Secure Cloud Storage Solutions Firm's Programs Progress in Q3
In a news release, Ottawa-based software storage solutions provider Leonovus Inc. (LTV:TSX.V) provided an update on its projects as well as operating and financial results for its third quarter 2020 ended September 30, 2020.
Leonovus noted that it was awarded a contract in February 2020 valued at $435,700 from the Innovation Solutions Canada Program with the Government of Canada. The company stated that it has tested its software with the Department of Justice and if final acceptance is obtained and a purchasing contract is issued, then the Justice Department will deploy a pan-Canadian Smart Filer and Vault solution.
The company advised that it also created the CONSOLIDATA project to assist Canadian healthcare researchers and administrators with building a secure consolidated system to access all Canadian COVID-19 critical care, hospitalization, treatment efficacy information and potentially, inventory data. The firm indicated that in August 2020, Innovative Solutions Canada (ISC) preapproved a purchase of Leonovus CONSOLIDATA COVID-19 pilot program for up to $470,000. The company said that the approval is contingent upon it finding a sponsoring government department or agency.
Leonovus advised that the success of the Snowflake IPO in September opened the door for another opportunity for its technology, a data integration tool for data warehouses. The company believes that its Smart Filer and Vault technology are well suited to this application as it can organize and process data in ways that greatly improve data insights acquired from big data analytics. The firm said it plans to offer a product for this market in Q2/21.
Leonovus additionally advised that it is now in the process of finalizing a software offering for the legal vertical - hyper-secure virtual data rooms that it plans to launch in Q2/21. The company stated that this is a multi-billion-dollar market that is growing 15% annually.
The company's Chair and CEO Michael Gaffney commented, "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 CA$900,000 in booked contracts in 2020."
The company reported that in Q3/20 it achieved revenues of $69,000 and that for the first nine months of 2020 it posted $191,000 in total revenues. The firm noted that during Q3/19 it did not have any reportable revenue.
The firm indicated that total operating expenses decreased to $376,000 in Q3/20, compared to $1,010,000 in Q3/19. On a year-to-date basis through September 30, 2020, the company reported that operating expenses were $1,221,000 versus $3,363,000 in the first nine months of 2019.
Leonovus stated that it incurred a net loss of $421,000 in Q3/20 compared to a net loss of $1,047,000 in Q3/19. For the nine months ended September 30, 2020, the company reported that it had a net loss of $1,176,000 compared to a loss of $4,042,000 during the corresponding period in 2019.
Leonovus noted that "Smart Filer is an information lifecycle management solution that analyzes existing file storage and extends its capacity automatically and transparently and its Vault product 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."