CHESTNUT RIDGE, N.Y.,
April 16, 2021 /PRNewswire/
-- BioHiTech Global, Inc. ("BioHiTech" or the "Company")
(NASDAQ: BHTG), a sustainable technology and services company,
today announces financial results for its fiscal year ending
December 31, 2020.
Q4 and Fiscal Year 2020 Financial Highlights
- Fourth quarter equipment sales were $1,661,655 representing a sequential growth of
460% quarter over the third quarter of 2020
- Total Revenues of $5,878,653 for
the year ended December 31, 2020,
increased $1,659,205 or 39.3% from
2019
- Revenues from Digester and Equipment Sales of $3,876,166 for the year ended December 31, 2020, increased $1,742,789 or 81.7% from 2019
- Revenue from the High Efficiency Biological Treatment (HEBioT™)
Services of $1,878,107 for the year
ended December 31, 2020, increased
$767,036 or 69.0% from 2019
Corporate Highlights Q4 2020 and Year to Date
- March 2021 - BioHiTech receives
approximately $1.8 million in new
food waste digester orders from Carnival Corporation extending into
new brands and geographies; latest purchase orders extend to
UK-based Cunard and Italy-based
Costa Group.
- January 2021 - BioHiTech receives
approximately $2 million in new food
waste digester orders for ships from Carnival Cruise Lines and
Princess Cruises.
- December 2020 - BioHiTech
receives new food waste digester orders from Holland America and
P&O Cruises and additional orders from Princess Cruises.
- December 2020 - BioHiTech
receives European patent titled "Network Connected Weight Tracking
System for a Waste Disposal Machine and Related Method".
- November 2020 - BioHiTech
appoints Anthony Fuller as Chief
Executive Officer.
- November 2020 - SeaDream Yacht
Club safely completes first voyage utilizing Altapure AP-4
Disinfectant System provided by BioHiTech as part of its COVID-19
safety protocols for cruising.
- October 2020 - BioHiTech makes
strategic investment in Rensselaer,
NY land venture as a material step towards establishing a
renewable energy campus.
"Due to the challenges experienced by our core customer base,
the essential nature of our services, and the resilience of our
people; during this past year, we overcame many of the challenges
related to the pandemic. We finished 2020 strong, growing total
revenue by 39% to approximately $5.9
million. Much of the strength in our equipment
sales commenced in the second half of 2020, with fourth quarter
sales of $1,661,655 representing a
sequential growth of 460% quarter over quarter," said Tony
Fuller, Chief Executive Officer. "The positive momentum we saw
in the back half of 2020 has continued in the new year. As such, we
expect growth of new and existing customers will continue to offset
the COVID-related downturn that we continue to experience in
certain markets.
"Management will be hosting a conference call on Tuesday, April 20, 2021, at 4:30pm ET, to review the financial results for
the fiscal year ended December
31,2020, and provide a corporate update. The call has
been scheduled at that date and time due to management's travel
schedule and availability.
"Last year saw the steady resumption of orders for our
Revolution Series digesters under our Carnival Corp purchase
agreement. As the year progressed, we saw significant
expansion that spanned into multiple brands and new geographies,
including orders coming from UK-based Cunard and Italy-based Costa Group. Given the
challenges we endured and overcame in 2020, we are encouraged by
our overall revenue growth and feel we have laid the foundation for
further and continued increases as we move forward.
"We implemented change at our HEBioT plant from the top down
including the operations team. In spite of this, we saw revenue
growth of 69% totaling over $1.8
million for the year, an accomplishment we celebrate, even
as we look towards more growth from our HEBioT business in the
coming quarters.
"Our innovation in the development of alternative uses for our
solid recovered fuel (SRF) continues to grow and is a key component
of our growth strategy. We are currently exploring additional
uses for our Solid recovered fuel ("SRF") such as fuel for
cogeneration and as a feedstock for bio-plastics. It is with this
strategy in mind that we contemplate our future next steps as we
continue to grow our renewable fuel business."
