Leonovus Inc. Announces Q2 2019 Financial Results and Business Update
August 27 2019 - 4:00PM
Leonovus Inc., (“Leonovus”) (TSXV: LTV) today
announced its operating and financial results for the quarter ended
June 30, 2019. Amounts are in U.S. dollars unless otherwise stated.
The Company incurred a net loss of $818,000 in
the second quarter of 2019 and a net loss of $2,995,000 for the
first half of 2019 compared to a net loss of $1,230,000 in the
comparable quarter of 2018 and a net loss of $1,970,000 for the
first half of 2018. Total operating expenses decreased to $796,000
for the second quarter of 2019 compared to $1,236,000 in Q2 2018.
For the six months ended June 30, 2019, operating expenses
increased from $2,258,000 in 2018 to $2,353,000 in 2019. Revenue
for the second quarter of 2019 was $19,000 compared to $Nil the
same quarter for 2018. The Company continued its investment in
Sales, Marketing, Product Development and G&A however at a
reduced rate beginning in the second quarter of 2019. The Company
continues to look for cost saving initiatives with plans to reduce
expenses to $300,000 per month.
The Company had cash and cash equivalents of
$1,545,000 as at June 30, 2019, as compared to $3,646,000 at
December 31, 2018. The Company will need additional cash by Q1
2020. Revenues from Smart Filer are expected to start in Q4 2019.
The financing of the Galaxa project is currently under review as no
funds have been raised to date. Feedback from potential investors
that they understand and like the project but would prefer it to be
revenue-generating before they invest. The Galaxa project continues
to be an important corporate strategic initiative and the Company
will launch a limited version of the product this fall to support
the Smart Filer project. Our primary focus is on generating
revenue, but we must consider all sources of funding, including new
equity or debt, strategic initiatives and/or partnerships.
On August 13, 2019 Leonovus launched the free
‘Data Discovery Tool’, which allows customers to visualize their
file storage profile and create reports that include the number of
files and the amount of storage they consume according to file type
and the date they were last accessed.
Early this fall we will release another new
product called Leonovus Smart Filer with the capabilities of Data
Discovery Tool embedded. Smart Filer addresses the greater than 50%
compounded unstructured data growth problem (Gartner, 2018) facing
many IT departments by taking current file server infrastructure
and automatically extending it to lower-cost secondary or cloud
storage.
“We have had eighteen months of operations since
our financing and have eliminated and or paid off over 3,75 M in
debt that we inherited, built the team, and successfully launched
our Vault multi-cloud data controller technology with several
successful proof of concept installations. However, it became clear
in late 2018 that while companies were moving their data to a
single cloud, moving their data to Vault’s multi-cloud architecture
was ‘futuristic’. The Vault technology was successful in all our
proof of concept installations, but the purchase horizon was too
far in the future. We were not solving an immediate IT problem.
Based on the feedback from potential customers, we decided to
design and build the Smart Filer product. The first generally
available release of Smart Filer will launch in mid-September 2019.
The analytics tools in Smart Filer were packaged into the free Data
Discovery Tool, which launched on August 13, 2019 as an early
marketing initiative. Based on current feedback from customers, we
expect to receive purchase orders for Smart Filer this fall,” said
Michael Gaffney, Chair and CEO.
Smart Filer is an information lifecycle
management (ILM) solution that analyzes existing file storage and
extends its capacity automatically and transparently. According to
customer-defined policies, infrequently accessed files are
automatically removed from high-cost, high-performance primary
storage, and placed in secondary or cloud storage, without any
changes to how users and applications access them. When Leonovus
Vault is deployed with Smart Filer, customers not only have lower
data storage costs but enhanced data security and durability.
Galaxa Smart Cloud will also launch this fall,
which in combination with Smart Filer and Vault gives Leonovus a
unique one-stop-shopping product in the data storage industry.
Customers will perform data storage analytics with the Data
Discovery Tool; use Smart Filer to seamlessly apply policy and
offload data to the cloud; optionally use Vault in a multi-cloud
storage architecture for hyper-securing the data and finally Galaxa
Smart Cloud will offer buyers a pre-packaged marketplace of cloud
storage vendors. With this complete vertically integrated and
interoperating suite of products and services, Leonovus accelerates
and simplifies cloud offload and migration, meaning the time to
reaping the economic benefits of cloud-based data storage is
shortened.
About Leonovus
Leonovus is a software provider that offers object-based storage
solutions which untether your data, both on-premises and in the
cloud. Designed with the IT manager in mind, Leonovus'
patented algorithms analyze, classify, encrypt, shred and spread
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 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.
For More Information, please contact:George
PretliChief Financial Officergpretli@leonovus.com
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