screenings from the Region of Peel Purchase Order received November 20, 2020 and to backhaul compost to customers.

Revenue increased by 20.58% during the fourth quarter of 2020 to $432,263 compared to the fourth quarter of 2019 in the amount of $358,498, from increased business from the Company’s organic waste processing and composting facility.

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“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 2020 Fourth Quarter Financial Results

For the fourth quarter ended December 31, 2020, SusGlobal recorded:

Revenue of $432,263.

Cost of sales of $605,998.

Operating expenses of $512,934 comprised of $297,381 of interest expenses, $90,134 of professional fees, $56,571 of stock-based compensation, $54,125 of office and administration, $52,930 of management compensation, $30,665 of rent and occupancy, offset by a reduction of other expenses of $68,872, primarily foreign exchange income and director compensation.

Net loss of $504,807, or $0.01 loss per share- basic and diluted.

Adjusted EBITDA (a non-GAAP financial measure) income of $4,689.

$5,758,303 in total assets at the end of the year, with total liabilities of $10,519,253.

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 https://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.

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- Financial Tables Follow -

SusGlobal Energy Corp.

Consolidated Balance Sheets

As at December 31, 2020 and 2019

(Expressed in United States Dollars)

20202019

ASSETS

Current Assets

Cash

$6,457$7,926

Restricted cash-funds held in trust

-467,798

Trade receivables

182,871121,276

Government remittances receivable

3,74638,578

Other receivables

-20,624

Inventory

24,7405,389

Prepaid expenses and deposits

94,13146,028

Deferred assets

215,953-

Total Current Assets

527,898707,619

Intangible Assets

188.180237,271

Long-lived Assets, net

5,042,2254,762,453

Total Assets

$5,758,303$5,707,343

LIABILITIES AND STOCKHOLDERS' DEFICIENCY

Current Liabilities

Accounts payable

$1,073,454$958,313

Government remittances payable

229,35835,187

Accrued liabilities

1.206,618487,592

Advance

15,6403,255

Deferred revenue

4,7909,239

Current portion of long-term debt

6,327,5205,793,677

Current portion of obligations under capital lease

375,140218,069

Convertible promissory notes

1,092,1001,406,029

Loans payable to related party

33,772-

Total Current Liabilities

10,358,2128,911,361

Long-term debt

78,540-

Deferred tax liability

82,501-

Total Long-term Liabilities

161,041-

Total Liabilities

10,519,2538,911,361

Stockholders' Deficiency

Preferred stock, $.0001 par value, 10,000,000 authorized, none issued and outstanding

Common stock, $.0001 par value, 150,000,000 authorized, 82,860,619 (December 31, 2019- 51,784,504) shares issued and outstanding

8,2885,180

Additional paid-in capital

9,045,1877,450,091

Shares to be issued

8,580-

Stock compensation reserve

-1,000,000

Accumulated deficit

(13,468,794)(11,449,497)

Accumulated other comprehensive loss

(354,211)(209,792)

Total stockholders' deficiency

(4,760,950)(3,204,018)

Total Liabilities and Stockholders' Deficiency

$5,758,303$5,707,343

SusGlobal Energy Corp. Interim Condensed Consolidated Statements of Operations and Comprehensive Loss

For the three-month periods ended December 31, 2020 and 2019

(Expressed in United States Dollars)

(Unaudited)

For the three-month periods ended
December 31, 2020December 31, 2019

Revenue

$432,263$358,498

Cost of Sales

Opening inventory

--

Depreciation

137,104104,311

Direct wages and benefits

76,86578,557

Equipment rental, delivery, fuel and repairs, and maintenance

401,30495,071

Utilities

15,08044,746

Outside contractors

3853,703
630,738326,388

Less: closing inventory

(24,740)22,149

Total cost of sales

605,998348,537

Gross (loss) profit

(173,735)9,961

Operating expenses

Management compensation-stock- based compensation

-250,000

Management compensation-fees

52,93047,904

Marketing

-1,453

Professional fees

90,13438,252

Interest expense and default payments

297,381178,837

Office and administration

54,12578,224

Rent and occupancy

30,66522,174

Insurance

16,77621,848

Filing fees

10,9936,675

Amortization of financing costs

11,88093,584

Directors' compensation (recovery)

(19,451)(2,744)

Stock-based compensation

56,571-

Repairs and maintenance

1,110671

Foreign exchange (income)

(90,180)(43,632)

Total operating expenses

512,934693,246

Net Loss from operating activities

(686,669)(683,285)

Other income

239,405-

Net loss before deferred taxes recovery

(447,264)(683,285)

Income taxes recovery

(57,543)-

Net Loss

(504,807)(683,285)

Other comprehensive loss

Foreign exchange loss

(207,550)(77,316)

Comprehensive loss

$(712,357)$(760,601)

Net loss per share-basic and diluted

$(0.01)$(0.01)

Weighted average number of common shares outstanding- basic and diluted

79,845,46048,835,025

SusGlobal Energy Corp. Interim Condensed Consolidated Reconciliation of Non-GAAP Information

For the three-month periods ended December 31, 2020 and 2019

(Expressed in United States Dollars)

(Unaudited)

For the three-month periods ended
December 31, 2020December 31, 2019

Net loss (GAAP)

$(504,807)$(683,285)

Add the following items:

Interest expense

297,381178,837

Depreciation and amortization

143,664106,114

Stock-based compensation

56,571250,400

Amortization of financing costs

11,88093,584

Adjusted EBITDA (non-GAAP)

$4,689$(54,350)

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.

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