Financial hit Corporate Update
The sector that GLN operates in experienced a significant shift in its operational and competitive landscape (as expressed in the Company's September 26, 2019 news release) and this shift had a material negative impact on the Company's operations, customers and business partners. As a result, the Company generated $751,971 in revenue and incurred a net loss of $3,333,065 in Q3.
Following a significant change within GLN's core market, this technology is currently being repositioned into the customer acquisition space to help online retailers find customers on a commission basis. The Company initially intends to target the CBD and gaming.
| Adjusted EBITDA | | 2019 | | | 2018 | |
| | | $ | | | $ | |
| Net Comprehensive Income (Loss) for the Period | | (23,969,513 | ) | | (1,684,776 | ) |
| Reporting currency translation adjustment | | 365,218 | | | - | |
| Listing fee | | - | | | 2,319,542 | |
| Acquisition-related expenses | | 109,875 | | | - | |
| Gain on forgiveness of debt | | 595,368 | | | (238,609 | ) |
| Write offs | | 6,658,478 | | | - | |
| Foreign exchange expense | | 269,153 | | | 37,322 | |
| Fair value of change of derivative liability | | - | | | (234,000 | ) |
| Bad debt expense | | 10,912,449 | | | - | |
| Share-based compensation | | 220,278 | | | 1,219,230 | |
| Amortization | | 699,257 | | | 6,252 | |
| Financing costs | | 670,187 | | | 33,779 | |
| Adjusted EBITDA | | (3,469,250 | ) | | 1,375,638 | |
It's hard to collect from businessess where there are no assets to sieze for delinquent or non payment after services have already been rendered. It can lead to financial hardship or even bankruptcy.