BioHiTech Global Reports First Quarter 2016 Financial Results

First Quarter 2016 Recurring Revenue Increased 37% to $291,000

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CHESTNUT RIDGE, N.Y., May 17, 2016 /PRNewswire/ -- BioHiTech Global, Inc. (OTCQB: BHTG), a green technology company that provides innovative data-driven solutions for food waste disposal, reported financial results for its first quarter ended March 31, 2016.

First Quarter 2016 Financial Highlights vs. Year-Ago Quarter

Total revenue for the first quarter of 2016 increased 64% to $463,000.
Recurring or 'RMP' revenue for the first quarter of 2016 increased 37% to $291,000.
First quarter 2016 recurring revenue as a percentage of total revenue was 63%.
First quarter 2016 gross profit totaled $114,000.
Order backlog of 90 units at March 31, 2016.
First quarter 2016 net loss totaled $1.6 million as compared to a net loss of $969,000 in the first quarter of 2015.

First Quarter 2016 Operational and Subsequent Highlights

Collaborated with Natural Systems Utilities to convert commercial food waste to energy.
Up-listed common stock to OTCQB.
Launched BioHiTech Cirrus, a new mobile app for unparalleled insight into the waste stream.
Presented at the 2^nd Annual Gabelli & Company Waste and Environmental Services Symposium.
Renewed Partnership with Avangard Innovative in Latin America and Mexico.
Appointed Dennis Soriano as director of business development and strategic relationships.
Set quarterly record with 20 new Eco-Safe Digester orders from customers across the U.S. and abroad.
Awarded accredited supplier designation for waste savings by the Carbon Trust.
Expanded waste stream product offering with the launch of Entsorga North America.

First Quarter 2016 Financial Results
Total revenue for the first quarter of 2016 increased 64% to $463,000 from $282,000 in the same year-ago quarter. For the first quarter of 2016 the revenue from recurring sources as a percentage of total revenue decreased to 63% versus 76% in the first quarter of 2015, while equipment sales as a percentage of total revenue increased to 34% versus 9% in the first quarter of 2015. The increase in equipment sales was primarily attributable to an increase in international reseller activity in areas where the rental market is not as well recognized as the retail sales model.

These changes are in-line with the company's strategic shift in its business model in 2014 to focus on recurring revenues, which include the rental of its digester units, maintenance (including Software as a Service "SaaS") and parts (combined "RMP") that provides a steadier stream of revenues and cash flows over time.

RMP revenue for the first quarter of 2016 increased 37% to 291,000 versus $213,000 in the same year-ago quarter. The increase in RMP revenue is primarily attributable to a greater number of rented units.

Gross margins for the first quarter of 2016 increased to 25% versus 7% in the first quarter of 2015. RMP margins for the first quarter of 2016 increased 970 basis points to 16% versus 6% in the same year-ago quarter. The increased gross margin is primarily attributable to changes in demand, including contracted services, and improved utilization of fixed costs.

Net loss for the first quarter of 2016 totaled $1.6 million or ($0.20) per basic and diluted share, compared to net loss of $969,000 or ($0.14) per basic and diluted share in the first quarter of 2015. The net loss was primarily due to increased non-cost of revenue operating expenses, which increased to $1.6 million from $882,000 in the first quarter of 2015, due to increases relating to personnel, marketing, legal, professional and accounting expenses to support the company's strategic focus and to support its reporting and capital activities as a public entity.

Cash at March 31, 2016, increased to $139,000 compared to $39,000 at December 31, 2015. In the first quarter of 2016, the company raised an additional $2.5 million in a private placement with institutional investors and company management, which it plans to use for additional growth and working capital purposes.

Further details about the company's results in the first quarter of 2016 are available in its Quarterly Report Form 10-Q, accessible in the investor relations section of the company's website at www.biohitechglobal.com

Management Commentary
"The first quarter of 2016 was a record quarter with 20 new Eco-Safe Digester orders from customers across the U.S. and abroad as the momentum from the fourth quarter of 2015 accelerated into 2016," said the company's CEO, Frank E. Celli. "Our progress was highlighted by key customer wins, increased financial performance and the successful execution of strategic initiatives focused on driving growth and increasing shareholder value.

"The double-digit growth of recurring revenue validates our decision in 2014 to focus our resources towards the rental model of our Eco-Safe Digesters along with the deployment of our waste disposal management solution, BioHiTech Cloud.

"We added several key new customers in the U.S. and abroad that accelerated the rollout of our Eco-Safe Digesters by a double-digit growth rate and accumulated significant order backlog with the execution of multiple, multi-unit contracts.

"Other key performance metrics also trended well in the first quarter of 2016. First quarter 2016 gross profit increased 523% compared to the first quarter of 2015. We believe that our shift to the rental model for our Eco-Safe Digester is gaining momentum and we are beginning to see improved performance with respect to our margin profile.

