OTTAWA, Nov. 29, 2017 /CNW/ - Leonovus Inc. ("Leonovus") (TSXV: LTV) today announced its operating and financial results, in USD, for the quarter ended September 30, 2017.
Revenue was $9,000 for Q3 2017, which was payment for the company's first proof of concept sale for the Leonovus 3.0 software. The Company incurred a net operating loss of $261,000 and $987,000 for the three and nine-month period ended September 30, 2017, compared to a net operating loss of $38,000 and $750,000 for the three and nine months ended September 30, 2016. Quarterly expenses increased from $38,000 in Q3 2016 to $270,000 in Q3 2017 and for the first nine months from $750,000 in 2016 to $987,000 in 2017. The increase in expenses is the result of the company's investment in product development, sales, and marketing, that began in Q4 2016.
Year to date general and administrative expenses decreased from $507,000 in 2016 to $422,000 in 2017 with Q3 2017 at $130,000 compared to Q3 2016 at $120,000. Because of the September 2017 financing that grossed $1,500,000 the company was in a strong cash position at the end of Q3 2017 with $1,100,000 cash compared to cash of $88,000 at the end of Q3 2016.
"We closed our first sale of Leonovus 3.0 in Q3, and as of this date, two more sales occurred in October. These are all proof of concept ("POC") sales to early adopters. There are several more POC's in the sales funnel along with a solid list of prospects for 2018. A Vice President for USA sales started the first week of September, and we are executing plans to hire three to five new sales staff plus add three to five channel partners over the next several months.
The combination of our software-defined storage technology with blockchain technology continues to be a compelling part of our product map," said Michael Gaffney, Chairman & Chief Executive Officer.
"The bought deal financing announced by the company on November 1, 2017, is expected to close in early December," said Gaffney.
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.
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