GoldSpot Reports Three and Nine Months Ended September 30, 2019 Unaudited Financial Result

GoldSpot Discoveries Corp. has provided the unaudited financial results of the company, as at and for the three and nine months ended Sept. 30, 2019.

Highlights for the three-month period ended Sept. 30, 2019:

  • Increased consulting revenue by 615 per cent to $750,911 from $104,944 for the three months ended Sept. 30, 2018;
  • Non-recurring impairment of intangible assets of $927,378 due to the company’s decision to defer further development of Resource Quantamental;
  • GoldSpot client Gran Colombia announced final assay results at its Segovia operations, acknowledging the role of the company’s technology in the exploration program.

Highlights for the nine-month period ended Sept. 30, 2019:

  • Increased consulting revenue by 137 per cent to $1,665,384 from $703,744 for the nine months ended Sept. 30, 2019;
  • Completed a brokered private placement financing for aggregate gross proceeds of $7.6-million;
  • Completed a reverse takeover transaction with Duckworth Capital Corp. and commenced trading on the TSX Venture Exchange under the symbol SPOT;
  • Completed the quarter with total cash and cash equivalents and investments of $8.3-million.

The attached table includes selected unaudited financial results as at and for the three and nine months ended Sept. 30, 2019, with comparatives.

                                                  Three months ended Sept. 30,      Nine months ended Sept. 30, 
                                                      2019               2018           2019              2018     

Consulting income                           $      750,911    $       104,944 $    1,665,384   $       703,744 
Net change in unrealized gains (losses) on 
investments                                        (13,625)                 -        332,625                 - 
Operating, general and administrative           (1,186,885)          (389,231)    (5,343,678)       (1,464,350)
Impairment of intangible assets                   (927,378)                 -       (927,378)                - 
Net (loss) and comprehensive (loss) for the 
period                                          (1,362,253)          (284,287)    (4,145,711)         (760,606)
(Loss) per common share based on net (loss) 
for the period -- basic and diluted                  (0.01)             (0.00)         (0.05)            (0.01)

GoldSpot’s president and chief executive officer, Denis Laviolette, commented: “We are pleased with our ongoing progress during the most recent quarter. With our client base taking advantage of the hot summer weather to execute their drilling programs, we took advantage of that seasonal sales cycle to focus on further refining our technology and generating new business. Our consulting revenue is up and we are concentrating our efforts on a strong finish to a pivotal year in our history.”

Mr. Laviolette added: “We are proud of our work on Resource Quantamental, which we deployed internally in September. In developing RQ, we have created valuable intellectual property and compiled an extensive dataset that will serve GoldSpot in its other projects. For now, however, we do not see a clear path to monetizing the platform and have therefore decided to refocus our resources internally. As a result, IFRS requires us to impair the asset. We remain confident, however, in RQ’s potential and continue to explore avenues to advancing it towards commercialization.”

About GoldSpot Discoveries Corp.

GoldSpot Discoveries is a Canadian technology company transforming traditional industries using artificial intelligence and machine learning. As the first publicly traded AI (artificial intelligence) company in mineral exploration, GoldSpot Discoveries uses machine learning as a powerful extension of geological brainpower to unlock deep value in data. In addition to service offerings and strategic investments, GoldSpot has developed a first-of-its-kind AI-driven trading platform giving investors a new way to play the mining space.