UNITED STATES
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2
SusGlobal Energy Corp.
INDEX TO FORM 10-Q
For the Three and Nine-Month Periods Ended September 30, 2023 and 2022
3
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2023 and 2022
(Expressed in United States Dollars)
(unaudited)
CONTENTS
|
| 4 |
SusGlobal Energy Corp.
Interim Condensed Consolidated Balance Sheets
As at September 30, 2023 and December 31, 2022
(Expressed in United States Dollars)
(unaudited)
| September 30, | December 31, | |||||
| 2023 | 2022 | |||||
| ASSETS | ||||||
| Current Assets | ||||||
| Cash | $ | $ | ||||
| Funds held in trust (note 6) | ||||||
| Trade receivables | ||||||
| Government remittances receivable | ||||||
| Inventory | ||||||
| Prepaid expenses and deposits | ||||||
| Total Current Assets | ||||||
| Long-lived Assets, net (note 7) | ||||||
| Long-Term Assets | ||||||
| Total Assets | $ | $ | ||||
| LIABILITIES AND STOCKHOLDERS' DEFICIENCY | ||||||
| Current Liabilities | ||||||
| Accounts payable (note 8) | $ | $ | ||||
| Government remittances payable | ||||||
| Accrued liabilities (notes 8, 9, 10 and 13) | ||||||
| Current portion of long-term debt (note 9) | ||||||
| Current portion of obligations under capital lease (note 10) | ||||||
| Convertible promissory notes (note 11) | ||||||
| Loans payable to related parties (note 13) | ||||||
| Total Current Liabilities | ||||||
| Long-term debt (note 9) | ||||||
| Obligations under capital lease (note 10) | ||||||
| Total Long-term Liabilities | ||||||
| Total Liabilities | ||||||
| Stockholders' Deficiency | ||||||
| Preferred stock, $ |
||||||
| Additional paid-in capital | ||||||
| Shares to be issued | ||||||
| Accumulated deficit | ( |
) | ( |
) | ||
| Accumulated other comprehensive income | ||||||
| Stockholders' deficiency | ( |
) | ( |
) | ||
| Total Liabilities and Stockholders' Deficiency | $ | $ | ||||
| Going concern (note 2) | ||||||
| Commitments (note 15) | ||||||
| Subsequent events (note 19) |
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
|
| 5 |
SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss
For the three and nine-month periods ended September 30, 2023 and 2022
(Expressed in United States Dollars)
(unaudited)
| For the three-month periods ended | For the Nine-month periods ended | |||||||||||
| September 30, 2023 | September 30,2022 | September 30, 2023 | September 30, 2022 | |||||||||
| Revenue | $ | $ | $ | $ | ||||||||
| Cost of Sales | ||||||||||||
| Opening inventory | ||||||||||||
| Depreciation (note 7) | ||||||||||||
| Direct wages and benefits | ||||||||||||
| Equipment rental, delivery, fuel and repairs and maintenance | ||||||||||||
| Utilities | ( |
) | ||||||||||
| Outside contractors | ||||||||||||
| Less: closing inventory | ( |
) | ( |
) | ( |
) | ( |
) | ||||
| Total cost of sales | ||||||||||||
| Gross loss | ( |
) | ( |
) | ( |
) | ( |
) | ||||
| Operating expenses | ||||||||||||
| Management compensation-stock-based compensation (notes 8 and 14) | ||||||||||||
| Management compensation-fees (note 8) | ||||||||||||
| Marketing | ( |
) | ||||||||||
| Professional fees | ||||||||||||
| Interest expense (notes 8, 9, 10 and 13) | ||||||||||||
| Office and administration (note 7) | ||||||||||||
| Rent and occupancy (note 8) | ||||||||||||
| Insurance | ||||||||||||
| Filing fees | ||||||||||||
| Amortization of financing costs | ||||||||||||
| Directors' compensation (note 8) | ||||||||||||
| Stock-based compensation (note 14) | ||||||||||||
| Repairs and maintenance | ( |
) | ||||||||||
| Foreign exchange loss (income) | ( |
) | ||||||||||
| Total operating expenses | ||||||||||||
| Net loss from operating activities | ( |
) | ( |
) | ( |
) | ( |
) | ||||
| Other expenses (note 16) | ( |
) | ( |
) | ( |
