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EarthLabs Reports Results for the Fourth Quarter and Fiscal Year 2024

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EarthLabs Inc. (TSXV: SPOT) announces financial results for Q4 and FY 2024, ending with $42.9M in cash, acquisitions of major mining media brands, and strategic growth in investment portfolios. Despite challenges, the company shows tactical growth, shrewd acquisitions, and aims to revolutionize the mining media industry. The acquisition of The Northern Miner, MINING.COM, and Canadian Mining Journal enhances EarthLabs' global presence and creates a comprehensive tech-media empire.

EarthLabs Inc. (TSXV: SPOT) annuncia i risultati finanziari per il quarto trimestre e l'anno fiscale 2024, chiudendo con $42,9 milioni in cassa, l'acquisizione di importanti marchi nei media minerari e una crescita strategica nei portafogli di investimento. Nonostante le sfide, l'azienda mostra una crescita tattica, acquisizioni astute e mira a rivoluzionare l'industria dei media minerari. L'acquisto di The Northern Miner, MINING.COM e Canadian Mining Journal potenzia la presenza globale di EarthLabs e crea un vasto impero tecnologico-mediale.
EarthLabs Inc. (TSXV: SPOT) anuncia los resultados financieros para el cuarto trimestre y el año fiscal 2024, concluyendo con $42,9 millones en efectivo, adquisiciones de grandes marcas de medios mineros y crecimiento estratégico en carteras de inversión. A pesar de los desafíos, la compañía muestra un crecimiento táctico, adquisiciones sagaces, y tiene como objetivo revolucionar la industria de medios mineros. La adquisición de The Northern Miner, MINING.COM y Canadian Mining Journal amplía la presencia global de EarthLabs y crea un imperio integral de tecnología y medios.
EarthLabs Inc. (TSXV: SPOT)는 2024년 4분기 및 연간 재무 결과를 발표하며, 현금 $42.9백만 달러와 주요 광업 미디어 브랜드의 인수, 투자 포트폴리오에서의 전략적 성장으로 마무리했습니다. 도전에도 불구하고, 회사는 전략적 성장과 현명한 인수를 보여주며 광업 미디어 산업을 혁신하려는 목표를 가지고 있습니다. The Northern Miner, MINING.COM, 그리고 Canadian Mining Journal의 인수는 EarthLabs의 글로벌 입지를 강화하고 포괄적인 기술 미디어 제국을 창출합니다.
EarthLabs Inc. (TSXV: SPOT) annonce ses résultats financiers pour le quatrième trimestre et l'année fiscale 2024, se terminant avec 42,9 millions de dollars en caisse, l'acquisition de grandes marques de médias miniers et une croissance stratégique dans les portefeuilles d'investissement. Malgré les défis, la société démontre une croissance tactique, des acquisitions judicieuses et vise à révolutionner l'industrie des médias miniers. L'acquisition de The Northern Miner, MINING.COM et Canadian Mining Journal renforce la présence mondiale de EarthLabs et crée un empire technomédia complet.
EarthLabs Inc. (TSXV: SPOT) kündigt die Finanzergebnisse für das vierte Quartal und das Geschäftsjahr 2024 an, abschließend mit 42,9 Millionen Dollar in bar, Übernahmen bedeutender Marken im Bergbaumedienbereich und strategischem Wachstum in den Investmentportfolios. Trotz Herausforderungen zeigt das Unternehmen taktisches Wachstum, kluge Übernahmen und strebt danach, die Bergbaumedienindustrie zu revolutionieren. Die Übernahme von The Northern Miner, MINING.COM und Canadian Mining Journal stärkt die globale Präsenz von EarthLabs und schafft ein umfassendes Technologie-Medien-Imperium.
Positive
  • Completed acquisition of major mining media brands, solidifying global presence

  • Strategic growth in investment and media portfolios sets groundwork for future success

  • Tactical acquisitions made below market norms showcase smart financial decisions

  • Focus on technology integration in mining media industry to lead and innovate

  • Revenue diversification with acquisitions of The Northern Miner, MINING.COM, and Canadian Mining Journal

Negative
  • Decline in advertising revenue from $3,045,308 to $2,206,523 for the year ended December 31, 2022

  • Net investment losses of $2,277,329 in 2023 compared to gains of $11,062,919 in 2022

  • Impairment of goodwill and intangible assets amounting to $9,530,129 in 2023

  • Net loss from operations increased to $16,623,683 in 2023 from $26,610,837 in 2022

  • Decrease in subscription revenue from $971,756 to $875,682 for the year ended December 31, 2022

  • Ended the year with total cash, cash equivalents, and investments of $42.9M;
  • Acquisition of The Northern Miner, MINING.COM and Canadian Mining Journal, solidifies EarthLabs as one of the largest mining media groups globally;
  • Foundational year for EarthLabs for strategic growth and acquisitions in the investment and media portfolio, forging a new frontier where technology meets mining media.

