EarthLabs Inc. (TSXV: SPOT) (OTCQX: SPOFF) ("EarthLabs" or the "Company") (formerly GoldSpot Discoveries Corp.), a leading technology company leveraging artificial intelligence and data science to transform the mineral discovery process, is pleased to announce its unaudited consolidated financial results for the three and nine months ended September 30, 2022 (the "Financial Results").
"More than six years ago, we set out to change the mining industry by integrating AI into the exploration process," said Denis Laviolette, Executive Chairman and President of EarthLabs. "Our recently announced sale of the ExplorTech division to ALS, showcases our commitment to monetize market-leading businesses and provides significant liquidity to EarthLabs as we accelerate construction of our product portfolio. Despite record poor market conditions affecting fund performance, we are strongly positioned to take advantage of these turbulent markets as our subsidiaries expand subscription values and a multi-phase site architecture overhaul. I am pleased with progress on CEO.CA's architecture rebuild as well as continuous updates from DigiGeoData's interactive mapping database, tracking exploration and mining activity on a global scale. We look forward to updating the market on subsidiary progress as we launch exciting new research and interactive products over the coming quarters."
Highlights for the three-month period ended September 30, 2022:
Highlights for the nine-month period ended September 30, 2022:
Disposition of Exploration Technology Division
On October 25, 2022, the Company was pleased to announce that it had entered into an agreement (the "Definitive Agreement") to sell the Company's exploration consulting & technology division ("ExplorTech") to 1377900 BC Ltd. (the "Purchaser"), a wholly owned subsidiary of ALS Limited (ASX: ALQ). Headquartered in Brisbane, ALS Limited is the largest provider of laboratory testing, inspection, certification and verification solutions with more than 18,000 employees worldwide.
The Company will receive aggregate cash proceeds of $24,000,000 and the Purchaser will assume up to $6,000,000 in specified liabilities of the Company, subject to standard working capital adjustments. The Definitive Agreement may be terminated by either party in certain specified circumstances. The Transaction is subject to customary closing conditions including the receipt of all applicable director, shareholder, third party and regulatory approvals, including the approval of the TSX Venture Exchange, and is currently expected to close by early December 2022.
As a result, results for ExplorTech which includes the Company's wholly-owned subsidiaries, Ridgeline Exploration Services Inc. and Geotic Inc., for the three and nine months ended September 30, 2022 have been classified as loss from discontinued operations in the interim condensed consolidated statement of loss and comprehensive loss. The assets and liabilities have been classified as assets held for sale and liabilities directly associated with the assets held for sale, respectively, in the interim consolidated statement of financial position as at September 30, 2022.
Summary of financial results
The following are selected consolidated financial results as at and for the three and nine months ended September 30, 2022, with comparatives:
| Interim condensed consolidated statements of income (loss) and comprehensive income (loss) highlights | Three months ended September 30, | Nine months ended September 30, | ||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Advertising and subscriptions revenue | $ | 1,278,108 | $ | - | $ | 2,417,831 | $ | - | ||||
| Net investment gains (losses) | (3,747,401 | ) | (10,363,074 | ) | (12,089,495 | ) | 3,557,563 | |||||
| Sales of digital maps revenue | 52,600 | - | 186,050 | - | ||||||||
| Other income | 31,618 | 10,306 | 149,069 | 14,889 | ||||||||
| Operating, general and administrative | (2,027,353 | ) | (747,446 | ) | (6,254,275 | ) | (3,055,677 | ) | ||||
| Research and development expenses | (228,976 | ) | - | (530,256 | ) | - | ||||||
| Loss from equity investment | (238,053 | ) | (273,304 | ) | (390,355 | ) | (1,225,429 | ) | ||||
| Deemed gain on disposition of equity investment | - | - | 407,790 | - | ||||||||
| Income tax recovery | 1,064,187 | 1,702,142 | 2,445,867 | 224,184 | ||||||||
| Net loss from continuing operations | (3,818,176 | ) | (9,674,712 | ) | (13,664,107 | ) | (495,280 | ) | ||||
| Realized gains from disposition of subsidiary | - | - | - | 7,659,798 | ||||||||
| Net income (loss) from discontinued operations | (855,268 | ) | 108,082 | (530,579 | ) | 1,685,933 | ||||||
| Net income (loss) and comprehensive income (loss) for the period | (4,673,444 | ) | (9,566,630 | ) | (14,194,686 | ) | 8,850,451 | |||||
| Earnings (loss) per common share for the period - basic | (0.04 | ) | (0.08 | ) | (0.10 | ) | 0.09 | |||||
| Earnings (loss) per common share for the period - diluted | (0.04 | ) | (008 | ) | (0.10 | ) | 0.08 | |||||
| Interim condensed consolidated statements of financial position highlights | September 30, 2022 | December 31, 2021 | ||||
| Cash and cash equivalents | $ | 2,951,461 | $ | 6,558,818 | ||
| Due from brokers | 1,650,901 | 611,260 | ||||
| Accounts receivable, net of expected credit losses | 75,767 | 1,288,398 | ||||
| Investments, at fair value | 21,945,276 | 34,674,867 | ||||
| Equity investment | 9,218,775 | 8,492,872 | ||||
| Assets held for sale | 7,378,992 | - | ||||
| Property and equipment | 154,868 | 1,641,549 | ||||
| Intangible Assets | 8,836,463 | 9,977,352 | ||||
| Goodwill | 8,321,591 | 9,038,472 | ||||
| Total assets | 60,696,606 | 73,125,047 | ||||
| Accounts payable and accrued liabilities | 497,168 | 2,477,421 | ||||
| Liabilities directly associated with the assets held for sale | 6,766,630 | - | ||||
| Deferred revenue | 1,875,600 | 6,073,101 | ||||
| Deferred tax liabilities | 347,929 | 3,291,684 | ||||
| Total liabilities | 10,253,483 | 12,105,478 | ||||
| Share capital, contributed surplus, and warrants | 49,731,841 | 46,113,601 | ||||
| Retained earnings | 711,282 | 14,905,968 |
About EarthLabs Inc.
EarthLabs Inc. (TSXV:SPOT) (OTCQX:SPOFF) is a technology company working to revolutionize the future of global mineral exploration with a full suite of data and knowledge-driven SaaS tools and services. EarthLabs represent a collection of industry-leading earth modelling, geology data management and specialized financial products that help both mining companies and mining investors make better decisions.
For further information please contact:
Denis Laviolette
Executive Chairman and President
EarthLabs Inc.
Tel: 647-345-7768
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Neither the TSX Venture Exchange ("TSXV"), OTC Best Market "(OTCQX") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement on Forward-Looking Information
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information which involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
| Last Trade: | US$0.17 |
| Daily Change: | -0.0085 -4.90 |
| Daily Volume: | 426 |
| Market Cap: | US$22.670M |
February 14, 2024 November 28, 2023 August 24, 2023 | |
Hillcrest Energy Technologies is a clean technology company developing high value, high performance power conversion technologies and digital control systems for next-generation powertrains and grid-connected renewable...
CLICK TO LEARN MORE
Sienna Resources is at the forefront of the battery metals revolution. The company is one of the largest landholders in the prolific Clayton Valley district, which is the only lithium producing region in the United States and located just miles...
CLICK TO LEARN MORE