) | ( |
) | ||||
| Net loss | ( |
) | ( |
) | ( |
) | ( |
) | ||||
| Other comprehensive loss | - | - | ||||||||||
| Foreign exchange income (loss) | ( |
) | ||||||||||
| Comprehensive loss | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) |
| Net loss per share-basic and diluted | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) |
| Weighted average number of common shares outstanding- basic and diluted | ||||||||||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
|
| 6 |
SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Changes in Stockholders' Deficiency
For the three and nine-month periods ended September 30, 2023 and 2022
(Expressed in United States Dollars)
(unaudited)
| Number of Shares |
Common Shares |
Additional Paid- in Capital |
Shares to be Issued |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss) |
Stockholders' Deficiency |
||||||||||||||||
| Balance-December 31, 2022 | $ | $ | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
| Shares issued for proceeds previously received | ( |
) | - | - | - | |||||||||||||||||
| Shares issued to officers | - | - | - | |||||||||||||||||||
| Shares issued to employee | ||||||||||||||||||||||
| Shares issued to director | ||||||||||||||||||||||
| Shares issued on conversion of debt to equity | - | - | - | |||||||||||||||||||
| Shares issued for professional services | - | - | - | |||||||||||||||||||
| Other comprehensive loss | - | - | - | - | - | ( |
) | ( |
) | |||||||||||||
| Net loss | - | - | - | - | ( |
) | - | ( |
) | |||||||||||||
| Balance-March 31, 2023 | $ | $ | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
| Shares issued on conversion of debt | - | - | - | |||||||||||||||||||
| Shares issued on conversion of related party accounts payable and debt | - | - | - | |||||||||||||||||||
| Shares issued on private placement | - | - | - | |||||||||||||||||||
| Shares issued for professional services | - | - | - | |||||||||||||||||||
| Shares yet to be issued on private placement received | - | - | - | - | ||||||||||||||||||
| Other comprehensive loss | - | - | - | - | - | ( |
) | ( |
) | |||||||||||||
| Net Loss | - | - | - | - | ( |
) | - | ( |
) | |||||||||||||
| Balance-June 30, 2023 | ( |
) | ( |
) | ||||||||||||||||||
| Shares issued for proceeds previously received | ( |
) | - | - | - | |||||||||||||||||
| Shares issued on conversion of related party debt and accounts payable | - | - | - | |||||||||||||||||||
| Shares issued on private placement | - | - | - | |||||||||||||||||||
| Shares issued for professional services | - | - | - | |||||||||||||||||||
| Shares issued for other services | - | - | - | |||||||||||||||||||
| Other comprehensive loss | - | - | - | - | - | |||||||||||||||||
| Net loss | - | - | - | - | ( |
) | - | ( |
) | |||||||||||||
| Balance-September 30, 2023 | ( |
) | ( |
) | ||||||||||||||||||
| Balance-December 31, 2021 | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||||
| Shares issued for proceeds previously received | ( |
) | - | - | - | |||||||||||||||||
| Shares issued to officers | - | - | - | |||||||||||||||||||
| Shares issued to employee | - | - | - | |||||||||||||||||||
| Shares issued for professional services | - | - | ||||||||||||||||||||
| Shares issued on conversion of debt to equity | - | - | ||||||||||||||||||||
| Shares issued on private placement | - | - | ||||||||||||||||||||
| Shares yet to be issued | - | - | - | - | - | |||||||||||||||||
| Other comprehensive income | - | - | - | - | - | ( |
) | ( |
) | |||||||||||||
| Net loss | - | - | - | - | ( |
) | - | ( |
) | |||||||||||||
| Balance-March 31, 2022 | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||||
| Shares issued on private placement | - | - | - | |||||||||||||||||||