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:

  • Closed its previously announced acquisition of 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.
  • Advertising revenue of $677,279 as compared to $1,398,703 for the three months ended December 31, 2022;
  • Subscription revenue of $230,391 as compared to $200,530 for the three months ended December 31, 2022;
  • Net investment losses of $1,263,270 from our investment portfolio as compared to net investment gains of $1,026,576 for the three months ended December 31, 2022;
  • Impairment of goodwill and intangible assets of $9,530,129 as compared to $6,755,282 for the three months ended December 31, 2022;
  • Net loss from operations of $11,136,066 (basic loss per share of $0.08) as compared to $12,946,730 (basic loss per share of $0.06) for the three months ended December 31, 2022;
  • Net loss and comprehensive loss of $11,220,627 (basic loss per share of $0.08) as compared to net income and comprehensive income of $7,349,677 (basic earnings per share of $0.06) for the three months ended December 31, 2022. In the prior year period, the Company sold its consulting division for realized gains from disposition of subsidiaries and assets, net of tax of $20,445,301.

Highlights for the twelve-months period ended December 31, 2023

  • Completed the year with total cash and cash equivalents, due from brokers, investments and equity investments of $42,943,109 as compared to $52,546,191 as at December 31, 2022;
  • Advertising revenue of $2,206,523 as compared to $3,045,308 for the year ended December 31, 2022;
  • Subscription revenue of $875,682 as compared to $971,756 for the year ended December 31, 2022;
  • Sales of exploration maps of $223,038 as compared to $286,324 for the year ended December 31, 2022;
  • Net investment losses of $2,277,329 from our investment portfolio as compared to 11,062,919 for the year ended December 31, 2022;
  • Impairment of goodwill and intangible assets of $9,530,129 as compared to $6,755,282 for the year ended December 31, 2022;
  • Net loss from operations of $16,623,683 (basic loss per share of $0.12) as compared to $26,610,837 (basic loss per share of $0.20) for the year ended December 31, 2022;
  • In the prior year, the Company had realized gains from disposition of subsidiaries and assets of $20,445,301, net of taxes, offset by net loss from discontinued operations of $679,473 (basic earnings per share of $0.15);
  • Net loss and comprehensive loss of $16,623,683 (basic loss per share of $0.12) as compared $6,845,009 (basic loss per share of $0.05) for the year ended December 31, 2022.

"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) highlightsThree months ended
December 31,
 Twelve months ended
December 31,
20232022 20232022
Advertising $677,279$1,398,703 $2,206,523$3,045,308
Subscriptions230,391200,530 875,682971,756
Sales of exploration maps33,610100,274 223,038286,324
Net investment gains (losses)(1,263,270)1,026,576 (2,277,329)(11,062,919)
Other income167,40056,167 902,780207,536
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 1,187,884618,337 2,152,2413,064,204
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 highlightsDecember 31, 2023 December 31, 2022
Cash and cash equivalents$5,227,657 $25,346,049
Due from brokers485,949 3,180,098
Accounts receivable, net of expected credit losses120,253 116,214
Investments, at fair value35,091,151 21,774,168
Equity investment2,138,352 2,245,876
Property, equipment and right-of-use assets1,252,737 146,244
Intangible Assets3,127,000 8,105,504
Goodwill624,290 2,210,980
Total assets49,251,445 63,271,860
Accounts payable and accrued liabilities1,287,021 1,002,120
Deferred revenue1,921,102 1,004,440
Income tax payable- 1,017,408
Total promissory note980,971 -
Total lease liabilities1,155,154 139,509
Deferred tax liabilities204,690 1,572,001
Total liabilities5,589,812 5,176,033
Share capital, contributed surplus, and warrants52,224,357 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: investors@earthlabs.com

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/207301

FAQ

What were EarthLabs' total cash, cash equivalents, and investments at the end of FY 2024?

EarthLabs ended FY 2024 with total cash, cash equivalents, and investments of $42.9M.

What major acquisitions did EarthLabs make in 2023?

EarthLabs acquired The Northern Miner, MINING.COM, and Canadian Mining Journal in 2023.

What was the net loss from operations for EarthLabs in 2023?

EarthLabs had a net loss from operations of $16,623,683 in 2023.

How did EarthLabs' advertising revenue change in 2023 compared to 2022?

EarthLabs' advertising revenue decreased from $3,045,308 to $2,206,523 in 2023.

What was the net investment loss for EarthLabs in 2023?

EarthLabs had net investment losses of $2,277,329 in 2023.

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