PR Newswire | Apr 16, 2021 07:31AM EDT

Update

04/16 06:30 CDT

BioHiTech Global Reports Year-End 2020 Financial Results And Provides Corporate UpdateConference Call to be held Tuesday April 20, 2021 at 4:30pm CHESTNUT RIDGE, N.Y., April 16, 2021

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(tm)) 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 GlobalBioHiTech 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 StatementsStatements 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 GiovannielliVP, Corporate CommunicationsO: 888.876.9300E: lgiovannielli@biohitech.com

Investors: ir@biohitech.com

Financial Tables Follow

BioHiTech Global, Inc. and SubsidiariesConsolidated 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 124,380 975,000party)

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 (4,204,916) (2,657,113)interests

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 19,935,446 15,668,679outstanding - basic and diluted

BioHiTech Global, Inc. and SubsidiariesConsolidated 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 fordoubtful accounts of $151,459 and $170,038 as ofDecember 31, 2020 and 2019, respectively (related 1,574,047 2,155,921entity $206,352 and $1,370,867 as of December 31,2020 and 2019, respectively)

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 35,946,225 37,421,333vehicles, net

Operating lease right of use assets 1,266,047 945,047

License and capitalized MBT facility development 8,072,471 8,049,929costs

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 SubsidiariesConsolidated 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 $ 1,498,975 $ 1,479,848and 2019, respectively

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, 2,492,606 4,688,339respectively)

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 costsof $62,777 and unamortized discounts of 4,494,424 -$442,799 as of December 31, 2020

Current portion of WV EDA Senior Secured 2,860,000 1,390,000Bonds payable

Current portion of long term debt and Payroll 332,058 4,605Protection Program Loan

Total Current Liabilities 18,349,491 11,082,855

Junior note due to related party, net ofunamortized discounts of $73,051 and $95,043 971,426 949,434as of December 31, 2020 and 2019,respectively

Accrued interest (related party) 1,807,857 1,510,193

WV EDA Senior Secured Bonds payable, net ofcurrent portion, and financing costs of 28,476,359 29,817,426$1,663,641 and $1,792,574 as of December 31,2020 and 2019, respectively

Payroll Protection Program Loan, net of 93,622 -current portion

Senior Secured Note, net of current portion,net of financing costs of $113,268 and - 4,160,490unamortized discounts of $726,242 as ofDecember 31, 2019

Note Payable 100,000 -

Non-current lease liabilities 1,216,861 915,170

Liabilities to non-controlling interests to 1,585,812 -be settled in subsidiary membership units

Long-term debt, net of current portion 3,820 8,201

Total Liabilities 52,605,248 48,443,769

Series A redeemable convertible preferredstock, 333,401 shares designated and issued, 626,553 726,553and 125,312 and 145,312 outstanding as ofDecember 31, 2020 and 2019, respectively

Commitments and Contingencies

Stockholders' Equity

Preferred stock, $0.0001 par value;10,000,000 shares authorized; 3,209,210 and3,179,120 designated; 1,936,214 and1,922,603 issued; 848,292 and 856,181outstanding 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 ofDecember 31, 2020 and 2019

Series C Convertible preferred stock,1,000,000 shares designated; and 427,500 3,050,142 3,050,142shares issued and outstanding as ofDecember 31, 2020 and 2019

Series D Convertible preferred stock, 20,000shares designated: 18,850 shares issued; 1,365,696 1,505,26217,350 and 18,850 outstanding as ofDecember 31, 2020 and 2019, respectively

Series E Convertible preferred stock, 714,519shares designated: 714,519 shares issued, 698,330 698,330264,519 outstanding as of December 31, 2020and 2019

Series F Convertible preferred stock, 30,090shares designated, and 13,611 shares issued 1,507,408 -and outstanding as of December 31, 2020

Common stock, $0.0001 par value, 50,000,000shares authorized, 23,354,130 and 17,300,899 2,334 1,730shares issued and outstanding as ofDecember 31, 2020 and 2019, respectively

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 1,140,666 5,345,582non-controlling interests

Total Stockholders' Equity 3,454,624 7,369,725

Total Liabilities and Stockholders' Equity $ 56,686,425 $ 56,540,047

BioHiTech Global, Inc. and SubsidiariesStatements 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 cashused 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 503,985 522,101financing costs and discounts

Gain on sale of affiliate investment - (562,617)

Amortization of operating lease right of use 90,623 -assets

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 (223,583) (5,111,209)equipment, fixtures and vehicles

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 8,437,480 3,035,557offering costs

Proceeds from the sale of Series F convertible 1,560,450 -preferred stock units

Proceeds from the sale of Series D convertible - 1,772,500preferred stock units

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 - 1,400,000interest

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 1,359,543 (3,589,428)unrestricted)

Cash - beginning of period (restricted and 5,536,952 9,126,380unrestricted)

Cash - end of period (restricted and $ 6,896,495 $ 5,536,952unrestricted)

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SOURCE BioHiTech Global, Inc.