OTTAWA, April 30, 2019 /CNW/ - Leonovus Inc.,
("Leonovus, the Company, we and our") (TSXV: LTV) (OTC:
LVNSF) today announced its operating and financial results
and business update for the year ended December 31, 2018. Unless otherwise noted all
amounts are in USD.
The Company incurred a net loss of $4,924,000 for the year ended December 31, 2018, and a net loss of $1,321,000 for the fourth quarter of 2018
compared to a net loss of $2,725,000
for the year ended December 31, 2017,
and a net loss of $1,120,000 for the
fourth quarter of 2017.
We closed our financing in December
2017, which meant that due to the significant expansion of
our development and go-to-market teams in 2018, our operating
expenses increased to $5,063,000 for
the year ended December 31, 2018, and
$1,259,000 for the fourth quarter of
2018 as compared to $1,626,000 and
$648,000 for the year ended
December 31, 2017, and the fourth
quarter of 2017, respectively.
The Company had a cash balance of $3,609,000 on December 31,
2018, as compared to $10,906,000 on December
31, 2017. Working capital was $3,024,000 on December 31,
2018, as compared to $7,643,000 on December 31,
2017. After December 31, 2018,
$1,564,000 of additional funding was
raised through warrants that expired in March of 2019. After
implementing several cost management initiatives and factoring in
the elimination of one-time start-up costs from 2018, the Company's
burn rate will drop to CAD
350,000-400,000 per month.
On April 24th, we
announced the closing of a contract for a major international
mining company. Also, we have over 70 qualified prospects in
the sales pipeline with an unweighted revenue potential of
CAD 6,900,000. The first $500,000 of an up to $2,000,000 initial contract from the Canadian
federal government contract is now in the procurement phase with
three major departments. One other large government project, with
petabytes of stored data, has completed its proof of concept
testing and is now moving into the final due diligence phase.
$1,300,000 of revenue is at the
quantification stage of our sales process and includes several new
potential customers including another bank, new government
departments and several multinationals.
As previously communicated, revenue is targeted to ramp this
quarter. We have a software development initiative to add new
features to the existing product to reduce the long selling
cycle. We expect to announce new partnership agreements this
quarter along with vital technical integrations with core software
infrastructure vendors in our space.
The Company is also negotiating with investment banks in the
USA and Canada to lead the fundraising for the Galaxa
digital security offering. This project continues to be an
essential strategic element to our overall distributed data storage
strategy. We hope to select and contract with a funding group by
the end of May 2019.
The last six months have been very active for Leonovus in the
area of protecting our intellectual property. We have new
patents issued in USA and Europe
with coverage in ten countries including Great Britain, Germany, France, Switzerland, and Ireland. These patents
protect a data-centric, highly flexible and scalable distributed
data center concept, de-coupling the data from its underlying
resources whether on-premises or in the cloud.
We now have eight issued patents that span eleven countries,
which include over 350 claims. We continue to pursue
the examination of several additional patents in both North America and Europe.
Of note is that the first two patents were filed for technology
and methods relating to the Galaxa project. These patents
cover concepts as scalable distributed blockchain processing in a
virtualized environment and a robust, enterprise-grade, global,
vendor-neutral, secure cloud services marketplace for any services,
beginning with storage and compute. They also cover a more
straightforward, lower cost, higher efficiency way for enterprises
to benefit from the blockchain and smart contracts through the
natural interfaces of Smart Services. Several more patents are
being drafted with an expectation of filing in May and June.
"The data storage technology market has changed significantly
since the fall of 2017. Based on feedback from the market, we
decided to add an emergent/tactical front end to our product to
solve urgent enterprise data storage problems. We expect that this
evolution of our multi-cloud storage solution to more of a data
management platform gives us a stronger market appeal and a shorter
sales cycle. In a few weeks, we will announce summary details about
our next-generation data storage product, which includes machine
learning technology. The Company intends to launch this new
technology later in the summer of 2019," said Michael Gaffney, Chair and CEO.
About Leonovus
Leonovus is a cloud solutions software provider that offers the
leading blockchain hardened hyper-secure software-defined object
storage solution. Designed with the IT manager in mind,
Leonovus' patented algorithms 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 and www.galaxa.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.