OTTAWA, Aug. 29, 2018 /CNW/ - Leonovus Inc.,
("Leonovus") (TSXV: LTV) today announced its operating and
financial results for the quarter ended June
30, 2018. All amounts are in USD.
As of this date, the Company has identified and qualified 51
customer projects including nine federal government projects. Most
of these customers are large organizations. All previously
announced proof of concept ("POCs") and trials continue to operate
and based on current information we expect to convert close to 100%
of these POC's into sales with production deployments.
The company is executing to plan. Since the completion of the
December 2017 financing, the
productization of the core offering is now largely complete.
Leonovus 4.0 will be released at the end of September 2018 with our first full blockchain
integration and application for law enforcement and chain of
evidence applications. We have recruited and excellent team
with thirty-two staff on board and plan to grow to forty employees
by the end of the year.
Because we are an enterprise software-defined storage solution,
the sales cycle from POC or trial installations is twelve to
eighteen months. Revenue will start in Q3 2018 and we expect the
revenue ramp to begin in Q2 of 2019. Current market feedback is
that the core Leonovus platform is rock solid and is uniquely
positioned as a cloud-based software-defined storage solution.
The Company incurred a net loss of $1,236,000 in the second quarter of 2018 and a
net loss of $1,970,000 for the first
half of 2018 compared to a net loss of $308,000 in the comparable quarter of 2017 and a
net loss of $950,000 for the first
half of 2017. Total operating expenses increased from $1,236,000 for the second quarter of 2018 and
$2,258,000 for the first half of 2018
as compared to $326,000 and
$717,000 for the second quarter and
first half of 2017, respectively. Revenue for the second quarter of
2018 was nil compared to the same quarter for 2017. As mentioned on
May 30, 2018, the Company increased
investment in Sales, Marketing, Product Development and G&A in
the second quarter of 2018 and expects to further increase spending
in the third quarter of 2018.
The Company has a strong balance sheet and cash balance which
was $8,019,000 at June 30, 2018, as compared to $187,000 at June 30,
2017.
After June 30, 2018, the company
settled past salaries owed for $426,000 including legal fees which will reduce
accrued compensation by $736,000 for
a net gain on settlement of $310,000.
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 can be
recovered should any of the cloud storage endpoints become
unavailable, providing high levels of data durability and enabling
customers to avoid vendor lock-in.
The white paper for our ICO project was drafted over the summer.
We plan to announce the next steps in our ICO plans before the end
of Q3 2018. "Since our financing closed in December 2017 the company has grown to thirty-two
employees and will grow to approximately forty by the end of 2018.
Significant effort over the past six months to productize our
technology and gain awareness with channel partners is beginning to
show results. We expect to announce several more significant sales
partners this fall. Our blockchain development team is also making
great strides, and we expect to announce a new enterprise product
offering in the next few weeks," said Michael Gaffney, Chairman & Chief Executive
Officer.
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.