GEI status report “highlights”

• The mandate and timeline of our study has been fast-tracked due to the critical financial condition of the company.

• Both projects, the co-generation and bio-digester projects, incurred substantial losses. Both capital and operational costs have been more than was envisioned.

• The biodigester became continuously operational August, 2017; this was 21 months after its commercial operation date of Nov. 25, 2015.

• Liabilities are now over $15 million. Plant and equipment costs were $12.3 million.

• The company is unable to make principal payments on the bank loan. The bank loan is guaranteed by the Town.

• The company has an operating loan, also referred to as an overdraft, of $300,000 and this is under constant pressure.

• The company has leased a number of assets. Payments are up to date; cash flow has been reduced and other suppliers are not being paid on a current basis.

• Some leased equipment has never been used.

• There is over $9.7 million borrowed from other companies in the hydro family.

• This amount will never be repaid.

• The German company that provided the design and equipment is still owed $468,000. There is doubt that this can be repaid from current operating cashflow.

• The plant runs, on average, at approximately 50 per cent capacity.

• There are outstanding MoECC orders and costs to comply are estimated at $300,000-$500,000.

• Accounting records, board minutes, personnel records and various governance documents are in various states of disarray.

• Outside directors’ fees to prior board members appear to have been paid to date.

• Disposal of agricultural sourced material (ASM) and non-agricultural sourced material (NASM) are the biggest operational issues in production.

• Workplace and safety issues are now being addressed.

• Site plan design has resulted in waterflow issues.

• A decommissioning plan has not been completed as required by the MoECC.

• Certification of the employees by the PWU will result in increased wage costs.

• In the next 3 months an infusion of cash from the Town will be needed of over $300,000 to keep the company operating.