"On the investor relations front, we up-listed our common stock to the OTCQB, presented at the 2nd Annual Gabelli & Co. Waste and Environmental Services Symposium and completed a $2.5 million private placement of convertible notes and warrants to fortify the balance sheet for strategic growth initiatives in 2016.

"The improved financial metrics clearly demonstrate the leverage in our financial model and we look forward to building on all of the successes in the first quarter of 2016," added Celli.

Second Quarter 2016 Outlook
"The second quarter of 2016 is already off to a strong start as we recently announced our expanded waste stream product offering with the launch of Entsorga North America," said Celli. "The Entsorga North America venture will expand the company's product offering towards providing disruptive, clean technology solutions that advance the global movement towards sustainability and zero waste initiatives.

"We are excited to have the opportunity to introduce this proven technology to the United States and to convert food and mixed solid waste into an EPA recognized alternative fuel source. The addition of the Entsorga technology is consistent with the company's objective of providing disruptive technologies to deal with the growing issue of food waste diversion and zero waste initiatives. We now have the ability to expand our solutions to provide economically feasible alternatives for organic and inorganic waste disposal to all generators, including businesses and municipalities. We look forward to deploying this exciting technology along with our Eco-Safe Digesters throughout the United States, providing a 'one stop' solution to our customers and solving the increasing problem of the lack of infrastructure capable of dealing with our country's zero landfill initiatives.

"Also in the second quarter, we are pleased to see continued growth within our existing customer portfolio as well as the addition of distinguished corporate customers and iconic customers in both the U.S. and in Europe. Additionally, we have received a multi-unit order from a Fortune 100 'big box' retailer and continue to retrofit our network-connected solution to our legacy units.

"Our momentum continued on the international front with BioHiTech Europe receiving accreditation for waste savings from the Carbon Trust, an independent expert on carbon reduction and resource efficiency. As part of the accreditation process, one of the case studies submitted by BioHiTech Europe was on the Hard Rock Café in London, where we recently installed an Eco-Safe Digester. Hard Rock Café, an iconic rock 'n' roll themed restaurant in London, installed an Eco-Safe food waste digester to address their increasing waste disposal costs and the associated problems with getting their waste collected in Central London, while also wanting to improve on the restaurant's already strong sustainability profile. Since installing the Eco-Safe Digester, the Hard Rock Café reported in March of 2016 that their food waste disposal costs had been reduced by 56% and that they had to date saved 9.7 MTCO2 by diverting their food waste.

"Throughout 2016, we anticipate seeing our Eco-Safe Digester footprint expanding across the globe and expect to maintain our double-digit growth rate with total units deployed in 2016. Further evidence to support our confidence is with the stabilization of our order backlog⁽¹⁾, which as of March 31, 2016 stood at 90 units.

"We look forward to sharing our developing story at the upcoming B. Riley & Co. 17^th Annual Investor Conference being held on May 25-26 at the Loews Hollywood Hotel in Hollywood, California," concluded Celli.

About BioHiTech Global
BioHiTech Global (OTCQB: BHTG), "The Company" headquartered in Chestnut Ridge NY, develops and deploys innovative and disruptive waste management technologies. We provide waste management solutions to a global customer base encompassing a full suite of technology-based disposal options capable of having a significant impact on waste generation while providing a true zero landfill environment. With options for both on and off site biological treatment of waste, BioHiTech Global is a leader in zero waste solutions for businesses and municipalities of all sizes. For more information, please visit www.biohitechglobal.com.

Forward Looking Statements
Statements in this document contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on many assumptions and estimates and are not guarantees of future performance. These statements may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of BioHiTech Global, Inc. to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. BioHiTech Global, Inc. assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Our actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation those set forth as "Risk Factors" in our filings with the Securities and Exchange Commission ("SEC"). There may be other factors not mentioned above or included in the BioHiTech's SEC filings that may cause actual results to differ materially from those projected in any forward-looking statement. BioHiTech Global, Inc. assumes no obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by securities laws.

(1) Backlog units represents unfilled contractual orders of digesters, which excludes purchase options and announced orders for which definitive contracts have not been executed, for either retail sales or leases in excess of one year. As many elements enter into the timing of delivery, many of which are solely under the control of customers, actual revenues from all backlog units may not be immediately recognized.

Media Contact:

Rubenstein Public Relations
Contact: Kristie Galvani
Tel: 212-843-9205
Kgalvani@rubensteinpr.com

Investor Relations Contact:

MZ North America
Ted Haberfield
President – MZ North America
Direct: 760-755-2716
thaberfield@mzgroup.us
www.mzgroup.us

Sales Contact:

BioHiTech Global, Inc.
Lisa Giovannielli
Marketing Director
Direct: 845-262-1081
lgiovannielli@biohitech.com
www.biohitech.com

Fiscal 2015 Financial Summary Tables
The following financial information should be read in conjunction with the financial statements and accompanying notes filed by the company with the Securities and Exchange Commission on May 16, 2016 in its Quarterly Report on Form 10-Q for the period ended March 31, 2016, which can be viewed at www.sec.gov and also in the Investor Relations section of the company's website at www.biohitechglobal.com.

