Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [X]      No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided to Section 7(a)(2)(B) of the Securities Act. [X]

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act).
Yes [  ]      No [X]

The number of shares of the registrant's common stock outstanding as of August 14, 2019May 15, 2020 was 43,218,94864,859,127 shares.

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SusGlobal Energy Corp.
INDEX TO FORM 10-Q
For the Three and Six-Month Periods Ended June 30, 2019 and 2018

3

3

SUSGLOBAL ENERGY CORP.
CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2019 and 2018

(Expressed in United States Dollars)

CONTENTS

4

4

SusGlobal Energy Corp.
Interim Condensed Consolidated Balance Sheets

SusGlobal Energy Corp.

Interim Condensed Consolidated Balance Sheets

As at March 31, 2020 and December 31, 2019

(Expressed in United States Dollars)

(unaudited)

As at June 30, 2019 and December 31, 2018
(Expressed in United States Dollars)
(unaudited)

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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5

SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss
For the three and six-month periods ended June 30, 2019 and 2018
(Expressed in United States Dollars)
(unaudited)

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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6

SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Changes in Stockholders' Deficiency

SusGlobal Energy Corp.

Interim Condensed Consolidated Statements of Changes in Stockholders' Deficiency

For the three-month periods ended March 31, 2020 and 2019

(Expressed in United States Dollars)

(unaudited)

For the three and six-month periods ended June 30, 2019 and year ended December 31, 2018
(Expressed in United States Dollars)
(unaudited)

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Cash Flows

SusGlobal Energy Corp.
Interim Condensed Consolidated Statements of Cash Flows
For the three-month periods ended March 31, 2020 and 2019
(Expressed in United States Dollars)
(unaudited)
			For the three-month period ended March 31, 2020			For the three-month period ended March 31, 2019
Cash flows from operating activities
Net loss		$	(755,290	)	$	(1,080,544	)
Adjustments for:
Depreciation			114,374			97,701
Amortization of intangible assets			551			50
Amortization of operating right-of-use asset			-			3,663
Non-cash professional fees on conversion of debt			1,416			-
Amortization of financing fees			92,538			11,997
Stock-based compensation			-			332,500
Shares issued for professional services			-			53,000
Changes in non-cash working capital:
Trade receivables			(66,262	)		31,239
Government remittances receivable			3,777			4,435
Other receivables			5,358			-
Inventory			912			(7,511	)
Prepaid expenses and deposits			12,179			(87,561	)
Accounts payable			78,407			37,207
Government remittances payable			38,518			(34,591	)
Accrued liabilities			218,222			(29,316	)
Deferred revenue			8,188			-
Net cash used in operating activities			(247,112	)		(667,731	)
Cash flows from investing activities
Purchase of intangible assets			(2,574	)		(10,777
Purchase of long-lived assets (i)			(50,352	)
Net cash used in investing activities			(52,926	)		(10,777	)
Cash flows from financing activities
Bank indebtedness			-			4,055
Repayments of advance			(3,147	)		-
Repayment of long-term debt			-			(21,109	)
Repayments of obligations under capital lease			(35,856	)		(16,665	)
Advances of convertible promissory notes (ii)			103,441			758,500
Repayments of operating lease liability			-			(1,107	)
Advances of mortgage payable			3,686			-
Advances of loans payable to related parties			74,430			-
Repayment of loans payable to related parties			-			(94,025	)
Net cash provided by financing activities			142,554			629,649
Effect of exchange rate on cash			86,900			6,148
Decrease in cash			(70,584	)		(42,711	)
Cash and cash equivalents-beginning of period			475,724			42,711
Cash and cash equivalents-end of period		$	405,140		$	-
Cash and cash equivalents			15,002			-
Restricted cash			390,138			-
Cash, and cash equivalents and restricted cash		$	405,140		$	-
Supplemental Cash Flow Disclosures:
Interest paid		$	51,620		$	81,394
Income taxes paid			-			-

For the three and six-month periods ended June 30, 2019 and 2018
(Expressed in United States Dollars)
(unaudited)

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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1. Nature of Business and Basis of Presentation

SusGlobal Energy Corp. ("SusGlobal") was formed by articles of amalgamation on December 3, 2014, in the Province of Ontario, Canada and its executive office is in Toronto, Ontario, Canada. SusGlobal, a company in the start-up stages and Commandcredit Corp. ("Commandcredit"), an inactive Canadian public company, amalgamated to continue business under the name of SusGlobal Energy Corp.

