Cielo Reports First Quarter Financial Results

CALGARY, AB / ACCESSWIRE / September 30, 2022 / Cielo Waste Solutions Corp. (TSXV:CMC)(OTCQB:CWSFF) ( "Cielo" or the "Company" ), a waste-to-fuel environmental technology company, today reports financial results for the three months ended July 31, 2022. All amounts in this news release are in Canadian dollars unless otherwise indicated.

FINANCIAL HIGHLHIGHTS

• Total assets decreased by $19.7 million as of July 31, 2022 compared to April 30, 2022, primarily due to the decrease in property, plant and equipment offset by an increase in cash, and prepaid expenses. During the current quarter, Cielo recognized an impairment loss on property, plant and equipment at its facility in Aldersyde, Alberta (the "Aldersyde Facility") of $25.4 million due to the decommissioning of current operations. On July 8, 2022, Cielo completed a public offering of units, issuing 139.6 million units at a price of $0.07 per Unit, for gross proceeds of approximately $9.8 million. The increase in cash resulted from proceeds of the offering net of share issuance costs. A portion of the proceeds was advanced to the engineering, procurement, and construction contractor to fund the fabrication of Cielo's research and development facility (the "R&D Facility") resulting in the increase in prepaid expenses.
• Total liabilities decreased by $1.0 million as of July 31, 2022 compared to April 30, 2022 due to the decrease in accounts payables of $1.4 million offset by an increase of $0.4 million in long-term loans. The decrease in accounts payable was a result of a general decrease in activity associated with construction and research and development at the Aldersyde Facility as Cielo focused on development of the R&D Facility.
• Total non-current liabilities decreased by $2.3 million as of July 31, 2022 compared to April 30,2022 due to the reduction of accounts payables resulting from decreased activity related to the Aldersyde Facility; and the reclass of royalty payable current to non-current as Cielo obtained the requisite approval of holders of the royalties to extend the repayment to January 2024.
• The net loss for Cielo for the three months ended July 31, 2022 was $27.6 million, an increase of $24.6 million from $3.0 million for the three months ended July 31, 2021. The increase in net loss is primarily due to recognition of an impairment loss on the property, plant and equipment at Aldersyde of $25.4 million, offset by a decrease in general and administrative expenditures of $0.6 million as Cielo incurred costs relating to the TSXV listing in the prior year quarter; a decrease in research and development expenditures of $1.1 million as Cielo reduced activity at Aldersyde and ultimately suspended Aldersyde operations.
• Working capital $9.0 million at July 31, 2022 compared to $1.2 million at April 30, 2022 primarily due to the increase in cash from proceeds of the public offering of units completed on July 8, 2022.

SELECTED FINANCIAL INFORMATION