"Finally, we believe BioHiTech is poised to execute at scale
across each of our target markets and growth initiatives. We are
focused on expanding our digester sales into maritime, commercial
equipment companies, and government locations, as well as those
verticals that have long been part of our customer base, driving
strong demand and growth for BioHiTech. We look forward to
continuing our growth trajectory and to updating the markets on our
continued execution," Mr. Fuller concluded.
Financial Results for the Year Ended December 31, 2020
Total revenue increased by 39.3% ($1,659,205) for the year ended December 31, 2020 due to a $2,081,867 increase in equipment sales that were
primarily driven by digester sales to Carnival Cruise Lines and a
$767,036 increase in HEBioT revenues
offset by a $339,078 decrease in
rental, services and maintenance that was impacted by COVID-19 and
a $850,620 decrease in management
fees and other resulting from the wind-down of the executive
services provided to Gold Medal Group.
Total operating expenses before depreciation and amortization
increased by 52.1% ($5,222,615),
which were driven by $975,420 of a
third quarter impairment expense relating to the HEBioT facility
and $58,000 of a fourth quarter
goodwill impairment expense and a $646,196 settlement related to HEBioT expenses
relating to services previously provided by a non-controlling
investor, and increase in HEBioT direct costs of $1,507,175 resulting from a full year of
operations and high maintenance and repairs, an increase of
$910,242 in selling, general and
administrative, excluding the $646,196 settlement, ($289,770 from Digester and Corporate and
$620,472 from HEBioT) and an increase
in equipment sales costs of $1,111,122 related to the increase in equipment
sales that also resulted in an increase in the contribution margin
from 39% in 2019 to 46% in 2020. Depreciation and amortization
increased by $577,555 primarily due
to the HEBioT facility operating for a full year in 2020, as
compared to 9 months in 2019. The loss from operations increased by
55.0% ($4,140,965) due to a 13.3%
increase at Digester and Corporate and a 112.9% increase at the
HEBioT facility.
As of December 31, 2020 and
December 31, 2019, the Company had
unrestricted cash balances of $2,403,859 and $1,847,526, respectively.
Conference Call to be held Tuesday,
April 20, 2021 at 4:30 PM
ET
Management will host a conference call at 4:30 p.m. EDT on April 20,
2021 to review year end 2020 financial results and provide
an update on corporate developments. Following management's
formal remarks, there will be a live question-and-answer
session.
Participants are asked to pre-register for the call via the
following link:
https://dpregister.com/sreg/10155279/e72346f6d5
Please note that registered participants will receive their
dial-in number upon registration and will dial directly into the
call without delay. Those without Internet access or who are
unable to pre-register may dial in by calling 1-866-652-5200
(domestic) or 1-412-317-6060 (international). All callers
should dial in approximately 10 minutes prior to the scheduled
start time and ask to be joined into the BioHiTech Global call.
The conference call will be available through a live webcast
found here:
https://services.choruscall.com/mediaframe/webcast.html?webcastid=lmH7Vyqm
A webcast replay of the call will be available approximately one
hour after the end of the call through July
20, 2021. The webcast replay can be accessed through
the above links or by calling 1-877-344-7529 (domestic) or
1-412-317-0088 (international) and using access code 10155279. A
telephonic replay of the call will be available through
May 4, 2021.
About BioHiTech Global
BioHiTech Global, Inc. (NASDAQ:
BHTG), is a technology services company focused on providing
cost-effective solutions that improve environmental
outcomes. Our technologies for waste management include the
patented processing of municipal solid waste into a valuable
renewable fuel, biological disposal of food waste on-site, and
proprietary real-time data analytics tools to reduce food waste
generation. When used individually or in combination, our solutions
lower the carbon footprint associated with waste transportation and
can reduce or virtually eliminate landfill usage. In addition, we
distribute a patented technology that achieves high-level
disinfection of spaces such as classrooms, hotel or hospital rooms
and other enclosed areas to combat the spread of viruses and
bacteria without the use of harsh chemicals. Our unique
solutions enable businesses, educational institutions and
municipalities of all sizes to solve everyday problems in a smarter
and more cost-effective way while reducing their impact on the
environment. For more information, please
visit www.biohitech.com.
