Leonovus: FY16 Financial Results

Leonovus Inc. announced its operating and financial results for the year ended December 31, 2016.

Net loss for the year ending 2016 was $1,236,000, which was 34% lower than losses of $1,878,000 in 2015.

Liabilities increased from $3,432,000 in 2015 to $3,641,000 in 2016 as the company collected on notes receivable and entered into new debt agreements totaling $250,000 to bridge the company during this transition year.

Subsequently all of the $250,000 was repaid in March 2017 from proceeds of a financing.

“The company went through a period of significant adjustment in 2016. All operations in the USA were moved to Ottawa to consolidate operations and take advantage of the more favourable economics compared to California. The product line went through a complete restructuring as it moved from a focus on distributed public cloud storage in the hospitality industry to a comprehensive software-defined object storage solution,” said Michael Gaffney, chairman and CEO. “The company continues to focus on generating revenue and expects revenue from the new software defined storage technology to begin in Q2 2017. As of today the company has several software installations as a proof of concept in major organizations and is in the process of signing several distribution agreements, one of which was announced on April 26, 2017. In addition, we have engaged an expert IP firm to analyze the monetization opportunities for our extensive media acceleration patent portfolio.”