Mon, Jun 16, 5:57 PM (28 days ago)
SusGlobal Energy Corp. (SNRG) reported a challenging quarter ending March 31, 2025, with significant financial struggles and operational hurdles. The company incurred a net loss of $1.88 million, up from $1.53 million in the same period last year, driven by a 83.5% drop in revenue to $6,345. This decline was due to the cessation of waste acceptance at the Belleville Facility following regulatory orders. Operating expenses decreased by $473,793, but this was overshadowed by increased interest expenses and other financial burdens. The company's financial health is precarious, with a working capital deficit of $35.17 million and an accumulated deficit of $48.31 million. SusGlobal faces substantial debt obligations and legal challenges, including a default judgment of $2.85 million and ongoing disputes with creditors. The company's ability to continue as a going concern is questionable, dependent on securing significant new funding and achieving profitable operations. SusGlobal's liquidity is severely strained, with a bank balance of just $953 and a need for approximately $10 million to fund operations over the next 12 months. The company's assets total $8.63 million, but its liabilities far exceed this, highlighting the urgent need for financial intervention. Despite these challenges, SusGlobal is pursuing strategic initiatives, including the rehabilitation of its Belleville Facility and exploring financing options to stabilize its operations.