Forward Looking Statements
Statements in this document
contain certain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements,
including statements about the estimated contract value, additional
purchase orders or deliveries, and the ability of the Company's
products to improve environmental outcomes and achieve corporate
sustainability goals, are based on many assumptions and estimates
and are not guarantees of future performance. These statements may
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
BioHiTech Global, Inc. to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking statements. BioHiTech Global, Inc. assumes no
obligation to publicly update or revise these forward-looking
statements for any reason, or to update the reasons actual results
could differ materially from those anticipated in these
forward-looking statements, even if new information becomes
available in the future. Our actual results may differ materially
from the results anticipated in these forward-looking statements
due to a variety of factors, including, without limitation those
set forth as "Risk Factors" in our filings with the Securities and
Exchange Commission ("SEC"). There may be other factors not
mentioned above or included in the BioHiTech's SEC filings that may
cause actual results to differ materially from those projected in
any forward-looking statement. BioHiTech Global, Inc. assumes no
obligation to update any forward-looking statements as a result of
new information, future events or developments, except as required
by securities laws.
Company Contact:
BioHiTech Global, Inc.
Lisa Giovannielli
VP, Corporate Communications
O: 888.876.9300
E: lgiovannielli@biohitech.com
Investors:
ir@biohitech.com
Financial Tables Follow
BioHiTech
Global, Inc. and Subsidiaries Consolidated
Statements of Operations and Comprehensive Loss
|
|
|
|
Year Ended
December 31,
|
|
|
|
2020
|
|
|
2019
|
|
Revenue
|
|
|
|
|
|
|
HEBioT (related
party)
|
|
$
|
1,878,107
|
|
|
$
|
1,111,071
|
|
Rental, service and
maintenance
|
|
|
1,607,519
|
|
|
|
1,946,597
|
|
Equipment
sales
|
|
|
2,268,647
|
|
|
|
186,780
|
|
Management advisory
and other fees (related party)
|
|
|
124,380
|
|
|
|
975,000
|
|
Total
revenue
|
|
|
5,878,653
|
|
|
|
4,219,448
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
HEBioT
processing
|
|
|
3,571,314
|
|
|
|
2,064,139
|
|
Rental, service and
maintenance
|
|
|
856,751
|
|
|
|
784,291
|
|
Equipment
sales
|
|
|
1,224,185
|
|
|
|
113,063
|
|
Selling, general and
administrative
|
|
|
8,620,129
|
|
|
|
7,063,691
|
|
Impairment
|
|
|
975,420
|
|
|
|
-
|
|
Depreciation and
amortization
|
|
|
2,307,033
|
|
|
|
1,729,478
|
|
Total operating
expenses
|
|
|
17,554,832
|
|
|
|
11,754,662
|
|
Loss from
operations
|
|
|
(11,676,179)
|
|
|
|
(7,535,214)
|
|
Other (income)
expenses
|
|
|
|
|
|
|
|
|
Gain on sale of
affiliate investment
|
|
|
-
|
|
|
|
(562,617)
|
|
Interest
(income)
|
|
|
(17,848)
|
|
|
|
(69,930)
|
|
Interest
expense
|
|
|
4,083,508
|
|
|
|
3,377,394
|
|
Total other
(income) expenses
|
|
|
4,065,660
|
|
|
|
2,744,847
|
|
Net
loss
|
|
|
(15,741,839)
|
|
|
|
(10,280,061)
|
|
Net loss attributable