BioHiTech Global Consolidated Balance Sheets
(UNAUDITED)

		March 31, 2016			December 31, 2015
Assets
Current Assets
Cash			$	138,951		$	39,195
Accounts receivable, net				175,592			206,288
Inventory				306,604			274,304
Note receivable				55,656			110,011
Prepaid expenses and other current assets				65,174			67,136
	Total Current Assets			741,977			696,934
Equipment on operating leases, net				899,095			844,494
Equipment, fixtures and vehicles, net				62,255			61,688
Intangible assets, net				340,539			365,038
Other assets				13,500			51,600
	Total Assets		$	2,057,366		$	2,019,754

Liabilities and Stockholders' Deficit
Current Liabilities:
Line of credit			$	2,463,736			2,488,753
Accounts payable				923,563			1,222,167
Accrued interest payable				102,800			287,888
Accrued expenses				462,579			548,522
Deferred revenue				141,132			48,103
Notes payable				100,000			100,000
Notes payable – related party				100,000			300,000
Advance from related party				-			710,000
Customer deposits				32,956			29,657
Long-term debt, current portion				8,325			8,260
	Total Current Liabilities			4,335,091			5,743,350
Promissory note - related party				2,163,027			1,710,000
Long term accrued interest				33,333			-
Unsecured subordinated convertible notes, including related parties, net of deferred financing costs				2,424,164			-
Long-term debt, net of current portion				17,466			19,573
	Total Liabilities			8,973,081			7,472,923

Commitments and Contingencies

Stockholders' Deficit
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; none issued							-
Common stock, $0.0001 par value, 20,000,000 shares authorized; 8,229,712 shares issued and outstanding as of March 31, 2016 and December 31, 2015				823			823
Additional paid in capital				9,018,979			8,880,589
Accumulated deficit				(15,935,622)			(14,326,780)
Accumulated other comprehensive income (loss)				105			(7,801)
	Total Stockholders' Deficit			(6,915,715)			(5,453,169)
	Total Liabilities and Stockholders' Deficit		$	2,057,366			2,019,754

BioHiTech Global Consolidated
Statements of Operations and Comprehensive Loss
(UNAUDITED)

		Three Months Ended March 31,
		2016			2015
Revenue
Rental, service and parts			$	290,849		$	212,912
Equipment sales				156,865			25,670
Other				15,013			43,045
	Total revenue			462,727			281,627
Cost of revenue
Rental, service and parts				243,801			199,125
Equipment sales				104,765			48,803
Other				-			15,382
	Total Cost of revenue			348,566			263,310
Gross profit				114,161			18,317
Operating expenses
Selling, general and administrative				1,028,649			509,453
Research and development				183,931			179,790
Professional fees				335,845			151,445
Depreciation and amortization				25,774			41,675
	Total operating expenses			1,574,199			882,363
Loss from operations				(1,460,038)			(864,046)
Other (expense) income
Interest income				355			-
Interest expense				(149,159)			(105,375)
	Total other expense			(148,804)			(105,375)
Net loss				(1,608,842)			(969,421)
Other comprehensive income
Foreign currency translation adjustment				7,906			-
Comprehensive loss			$	(1,600,936)		$	(969,421)

Net loss per share – basic and diluted			$	(0.20)		$	(0.14)
Weighted average number of common shares outstanding – basic and diluted				8,229,712			6,975,000

BioHiTech Global Consolidated Statements of Cash Flows
(UNAUDITED)

		For the three months ended March 31,
		2016			2015
Cash flows from operating activities:
Net loss:			$	(1,608,842)		$	(969,421)
	Adjustments to reconcile net loss to net cash used in operations:
	Depreciation and amortization			92,286			93,830
	Provision for bad debts			(10,384)			2,331
	Stock based compensation			138,390			-
	Changes in operating assets and liabilities			(187,969)			165,054
	Net cash used in operations			(1,576,519)			(708,206)

Cash flow from investing activities:
Purchases of equipment, fixtures and vehicles				(1,842)			(35,240)
	Net cash used in investing activities			(1,842)			(35,240)

Cash flows from financing activities:
Net change in line of credit				(25,017)			(82,089)
Proceeds from long-term debt				-			23,500
Proceeds from convertible notes				250,000			-
Convertible notes deferred financing costs				(82,730)			-
Repayments of long-term debt				(2,042)			-
Related party:
	(Repayment) increases of advances			(710,000)			855,000
	Proceeds from promissory note			190,000			-
	Proceeds from convertible notes			2,250,000			500,000
	Repayment of promissory notes			(200,000)			(500,000)
	Net cash provided by financing activities			1,670,211			796,411
Effect of exchange rate on cash				7,906			-
Net increase in cash				99,756			52,965
Cash – beginning of period				39,195			40,207
Cash – end of period			$	138,951		$	93,172

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SOURCE BioHiTech Global, Inc.