On May 23, 2017, SusGlobal filed an Application for Authorization to continue in another Jurisdiction with the Ministry of Government Services in Ontario and a certificate of corporate domestication and certificate of incorporation with the Secretary of State of the State of Delaware under which it changed its jurisdiction of incorporation from Ontario to the State of Delaware (the "Domestication"). In connection with the Domestication each of the currently issued and outstanding common shares were automatically converted on a one-for-one basis into common shares compliant with the laws of the state of Delaware (the "Shares"). As a result of the Domestication, pursuant to Section 388 of the General Corporation Law of the State of Delaware (the "DGCL"), SusGlobal continued its existence under the DGCL as a corporation incorporated in the State of Delaware. The business, assets and liabilities of SusGlobal and its subsidiaries on a consolidated basis, as well as its principal location and fiscal year, were the same immediately after the Domestication as they were immediately prior to the Domestication. SusGlobal filed a Registration Statement on Form S-4 to register the Shares and this registration statement was declared effective by the Securities and Exchange Commission on May, 23, 2017.

On December 11, 2018, the Company began trading on the OTCQB venture market exchange, under the ticker symbol SNRG.

SusGlobal is a renewable energy company focused on acquiring, developing and monetizing a global portfolio of proprietary technologies in the waste to energy and regenerative products application.

These interim condensed consolidated financial statements of SusGlobal and its wholly-owned subsidiaries, SusGlobal Energy Canada Corp., SusGlobal Energy Canada I Ltd. ("SGECI"), SusGlobal Energy Belleville Ltd. ("SGEBL") and 1684567 Ontario Inc. ("1684567") (together, the "Company"), have been prepared following generally accepted accounting principles in the United States ("US GAAP") for interim financial information and the Securities Exchange Commission ("SEC") instructions to Form 10-Q and Article 8 of SEC Regulation S-X, and are expressed in United States Dollars. The Company's functional currency is the Canadian Dollar ("CAD"). In the opinion of management, all adjustments necessary for a fair presentation have been included.

2. Going Concern

The interim condensed consolidated financial statements have been prepared in accordance with US GAAP, which assumes that the Company will be able to meet its obligations and continue its operations for the next twelve months.

As at June 30, 2019,March 31, 2020, the Company had a working capital deficit of $7,616,175$8,367,335 (December 31, 2018-2019-$4,830,948)8,203,742), incurred a net loss of $1,783,495 (2018-$755,290 (2019-$2,310,552)1,080,544) for the sixthree months ended June 30, 2019March 31, 2020 and had an accumulated deficit of $10,337,807$12,204,787 (December 31, 2018-2019-$8,554,312)11,449,497) and expects to incur further losses in the development of its business.

On March 31, 2020, Pace Savings & Credit Union Limited ("PACE") and the Company reached an agreement for the repayment of the outstanding amounts owing to PACE. One of the credit facilities, in the amount of $34,391 ($48,788 CAD), was repaid in full on April 3, 2020 and the remaining credit facilities and the corporate term loan are to be repaid on or before September 30, 2020. Management continues discussions with a Canadian chartered bank to re-finance its remaining obligations to PACE.

The Company has defaulted on the convertible promissory notes (see note 12). As a result, the amounts owing to PACE (see note 10) and the obligations under capital lease (see note 11), are also in default.

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2. Going Concern, (continued)

These factors cast substantial doubt as to the Company's ability to continue as a going concern, which is dependent upon its ability to obtain the necessary financing to further the development of its business, satisfy its obligations to PACE Savings & Credit Union Limited ("PACE") and its other creditors, whose debts are also in default and upon achieving profitable operations. There is no assurance of funding being available or available on acceptable terms. Realization values may be substantially different from carrying values as shown.

Beginning in March 2020 the Governments of Canada and Ontario, as well as foreign governments, instituted emergency measures as a result of the novel strain of coronavirus ("COVID-19). The virus has had a major impact on Canadian and international securities and currency markets and consumer activity which may impact the Company's financial position, its results of operations and its cash flows significantly. The situation is constantly evolving, however, so the extent to which the COVID-19 outbreak will impact businesses and the economy is highly uncertain and cannot be predicted. Accordingly, the Company cannot predict the extent to which its financial position, results of operations and cash flows will be affected in the future.

These interim condensed consolidated financial statements do not include any adjustments to reflect the future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result if the Company was unable to continue as a going concern.

