OTTAWA, Aug. 19, 2020 (GLOBE NEWSWIRE) -- Leonovus Inc., (“Leonovus”) (TSXV: LTV) today announced its operating and financial results for the quarter and year-to-date ended June 30, 2020. Amounts are in U.S. dollars unless otherwise stated.
The Company recorded revenues of $74,000 during Q2 2020 compared to revenues of $19,000 in Q2 2019. Year-to-date revenues were $122,000 (YTD 2019 - $19,000).
The Company incurred a net loss of $273,000 in the second quarter ended June 30, 2020 (YTD 2020 - $723,000), compared to a net loss of $818,000 in Q2 2019 (YTD 2019 - $2,995,000). Total operating expenses decreased to $343,000 for the second quarter of 2020 compared to $796,000 in the same period in 2019. Year-to-date operating expenses were $845,000 compared to $2,353,000 in 2019.
The Company had cash of $88,000 as at June 30, 2020, as compared to $586,000 on December 31, 2019. The Company qualified for a National Research Council Innovation Assistance Program which was made available to assist software Companies with funding towards their employee costs during the COVID-19 pandemic. The approved amount of the funding was claimed in full during Q2 2020 with the amount having been received in August 2020.
Revenues were from the Canadian federal Justice Department’s trial of our Vault and Smart Filer technology and will continue into the first quarter of 2021. Feedback to date is positive and the Company is working with Justice to validate the ability of Leonovus to deliver an in-production solution later this year or early in 2021. The Department of National Defence is the next department identified to test and evaluate our software.
“As previously announced, the Company created the CONSOLIDATA project to address the current need for consolidated COVID-19 information, and trial proposals were sent to Innovative Solutions Canada, the Department of National Defence and all Canadian provinces and territories. A major Canadian university hospital group is actively considering a CONSOLIDATA trial. We expect feedback on our trial proposals in the next few months. Smart Filer and Vault are core components of the CONSOLIDATA offering. The third phase of our product strategy is the development of an AI/Machine Learning layer for automatic monitoring and improvement of a firm’s data storage management, costs and performance,” said Michael Gaffney, Chair and CEO.
“After two years of product development, the Company has now started to generate revenue. As revenues at this time are not sufficient to provide a positive cash flow, we are working with a group of lenders to provide bridge financing, and then followed shortly with a larger financing,” said Gaffney.
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.
Consolidata leverages the flexibility, transparency and automation of Smart Filer and blends it with the security, protection and multi-cloud capabilities of Vault, to produce a focused solution to the challenge of data aggregation and sharing across geographical and geopolitical boundaries.
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