OTTAWA, Nov. 28, 2018 /CNW/ - Leonovus Inc.,
("Leonovus or the Company") (TSXV: LTV) (OTC: LVNSF) today
announced its operating and financial results for the quarter ended
September 30, 2018. All amounts are
in USD.
As of this date, Leonovus has identified and qualified 62
customer projects and added three channel partners in Q3. Most of
these customers are large enterprises. The Company expects to add
nine new product trials by the end of Q1 2019. These customers
include government departments, Fortune 1,000 companies, law
enforcement agencies, health care and NGOs. These trials include
four Canadian Federal Departments that are in or entering into a
statement of work and trial agreements under the BCIP program and
schedule to begin validation in Q2-Q3 FY2019 that will represent a
potential of up to $2M CAD in
recognizable revenue in the short run with the potential to expand
and continue into future years.
Enterprise and government sales cycles remain lengthy as
Leonovus is an enabler of secure data archiving and migration which
entails numerous variables to be in place including customer
enabling cloud services, compliance management, data sovereignty,
data management, project planning and implementation.
Leonovus now has seven patents issued, with an additional two in
final review stage and three in draft as well as over 320 patent
claims. The patent issued this past quarter gained protection in 8
EU countries.
The Company incurred a net loss of $1,633,000 in the third quarter of 2018 and a net
loss of $3,603,000 for the first nine
months of 2018 compared to a net loss of $655,000 in the comparable quarter of 2017 and a
net loss of $1,605,000 for the first
nine months of 2017. Predominantly due to the expansion of our
development and go-to-market team our operating expenses increased
to $1,557,000 for the third quarter
of 2018 and $3,815,000 for the first
nine months of 2018 as compared to $270,000 and $987,000 for the third quarter and first nine
months of 2017, respectively. Revenue for the third quarter of 2018
was $11,000 of production revenue
compared to $9,000 proof of concept
revenue for the same quarter of 2017. The Company has additional
potential projects with its large Canadian banking client which are
expected to generate additional revenues in 2019.
The Company has a strong balance sheet and cash balance which
was $6,284,000 on September 30, 2018, as compared to $1,094,000 on September
30, 2017.
Leonovus is the only software-defined storage solution that
shreds and spreads data securely across multiple public clouds
while making it unintelligible to anyone with direct access to the
cloud storage. Using its patented data fragmentation and
distribution techniques, Leonovus also ensures that data recovery
should any of the cloud storage endpoints become unavailable,
providing high levels of data durability and enabling customers to
avoid vendor lock-in. Our blockchain technology is a significant
differentiator for hyper-secure data storage applications requiring
a chain of evidence, compliance or auditability.
The Galaxa whitepaper was released on November 12, 2018, at a special event during the
Singapore Fintech Festival. "Over the past twelve months, we have
focused on productizing our technology and building out all the
necessary parts of an innovative software company. The Galaxa
project is an integral part of the Company's strategy as it will
significantly leverage our investment in hyper-secure distributed
data storage," said Michael Gaffney,
Chairman & Chief Executive Officer.
Mr. Gaffney is the keynote speaker at Wall Street event
organized by SMC Capital in New York
City on November 29. SMC
Capital is an NYC-based investment and advisory firm focused
exclusively on projects and tokens related to blockchain tech,
digital currency, and Security Token Offerings (STOs).
About Leonovus
Leonovus is a cloud solutions software provider that offers the
leading blockchain enabled software-defined object storage solution
(SDOSS) and governance, risk management and compliance (GRC)
solution for the modern enterprise. Designed with the IT manager in
mind, Leonovus' patented algorithms virtualize, transform, slice
and disperse data across a network of on-premises, hybrid or
multi-cloud storage nodes – allowing for the most secure yet
internally accessible form of object-based data storage that
provides GRC across the entire solution. The advanced
geo-distributed architecture minimizes latency, optimizes
geo-availability, reduces remote backup costs and meets data
sovereignty requirements. With its software and hardware
agnostic design, Leonovus provides Petabyte scalability
and allows the enterprise to utilize its existing idle storage
resources, extend the useable lifespan of depreciated resources and
improve the enterprise's overall ROI. To learn more, please
visit www.leonovus.com.
This press release may contain forward-looking statements and
information, which may involve risks and uncertainties. The
results or events predicted in these statements may differ
materially from actual results or events. Factors that might cause
a difference include, but are not limited to, competitive
developments, risks associated with Leonovus' growth, the state of
the financial markets, regulatory risks and other factors. There
can be no assurance or guarantees that any statements of
forward-looking information contained in this release will prove to
be accurate. Actual results and future events could differ
materially from those anticipated in such statements. These and all
subsequent written and oral statements containing forward-looking
information are based on the estimates and opinions of management
on the dates they are made and expressly qualified in their
entirety by this notice. Unless otherwise required by applicable
securities laws, Leonovus disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Readers
should not place undue reliance on any statements of
forward-looking information that speak only as of the date of this
release. Further information on Leonovus' public
filings, including its most recent audited consolidated financial
statements, are available at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Leonovus Inc.