GoldSpot Discoveries Reports Record Results for the Second Quarter of 2022

26.08.2022  |  Newsfile

Toronto, August 26, 2022 - GoldSpot Discoveries Corp. (TSXV: SPOT) (OTCQX: SPOFF) ("GoldSpot" or the "Company"), 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 six months ended June 30, 2022 (the "Financial Results").

"Our results for the quarter reflect our ability to generate record revenue and growth in a tough market environment," said Denis Laviolette, Executive Chairman and President of GoldSpot. "These results showcase the strength of our consulting practice fueled by innovations from our R&D group. Our product portfolio continues to take advantage of market volatility with a heightened customer focus on cost-effective tools and resources. We are confident in our growth trajectory and the ongoing demand for geo data modelling/management and specialized financial products that empower mining companies and investors to make better decisions."


Highlights for the three-month period ended June 30, 2022:

• Increased consulting revenue to $3,376,124 as compared to $2,490,739 for three months ended June 30, 2021, an increase of 35%;


• Net investment losses of $8,083,620 from our investment portfolio as compared to net investment gains of $16,003,092 for the three months ended June 30, 2021;


• For the current three-month period, from its recent acquisitions of CEO.CA Technologies Ltd., Geotic Inc., and DigiGeoData, the Company had advertising and subscriptions revenue of $450,019, sales of software licensing of $129,489 and sales of digital maps of $53,000;


• Net loss from operations of $8,902,184, resulting primarily from the investment portfolio as compared to net income of $12,713,894 for the three months ended June 30, 2021;


• Net loss and comprehensive loss of $8,902,184 (basic loss per share of $0.07) as compared to net income and comprehensive income of $12,713,894 (basic earnings per share of $0.13) for the three months ended June 30, 2021.

Highlights for the six-month period ended June 30, 2022:

• Completed the six-month period with total cash and cash equivalents due from brokers, investments and equity investments of $40,409,115 as compared to $50,337,817 as of December 31, 2021;


• Increased consulting revenue to $6,155,073 as compared to $4,290,542 for six months ended June 30, 2021, an increase of 43%;


• Net investment losses of $8,342,094 from our investment portfolio as compared to net investment gains of $13,920,637 for the six months ended June 30, 2021;


• For the current six-month period, from its recent acquisitions of CEO.CA Technologies Ltd., Geotic Inc, and DigiGeoData, the Company had advertising and subscriptions revenue of $1,139,723, sales of software licensing of $322,51 and sales of digital maps of $133,450;


• Net loss from operations of $9,521,242 as compared to net income of $10,757,283 for the six months ended June 30, 2021;


• Net loss and comprehensive loss of $9,521,242 (basic loss per share of $0.07) as compared to net income and comprehensive income of $18,417,081 (basic earnings per share of $0.19) for the six months ended June 30, 2021. In the prior year period, the Company recorded realized gains on the disposition of a subsidiary for $7,659,798.

Highlights of R&D for the three-month period ended June 30, 2022

To communicate the state of our product advancement within GoldSpot, the Company is now highlighting its R&D expenditures and the development highlights from the quarter.

• Total R&D expenditures for the quarter were $837,335;


• Over the last year, LithoLens has expanded its ML/AI-based core logging capability to now deliver; up to 5 unique computer vision logging themes from a single core photo


• Working with multiple tier 1 mining operators;


• Grown team to further add machine learning and full-stack capabilities for expansion;


• GoldSpot's MinusOne has taken the place of external software for relevance inversions;


• Selected the upcoming three technologies to advance, which address (1) downhole domaining to increase the efficiency of 3-D modelling, (2) geochemical imputation to round out missing data from inadequate geochemical sampling, and (3) time domain EM processing to provide rapid interrogation of exploration geophysics data.

Corporate Name Change to EarthLabs, Inc.

On July 20, 2022, the Company announced its plans for a corporate name change to "EarthLabs Inc." ("EarthLabs"). The name change reflects the evolution of the Company's asset portfolio and corporate mission to create, acquire, and manage market-leading technology businesses in the resource exploration and development sector. EarthLabs will 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.

On August 16, 2022, GoldSpot shareholders approved the name change at its Annual and Special Meeting. The name change and rebrand remain subject to regulatory exchange approval which the Company expects to receive in the coming weeks. The Company will update shareholders upon receipt and in advance of trading.


Summary of financial results.

The following are selected consolidated financial results as at and for the three and six months ended June 30, 2022, with comparatives:

	Interim Condensed Consolidated statements of income (loss) and comprehensive income (loss) highlights			Three months ended June 30,						Six months ended June 30,
				2022			2021			2022			2021
	Consulting income		$	3,376,124		$	2,490,739		$	6,155,073		$	4,290,542
	Net investment gains (losses)			(8,083,620)			16,003,092			(8,342,094)			13,920,637
	Advertising and subscriptions revenue			450,019			-			1,139,723			-
	Sales of software licensing revenue			129,489			-			322,561			-
	Sales of digital maps revenue			53,000			-			133,450			-
	Operating, general and administrative			(5,315,187)			(3,135,454)			(9,170,623)			(4,468,191)
	Research and development expenses			(837,335)			(305,033)			(1,559,293)			(540,388)
	Loss from equity investment			(73,398)			(660,880)			(152,302)			(952,125)
	Deemed gain on disposition of equity investment			-			-			407,790			-
	Deferred tax recovery (expense)			1,330,261			(1,672,081)			1,359,413			(1,477,958)
	Net income (loss) from operations			(8,902,184)			12,713,894			(9,521,242)			10,757,283
	Realized gains from disposition of subsidiary			-			-			-			7,659,798
	Net income (loss) and comprehensive income (loss) for the period			(8,902,184)			12,713,894			(9,521,242)			18,417,081
	Earnings (loss) per common share for the period - basic			(0.07)			0.13			(0.07)			0.19
	Earnings (loss) per common share for the period - diluted			(0.07)			0.12			(0.07)			0.18

	Interim Condensed Consolidated statements of financial position highlights			June 30, 2022			December 31, 2021
	Cash and cash equivalents		$	4,150,213		$	6,558,818
	Accounts receivable, net of expected credit losses			1,641,450			1,288,398
	Investments, at fair value			25,756,016			34,674,867
	Equity investment			9,456,828			8,492,872
	Property and equipment			1,911,926			1,641,549
	Intangible Assets			11,031,605			9,977,352
	Goodwill			10,604,781			9,038,472
	Total assets			66,266,962			73,125,047
	Accounts payable and accrued liabilities			1,655,770			2,477,421
	Deferred revenue			6,998,405			6,073,101
	Deferred tax liabilities			2,206,655			3,291,684
	Total liabilities			11,478,142			12,105,478
	Share capital, contributed surplus, and warrants			49,404,094			46,113,601
	Retained earnings			5,384,726			14,905,968

About GoldSpot Discoveries Corp.

GoldSpot Discoveries Corp. (TSXV: SPOT) (OTCQX: SPOFF) is a technology company using artificial intelligence to revolutionize the future of global mineral exploration with a full suite of data and knowledge-driven SaaS tools and services. GoldSpot works with industry leaders across all commodity and deposit types to identify new exploration targets, develop cutting-edge technologies, and strategically invest in mineral exploration companies. Our leading team of expert scientists merge geoscience and data science to deliver bespoke solutions that save time, reduce costs, and produce far more accurate results than ever before possible.



For further information please contact:

Denis Laviolette, Executive Chairman and President
GoldSpot Discoveries Corp.
Tel: 647-992-9837
Email: investors@goldspot.ca



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.