Toronto, Ontario--(Newsfile Corp. - April 29, 2024) - EarthLabs Inc. (TSXV: SPOT) (OTCQX: SPOFF) (FSE: 8EK0) ("EarthLabs" or the "Company") is pleased to announce the consolidated financial results for three months and year ended December 2023 of the Company (the "Financial Results").
Highlights for the three-months period ended December 31, 2023:
Highlights for the twelve-months period ended December 31, 2023
"This year has been foundational for EarthLabs, despite the broader market headwinds we've encountered," said Denis Laviolette, Executive Chairman and CEO of EarthLabs. "It's been a year of tactical growth and shrewd acquisitions into both our investment and media portfolio at values significantly below market norms. By welcoming The Northern Miner, MINING.COM, and Canadian Mining Journal into our fold in December, we've not just expanded our reach-we've elevated our entire operational framework. EarthLabs is now undeniably one of the largest media players in the mining sector globally. Together with CEO.CA and DigiGeoData, we are forging a new frontier where technology meets mining media. Our aim is to revolutionize the industry, creating a comprehensive tech-media empire that leverages advanced digital solutions to provide unparalleled value and service to our clients. We are setting new standards, transforming challenges into opportunities to lead and innovate."
Acquisition of The Northern Miner, Canadian Mining Journal and MINING.COM
On December 1, 2023, the Company acquired from Glacier RIG Ltd. (a wholly-owned subsidiary of Glacier Media Inc.), The Northern Miner Group ("TNM Group"), a leading group of mining media brands including The Northern Miner ("TNM"), Canadian Mining Journal ("CMJ") and MINING.COM. The consideration for the acquisition of the TNM Group consisted of the aggregate cash payment of $4,000,000, subject to working capital adjustments. The cash payment comprised of (i) an initial deposit of $200,000 paid upon signing of the Definitive Agreement; (ii) a cash payment equal to $2,300,000 payable at the time of closing; and (ii) a promissory note in the aggregate principal amount of $1,500,000 payable over two years and which is secured by a general security agreement against the assets of EarthLabs. In connection with the acquisition, (i) the parties entered into a transition services agreement which provides for a timely and efficient transfer of the TNM, CMJ and MINING.COM operations; and (ii) Glacier RIG Ltd executed a non-competition and non-solicitation agreement with EarthLabs. There was no finder's fees associated with the acquisition and the Company did not assume any material debt from Glacier RIG Ltd.
TNM Group presents a highly complementary portfolio with EarthLabs' subsidiary assets CEO.CA and DigiGeoData and enhances EarthLabs' acquisition strategy in a compelling way. CEO.CA, the largest social media platform for resource investors, offers a unique ecosystem where mineral explorers, investors, and other stakeholders engage in high-level discussions, share insights, and make data-driven decisions. The platform's extensive reach and engaged user base serve as a natural complement to the newly acquired media assets.
TNM Group will now operate as a stand-alone division under EarthLabs, maintaining its existing brand names and leadership structures while also benefiting from the resources of support of EarthLabs' global presence.
