Executive Summary

Q3 2020 revenue increased 12.5% year over year to $0.4395M, with gross profit of $0.1318M; net loss was $0.4290M ($0.01 per share). The company emphasized organic waste processing as the primary driver of growth . A press release on Nov 18, 2020 reported consistent headline figures (revenue $439,507; net loss $429,046; loss/share $0.01) .
Operating expenses fell modestly year over year (-$21.5K), but interest expense and default penalties on convertible notes rose sharply, sustaining losses despite higher revenue .
Liquidity remains strained: current liabilities of $9.736M vs. total assets of $5.322M and a working capital deficit of $9.453M; management disclosed going concern risks and debt defaults (PACE facilities, capital leases, and convertible notes) .
Strategic progress included process optimization (Ydro Process integration), contract extensions, and trademark registration for “LEADERS IN THE CIRCULAR ECONOMY®,” supporting brand/IP positioning .

What Went Well and What Went Wrong

What Went Well

Revenue growth and mix: Q3 revenue rose to $0.4395M (12.5% YoY), driven by additional SSO volumes; organic waste processing contributed $0.3882M of quarterly revenue .
Expense discipline: Operating expenses decreased modestly year over year (-$21.5K), aided by lower stock-based compensation and fees .
Operational continuity in COVID-19: “The Company is fortunate that its operations have not been forced to close as we're considered an essential service,” highlighting resilience and safety measures .

What Went Wrong

Debt and default costs: Interest expense and default amounts rose significantly year over year (+$105.8K in Q3), reflecting higher costs on convertible notes and mortgage interest .
Liquidity and going concern: Working capital deficit ($9.453M) and debt defaults across notes, PACE obligations, and capital leases led management to warn of substantial doubt about continuing as a going concern .
Customer concentration risk: Three customers represented 69% of revenue year to date; receivables were concentrated among three counterparties (89%), raising counterparty risk exposure .

Financial Results

Quarterly trend (oldest → newest):

Metric	Q1 2020	Q2 2020	Q3 2020
Revenue ($USD)	$350,197	$382,639	$439,507
Gross Profit ($USD)	$56,435	$65,824	$131,842
Operating Expenses ($USD)	$811,725	$526,296	$561,879
Net Loss ($USD)	$(755,290)	$(323,171)	$(429,046)
Diluted EPS ($USD)	$(0.01)	$(0.01)	$(0.01)

Year-over-year comparison (Q3):

Metric	Q3 2019	Q3 2020
Revenue ($USD)	$390,723	$439,507
Gross Profit ($USD)	$155,000	$131,842
Operating Expenses ($USD)	$583,405	$561,879
Net Loss ($USD)	$(428,405)	$(429,046)
Diluted EPS ($USD)	$(0.01)	$(0.01)

Segment revenue breakdown (operational mix):

Segment	Q1 2020	Q2 2020	Q3 2020
Organic Waste Processing & Composting ($USD)	$299,042	$333,095	$388,152
Garbage Collection & Landfill Mgmt ($USD)	$51,155	$49,544	$51,355

Key KPIs and balance sheet:

KPI	Q3 2020
Total Assets ($USD)	$5,321,974
Total Current Liabilities ($USD)	$9,736,370
Working Capital Deficit ($USD)	$(9,452,773)
Convertible Promissory Notes ($USD)	$1,520,433
Current Portion of Long-Term Debt ($USD)	$5,594,538
Revenue Concentration (Top customers)	69% of revenue from 3 customers (40%, 15%, 14%)

Note: Gross profit margin % is calculated from cited figures (gross profit ÷ revenue).

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 2020	None provided	None provided	Maintained (no formal guidance)
Margins/OpEx	FY/Q4 2020	None provided	None provided	Maintained (no formal guidance)
Debt/Refinancing	Near-term	Repay PACE by Sep 30, 2020	New agreement to repay by Jan 29, 2021; mortgage expanded to $2.535M with Dec 1, 2021 due date	Timeline extended; financing terms updated

Earnings Call Themes & Trends

No Q3 2020 earnings call transcript was found; themes summarized from MD&A narratives.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2020)	Trend
COVID-19 operations	Essential service; remote work; potential receivables delays	Continued essential operations; safety protocols maintained	Stable operational continuity
Debt/Refinancing	PACE repayment agreement; mortgage interest expense rising	New PACE agreement to Jan 29, 2021; additional mortgage advance ($0.538M) and higher interest; defaults persist	Refinancing extended; costs up
Process/Technology	Ydro Process integration planned to improve composting efficiency	Ongoing operations with capacity to accept 70,000 MT; tipping fees range disclosed	Execution focus; efficiency
Regulatory/Compliance	Letter of credit for MECP; ECAs capacity described	MECP letter of credit renewed; environmental approvals maintained	Compliance maintained
Customer/Contracting	Contract extensions (garbage collection; organics processing)	Additional lands acquired; contract renewals and concentration persist	Expanding footprint; concentrated base

Management Commentary

“The Company is fortunate that its operations have not been forced to close as we're considered an essential service.”
“Operating expenses were reduced by $21,526… explained further below.”
“On November 12, 2020, PACE and the Company reached a new agreement to repay the remaining credit facilities and corporate term loan on or before January 29, 2021.”
“These factors cast substantial doubt as to the Company's ability to continue as a going concern…”
Trademark/IP positioning: “We are pleased to have received this trademark registration… We will continue implementing our strategy to protect our intellectual property and brand equity…” (Marc Hazout, CEO)

Q&A Highlights

No Q3 2020 earnings call or analyst Q&A was located in the filings. Summary insights are derived from the Q3 2020 10‑Q MD&A and company press releases .

Estimates Context

S&P Global consensus estimates for Q3 2020 were unavailable via our tool due to access limits; as a result, explicit comparisons versus Street consensus cannot be provided at this time [GetEstimates error].
Given revenue outperformance versus Q2 sequentially and flat EPS loss trajectory, any future consensus revisions would likely hinge on debt servicing costs and contract wins .

Key Takeaways for Investors

Revenue momentum: Q3 revenue rose to $0.4395M, up 12.5% YoY, driven by organic waste processing; sequential growth from Q1/Q2 indicates stabilizing demand .
Loss drivers: Elevated interest and default charges on convertible notes and mortgage financing remain key pressure points on profitability despite lower operating expenses .
Liquidity risk: Working capital deficit ($9.45M) and multiple debt defaults (PACE, capital leases, notes) keep going concern risk elevated; refinancing timelines extended into early 2021 .
Customer concentration: 69% of revenue tied to three customers; receivables concentrated (89%)—monitor credit risk and contract renewals closely .
Operational resilience: Essential service designation and process improvements (Ydro integration) support continued operations; ECAs permit substantial capacity, with disclosed tipping fee ranges .
Strategic/IP positioning: Trademark registration bolsters brand and messaging around circular economy leadership; may aid commercial discussions .
Near-term trading lens: Stock likely sensitive to any debt refinancing progress (PACE/mortgage), contract wins/extensions, and cost containment updates in subsequent quarters .

Sources: All figures and statements are from SusGlobal Energy Corp. Q3 2020 10‑Q and related filings, and company press releases as cited above.

SusGlobal Energy Corp. (SNRG)·Q3 2020 Earnings Summary