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OFFON

BIOHITECH GLOBAL, INC.

(BHTG)
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BIOHITECH GLOBAL, INC. : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (form 10-K)

04/16/2021 | 06:08am EDT
The following discussion should be read in conjunction with the information
contained in the consolidated financial statements of the Company and the notes
thereto appearing elsewhere herein and in conjunction with the Management's
Discussion and Analysis of Financial Condition and Results of Operations set
forth in the Company's Annual Report on Form 10-K for the year ended December
31, 2020. Readers should carefully review the risk factors disclosed in this
Form 10-K and other documents filed by the Company with the SEC.



As used in this report, the terms "Company", "we", "our", and "us" refer to BioHiTech Global, Inc., a Delaware corporation.



             PRELIMINARY NOTE REGARDING FORWARD-LOOKING STATEMENTS



This Annual Report contains forward-looking statements within the meaning of the
federal securities laws. These forward-looking statements can be identified by
the use of words such as "believes," "estimates," "intends", "plans", "could,"
"possibly," "probably," anticipates," "projects," "expects," "may," "will," or
"should," "designed to," "designed for," or other variations or similar words or
language. The forward-looking statements are based on the current expectations
of the Company and are subject to certain risks, uncertainties and assumptions,
including those set forth in the discussion under "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in this report.
Actual results may differ materially from results anticipated in these
forward-looking statements. We base the forward-looking statements on
information currently available to us, and we assume no obligation to update
them.



                                       20





                                Company Overview



The Company's mission is to reduce the environmental impact of the waste
management industry through the development and deployment of cost-effective
technology solutions. The Company's suite of technologies includes on-site
biological processing equipment for food waste, patented processing facilities
for the conversion of municipal solid waste into an E.P.A. recognized renewable
fuel, and proprietary real-time data analytics tools to reduce food waste
generation. These proprietary solutions may enable certain businesses and
municipalities of all sizes to lower disposal costs while having a positive
impact on the environment. When used individually or in combination, we believe
that the Company's solutions can reduce the carbon footprint associated with
waste transportation, repurpose non-recyclable plastics, and significantly
reduce landfill usage.



Revolution Series™ Digesters

The Company currently markets an aerobic digestion technology solution for the
disposal of food waste at the point of generation. Its line of Revolution Series
Digesters have been described as self-contained, robotic digestive systems that
we believe are as easy to install as a standard dishwasher with no special
electrical or plumbing requirements. Units range in size depending upon
capacity, with the smallest unit approximately the size of a residential washing
machine. The digesters utilize a biological process to convert food waste into a
liquid that is safe to discharge down an ordinary drain. This process can result
in a substantial reduction in costs for customers including restaurants, grocery
stores, cruise lines and hotel/hospitality companies by eliminating the
transportation and logistics costs associated with food waste disposal. The
process also reduces the greenhouse gases associated with food-waste
transportation and decomposition in landfills that have been linked to climate
change. The Company offers its Revolution Series Digesters in several sizes
targeting small to mid-sized food waste generators with both sale and rental
options that are often more economical than traditional disposal methods. The
Revolution Series Digesters are manufactured and assembled in the United States.



In an effort to expand the capabilities of its digesters, the Company developed
a sophisticated Internet of Things ("IoT") technology platform to provide its
customers with transparency into their waste generation and operational
practices. This patented process collects weight related data from the digesters
to deliver real-time data that provides valuable information that when analyzed,
can improve efficiency and validate corporate sustainability efforts. The
Company provides its IoT platform through a SaaS ("Software as a Service") model
that is either bundled in its rental agreements or sold through a separate
annual software license. Prior to the launch of its Revolution Series Digesters,
the Company marketed earlier generations of its digesters under the Eco-Safe
brand. These units were larger sized and typically marketed to mid- and
large-sized food waste generators, including the Federal Government. The Company
continues to add new capacity sizes to its line of Revolution Series Digesters
to meet customer needs.