to non-controlling interests
|
|
|
(4,204,916)
|
|
|
|
(2,657,113)
|
|
Net loss
attributable to Parent
|
|
|
(11,536,923)
|
|
|
|
(7,622,948)
|
|
Other
comprehensive income
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(100,676)
|
|
|
|
(48,159)
|
|
Comprehensive
loss
|
|
$
|
(11,637,599)
|
|
|
$
|
(7,671,107)
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to Parent
|
|
$
|
(11,536,923)
|
|
|
$
|
(7,622,948)
|
|
Preferred stock
dividends
|
|
|
(785,322)
|
|
|
|
(721,987)
|
|
Deemed dividend on
down round feature
|
|
|
(21,738)
|
|
|
|
(405,324)
|
|
Net loss – common
shareholders
|
|
|
(12,343,983)
|
|
|
|
(8,750,259)
|
|
Net loss per common
share - basic and diluted
|
|
$
|
(0.62)
|
|
|
$
|
(0.56)
|
|
Weighted average
number of common shares outstanding - basic and diluted
|
|
|
19,935,446
|
|
|
|
15,668,679
|
|
BioHiTech
Global, Inc. and Subsidiaries Consolidated Balance
Sheets
|
|
|
|
December
31,
|
|
|
|
2020
|
|
|
2019
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
2,403,859
|
|
|
$
|
1,847,526
|
|
Restricted
cash
|
|
|
1,884,691
|
|
|
|
1,133,581
|
|
Accounts receivable,
net of allowance for doubtful accounts of $151,459 and $170,038 as
of December 31, 2020 and 2019, respectively (related entity
$206,352 and $1,370,867 as of December 31, 2020 and 2019,
respectively)
|
|
|
1,574,047
|
|
|
|
2,155,921
|
|
Inventory
|
|
|
695,110
|
|
|
|
467,784
|
|
Prepaid expenses and
other current assets
|
|
|
184,274
|
|
|
|
126,357
|
|
Total Current
Assets
|
|
|
6,741,981
|
|
|
|
5,731,169
|
|
Restricted
cash
|
|
|
2,607,945
|
|
|
|
2,555,845
|
|
Equipment on
operating leases, net
|
|
|
1,311,755
|
|
|
|
1,724,998
|
|
HEBioT facility,
equipment, fixtures and vehicles, net
|
|
|
35,946,225
|
|
|
|
37,421,333
|
|
Operating lease right
of use assets
|
|
|
1,266,047
|
|
|
|
945,047
|
|
License and
capitalized MBT facility development costs
|
|
|
8,072,471
|
|
|
|
8,049,929
|
|
Investment in
unconsolidated entity
|
|
|
711,302
|
|
|
|
-
|
|
Goodwill
|
|
|
-
|
|
|
|
58,000
|
|
Other
assets
|
|
|
28,699
|
|
|
|
53,726
|
|
Total
Assets
|
|
$
|
56,686,425
|
|
|
$
|
56,540,047
|
|
BioHiTech
Global, Inc. and Subsidiaries Consolidated Balance
Sheets, continued:
|
|
|
|
December
31,
|
|
|
|
2020
|
|
|
2019
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Line of credit, net
of financing costs of $1,025 and $20,152 as of December 31,
2020 and 2019, respectively
|
|
$
|
1,498,975
|
|
|
$
|
1,479,848
|
|
Advances from related
parties
|
|
|
935,000
|
|
|
|
210,000
|
|
Accounts payable
(related entity $294,040 and $2,531,034 as of December 31,
2020 and 2019, respectively)
|
|
|
2,492,606
|
|
|
|
4,688,339
|
|
Accrued interest
payable
|
|
|
1,279,018
|
|
|
|
1,148,570
|
|
Accrued expenses and
liabilities
|
|
|
2,515,724
|
|
|
|
1,926,965
|
|
Deferred
revenue
|
|
|
138,961
|
|
|
|
89,736
|
|
Customer
deposits
|
|
|
1,802,725
|
|
|
|
44,792
|
|
Note
payable
|
|
|
-
|
|
|
|
100,000
|
|
Senior Secured Note,
net of financing costs of $62,777 and unamortized discounts of
$442,799 as of December 31, 2020
|
|
|
4,494,424
|
|
|
|
-
|
|
Current portion of WV
EDA Senior Secured Bonds payable
|
|
