Alliance BioEnergy Plus, DBA Blue Biofuels, Releases Third Quarter 2020 Financial Results and Files Updated Form 10 with Financial Statements

PALM BEACH GARDENS, FL, January 5, 2021 (GLOBE NEWSWIRE) – Alliance BioEnergy Plus, Inc., DBA Blue Biofuels (ROSE: ALLM).

Alliance BioEnergy Plus Inc., DBA Blue Biofuels (the “Company”) is pleased to present its financial statements until the third quarter of 2020.

For fiscal 2019, the Company achieved net income of $ 1,005,107, compared to a net loss of $ 9,421,143 for fiscal 2018. The income was entirely attributable to renegotiated and canceled debts and liabilities of 2,781 $ 783 as a result of the Chapter 11 bankruptcy process, offset by $ 1,836,676 in operating expenses. Operating expenses in 2018 were $ 6,836,475. The reduction in operating expenses is linked to the reduction in general and administrative expenses of the new management team from $ 2,389,191 in 2018 to $ 1,038,814 in 2019, and a loss on depreciation of zero in 2019 against 3 $ 827,316 in 2018.

During the first three quarters of 2020, the Company recorded a net loss of $ 1,857,747, compared to net income of $ 1,415,594 for the first nine months of 2019. The Company’s operating expenses for First 9 months of 2020 amounted to $ 1,701,452, compared to $ 1,371,923 in 2019. A significant percentage of 2020 operating expenses consisted of out-of-the-money stock options amounting to at $ 847,574 using the Black-Scholes valuation methodology.

Although the third quarter 2020 financial statements show that there is $ 4,123,253 of total liabilities, $ 2,942,132 of this amount is payable out of future earnings or future income and is not due until such milestones. achieved. Of the total liabilities, $ 2,696,502 of this amount is extinguished if the conditions precedent to such payment are not met within 5 years of the Chapter 11 plan confirmation date of September 18, 2019. When restructuring the Chapter 11, management decided that it was better for shareholders to renegotiate certain debts by extending them to a future date and providing that they are only payable out of future profits or future income, rather than converting them. liabilities to equity, which would have resulted in significant dilution for current shareholders. In addition, since management was able to keep the dilution well below the legal limit of 50%, fresh start accounting did not apply. This means that the $ 35,492,755 in federal net operating loss carryforwards (as of December 31, 2019) has been preserved, while these loss carryforwards would have been lost had there been a change in ownership of more than 50 % over Chapter 11. Using Florida’s 21% federal income tax rate and 4.46% corporate tax rate, these tax losses could save the Company up to ‘to about $ 9 million in future taxes.

The company borrowed $ 66,330 under the Small Business Administration’s Paycheck Protection Program. The Company will ask for this to be forgiven in accordance with the law.

As at September 30, 2020, the long-term debt that would not be discharged or potentially canceled and that is not due to related parties amounts to $ 170,000, of which $ 120,000 comes from future revenues.

As at September 30, 2020, current liabilities are $ 1,057,609, of which $ 913,745 is due to related parties, mainly deferred salaries due to management. Current liabilities not due to related parties amount to $ 143,863, including $ 83,246 in lease payments for the Company’s laboratory and offices over the next 12 months, and $ 60,618 in accounts payable, of which $ 40,000 is owed to the Company’s auditors.

As of September 30, 2020, the Company had cash of $ 101,525. After this date, the Company raised $ 440,000. Other investors have expressed an interest in investing in the Company once it has reverted to being a “reporting company”.

ABOUT OUR CLEAN TECHNOLOGY

CTS technology can convert virtually any plant material – grasses, wood, paper, agricultural waste, yard waste, forest products, fruit husks, nut shells and the cellulosic portion of municipal solid waste – into sugars and through continued in biofuels and bioplastics, without the use of enzymes or liquid acids. CTS stands for Cellulose to Sugar. Cellulose is transformed into sugar and lignin. The sugar is then converted into bioethanol and other biofuels; lignin can still be converted into bioplastics. CTS has a carbon footprint close to zero. CTS is the exclusive and patented technology wholly owned and developed independently of Blue Biofuels.

It is important to note that any biofuel from the CTS process would receive the generous Cellulosic Renewable Fuel (“RIN”) credits from the US government. The D3 RIN is currently $ 1.93 / gallon of ethanol, which is in addition to the market price of ethanol. This incentive is available to all domestic producers of cellulosic fuel whose fuel is used in the transportation market, up to the mandate of 590 million gallons for 2020.

The information contained in this document may constitute forward-looking statements or statements which may be considered or interpreted as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Risks, uncertainties and other factors are discussed in more detail in the Filings of the company with the United States Securities and Exchange Commission. All forward-looking statements attributable to Alliance BioEnergy Plus, Inc. are expressly qualified in their entirety by the foregoing cautionary statement. Alliance BioEnergy Plus, Inc. assumes no obligation to update any forward-looking statements contained in this estimate, except as required by law.

Contact:

Ben Slager, CEO
B[email protected]m

Anthony Santelli, Chief Financial Officer
[email protected]

THE SOURCE: Alliance Bioenergy Plus, Inc. DBA Blue Biofuels www.Bluebiofuels.com

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