HEBioT Resource Recovery Technology




The Company expanded its technology business in 2016 through the acquisition of
certain development rights to a patented Mechanical Biological Treatment ("MBT")
technology developed by a European engineering firm that relies upon High
Efficiency Biological Treatment ("HEBioT") to process waste at the municipal or
enterprise level. The technology results in a substantial reduction in landfill
usage by converting a significant portion of intake, including organic waste and
non-recyclable plastics, into a United States EPA recognized alternative fuel
that can be used as a partial replacement for coal. The Company is currently
exploring additional uses for its Solid recovered fuel ("SRF") such as fuel for
cogeneration and as a feedstock for bio-plastics.



The Company also, through a series of transactions in 2017 and 2018, acquired a
controlling interest in the Nation's first municipal waste processing facility
utilizing the HEBioT technology located in Martinsburg, West Virginia (the
"Martinsburg Facility"). The Martinsburg Facility, which commenced operations in
2019, is capable of processing up to 110,000 tons of mixed municipal waste
annually. At full capacity, the Martinsburg Facility can achieve an estimated
annual savings of over 2.3 million cubic feet of landfill space and eliminate
many of the greenhouse gases associated with landfilling that waste. The Company
plans to build additional HEBioT facilities in the coming years.



Combined Offering


The Company's suite of products and services positions it as a provider of
cost-effective, technology-based alternatives to traditional waste disposal in
the United States. The use of the Company's technology solutions independently
or in combination, can help its customers meet sustainability goals by achieving
a significant reduction in greenhouse gases associated with waste transportation
and landfilling. In addition, the repurposing of municipal waste into a cleaner
burning, EPA recognized, renewable fuel can further reduce potentially harmful
emissions associated with traditional means of disposal. The overall reduction
in carbon and other greenhouse gases that are linked to climate change that
could be achieved through the utilization of the Company's technology can serve
as a model for the future of waste disposal in the United States.



                                       21





New Product Offering


In addition to the Company's products focused on reducing the environmental
impact of the waste management industry through the development and deployment
of cost-effective technology solutions, as a result of symmetry with our
customers and prospects and a new demand for post COVID environmental
technologies, on May 12, 2020, the Company entered into a distribution agreement
with Altapure, LLC, a technology developer and manufacturer of ultrasonic based
disinfecting products, to distribute its patented line of
environmentally-friendly, automated and touchless high-level disinfection
sub-micron aerosol system that we believe provides a safe process and rapid kill
of spores, viruses, and vegetative bacteria. The Company commenced live product
demonstrations in June 2020 and recognized its first sale in October 2020.



           Results of operations for the year ended December 31, 2020

                  compared to the year ended December 31, 2019



                                                                                           Year ended December 31,
                                        Digester and Corporate                                     HEBioT                                              Total
                                2020             2019            Change            2020             2019            Change            2020              2019             Change
Revenue
HEBioT                                 -                -                -     $  1,878,107     $  1,111,071     $    767,036     $   1,878,107     $   1,111,071     $    767,036
Rental, services and
maintenance                 $  1,607,519     $  1,946,597     $   (339,078 )              -                -                -         1,607,519         1,946,597         (339,078 )
Equipment sales                2,268,647          186,780        2,081,867                -                -                -         2,268,647           186,780        2,081,867
Management and advisory
fees and other                   124,380          975,000         (850,620 )              -                -                -           124,380           975,000         (850,620 )
Total Revenue                  4,000,546        3,108,377          892,169        1,878,107        1,111,071          767,036         5,878,653         4,219,448        1,659,205
Operating Expenses
HEBioT                                 -                -                -        3,571,314        2,064,139        1,507,175         3,571,314         2,064,139        1,507,175
Rental, services and
maintenance                      856,751          784,291           72,460                -                -                -           856,751           784,291           72,460
Equipment sales                1,224,185          113,063        1,111,122                -                -                -         1,224,185           113,063        1,111,122
Selling, general and
administrative                 6,387,587        6,097,817          289,770        2,232,542          965,874        1,266,668         8,620,129         7,063,691        1,556,438
Impairment                             -                -                -          975,420                -          975,420           975,420                 -          975,420
Depreciation and
amortization                     496,645          495,709              936 

1,810,388 1,233,769 576,619 2,307,033 1,729,478 577,555 Total operating expenses 8,965,168 7,490,880 1,474,288