|
2,860,000
|
|
|
|
1,390,000
|
|
Current portion of
long term debt and Payroll Protection Program Loan
|
|
|
332,058
|
|
|
|
4,605
|
|
Total Current
Liabilities
|
|
|
18,349,491
|
|
|
|
11,082,855
|
|
Junior note due to
related party, net of unamortized discounts of $73,051 and $95,043
as of December 31, 2020 and 2019, respectively
|
|
|
971,426
|
|
|
|
949,434
|
|
Accrued
interest (related party)
|
|
|
1,807,857
|
|
|
|
1,510,193
|
|
WV EDA Senior Secured
Bonds payable, net of current portion, and financing costs of
$1,663,641 and $1,792,574 as of December 31, 2020 and 2019,
respectively
|
|
|
28,476,359
|
|
|
|
29,817,426
|
|
Payroll Protection
Program Loan, net of current portion
|
|
|
93,622
|
|
|
|
-
|
|
Senior Secured Note,
net of current portion, net of financing costs of $113,268 and
unamortized discounts of $726,242 as of December 31,
2019
|
|
|
-
|
|
|
|
4,160,490
|
|
Note
Payable
|
|
|
100,000
|
|
|
|
-
|
|
Non-current lease
liabilities
|
|
|
1,216,861
|
|
|
|
915,170
|
|
Liabilities to
non-controlling interests to be settled in subsidiary membership
units
|
|
|
1,585,812
|
|
|
|
-
|
|
Long-term debt, net
of current portion
|
|
|
3,820
|
|
|
|
8,201
|
|
Total
Liabilities
|
|
|
52,605,248
|
|
|
|
48,443,769
|
|
Series A
redeemable convertible preferred stock, 333,401 shares designated
and issued, and 125,312 and 145,312 outstanding as of
December 31, 2020 and 2019, respectively
|
|
|
626,553
|
|
|
|
726,553
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.0001 par value; 10,000,000 shares authorized; 3,209,210 and
3,179,120 designated; 1,936,214 and 1,922,603 issued;
848,292 and 856,181 outstanding as of December 31, 2020 and
2019, respectively:
|
|
|
|
|
|
|
|
|
Series B
Convertible preferred stock, 1,111,200 shares designated; 428,333
shares issued; no shares outstanding as of December 31, 2020
and 2019
|
|
|
-
|
|
|
|
-
|
|
Series C
Convertible preferred stock, 1,000,000 shares designated; and
427,500 shares issued and outstanding as of December 31, 2020
and 2019
|
|
|
3,050,142
|
|
|
|
3,050,142
|
|
Series D
Convertible preferred stock, 20,000 shares designated: 18,850
shares issued; 17,350 and 18,850 outstanding as of
December 31, 2020 and 2019, respectively
|
|
|
1,365,696
|
|
|
|
1,505,262
|
|
Series E
Convertible preferred stock, 714,519 shares designated: 714,519
shares issued, 264,519 outstanding as of December 31, 2020 and
2019
|
|
|
698,330
|
|
|
|
698,330
|
|
Series F
Convertible preferred stock, 30,090 shares designated, and 13,611
shares issued and outstanding as of December 31, 2020
|
|
|
1,507,408
|
|
|
|
-
|
|
Common stock, $0.0001
par value, 50,000,000 shares authorized, 23,354,130 and 17,300,899
shares issued and outstanding as of December 31, 2020 and
2019, respectively
|
|
|
2,334
|
|
|
|
1,730
|
|
Additional paid in
capital
|
|
|
60,253,664
|
|
|
|
49,597,059
|
|
Accumulated
deficit
|
|
|
(64,419,802)
|
|
|
|
(52,785,242)
|
|
Accumulated other
comprehensive (loss)
|
|
|
(143,814)
|
|
|
|
(43,138)
|
|
Stockholders' equity
attributable to Parent
|
|
|
2,313,958
|
|
|
|
2,024,143
|
|
Stockholders' equity
attributable to non-controlling interests
|
|
|