3. Significant Accounting Policies

These interim condensed consolidated financial statements do not include all of the information and footnotes required by US GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements of the Company for the years ended December 31, 20182019 and 20172018 and their accompanying notes.

Recently Adopted Accounting Pronouncements:

On January 1, 2019, the Company adopted Accounting Standards Update ("ASU") No. 2016-02, Leases which is also known as Accounting Standard Codification ("ASC") Topic 842, that requires lessees to recognize for all operating leases a right-of-use asset and a lease obligation in the interim condensed consolidated balance sheets. Expenses are recognized in the interim condensed consolidated statements of operations and comprehensive loss in a manner similar to previous accounting guidance. Lessor accounting under the new standard is substantially unchanged and is not relevant to the Company. The Company adopted the accounting standard using a prospective transition approach, which applies the provisions of the new guidance at the effective date without adjusting the comparative periods presented, with certain practical expedients available to ease the burden of adoption.

The Company elected the following practical expedients upon adoption: not to reassess whether any expired or existing contracts are or contain leases, not to reassess the lease classification for any expired or existing leases, not to reassess initial direct costs for any existing leases, not to separately identify lease and non-lease components (i.e. maintenance costs) except for fleet vehicles and real estate, and not to evaluate historical land easements under the new guidance. Additionally, the Company elected the short-term lease exemption policy, applying the requirements of ASC 842 to long-term leases (leases greater than 1 year) for which it only has one.

Adoption of the new standard resulted in $217,755 ($297,074 CAD) of additional right-of-use lease asset and lease liability as of January 1, 2019. The new standard did not have a significant impact on the interim condensed consolidated statements of operations and comprehensive loss. See note 9, operating lease right-of-use asset and operating lease liability, for additional information.

4. Recent Adopted Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the financial accounting standards board (the "FASB") or other standard setting bodies and adopted by the Company as of the specified effective date or possibly early adopted, where permitted. Unless otherwise discussed, the impact of recently issued standards that are not yet effective are not expected to have a material impact on the Company's financial position, results of operations or cash flows.

InOn January 2017,1, 2020, the FASB issuedCompany adopted ASU No. 2018-13, "Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurements to ASC Topic 820, Fair Value Movement. ASU No. 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, and/or adding certain disclosures. The adoption of ASU No. 2018-13, did not have a significant impact on the Company's consolidated financial statements.

On January 1, 2020, the Company adopted ASU No. 2017-04, "Intangibles-Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment". The new standard simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill quantitative impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is to be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The standard is to be effective for interim and annual periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the impact of adopting ASU No. 2017-04.

In June 2016,2017-04, did not have a significant impact on the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326), which replaces the incurred-loss impairment methodology and requires immediate recognition of estimated credit losses expected to occur for mostCompany's consolidated financial assets, including trade receivables. Credit losses on available-for-sale debt securities with unrealized losses will be recognized as allowances for credit losses limited to the amount by which fair value is below amortized cost. ASU 2016-13 is effective for the Company beginning January 1, 2020 and early adoption is permitted. The Company does not believe the potential impact of the new guidance and related codification improvements will be material to its financial position, results of operations and cash flows.statements. 

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5. Financial Instruments

The carrying value of cash and cash equivalents, funds held in trust, trade and other receivables, accounts payable and accrued liabilities approximated their fair values as of June 30,March 31, 2020 and December 31, 2019, due to their short-term nature. The carrying value of the advance, long-term debt, obligations under capital lease, convertible promissory notes, mortgage payable and loans payable to related partiesparty approximated their fair values due to their market interest rates.

Interest, Credit and Concentration Risk

Interest rate risk is the risk borne by an interest-bearing asset or liability as a result of fluctuations in interest rates. Financial assets and financial liabilities with variable interest rates expose the Company to cash flow interest rate risk.

In the opinion of management, the Company is exposed to significant interest rate risk on its long-term debt, convertible promissory notes and mortgage payable of $3,844,309$6,830,907 ($5,031,1609,690,604 CAD) (2019-$7,199,706; $9,351,482 CAD).

Credit risk is the risk of loss associated with a counterparty's inability to perform its payment obligations. As at March 31, 2020, the Company's credit risk is primarily attributable to cash and cash equivalents and trade receivables.  As at March 31, 2020, the Company's cash and cash equivalents were held with reputable Canadian chartered banks and a credit union.