        8,589,664        4,263,782        4,325,882        17,554,832        11,754,662        5,800,170
Loss from operations          (4,964,622 )     (4,382,503 )       (582,119 )     (6,711,557 )     (3,152,711 )     (3,558,846 )     (11,676,179 )      (7,535,214 )     (4,140,965 )
Other expenses, net            1,439,865          688,621          751,244 

2,625,795 2,056,226 569,569 4,065,660 2,744,847 1,320,813 Net loss

                    $ (6,404,487 )   $ (5,071,124 )   $ (1,333,363 

) $ (9,337,352 ) $ (5,208,937 ) $ (4,128,415 ) $ (15,741,839 ) $ (10,280,061 ) $ (5,461,778 )




                             Digester and Corporate


2020 was a challenging year that was impacted by COVID-19. As the Company's
digester business has had significant revenues from restaurants, hospitality and
other commercial food waste generators that were impacted by governmental
restrictions that are now beginning to be lifted, our historical business was a
challenge. Early in 2020, the Company announced a digester sales contract with
Carnival Cruise Lines that was originally anticipated to commence in the second
quarter of 2020, but due to the shutdown of the cruise industry, sales only
commenced at the end of the third quarter of 2020 and have expanded forward from
there. Total equipment sales in the third quarter of 2020 amounted to $293,876,
while the sales in the fourth quarter of 2020 increased to $1,651,655, 5.6 times
the third quarter amount and greater than each year's annual equipment sales
since the Company went public in 2015. Overall, the contribution from digester
sales, rental, service and maintenance amounted to $1,795,230 for the year ended
December 31, 2020, a $559,207 (45.2%) increase from 2019. This increase in
contribution was offset by the $850,620 decrease in management fees as Gold
Medal and the Company wound down the agreement.



Selling, general and administrative expenses increased to $6,387,587, a $289,770
(4.8%) increase for the year ended December 31, 2020 as compared to 2019. The
composition of the selling, general and administrative expenses are as follows
for the years ending December 31:



                                               2020            2019           Change
Staffing                                    $ 2,610,090     $ 3,005,045     $ (394,955 )
Stock based Compensation                      1,475,961       1,083,789        392,172
Professional fees                             1,104,062         751,523        352,539
Other expenses                                  459,653         392,298         67,355
Other costs                                     737,821         865,162    

(127,341 ) Total selling, general and administrative $ 6,387,587 $ 6,097,817 $ 289,770





Staffing expenses decreased to $4,086,052 for the year ended December 31, 2020
and was comprised of $1,475,961 in stock based compensation for the year ended
December 31, 2020, as compared to $1,083,789 for the year ended December 31,
2019. The non-stock based compensation, which also included severance of
$225,631 related to re-aligning the corporate staff, decreased for the year
ended December 31, 2020 by $394,955 from 2019.



                                       22





Professional fees are comprised of the following for the years ending December
31:



                                  2020           2019         Change
Accounting                     $   387,359     $ 431,636     $ (44,277 )
Investor relations & banking       334,225       163,506       170,719
Legal                              245,661       173,866        71,795
Marketing                          136,817       (17,485 )     154,302
Total Professional fees        $ 1,104,062     $ 751,523     $ 352,539




Accounting fees decreased during the year ended December 31, 2020 by $44,277
(10.3%) as compared to the year ended December 31, 2019 as the result of a
reduction in special tax services and reduced complex transactions. Investor
relations and banking increased by $170,719 (104.4%) as compared to the year
ended December 31, 2019 due to costs associated with the Altapure
distributorship transaction and other investment banking activities. Legal fees
increased by $71,795 (41.3%) during the year ended December 31, 2020 due to
capital raising, acquisition, HEBioT siting and personnel related activities.
Marketing fees increased during the year ended December 31, 2020 by $154,302 as
compared to the year ended December 31, 2019 due to an increase in digital
optimization of various social media platforms, as well as due to 2019 including
a $44,500 reduction in marketing professional fees due to a favorable resolution
to a litigation matter that had been expensed to marketing professional fees
prior to 2019.



The loss from operations increased to $4,964,622, a $582,119 (13.3%) increase
primarily to the $850,620 decrease in management fee revenue offset by the
$559,207 increase in contribution from the digester business, decreased by the
$289,770 increase in selling general and administrative expenses.



