Cielo Waste Solutions Reports 2023 Annual Financial Results

CALGARY, Alberta, June 21, 2023 (GLOBE NEWSWIRE) -- Cielo Waste Solutions Corp. (TSXV: CMC; OTCQB: CWSFF) (“Cielo” or the “Company”), a waste-to-fuel company, today reports financial results for the three months and year ended April 30, 2023. All amounts in this news release are in Canadian dollars unless otherwise indicated. 

FINANCIAL HIGHLIGHTS

The Company continued to focus during and subsequent to the year ended April 30, 2023 on progressing toward the commercialization of its waste‐to‐fuel technology while strategically managing costs.

• General and administrative costs decreased $3.2 million (12‐month period) and decreased $1.1 million (3‐month period) from their comparative periods due to reduced spending.
• Research and development costs decreased $3.4 million (12-month period) and decreased $0.2 million during the quarter from the comparative period, primarily due to Cielo’s focus on design and fabrication of the R&D Facility.
• During the quarter ended April 30, 2023, Cielo had negative operating cash flow, consistent with prior periods and as expected in a pre‐revenue business.
• Financing costs increased approximately $0.3 million for the quarter and $0.9 million for the 12-month period, primarily due to the Company not capitalizing borrowing costs on qualifying assets as the construction in progress ceased at the Company’s prior facility in Aldersyde, Alberta, which was decommissioned in August 2022, offset by lessened interest expense as debt decreased from the comparative period.
• Total assets decreased by $24.2 million as of April 30, 2023, compared to April 30, 2022, mainly due to impairment of $25.6 million related to the decommissioning of the prior facility in Aldersyde, partially offset by the fabrication of the Company’s R&D facility in Aldersyde for $4.2 million and the decrease in cash related to continued research and development activities and general and administrative expenditures.
• Total liabilities decreased by $5.4 million as of April 30, 2023, compared to April 30, 2022, due to the settlement of a mortgage loan through debt for securities conversions of $6.5 million in aggregate and lower spending at the prior facility in Aldersyde due to decommissioning resulting, in a decrease in accounts payable and accrued liabilities of $0.5 million.
• The net loss for the Company for the fourth quarter of 2023 was $4.1 million, and April 30, 2022, the net loss was $2.2 million. The net loss for the Company in the year ended April 30, 2023 was $36.2 million, an increase of $21.7 million from $14.4 million for the year ended April 30, 2022. The increase in net loss is primarily due to the recognition of impairment of $25.6 million, offset by a $5.3 million decrease in general and administrative expenditures, research and development expenditures, and share based compensation.