Susglobal Energy Corp (SNRG)

[synaphai]

It's been the same story for the past 3 years: waiting for Marc to raise money. The problem is that debt has been piling up during the 3 years he's failed to raise money. That's why the share price has fallen to where it is.

More debt means more money needs to be raised just to get out of debt before he can start building facilities, and this has caused the value of the company to decrease. For the stock to really turn around he needs money to cover debt plus money to build.

[infamous]

IMO at some point this will reverse. maybe soon?

[infamous]

yep pos all selling

[stoneroad]

Lots of selling this am. Well done Marc!

[synaphai]

It still needs to be accurate to not run afoul of the SEC. Probably just had to spend so much time on the 10K that the 10Q was put entirely on the backburner until the 10K was completed and it's not like Susglobal has manpower to spare.

[stoneroad]

Seriously, why the delay with the 10Q? It’s not like it’s audited.

[Neo2020]

Popped back to .08 yesterday for a second. It’s on the rise! It’s always darkest before the dawn! Let’s goooo!

[infamous]

dang! stock is .029 now? glad i got out at .07ish. i guess all the people IN THE KNOW were out in the .20s and higher.

[stoneroad]

When is the 10Q and what kind of good news could he have? Financing?

[Neo2020]

Of course gotta take it with a grain of salt at this point in this game but he responded to my email today which I all but called out what it looks like is happening and apparently some good news will be released after the 10Q. But……

[synaphai]

It obviously depends on what somebody would pay for the land but for the most recent Hamilton lot purchased last Nov minus interest that's accrued since November: by my calculation the company probably currently has around $145k in equity. As for the Hamilton land with the building and Belleville, it makes my head hurt to try to figure it out with all the mortgaging but I doubt it's anything, plus Belleville is laden with environmental remediation costs. The Belleville compost covers and buildings are given a net book value of about $1.9 million combined.

It's obviously so frustrating to see the large RNG offtake that should be able to be used as leverage but Marc wouldn't be the first to fail in that respect. Look at Gevo stock, it was $15 bucks at one point and is now at 70 cents because their CEO has not been able to raise the capex to build the facilities to satisfy his billions in sustainable aviation fuel offtake.

It's not over for Marc but the mortgage refinanced in Dec has a $4.2 million payment due in less than two weeks on top of everything else.

[stoneroad]

Any idea how much the land (given the zoning) might be worth less the mortgages?

[synaphai]

I know that he was not factual when he claimed in a publicity video interview posted on the company's Youtube channel in early fall 2021 that waste was at that time being accepted by Belleville from Montreal. I checked with the relevant department in Montreal, who let me know that they were not sending waste to Belleville. I asked Marc about it via email and, if memory serves, he recanted that claim in a later video.

I believe that the statement made in the May 2021 investors presentation that Susglobal products were at that time being sold in 5 big box type stores in Canada was likely untrue. I checked with most of those stores at the time and could find no record of Suglobal products being sold either in the stores or online. Also, that investors presentation claims that revenue for 2021 would be $18 million. Should he have known at the time that it would be nearly impossible to even get remotely close to that target....(revenue for the year was $754k).

If anybody wants to see that presentation, it's here: https://smallpdf.com/file#s=e67d628f-bf80-4c70-b532-1c52d7a2baab

There is also the question of lawsuits the company was a party to not being mentioned in quarterly or annual filings. Beginning in August 2022, lawsuits were filed by subcontractors that worked on Hamilton likely for nonpayment of services. I can't see the filing history for these lawsuits so maybe there's some wiggle room with the status of those suits over time but nothing was mentioned about these types of suits until the 10K that was filed last week.

But as for any legal action against him, the company doesn't have any cash or much in the way of assets given all the mortgages so at this point you can't get blood out of a stone. Maybe he'll miraculously find the $20 million needed to fulfill current contractual obligations, the company has not gone under yet, but it'll take something amazing to happen against long odds. I'd still like to see him succeed but debt has piled up for way too long.

[Horsin around]

How can marc just lie to investors over the past year. He said so many things would be completed that never occurred. Can legal action take place? Or is that impossible due to the companies debt.

[synaphai]

Yeah the company is being crushed by debt and the resultant lawsuits from non-payment of debt. With Marc not fighting the power company's suit earlier this year and the 10K saying that he has been "unable to retain counsel" in the recently filed $4.5 million suit by an uncompensated noteholder...any Canadian legal professionals out there available to work pro bono?

Plus Belleville has had two different environmental problems and is now shut down so that's going to require funds to remediate but it's not like Belleville was a cash cow anyway with a $2 million gross loss last year.

Marc did get mortgages extended but the bulk of them will come due again in the next 7 months.

The bottom line is that we knew he really needs money but he really, really needs money just to cover everything that's piled up, not including actually restarting Hamilton construction or even thinking about funds for RNG facilities.

[stoneroad]

10K is VERY ugly. Let’s see if Marc has any positive news to follow.

[stoneroad]

https://app.quotemedia.com/data/downloadFiling?webmasterId=102691&ref=318324148&type=PDF&symbol=SNRG&cdn=606f7fdfe91ed9d62df4a67555da5484&companyName=Susglobal+Energy+Corp&formType=10-K&formDescription=Annual+report+pursuant+to+Section+13+or+15%28d%29&dateFiled=2024-05-15

[3p1cdud3]

Where can I find it?

[Horsin around]

Thank goodness. Anything good?

[stoneroad]

10k has been filed.

[stoneroad]

Marc had also indicated to me that they’d make the deadline. Guess we’ll see.