                                HEBioT Facility



The HEBioT business was also impacted by COVID-19, but in ways different from
the digester business. On the intake side of the business, the creation,
transportation and disposal of municipal solid waste continued, although the
primary offtake SRF customer was negatively impacted by the demand for its
product - cement. This resulted in that customer reducing production and closing
the facility off and on during the year. This in-turn resulted in the HEBioT
plant not being able to receive incoming municipal waste as there was not
adequate secondary sources to deliver the SRF to. In addition to the customer
driven pressures the facility was recovering early in the year from a fire that
had halted full production for an extended period and as a result of turning the
plant over to production prior to its commissioning being completed 100%, there
were mechanical and technological failures that also contributed to unplanned
down time. The unplanned down times and closures resulted in an interruption of
the normal supply chain deliveries of municipal solid waste. In the second half
of 2020, the Company replaced its contracted management team with another team,
who spend much of the second half of 2020 re-commissioning the plant, developing
improved maintenance protocols and improved fire watch procedures to minimize
the potential for recurring maintenance and fire related interruptions. While
the plant was generally operational, sometimes at low levels, for much of 2020,
the growth in revenues of $767,036 (69.0%) to $1,878,107, which is well below
its operational capacity and as much of the facility is a relatively fixed cost
base, combined with: added maintenance and repair costs relating to the
re-commissioning and fire recovery, an impairment charge of $917,420 resulting
from claims relating to the facility, a goodwill impairment charge of $58,000,
and a $1,266,668 increase in selling, general and administrative expenses
resulting from increased activities, an increase in insurance costs and a state
imposed waste generation tax, and a one-time settlement amounting to $646,196
with one of its non-controlling investors relating to previous claimed charges
and services, the plant sustained an operational loss of $6,711,557, an increase
of over 100%. Net loss was further increased due to a $569,569 increase in other
expenses, net, primarily driven by an increase in interest expense related to
having a full year of interest in 2020, while only nine months in 2019 as the
plant was not commissioned until March 31, 2019 and interest prior to
commissioning was capitalized.



                                  Consolidated



Total revenue increased by 39.3% ($1,659,205) for the year ended December 31,
2020 due to a $2,081,867 increase in equipment sales that were primarily driven
by digester sales to Carnival Cruise Lines and a $767,036 increase in HEBioT
revenues offset by a $339,078 decrease in rental, services and maintenance that
was impacted by COVID-19 and a $850,620 decrease in management fees and other
resulting from the wind-down of the executive services provided to Gold Medal
Group.


Total operating expenses before depreciation and amortization increased by 52.1%
($5,222,615), which were driven by $975,420 impairment expenses relating to the
HEBioT facility and its goodwill and a $646,196 settlement related to HEBioT
expenses relating to services previously provided by a non-controlling investor,
and increase in HEBioT direct costs of $1,507,175 resulting from a full year of
operations and high maintenance and repairs, an increase of $910,242 in selling,
general and administrative, excluding the $646,196 settlement, ($289,770 from
Digester and Corporate and $620,472 from HEBioT) and an increase in equipment
sales costs of $1,111,122 related to the increase in equipment sales that also
resulted in an increase in the contribution margin from 39% in 2019 to 46% in
2020. Depreciation and amortization increased by $577,555 primarily due to the
HEBioT facility operating for a full year in 2020, as compared to 9 months
in
2019.



                                       23




The loss from operations increased by 55.0% ($4,140,965) due to a 13.3% increase at Digester and Corporate and a 112.9% increase at the HEBioT facility.




Other expenses, net increased 48.1% primarily due to the 2019 amounts including
an offsetting gain of $562,617 on the sale of an affiliate and a $569,569
increase at the HEBioT plant due primarily to interest for a full year in 2020,
as compared to 9 months in 2019, as the plant was under construction through
March 31, 2019.



