GoldSpot Discoveries (SPOT) AI Stock Analysis

• Market Cap: $22.74M
• Dividend Yield: N/A
• Average Volume (3M): 93.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: 127.63%
• EPS Growth: 62.71%
• Country: CA
• Employees: 32
• Sector: Technology
• Sector Strength: 77
• Industry: Information Technology Services
• EPS (TTM): -0.04
• Shares Outstanding: 137,799,090
• 10 Day Avg. Volume: 33,604
• 30 Day Avg. Volume: 93,723
• PEG Ratio: -0.06
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

GoldSpot Discoveries presents a mixed financial picture with notable challenges. While its strong equity position provides some stability, operational inefficiencies and cash flow issues weigh heavily on its financial performance. Technically, the stock shows neutral to slightly negative momentum, while its valuation suggests a need for significant improvement in profitability. The overall outlook is cautious, with key improvements needed in revenue generation and expense management to enhance shareholder value.

GoldSpot Discoveries Business Overview & Revenue Model

Company Description

EarthLabs Inc. operates as a technology services company in mineral exploration in Canada. The company operates in two segments, Exploration Technology Division and Financial Technology Division. The Exploration Technology Division segment offers LithoLens, a proprietary core imaging technology that automatically and consistently examines old core images to create fresh and accurate geological logs; MinusOne, a proprietary geophysical data inversion platform for creating 3-D models from geophysical data processed using deterministic and stochastic inversion methods; GeoFEZ, a processing software that extracts new insight from common exploration data, such as potential field data, topographic data, hyperspectral data, radiometric data, and electromagnetic data; and multi-parameter acquisition survey system, which allows the simultaneous capture of gradient magnetics, LiDAR, 4-band orthophoto imagery, and electromagnetic information in the very low frequency band and radiometric data. This segment also provides GeoticLog, a customizable core-logging platform; GeoticMine, a 3-D geological modelling and visualization solution; GeoticSection, a drill-hole visualizer; GeoticCAD, an industry tool with an integrated drawing motor; and GeoticField, a field-based survey data entry platform. The Financial Technology Division segment offers Resource Quantamental, an artificial intelligence decision engine for investments; CEO.CA, a social network for investors and traders in junior resource and venture stocks with online and mobile functionality; and DigiGeoAtlas platform, a software-based GIS interactive mapping interface alongside its DigiGeoMaps distribution business, as well as provides a range of cloud-based and interoperable web applications. This segment also provides smart targets, image analytics, geophysics, structural geology, geochemistry, and field geology services. The company was formerly known as GoldSpot Discoveries Corp. and changed its name to EarthLabs Inc. in September 2022. EarthLabs Inc. is headquartered in Toronto, Canada.

How the Company Makes Money

GoldSpot Discoveries generates revenue through a combination of service contracts and technology licensing agreements. The company offers its AI and machine learning expertise to mining companies, charging fees for data analysis services, which include geological modeling and target identification. Additionally, GoldSpot licenses its proprietary software tools to exploration companies, providing them with advanced analytics capabilities. The company also enters into strategic partnerships and joint ventures with mining firms to share in the potential upside of successful mineral discoveries, further supplementing its revenue streams.

GoldSpot Discoveries Financial Statement Overview

Summary

GoldSpot Discoveries shows potential with improving revenue, but it faces significant profitability and cash flow challenges. While the balance sheet remains robust with low leverage, the company struggles to translate its operations into positive cash flow, posing risks to financial sustainability.

Income Statement

The company has experienced significant volatility in revenue, with a recent improvement in TTM revenue but a large increase in net losses. Gross profit margin is positive at 61.64%, yet net profit and EBIT margins are heavily negative, indicating profitability issues. The revenue growth rate is strong at 279.32% from 2023 to TTM 2024, but this is primarily attributed to recovering from a negative revenue in 2022.

Balance Sheet

The balance sheet shows a solid equity position with an equity ratio of 85.55%, suggesting financial stability. The debt-to-equity ratio remains low at 0.05, indicating low leverage risk. However, a declining return on equity, currently negative at -28.91% in TTM, points to inefficiencies in generating returns for shareholders.