Summary of financial results
The following are selected consolidated financial results as at and for the three and twelve months ended December 31, 2023, with comparatives:
Consolidated statements of income (loss) and comprehensive income (loss) highlights | Three months ended December 31, | Twelve months ended December 31, | |||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Advertising | $ | 677,279 | $ | 1,398,703 | $ | 2,206,523 | $ | 3,045,308 | |||||
Subscriptions | 230,391 | 200,530 | 875,682 | 971,756 | |||||||||
Sales of exploration maps | 33,610 | 100,274 | 223,038 | 286,324 | |||||||||
Net investment gains (losses) | (1,263,270 | ) | 1,026,576 | (2,277,329 | ) | (11,062,919 | ) | ||||||
Other income | 167,400 | 56,167 | 902,780 | 207,536 | |||||||||
Operating, general and administrative | (2,256,744 | ) | (1,976,487 | ) | (9,358,659 | ) | (8,230,762 | ) | |||||
Research and development expenses | (359,641 | ) | (637,123 | ) | (1,605,738 | ) | (1,167,379 | ) | |||||
Loss from equity investment | (16,670 | ) | (4,313,288 | ) | (107,524 | ) | (4,703,643 | ) | |||||
Deemed gain on disposition of equity investment | - | - | - | 407,790 | |||||||||
Impairment of equity investment | - | (2,659,610 | ) | - | (2,659,610 | ) | |||||||
Impairment of goodwill and intangible assets | (9,530,129 | ) | (6,755,282 | ) | (9,530,129 | ) | (6,755,282 | ) | |||||
Income tax recovery | 1,187,884 | 618,337 | 2,152,241 | 3,064,204 | |||||||||
Net loss from continuing operations | (11,136,066 | ) | (12,946,730 | ) | (16,539,122 | ) | (26,610,837 | ) | |||||
Working capital adjustments from disposition of subsidiaries and assets, net of tax | (84,561 | ) | - | (84,561 | ) | - | |||||||
Realized gains from disposition of subsidiaries and assets, net of tax | - | 20,445,301 | - | 20,445,301 | |||||||||
Net loss from discontinued operations | - | (148,894 | ) | - | (679,473 | ) | |||||||
Net income (loss) and comprehensive income (loss) for the period | (11,220,627 | ) | 7,349,677 | (16,623,683 | ) | (6,845,009 | ) | ||||||
Earnings (loss) per common share for the period - basic and diluted | (0.08 | ) | 0.06 | (0.12 | ) | (0.05 | ) |
Consolidated statements of financial position highlights | December 31, 2023 | December 31, 2022 | |||||
Cash and cash equivalents | $ | 5,227,657 | $ | 25,346,049 | |||
Due from brokers | 485,949 | 3,180,098 | |||||
Accounts receivable, net of expected credit losses | 120,253 | 116,214 | |||||
Investments, at fair value | 35,091,151 | 21,774,168 | |||||
Equity investment | 2,138,352 | 2,245,876 | |||||
Property, equipment and right-of-use assets | 1,252,737 | 146,244 | |||||
Intangible Assets | 3,127,000 | 8,105,504 | |||||
Goodwill | 624,290 | 2,210,980 | |||||
Total assets | 49,251,445 | 63,271,860 | |||||
Accounts payable and accrued liabilities | 1,287,021 | 1,002,120 | |||||
Deferred revenue | 1,921,102 | 1,004,440 | |||||
Income tax payable | - | 1,017,408 | |||||
Total promissory note | 980,971 | - | |||||
Total lease liabilities | 1,155,154 | 139,509 | |||||
Deferred tax liabilities | 204,690 | 1,572,001 | |||||
Total liabilities | 5,589,812 | 5,176,033 | |||||
Share capital, contributed surplus, and warrants | 52,224,357 | 50,034,868 | |||||
Retained earnings (deficit) | (8,562,724 | ) | 8,060,959 |
About EarthLabs Inc.
EarthLabs Inc. (TSXV: SPOT) (OTCQX: SPOFF) (FSE: 8EK0) is a mining investment, technology, and media company that aims to provide strategic leverage to the metals and mining sector through investments, royalties and a full suite of data-driven media SaaS tools and services.
For further information please contact:
Denis Laviolette
Executive Chairman and CEO
EarthLabs Inc.
Tel: 647-345-7720
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
Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements. Often, but not always, these forward looking statements can be identified by the use of words such as "estimate", "estimates", "estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed", "has been", "gain", "upgraded", "offset", "limited", "contained", "reflecting", "containing", "remaining", "to be", "periodically", or statements that events, "could" or "should" occur or be achieved and similar expressions, including negative variations.
Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, risks detailed from time to time in the Company's filings with securities regulators and available under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.
Last Trade: | US$0.16 |
Daily Change: | 0.0022 1.38 |
Daily Volume: | 32,109 |
Market Cap: | US$22.280M |
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