1,140,666
|
|
|
|
5,345,582
|
|
Total
Stockholders' Equity
|
|
|
3,454,624
|
|
|
|
7,369,725
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
56,686,425
|
|
|
$
|
56,540,047
|
|
BioHiTech
Global, Inc. and Subsidiaries Statements of Cash
Flows
|
|
|
|
Year Ended
December 31,
|
|
|
|
2020
|
|
|
2019
|
|
Cash flows used in
operating activities:
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(15,741,839)
|
|
|
$
|
(10,280,061)
|
|
Adjustments to
reconcile net loss to net cash used in operations:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
2,307,495
|
|
|
|
1,729,478
|
|
Provision for bad
debts
|
|
|
151,459
|
|
|
|
89,897
|
|
Share based employee
compensation
|
|
|
1,481,668
|
|
|
|
1,099,567
|
|
Fees paid in stock
and warrants
|
|
|
359,137
|
|
|
|
-
|
|
Interest resulting
from amortization of financing costs and discounts
|
|
|
503,985
|
|
|
|
522,101
|
|
Gain on sale of
affiliate investment
|
|
|
-
|
|
|
|
(562,617)
|
|
Amortization of
operating lease right of use assets
|
|
|
90,623
|
|
|
|
-
|
|
Impairment
expense
|
|
|
975,420
|
|
|
|
-
|
|
Warrants
modification
|
|
|
-
|
|
|
|
49,160
|
|
Loss resulting from
abandonment of MBT site
|
|
|
-
|
|
|
|
346,654
|
|
Changes in operating
assets and liabilities
|
|
|
1,113,845
|
|
|
|
(128,779)
|
|
Net cash used in
operating activities
|
|
|
(8,758,207)
|
|
|
|
(7,134,600)
|
|
|
|
|
|
|
|
|
|
|
Cash flows used in
investing activities:
|
|
|
|
|
|
|
|
|
Construction
in-progress and purchases of equipment, fixtures and
vehicles
|
|
|
(223,583)
|
|
|
|
(5,111,209)
|
|
Refund of
deposit
|
|
|
5,000
|
|
|
|
-
|
|
Investment in
unconsolidated entity
|
|
|
(650,000)
|
|
|
|
-
|
|
Proceeds from sale of
investment in affiliate
|
|
|
-
|
|
|
|
2,250,000
|
|
MBT facility
development costs incurred
|
|
|
(148,067)
|
|
|
|
(84,176)
|
|
MBT facility
development costs refunded
|
|
|
-
|
|
|
|
66,000
|
|
Net cash used in
investing activities
|
|
|
(1,016,650)
|
|
|
|
(2,879,385)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from common
stock issuance, net of offering costs
|
|
|
8,437,480
|
|
|
|
3,035,557
|
|
Proceeds from the
sale of Series F convertible preferred stock units
|
|
|
1,560,450
|
|
|
|
-
|
|
Proceeds from the
sale of Series D convertible preferred stock units
|
|
|
-
|
|
|
|
1,772,500
|
|
Proceeds from Payroll
Protection Program loan
|
|
|
421,300
|
|
|
|
-
|
|
Payment of financing
costs
|
|
|
-
|
|
|
|
(62,151)
|
|
Repayments of
long-term debt
|
|
|
(4,605)
|
|
|
|
(9,165)
|
|
Investment in
subsidiary by non-controlling interest
|
|
|
-
|
|
|
|
1,400,000
|
|
Advance from related
party, net
|
|
|
725,000
|
|
|
|
210,000
|
|
Net cash provided
by financing activities
|
|
|
11,139,625
|
|
|
|
6,346,741
|
|
Effect of exchange
rate on cash
|
|
|
(5,225)
|
|
|
|
77,816
|
|
Net change in cash
(restricted and unrestricted)
|
|
|
1,359,543
|
|
|
|
(3,589,428)
|
|
Cash - beginning of
period (restricted and unrestricted)
|
|
|
5,536,952
|
|
|
|
9,126,380
|
|
Cash - end of
period (restricted and unrestricted)
|
|
$
|
6,896,495
|
|
|
$
|
5,536,952
|
|
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SOURCE BioHiTech Global, Inc.