Cash Flow

Free cash flow remains negative, albeit with a minor improvement in growth rate compared to previous years. The operating cash flow to net income ratio is negative, reflecting challenges in converting earnings into cash flow. The free cash flow to net income ratio is also negative, indicating ongoing cash flow struggles despite a slight reduction in cash outflows.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
7.32M	1.93M	-6.84M	16.12M	17.46M	2.96M
	Gross Profit
4.52M	686.28K	-8.01M	15.82M	17.46M	2.96M
	EBIT
-4.74M	-9.00M	-16.23M	4.08M	11.95M	-3.71M
	EBITDA
-12.37M	-17.27M	-24.19M	3.13M	11.97M	-4.58M
	Net Income Common Stockholders
-12.36M	-16.62M	-6.85M	11.04M	10.38M	-4.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
649.89K	42.46M	49.37M	49.73M	22.29M	9.63M
	Total Assets
662.09K	49.25M	63.27M	73.13M	23.73M	10.26M
	Total Debt
0.00	2.14M	139.51K	226.74K	281.58K	236.41K
	Net Debt
-649.89K	-3.09M	-25.21M	-6.33M	-4.19M	-4.53M
	Total Liabilities
6.22K	5.59M	5.18M	12.11M	5.34M	2.75M
	Stockholders Equity
655.86K	43.66M	58.10M	61.02M	18.29M	7.51M
Cash Flow		Free Cash Flow
-1.89M	-17.67M	18.65M	-10.74M	462.11K	82.89K
	Operating Cash Flow
-1.66M	-17.24M	18.66M	-9.44M	486.65K	663.50K
	Investing Cash Flow
-2.73M	-2.94M	206.11K	-8.39M	-700.34K	-4.17M
	Financing Cash Flow
-181.66K	56.30K	-74.22K	19.91M	-81.35K	6.91M

GoldSpot Discoveries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SPOT, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.17, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SPOT.

GoldSpot Discoveries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$11.58B	10.33	-7.23%	2.94%	7.47%	-10.84%
KNR	58 Neutral	C$104.58M	13.71	124.21%	―	-52.43%	941.71%
PVT	54 Neutral	C$35.63M	―	-18.24%	―	-10.76%	-19.28%
SPOT	44 Neutral	$22.74M	―	-14.91%	―	127.63%	62.71%
FARM	40 Underperform	C$8.31M	―		―	-15.73%	-45.92%
VIS	35 Underperform	C$4.80M	―	-3466.37%	―	11.96%	59.43%

GoldSpot Discoveries Corporate Events

EarthLabs Reports Strong Revenue Growth Amidst Challenges in Fiscal 2024

EarthLabs Inc. reported a significant increase in advertising and subscription revenues for the fiscal year 2024, with advertising revenue rising by 176.9% and subscription revenue by 41.3%. Despite these gains, the company faced challenges with a net loss of $6.19 million for the year. EarthLabs is implementing cost-cutting measures and strategic investments to strengthen its portfolio and capitalize on opportunities in the mining sector, aiming to enhance shareholder value.

Spark’s Take on TSE:SPOT Stock

According to Spark, TipRanks’ AI Analyst, TSE:SPOT is a Neutral.

The overall score reflects the company’s strong revenue growth potential but is significantly offset by its profitability and cash flow challenges. The technical indicators suggest a bearish trend, while the negative P/E ratio highlights valuation concerns. These factors contribute to a cautious outlook for the stock.

To see Spark’s full report on TSE:SPOT stock, click here.

EarthLabs Releases New Episode Featuring Rua Gold’s New Zealand Ventures

EarthLabs Inc. has released the fourth episode of its documentary series, EarthLabs Expeditions, featuring Rua Gold Inc. This episode provides an in-depth look at Rua Gold’s operations in New Zealand’s Reefton Gold District, where the company holds significant land and focuses on high-grade gold projects. The series aims to showcase the real challenges and dedication within the junior mining industry, offering viewers a raw and engaging perspective.