With regards to credit risk with customers, the customers' credit evaluation is reviewed by management and account monitoring procedures are used to minimize the risk of loss. The Company believes that no additional credit risk beyond amounts provided for by the allowance for doubtful accounts are inherent in accounts receivable. As at March 31, 2020, the allowance for doubtful accounts was $668 ($948 CAD) (December 31, 2018-2019-$3,727,778; $5,085,645730; $948 CAD).

As at June 30, 2019,March 31, 2020, the Company is exposed to concentration risk as it had foursix customers (December 31, 2018-five2019-six customers) representing greater than 5% of total trade receivables and these foursix customers (December 31, 2018-five2019-six customers) represented 72% (2018-90%85% (December 31, 2019-90%) of trade receivables. The Company had certain customers whose revenue individually represented 10% or more of the Company's total revenue. These customers accounted for 74% (37%86% (27%,14%, 23%12%, 12%, 11% and 14%10%) (June 30, 2018-63%(March 31, 2019-90%; 38%42%, 26%, 11% and 25%11%) of total revenue.

Liquidity Risk

Liquidity risk is the risk that the Company is unable to meet its obligations as they fall due. The Company takes steps to ensure it has sufficient working capital and available sources of financing to meet future cash requirements for capital programs and operations. Management is in discussions with a Canadian chartered bank to refinance its obligations to PACE and to another creditor. Refer also to going concern, note 2.

The Company actively monitors its liquidity to ensure that its cash flows and working capital are adequate to support its financial obligations and the Company's capital programs. In order to continue operations, the Company will need to raise capital.capital, repay PACE for all of its outstanding obligations and complete the refinancing of its real property and organic composting facility. There is no assurance of funding being available or available on acceptable terms. Realization values may be substantially different from carrying values as shown. Refer also to going concern, note 2.

Currency Risk

Although the Company's functional currency is the CAD, the Company realizes a portion of its expenses in USD. Consequently, certain assets and liabilities are exposed to foreign currency fluctuations. As at June 30, 2019, $110,307March 31, 2020, $379,228 (December 31, 2018-2019-$68,393)258,403) of the Company's net monetary liabilities were denominated in USD. The Company has not entered into any hedging transactions to reduce the exposure to currency risk.

6. Business Acquisition

Effective May 24, 2019, the Company purchased all the issued and outstanding shares of 1684567. The acquisition was accounted for as a business combination using the acquisition method of accounting. The purchase price paid in the acquisition has been preliminarily allocated to record the assets acquired and liabilities assumed based on their estimated fair value. When determining the fair values of assets acquired and liabilities assumed, management made significant estimates. The transaction closed on May 28, 2019. The purchase consideration consisted of cash from working capital of $200,402 ($269,466 CAD) and cash from a third-party mortgage obtained in the amount of $1,258,273 ($1,691,910 CAD, net of financing fees of $80,387 ($108,090 CAD)). The total purchase price includes the original offer of $1,314,304 ($1,767,250 CAD) and acquisition costs of $144,371 ($194,126 CAD).

SusGlobal Energy Corp.

Notes to the Interim Condensed Consolidated Financial Statements

June 30, 2019 and 2018

(Expressed in United States Dollars)

(unaudited) 11

6. Business Acquisition, (continued)

The allocation of the purchase price is as follows:

7. Intangible Assets

On May 6, 2015, the Company acquired an exclusive license from Syngas SDN BHD ("Syngas"), a Malaysian company to use Syngas intellectual property within North America for a period of five years for $1 consideration, renewable every five years upon written request. Syngas manufactures equipment that produces liquid transportation fuel from plastic waste material. The Company issued 20,000 common shares of the Company to an introducing party, determined to be valued at $2,000.

On September 15, 2017, the Company acquired the environmental compliance approvals on the purchase of certain assets of Astoria from BDO Canada Limited ('BDO") under an asset purchase agreement (the "APA").

On March 14, 2019, the Company incurred fees to register various trademarks in the United States and Canada.

Effective May 24, 2019, the Company acquired an additional environmental compliance approval ($76,410) and a customer list ($7,798) relating to certain municipal contracts (forty-five-month life) on the purchase of the shares of 1684567.

6. Restricted Cash-Funds Held in Trust

The funds held in trust are required to satisfy certain outstanding payments to PACE, including the repayment in full of one of the credit facilities in the amount of $34,391 ($48,788 CAD) and to bring the remaining outstanding PACE amounts current. The funds held in trust were provided to PACE on April 3, 2020. Refer also to going concern, note 2 and long-term debt, note 10.