For the years ended December 31, 2020 and 2019 there was no net provision for
income tax due to the losses incurred and management's evaluation of the
recovery of the tax asset resulting in net operating loss carryforward. As of
December 31, 2020 and 2019, the Company had net operating loss carryforwards of
approximately $39,889,000 and $30,385,000, respectively, available to reduce
future federal taxes. The federal net operating losses of approximately
$14,266,000, generated in tax years beginning before January 1, 2018, will begin
to expire in 2036 if not utilized. The balance of the net operating losses,
approximately $25,623,000, do not expire, and is subject to an 80% taxable
income annual limitation. In addition, as of December 31, 2020 and 2019, the
Company had NOL carryforwards of approximately $28,417,000 and $20,105,000
available to reduce state taxable income that expire through 2040.



Pursuant to Section 382 of the Internal Revenue Code, or IRC, annual use of the
Company's net operating losses (NOL) carryforwards may be limited or eliminated
in the event a cumulative change in ownership of more than 50% occurs within a
three-year period. Thus these carryforwards could be subject to certain
limitations in the event that there is a change in control of the company
pursuant to IRC 382, though the Company has not performed a study to determine
if the loss carryforwards are subject to these limitations. If additional
changes in ownership occur after year end, NOL carryforwards could be eliminated
or restricted. If eliminated, the related asset would be removed from the
deferred tax asset schedule with a corresponding reduction in the valuation
reserve.



Net loss increased by 53.1% (26.3% at Digester and Corporate and 79.3% at HEBioT).



                        Liquidity and Capital Resources



The Company currently generates revenues from sales and rentals of its digesters
and related goods and services, and revenues from the HEBioT technologies. The
Company's other known sources of capital are common and common and preferred
stock offerings, proceeds from private placements, issuance of notes payable,
convertible notes payable, and investments, loans and advances from related and
unrelated parties and cash from future revenues.



We will require additional financing in order to execute our business expansion
and development plans and we may require additional financing in order to
sustain substantial future business operations for an extended period of time.
Subsequent to December 31, 2020, the Company entered into an At Market Issuance
Sales Agreement with B. Riley Securities, Inc., which provides for up to
$25,000,000 in sales of the Company's common stock subject to limitations under
the S-3 Registration Statement to which the shares may be sold and the related
prospectus supplement, which may be amended, that limits the amount raised to
$11,150,000, of which the Company has raised $7,211,729 in gross proceeds from
the sales of 3,416,663 shares of common stock through March 22, 2021. While the
Company has a history of obtaining adequate capital and maintaining liquidity,
it is actively soliciting other forms of financing but do not have any firm
commitments for additional financing. Should we not be able to obtain financing
when required, in the amounts necessary to execute on our plans in full, or on
terms which are economically feasible we may be unable to sustain the necessary
capital to pursue our strategic plan and may have to reduce the planned future
growth and scope of our operations.



Cash


As of December 31, 2020 and December 31, 2019, the Company had unrestricted cash balances of $2,403,859 and $1,847,526, respectively.



Borrowings and Debt


The table below presents borrowings as of December 31, 2020 at net carrying amount and at face amount as due at their future maturities.



                           (Carrying
                            Amount)        Face Amount Due in:
                         December 31,                                                                        2025 and
                             2020             2021            2022            2023            2024          thereafter         Total
Line of credit           $   1,498,975     $ 1,500,000     $         -     $         -     $         -     $          -     $  1,500,000
Advance from related
party                          935,000         935,000               -               -               -                -          935,000
Notes payable                  100,000               -         100,000               -               -                -          100,000
Junior note                    971,426               -               -               -       1,044,477                -        1,044,477
Senior note payable          4,494,424       1,875,000       2,500,000         625,000               -                -        5,000,000

West Virginia EDA Bond 31,336,359 2,860,000 1.175,000

  1,265,000       1,360,000       26,340,000       33,000,000
Payroll Protection
Program Loan                   421,300         327,678          93,622               -               -                -          421,300
Vehicle loans                    8,200           4,380           3,820               -               -                -            8,200
 Total                   $  39,765,684     $ 7,502,058     $ 3,872,442     $ 1,890,000     $ 2,404,477     $ 26,340,000     $ 42,008,977




                                       24





Cash Flows



Cash flows used in operating activities - We used $8,758,207 of cash in
operating activities during the year ended December 31, 2020, an increase of
$1,623,607 over $7,134,600 of cash used in operating activities during the year
ended December 31, 2019. Our net loss for the year ended December 31, 2020 of
$15,741,839 was reduced by $5,869,787 of non-cash operating income and expenses
resulting in $9,872,052 of operational cash usage before changes in operational
assets and liabilities, as compared to operational cash usage before changes in
operating assets and liabilities of $7,005,821 for the year ended December 31,
2019. This increase in in usage before changes in operational assets and
liabilities was primarily driven by the increased net loss in 2020.



