OTTAWA, May 29, 2017 /CNW/ - Leonovus Inc. ("Leonovus") (TSXV: LTV) today announced its operating and financial results for the quarter ended March 31, 2017.
Revenue for Q1 2017 was nil compared to nil for the Q1 2017. The Company incurred a net loss of $426,000 for Q1 2017 compared to a net loss of $519,000 for Q1 2016. Expenses declined to $391,000 in Q1 2017 compared to $454,000 in Q1 2016. For the first time in several years the overall liabilities of the Company declined. The reduction was primarily due to cash inflows from a $1,300,000 private placement 'unit' that included one common share for $0.05 and one attached twenty-four month warrant at $0.10. The Company was also successful in reducing overall expenses quarter over quarter by significantly reducing G&A expenses by $140,000 between Q1 2016 and Q1 2017 while maintaining spending and investment in product development and significantly increasing spending in sales and marketing. Cash increased to $477,000 at the end of Q1 2017 compared to $88,000 at the end of Q1 2016.
"The company continues to develop and enhance its base product and expects to have signed up several customers by the end June 2017. We are also analyzing the present value of our patent portfolio, especially the media script acceleration patents that were developed and patented in the early days of Leonovus. Even though the Company has evolved into a software company I believe that these early patents may have significant value that can be monetized", said Michael Gaffney, Chairman & Chief Executive Officer.
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.
For further information: Michael Gaffney, firstname.lastname@example.org