Cielo Announces Fiscal Q2 2023 Financial Results and Conference Call Details

CALGARY, AB / ACCESSWIRE / December 8, 2022 / Cielo Waste Solutions Corp. (TSXV:CMC)(OTCQB:CWSFF) ( "Cielo" or the "Company" ), a waste-to-fuel company is pleased to announce its financial results for the three and six months ended October 31, 2022.

FINANCIAL RESULTS
All amounts in this news release are in Canadian dollars unless otherwise indicated.

"Cielo's fiscal Q2 2023 results reflect progress made in the design of our research and development facility (the "R&D Facility"), which is targeted for commissioning in early calendar Q2 2023," said Ryan Jackson, CEO of Cielo. "With streamlined expenses relative to the same quarter the prior year, and rental income from a five-year lease now in place on our Fort Saskatchewan property, we believe Cielo is well positioned to further advance our goal of becoming a leading waste-to-fuel company that offers investors long-term economic sustainability."

Cielo's Key Milestones

Foto: Accesswire

Q2 2023 HIGHLIGHTS

• Cielo continued to progress the development of its R&D Facility, completing a payment of $1.1 million for the R&D Facility fabrication, with commissioning expected by in early calendar Q2 2023.
• To maximize the value of Cielo's Fort Saskatchewan property, the Company entered into a five-year commercial lease on August 1, 2022, with an annual base of $0.6 million plus 90% of occupancy costs, which affords monthly rental income for the Company.
• Cielo made a partial payment of $2.0 million on a mortgage loan for the Company's Fort Saskatchewan property, effected through the issuance of approximately 26.9 million common shares, which ultimately reduced the principal balance to $4.5 million.
• Due primarily to the impairment of the Company's now decommissioned facility in Aldersyde, Alberta of $22.4 million that was recognized in fiscal Q1 2023, total assets decreasedby $21.0 millionas at October 31, 2022 compared to April 30, 2022, offset by an increase in cash and accounts receivable over the six month period.
• Total liabilities at October 31, 2022 decreased by $2.4 million compared to April30, 2022, due to a $1.2 million decrease in accounts payables stemming from streamlined general and administrative expenses. Total non-current liabilities at October 31, 2022 declined by $6.4 million, or 38% relative to the previous period-end.
• Net loss for the three months ended October 31, 2022 totaled $2.1 million, comprised primarily of (i) general and administrative expenses of $0.9 million (ii) research and development costs of $0.4 million; and (iii) finance costs of $0.58 million.
• Net working capital deficit totaled $1.8 million at October 31, 2022, with cash utilized for the quarter for operation expenses ($1.4 million) and investing activities ($1.0 million).

SELECTED FINANCIAL INFORMATION