Cash flows used in investing activities - We used $1,016,650 of cash in
investing activities during the year ended December 31, 2020, a decrease of
$1,862,735 from $2,879,385 of cash used in investing activities during the year
ended December 31, 2020. The decrease in usage is primarily due to a $4,887,626
decrease in capex spending offset by a $650,000 investment in East Short Port
Ventures in 2020, as compared to proceeds of $2,250,000 from the sale of an
investment in 2019.



Cash flows from financing activities - Cash flows from financing activities
amounted to $11,139,625 during the year ended December 31, 2020, an increase of
$4,792,884 from $6,346,741of cash flows from investing activities during the
year ended December 31, 2019. This increase was primarily due to an increase in
cash flows from the issuance of common stock shares of $5,401,923 offset by a
$1,400,000 decrease in investments in subsidiaries by non-controlling interests,
supplemented by a $421,300 Payroll Protection Program loan and an increase of
advances from related party of $515,000 in 2020.



                                       25






CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Use of Estimates - The preparation of consolidated financial statements, in
conformity with GAAP requires the extensive use of management's estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting
periods. Actual results could differ from these estimates. Estimates are used
when accounting for items and matters including, but not limited to, valuation
of deferred tax assets, share based compensation, allowance for uncollectible
accounts receivable, obsolete, slow moving and excess inventory, asset
valuations, including intangibles, and useful lives and other provisions and
contingencies.



Product and Services Revenue Recognition - The Company records revenue based on
a five-step model in accordance with ASC 606, Revenue from Contracts with
Customers, which require that we: 1.Identify the contract with a customer; 2.
Identify the performance obligations in the contract; 3. Determine the
transaction price of the contract; 4. Allocate the transaction price to the
performance obligations in the contract, and; 5. Recognize revenue when the
performance obligations are met or delivered.



When revenue is earned based on product sales, such as sales of digester
equipment and parts, solid recovered fuel and recycled materials, the Company's
performance obligations are satisfied at the point in time when products are
shipped to the customer, which is when the customer has title and control.
Therefore, the Company's contracts have a single performance obligation
(shipment of product). The Company primarily receives fixed consideration for
sales of products. When revenue is earned on services, such as management
advisory fees and digester maintenance and repair services fees are recognized
over the period the services are performed based on service milestones.



Lease Revenue Recognition - Rental, service and maintenance revenues relating to
the Company's rental agreements involve providing use of the Company's digesters
at customer locations, access to our software as a service and preventative
maintenance over the term. The agreements generally provide for flat monthly
payments that the Company believes are consistent with our costs and obligations
underlying the agreements.



The Company selected the practical expedient not to separate non-lease
components from lease components. The Company recognizes revenue from the rental
of the digester units ratably on a monthly basis over the term of the lease, as
it has determined that the rental agreements entered into in connection with its
digester units qualify as operating leases, for which the Company is the
operating lessor. In order to determine lease classification as operating, the
Company evaluates the terms of the rental agreement to determine if the lease
includes any provisions which would indicate sales type lease treatment.



Long-Lived Assets - The Company assesses its long-lived assets, including
definite-lived intangible assets, plant, property and equipment, which are held
and used in our operations for impairment if events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. The
amortization method and estimated period of useful life of definite-lived
intangible assets are reviewed annually, or more frequently if events or changes
in circumstances. We recognize impairment when the estimated undiscounted cash
flow generated by those assets is less than the carrying amount of such assets.
The amount of impairment is the excess of the carrying amount over the fair
value of such assets.



