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Leonovus: Fiscal 3Q17 Financial Results

First sales at $9,000
This is a Press Release edited by StorageNewsletter.com on 2017.12.01

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Leonovus Inc. announced its operating and financial results 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 compare 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 sales to early adopters. There are several more POC's in the sales funnel along with a solid list of prospects for 2018. A VP 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 & CEO. 

"The bought deal financing announced by the company on November 1, 2017, is expected to close in early December," he said.

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