Dealnet Capital Corp. announced earnings results for the third quarter ended September 30, 2017. For the quarter, the company recorded a loss before income taxes of CAD 16.6 million compared to a loss before income taxes of CAD 3.1 million for the three months ended June 30, 2017 and a loss before income taxes of CAD 1.6 million for the corresponding quarter in 2016. Adjusting for the impairment loss of CAD 13.7 million and non-recurring severance costs of CAD 1.1 million included in salaries, wages and benefits, net loss for the three months ended September 30, 2017 would have been CAD 1.9 million, a CAD 1.3 million improvement over the prior quarter, and CAD 234,000 higher than the same period in 2016.

For the third quarter ended September 30, 2017, the company recognized an impairment loss of CAD 10.6 million for these dealer relationships and CAD 0.6 million for the brand and trademarks. In addition, as part of its annual impairment testing of goodwill, the company determined that the carrying value of its Live Engagement segment exceeded its fair value. As a result, during the period the company recognized an impairment loss of CAD 1.8 million for its goodwill, CAD 0.5 million for its computer software intangible asset and CAD 0.2 million for its Customer relationships intangible asset in this segment.