[Horsin around]

I think tonight is it. Pink tomorrow if nothing

[stoneroad]

Sure would be nice to get the 10K this evening so as to not have to sweat it out for the next 24 hours.

[ElementalBard15]

Sorry about that. You're right. Not sure how I got under this account. Maybe too many accounts. I've been following on yahoo finance. Earlier this was my post below....which people clarified.
I hope previous poster is right. I just want to be realistic

So yahoo finance said there was an earnings call. I looked and haven't found one. So....the fact the 10k is late and no communication isn't good.

[stoneroad]

As it is yours.

[ElementalBard15]

If love to be optimistic and this is this guy's first post.

[stoneroad]

And what makes you say that?

[CometNavigator43]

A few days left until this stock takes off like a rocket !

[Neo2020]

Today he told me it will be filed before that deadline but we shall see soon enough.

[synaphai]

I believe Marc has until end of day Thursday to file and preserve OTCQB status but it may be end of day Wednesday. It's 45 days from April 1st.

If he doesn't meet that deadline, the stock should drop to the pink sheets, which won't be the end of the world but trading pink along with being late with the 10K, which may bar him from filing an S-3 for 12 months, could make raising money more difficult, as if it hasn't been difficult enough already. If he can sell green bonds that would bypass any of these issues because that would not rely on selling shares but I have no idea about the chances of actually selling bonds.

From what I understand, if he misses the deadline this week he would still have another 135 days to file before trading would be essentially halted for the stock.

[stoneroad]

Let’s hope we get it this week.

[Horsin around]

Man I thought we would get the filing tonight. Wtf is going on.

[Horsin around]

I don't understand why he would say it's imminent if he knows it's not. What does that accomplish?

I can't wrap my head around why it's so late. What possible reason would cause a delay this long?

[stoneroad]

For a month Marc has been saying the 10k filing is imminent. He’s proven himself to be FOS.

[Horsin around]

Have you heard anything else. Seems really strange it's not posted yet

[infamous]

lets see. this is .008 by that time and then doubles to .016. yea makes sense

[stoneroad]

IMO SP could quickly double/triple as soon as 10K is filed (assuming no surprises).

[infamous]

thanx marc. you POS for all youve done for your shareholders. unreal. this is going under .01 IMO.

[stoneroad]

News will need to be substantial - funding, partnerships etc.

[synaphai]

Maybe it is an issue with the auditor. If it's still M&K CPAS, they have 3 awful reviews on Google but those are from 7-8 years ago and they did work on the 10K last year that got filed by the extension deadline. Obviously there has been a lot of mortgage juggling going on as 3 big mortgage payments came due from August to March. I do know that the Hamilton mortgage due last August was refinanced late last year.

I'm pretty sure Marc's got 45 days to file the 10K and preserve OTCQB status but I'm not sure whether that 45 days is from the original April 1 deadline or from the extended deadline of April 16th, so he's likely still got time to get it taken care of before dropping to the pink sheets.

[Horsin around]

Why wouldn't these be done or near complete by 4/1? What would cause a delay as they seem pretty routine?

Unless it's due to a potential sale of assets or even acquisition that came about close to 4/1. Maybe wishful thinking on my part.

[Neo2020]

Below is the response I got from Marc regarding being late on the reporting:

The lower part is a communication to him
About the 10k:

See below from auditors this morning.
This 10-K has been very challenging but once filed we will start releasing news and developments.
I know exactly where the share price is and believe me it is very difficult to watch.
60
Marc,
I am still working with Ike on big ticket items with numbers changing due to valuation reports from Doty Scott, information on the mortgage renewals, and discussions regarding the long-lived assets and review for potential impairment. As soon as numbers are final with no additional changes, then I can finish reviewing the draft, send over comments, and move into partner reviews. If all of that can be resolved ASAP, then I can work on this the rest of the week/through the weekend in order to

[Mww379]

So yahoo finance said there was an earnings call. I looked and haven't found one. So....the fact the 10k is late and no communication isn't good.

[stoneroad]

What call?

[Mww379]

Can someone provide a synopsis or a link to the call?

No sec updates. No funding?

What?

[Horsin around]

Man he had some flat out lies. Just straight up lying to investors.

Someone clearly just dumping shares today

[stoneroad]

We’ll, certainly looking like Marc was FOS. Sad.

[synaphai]

To try to answer your question:

In my experience the most common reasons to be this late on an annual filing where the company becomes noncompliant are shoddy work by the accounting company doing the audit, something sketchy found by the auditors that keeps them from signing off on the annual report or simply not having enough money to pay for the audit.

Susglobal used a big, reputable Canadian accounting firm until they resigned in late 2022, maybe because they had problems getting paid. That's what reading between the lines on the 8k announcing the resignation seemed to say to me.

So Marc moved to a Houston accounting firm that has some really bad Google reviews. Maybe this delay is due to the auditor not completing the job, although you'd think that would have been specified in the 10K extension filed a few weeks ago and they did complete last year's 10K.

Not having the money to pay for the audit is obviously the other possible problem. Yearly audits can cost hundreds of thousands of dollars that Marc may not have. It's unclear how much they paid last year but the yearly audit was included in the $900k they paid for accounting and tax services.

Being noncompliant with a 10K filing can cause problems, including potentially not allowing the company to file a prospectus until 12 months after they regain compliance, which could kill the chances of an uplisting if the company ever got that far. An uplisting seems a long ways away at this point but if it did get to that point, a late 10K could stymie it.

[stoneroad]

Thought you were all excited about positive news?!?!?!

[BEIJING BILL]

Prediction... Mark vill Burt the filing Friday after close. #moron