7. Intangible Assets

In 2019 and for the three-month period ended March 31, 2020, the Company incurred fees to register various trademarks in the United States and Canada, in the amount $13,347 ($18,935 CAD).

On September 15, 2017, the Company acquired the environmental compliance approvals, having an indefinite life, on the purchase of certain assets from BDO Canada Limited ("BDO") under an asset purchase agreement (the "APA").

8. Long-lived Assets, net

Included above are the long-lived assets acquired on the business acquisition described under note 6.

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9. Operating Lease Right-of-Use Asset and Operating Lease Liability

The Company had one operating lease right-of-use asset and related operating lease liability and had recognized as such, effective January 1, 2019, based on the present value of lease payments over the lease term that expires on March 31, 2034, calculated to be $217,755 ($297,074 CAD). The Company used its estimated secured incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease right-of-use asset was being amortized on a straight-line basis over the lease term which expires March 31, 2034 and amortization expense is included under office and administration expense in the interim condensed consolidated statements of operations and comprehensive loss. The Company does not act as a lessor nor does it have any leases classified as financing leases.

The operating lease right-of-use asset was periodically reviewed for impairment losses. The Company used the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant and Equipment-Overall, to determine whether the operating lease right-of-use asset was impaired, and if so, the amount of the impairment loss to recognize.

The Company monitored for events or changes in circumstances that required a reassessment of its operating lease right-of-use asset. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding operating lease right-of-use asset.

9. Operating Lease Right-of-Use Asset and Operating Lease Liability, (continued)

Effective May 24, 2019, the Company acquired the shares of 1684567., the company that owned the land upon which the right-of-use asset was situated. As a result, the Company is both the tenant and the landlord and as such, no longer recognizes an operating right-of-use asset and related operating lease liability.Related Party Transactions

For the six-monththree-month period ended June 30, 2019, the Company recorded $6,087 ($8,117 CAD (2018-$nil; $nil CAD) for the amortization of the operating lease right-of-use asset.

For the six-month period ended June 30, 2019,March 31, 2020, the Company incurred interest of $2,429$33,494 ($3,23945,000 CAD)  (2018-(2019-$nil; $nil CAD) on the operating lease liability.

10. Related Party Transactions

During the six-month period ended June 30, 2019, the Company incurred $67,491 ($90,000 CAD) (2018-$70,443; $90,00033,849; $45,000 CAD)  in management fees expense with Travellers International Inc. ("Travellers"), an Ontario company controlled by a director and the president of the Companyand chief executive officer (the "President""CEO"); $67,491$nil ($90,000nil CAD)  (2018-(2019-$70,443; $90,00033,849; $45,000 CAD) in management fees expense with Landfill Gas Canada Ltd. ("LFGC"), an Ontario company controlled by a former director and former chief executive officer of the Company (the "CEO"); $26,996and $17,863 ($36,00024,000 CAD) (2018-(2019-$23,481; $30,00013,540; $18,000 CAD)  in management fees expense with the Company's chief financial officer (the "CFO"); and $nil ($nil CAD) (2018-$9,391; $12,000 CAD) in management fees expense with the Company's vice-president of corporate development (the "VPCD").  As at June 30, 2019,March 31, 2020, unpaid remuneration and unpaid expenses in the amount of $94,086$304,324 ($123,133431,727 CAD) (December 31, 2018-2019-$48,691; $66,426324,303; $421,227 CAD) is included in accounts payable and $210,892$11,278 ($276,00016,000 CAD) (December 31, 2018-2019-$184,714; $251,99712,318; $16,000 CAD) is included in accrued liabilities.liabilities in the interim condensed consolidated balance sheets.

In addition, during the six-monththree-month period ended June 30, 2019,March 31, 2020, the Company incurred interest expense of $4,481$441 ($5,975592 CAD) (2018-(2019-$4,818; $6,1563,802; $5,055 CAD) on the outstanding loanloans from Travellers and $3,347$nil ($4,463nil CAD) (2018-(2019-$1,544; $1,9731,669; $2,219 CAD) on the outstanding loans from the directors. As at June 30, 2019,March 31, 2020, interest of $8,384$417 ($10,973592 CAD) (December 31, 2018-2019-$17,882; $24,395nil; $nil CAD) on thesethe loans outstanding to Travellers is included in accrued liabilities.liabilities in the interim condensed consolidated balance sheets.