Income Taxes - Deferred income taxes are determined based on the estimated
future tax effects of differences between the financial statement and tax bases
of assets and liabilities given provisions of enacted laws. Deferred income tax
provisions and benefits are based on changes to the asset or liabilities from
year to year. In providing for deferred taxes, the Company considers tax
regulations of the jurisdictions in which it operates, estimates the future
taxable income and available tax planning strategies. If tax regulations,
operating results or the ability to implement tax planning and strategies vary,
adjustments to the carrying value of deferred tax assets and liabilities may be
required. Valuation allowances are recorded related to deferred tax assets based
on the "more than likely" criteria.



Financial Instruments, Convertible Instruments, Warrants and Derivatives - The
Company reviews its convertible instruments for the existence of embedded
conversion features that may require bifurcation. If certain criteria are met,
the bifurcated derivative financial instrument is required to be recorded at
fair value. The Company also reviews and re-assesses, at each reporting date,
any common stock purchase warrants and other freestanding derivative financial
instruments and classifies them on the consolidated balance sheet as equity,
assets or liabilities based upon the nature of the instruments.



Stock-Based Compensation - The Company accounts for stock-based compensation in
accordance with ASC 718, "Compensation - Stock Compensation." ASC 718 requires
generally that all equity awards be accounted for at their "fair value." This
fair value is measured on the grant date for stock-settled awards. Fair value is
equal to the underlying value of the stock for "full-value" awards such as
restricted stock and performance shares, and is estimated using an
option-pricing model with traditional inputs for "appreciation" awards such as
stock options and stock appreciation rights.



Recently Issued Accounting Standards

The Company has not implemented any recent accounting pronouncements during the year ended December 31, 2020.



                                       26




The Company has not implemented the following accounting standards:

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on
Financial Instruments. This standard requires an allowance to be recorded for
all expected credit losses for certain financial assets. The new standard
introduces an approach, based on expected losses, to estimate credit losses on
certain types of financial instruments. ASU 2016-13 is effective for public
companies for interim and annual period beginning December 15, 2020. Entities
are required to apply the standard's provisions as a cumulative-effect
adjustment to retained earnings as of the beginning of the first reporting
period in which the guidance is adopted. The Company has not yet adopted this
update and is currently evaluating the effect this new standard will have on its
financial condition and results of operations.



In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic
848): Facilitation of the Effects of Reference Rate Reform on Financial
Reporting." The amendments in this update provide optional guidance for a
limited period of time to ease the potential burden in accounting for (or
recognizing the effects of) reference rate reform on financial reporting as the
market transitions from the London Interbank Offered Rate (LIBOR) and other
interbank offered rates to alternative reference rates. The amendments in this
update were effective upon issuance for all entities through December 31, 2022.
The Company is currently evaluating the effect the updated standard will have on
its financial position, results of operations or financial statement disclosure.



In August 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and other
Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's
Own Equity (Subtopic 815-40). The new guidance eliminates the beneficial
conversion and cash conversion accounting models for convertible instruments. It
also amends the accounting for certain contracts in an entity's own equity that
are currently accounted for as derivatives because of specific settlement
provisions. In addition, the new guidance modifies how particular convertible
instruments and certain contracts that may be settled in cash or shares impact
the diluted EPS computation. This guidance is effective as of January 1, 2022
(Early adoption is permitted effective January 1, 2021). The Company is
currently evaluating the effect the updated standard will have on its financial
position, results of operations or financial statement disclosure.

© Edgar Online, source Glimpses

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Analyst Recommendations on BIOHITECH GLOBAL, INC.
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Financials (USD)
Sales 2021 12,2 M - -
Net income 2021 -8,41 M - -
Net Debt 2021 - - -
P/E ratio 2021 -4,50x
Yield 2021 -
Capitalization 38,3 M 38,3 M -
Capi. / Sales 2021 3,13x
Capi. / Sales 2022 3,19x
Nbr of Employees 42
Free-Float 79,3%
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Mean consensus BUY
Number of Analysts 3
Last Close Price 1,35 $
Average target price 4,67 $
Spread / Average Target 246%
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Managers and Directors
Anthony Fuller Chief Executive Officer & Director
Robert A. Joyce President & Chief Operating Officer
Brian C. Essman Treasurer, Chief Financial & Accounting Officer
Frank E. Celli Chairman
Harriet Hentges Independent Director
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