| Shares issued on issuance of debt on extinguishment of existing debt | - | - | - | |||||||||||||||||||
| Shares yet to be issued | - | - | - | - | - | |||||||||||||||||
| Shares yet to be issued on extinguishment of existing debt | - | - | - | - | - | |||||||||||||||||
| Other comprehensive loss | - | - | - | - | - | |||||||||||||||||
| Net Loss | - | - | - | - | ( |
) | - | ( |
) |
|
| 7 |
SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Changes in Stockholders' Deficiency
For the three and nine-month periods ended September 30, 2023 and 2022
(Expressed in United States Dollars)
(unaudited)
| Number of Shares |
Common Shares |
Additional Paid- in Capital |
Shares to be Issued |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss) |
Stockholders' Deficiency |
|||||||||||||||
| Balance-June 30, 2022 | ( |
) | ( |
) | ( |
) | |||||||||||||||
| Shares issued for proceeds previously received | ( |
) | - | - | - | ||||||||||||||||
| Shares issued for professional services | - | - | - | ||||||||||||||||||
| Shares issued on conversion of debt | - | - | - | ||||||||||||||||||
| Return of shares to treasury | ( |
) | ( |
) | - | - | - | - | |||||||||||||
| Other comprehensive income | - | - | - | - | - | ||||||||||||||||
| Net Loss | - | - | - | - | ( |
) | - | ( |
) | ||||||||||||
| Balance - Sept 30, 2022 | ( |
) | ( |
) |
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
|
| 8 |
SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Cash Flows
For the nine-month periods ended September 30, 2023 and 2022
(Expressed in United States Dollars)
(unaudited)
| For the nine-month period ended September 30, 2023 |
For the nine-month period ended September 30, 2022 |
|||||
| Cash flows from operating activities | ||||||
| Net loss | $ | ( |
) | $ | ( |
) |
| Adjustments for: | ||||||
| Depreciation | ||||||
| Amortization of financing fees | ||||||
| Stock-based compensation | ||||||
| Loss on conversion of convertible promissory notes | ||||||
| Loss on revaluation of convertible promissory notes | ||||||
| Gain on extinguishment of convertible promissory notes | ( |
) | ||||
| Changes in non-cash working capital: | ||||||
| Non-cash addition to convertible promissory notes on amendment | ||||||
| Trade receivables | ( |
) | ( |
) | ||
| Government remittances receivable | ( |
) | ||||
| Other receivable | ( |
) | ||||
| Inventory | ( |
) | ||||
| Prepaid expenses and deposits | ( |
) | ( |
) | ||
| Accounts payable | ||||||
| Government remittances payable | ||||||
| Accrued liabilities | ||||||
| Net cash used in operating activities | ( |
) | ( |
) | ||
| Cash flows from investing activities | ||||||
| Purchase of long-lived assets | ( |
) | ||||
| Net cash (used in) investing activities | ( |
) | ||||
| Cash flows from financing activities | ||||||
| Advances of long-term debt | ||||||
| Repayment of long-term debt | ( |
) | ( |
) | ||
| Financing fee on long-term debt | ( |
) | ||||
| Repayments of obligations under capital lease | ( |
) | ( |
) | ||
| Advances on convertible promissory notes | ||||||
| Repayment of convertible promissory notes. | ( |
) | ||||
| Advances of loans payable to related parties | ||||||
| Repayment of loans payable to related parties | ( |
) | ( |
) | ||
| Proceeds on private placement | ||||||
| Subscription payable proceeds | ||||||
| Net cash provided by financing activities | ||||||
| Effect of exchange rate on cash | ||||||
| Increase (decrease) in cash | ( |
) | ||||
| Cash and cash equivalents-beginning of period | ||||||
| Cash and cash equivalents and restricted cash-end of period | $ | $ | ||||
| Supplemental Cash Flow Disclosure: | ||||||
| Interest paid | $ | $ | ||||
| Supplemental Non-Cash Disclosure: | ||||||
| Common stock issued at fair value for conversion of debt, plus accrued interest, and other fees | $ |