DuringFor the six-monththree-month period ended June 30, 2019,March 31, 2020, the Company incurred $32,296$17,523 ($43,06723,543 CAD) (2018-(2019-$32,499; $41,52116,998; $22,598 CAD) in rent expense paid under a rental agreement towith Haute Inc. ("Haute"), an Ontario company controlled by the President.CEO.

For those independent directors providing their services throughout 2019, the Company accrued directors' compensation totaling $1,200, based on the subsequent issuance of 20,000 common shares of the Company to each of the five directors that are expected to be issued subsequent to March 31, 2020. And, for services provided in the three-month period ended March 31, 2020, $240 (2019-$2,200). The Companydirectors' compensation was priced based on the trading price of the shares at the close of business on March 31, 2020 and will be recorded based on the trading price of the shares, immediately prior to issuance. Also included in directors' compensation for its five independent directors for services provided for the six-monththree-month period ended June 30, 2019, includingMarch 31, 2020, are the audit committee chairman's fees, in the amount of $12,700 (2018-$1,565)$744 ($1,000 CAD) (2019 $752; $1,000 CAD). As at June 30, 2019, $24,454March 31, 2020, outstanding directors' compensation of $797 ($1,130 CAD) (December 31, 2018-2019-$52,000) of outstanding fees to the directors3,480; $4,520 CAD) is included in accounts payable and $2,145 (December 31, 2019-$3,650) is included in accrued liabilities.liabilities, in the interim condensed consolidated balance sheets.

Furthermore, for the three-month period ended March 31, 2020, the Company grantedrecognized management compensation expense of $nil (2019-$332,500), on the CEO 3,000,000vesting of restricted stock units ("RSU"RSUs"), under a consulting agreement effective granted in prior years to the CEO and the former chief executive officer. On January 1, 2017, determined to be valued at $990,000 based on private placement pricing at10, 2020, the time. On each of February 25, 2018 and April 2, 2019, 1,000,000CEO's remaining RSUs were exchanged into 1,000,000 common stock of the Company. The RSUs for the remaining installment are expected to vest on January 1, 2020, subject to meeting certain performance objectives. On May 17, 2018, at a meeting of the board of directors (the "Board"), approved an amendment to the President's consulting agreement, to include the granting of 3,000,000 RSUs to the President, determined to be valued at $3,000,000, based on private placement pricing at the time, on the same terms and conditions as those granted to the CEO. Immediately thereafter, 1,000,000 of the President's RSUs were exchanged into1,000,000 common stock of the Company. On January 8, 2019, 1,000,000 of the President's RSUs were exchanged into 1,000,000 common stockshares of the Company. Based on private placement pricing at the time of the granting of the RSUs, the common stockshares issued to the PresidentCEO on eachthe exchange of the 1,000,000 RSUs, was determined to be valued at $1,000,000. The RSUs for the remaining installment are expected to vest on January 1, 2020, subject to meeting certain performance objectives.

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13

10. Related Party TransactionsLong-Term Debt

The presentation above is based on the due on demand terms of the long-term debt. 

On March 31, 2020, PACE and the Company reached an agreement with respect to the repayment of the outstanding balances owing to PACE. One of the credit facilities, in the amount of $34,391 ($48,788 CAD), (continued)

Forwas repaid in full on April 3, 2020, as noted below and the six-month period endedremaining credit facilities and the corporate term loan are due on or before September 30, 2020. On April 3, 2020, the Company provided PACE with funds, held in trust on March 31, 2020, to bring the remaining credit facilities and the corporate term loan current. The funds remaining, which were held in trust on March 31, 2020 are to be used to satisfy the principal and interest payments on the noted debt through July 2020. In addition, the letter of credit the Company has with PACE in favor of the Ministry of the Environment, Conservation and Parks (the "MECP"), will be renewed from the current expiry date of June 30, 2019,2020 to September 30, 2020, at the Company recognized management compensation expenseappropriate time. On April 3, 2020, the shares previously pledged as security to PACE, were released. However, the personal guarantee from the CEO and charge against the Company's premises lease remain unchanged. This long-term debt is considered to be in default as a result of $665,000 (2018-$665,000)defaults on the awardsconvertible promissory notes (see note 12). As a result, PACE may demand repayment before September 30, 2020.

Refer also to the President and the CEO, representing one-sixth of the total value of the awards of $3,990,000, based on private placement pricing at the time.going concern, note 2.

11. Long-Term DebtThe long-term debt was initially payable  as noted below.