Mr. Ryan Jackson reports

CIELO WASTE SOLUTIONS REPORTS 2023 ANNUAL FINANCIAL RESULTS

Cielo Waste Solutions Corp. has provided its 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 (three-month period) from their comparative periods due to reduced spending.
• Research and development costs decreased $3.4-million (12-month period) and decreased $200,000 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 prerevenue business.
• Financing costs increased approximately $300,000 for the quarter and $900,000 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, Alta., 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 with 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 with 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 $500,000.
• 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.

   
  
 
                           SELECTED FINANCIAL INFORMATION
                  (thousands of dollars, except per share amounts)

                                                 Three months ended       Year ended
                                                           April 30,        April 30,
                                                    2023       2022     2023    2022   

Financing costs                                     $580       $295   $2,418  $1,516  
General and administrative                           619      1,716    3,638   6,869  
Research and development                             698        899    2,104   5,467  
Share-based compensation                             194        363      464   1,399  
Net (loss) per share -- basic and diluted          (0.00)     (0.00)   (0.04)  (0.02)


  

Webinar

Cielo's chief executive officer, Ryan Jackson, chief financial officer, Jasdeep K. Dhaliwal, and executive vice-president of operations, Ryan Carruthers, will host a live webinar on Thursday, June 22, 2023, at 3 p.m. ET to discuss the filings and current matters and answer investor questions. The company invites all investors and other interested parties to register for the webinar on-line.

Date:  Thursday, June 22, 2023

Time:  3 p.m. ET

Have questions? Management will be available to answer your questions following the presentation on the webinar platform. You may submit your question(s) beforehand in the registration form or by e-mail at cielo@rbmilestone.com.

About Cielo Waste Solutions Corp.

Cielo Waste Solutions was incorporated under the Business Corporations Act (British Columbia) on Feb. 2, 2011. Cielo is a publicly traded company with its shares listed to trade on the TSX Venture Exchange under the symbol CMC, on the Frankfurt Exchange under the symbol C36, as well as on the OTC Venture Market (OTCQB), under the symbol CWSFF. The company's strategic intent is to become a leading waste-to-fuel company using economically sustainable technology while minimizing the environmental impact. Cielo has a patented process that can convert waste feedstocks, including organic material and wood derivative waste, to fuel. Having demonstrated its ability to produce diesel and naphtha from waste, Cielo's business model is to construct additional processing facilities. Cielo's objective is to generate value by converting waste to fuel, while fuelling the sustainable energy transition.

We seek Safe Harbor.