OTTAWA, Nov. 17, 2020 (GLOBE NEWSWIRE) -- Leonovus Inc., (“Leonovus”) (TSXV: LTV) today announced its operating and financial results for the quarter ended September 30, 2020. Amounts are in U.S. dollars unless otherwise stated.
The Company recorded revenues of $69,000 during Q3 2020 compared to revenues of $Nil in Q3 2019. Year-to-date revenues were $191,000 (YTD 2019 - $19).
The Company incurred a net loss of $421,000 in the third quarter ended September 30, 2020 (YTD 2020 - $1,176,000), compared to a net loss of $1,047,000 in Q3 2019 (YTD 2019 - $4,042,000). Total operating expenses decreased to $376,000 for the third quarter of 2020 compared to $1,010,000 in the same period in 2019. Year-to-date operating expenses were $1,221,000 compared to $3,363,000 in 2019.
The Company had cash of $137,000 as of September 30, 2020, as compared to $545,000 on December 31, 2019. In Q3 2020, the Company was successful in obtaining a short-term bridge loan in the amount of $299,000 and is currently looking at obtaining further financing.
The Innovation Solutions Canada Program (formerly known as the Business in Canada Innovation Program) with the Government of Canada (“GoC”) awarded Leonovus a $435,700 contract in February 2020. The Company has tested its software with the Department of Justice since February 2020. Conditional upon final acceptance, and a purchasing contract, Justice will deploy a pan-Canadian Smart Filer and Vault solution.
As previously announced, the Company created the CONSOLIDATA project to address the current need for consolidated COVID-19 information. Canadian healthcare researchers and administrators need a secure consolidated system to access all Canadian COVID-19 hospitalization, critical care, treatment efficacy information, and potentially, inventory data. Ideally, the systems could collect and manage international data, as well as secondary source data. CONSOLIDATA solves these problems.
Proof of concept proposals were sent to Innovative Solutions Canada, the Department of National Defence and all Canadian provinces and territories. In August 2020, ISC preapproved a purchase of Leonovus CONSOLIDATA COVID-19 pilot program for up to $470,000 contingent upon Leonovus finding a sponsoring government department or agency. Since August, numerous presentations and proposals to various public health groups in the federal government have been made, and as of this date the Company is in active discussion with these departments.
The huge success of the Snowflake IPO in September pointed to another opportunity for Leonovus technology – a data integration tool for data warehouses. Using our Smart Filer and Vault technology, Leonovus can organize, ingest and feed data lakes and data warehouses in a way that greatly improves data insights from big data analytics. We expect to deliver a product for this market in Q2 2021.
Leonovus is also finalizing a software offering for the legal vertical - hyper-secure virtual data rooms. The virtual data room market is a multi-billion-dollar market with a CAGR of 15%. We plan to launch this product in Q2 2021.
“It has taken us three years to engage with the federal government and customize a solution using our proprietary Vault, Smart Filer, and CONSOLIDATA products. Our unique ability to securely manage data in the cloud is the key reason for this GoC traction. If we can sign our CONSOLIDATA partner before the end of the year, Leonovus has the potential to achieve over $900,000 CND in booked contracts in 2020,” said Michael Gaffney, Chair and CEO.
About Leonovus
Leonovus is a software provider that offers storage solutions that untether your data, allowing you to embrace cloud storage securely, simply and cost-effectively while giving you the flexibility to deal with the ever-evolving cloud storage landscape.
Leonovus 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.
Designed with the IT manager in mind, Leonovus Vault uses patented algorithms to 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, Vault provides petabyte scalability. It allows the enterprise to use 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 Pretli
Chief Financial Officer
gpretli@leonovus.com