SusGlobal Energy Corp. Reports $2.7 Million Net Loss for Six-Month Period Ending June 30, 2025

SusGlobal Energy Corp. reported its financial results for the six-month period ending June 30, 2025, revealing a net loss of $2.7 million, a decrease from a loss of $3.9 million during the same period in 2024. The company generated revenue of $32,340, primarily from the sale of carbon credits, compared to $38,575 in the previous year. The decline in revenue is attributed to the cessation of waste acceptance at its Belleville Facility since January 10, 2024, due to compliance issues with the Ministry of Environment, Conservation and Parks (MECP). The cost of sales increased to $559,201 from $497,243, reflecting ongoing operational costs despite reduced activity.

In terms of operational efficiency, SusGlobal reported a significant reduction in operating expenses, which fell to $632,923 from $2.4 million year-over-year. This decrease was largely due to lower professional fees and the cessation of stock-based compensation, which had fully vested by the end of 2024. The company also noted a foreign exchange gain of $788,021, a reversal from a loss in the previous year, primarily due to the strengthening of the Canadian dollar against the U.S. dollar.

The company’s total assets increased to $9.1 million as of June 30, 2025, up from $8.7 million at the end of 2024. However, total liabilities also rose to $37.8 million, resulting in a working capital deficit of $37.7 million, compared to $33.4 million at the end of the previous year. The accumulated deficit reached $49.1 million, indicating ongoing financial challenges. The company continues to seek funding to address its liabilities and operational needs, with management expressing uncertainty about its ability to continue as a going concern without securing additional financing.

Strategically, SusGlobal has been focused on rehabilitating its Belleville Facility and addressing compliance issues. The company signed a service agreement for the facility's rehabilitation and is exploring options for third-party management once operational readiness is achieved. Additionally, the company has been actively marketing its Hamilton Facility for sale, which is part of its strategy to streamline operations and improve financial stability.

Looking ahead, SusGlobal acknowledges the need for significant capital investment to meet its operational and compliance obligations. The company estimates that approximately $10 million will be required to fund capital requirements and general corporate expenses over the next 12 months. The management remains committed to securing the necessary financing to support its operations and achieve profitability, although there is no assurance that such funding will be available on acceptable terms.