LeoNovus: Fiscal 2Q17 Financial Results

LeoNovus Inc. announced its operating and financial results for the quarter ended June 30, 2017.

Revenue was nil for Q2 2017, which was the same as Q2 2016.

The company incurred a net loss of $351,000 and $777,000 for the three and six-month period ended June 30, 2017 compared to a net loss of $276,000 and $794,000 for the three and six months ended June 30, 2016.

Expenses increased from $257,000 to $325,000 for the three-month periods ending June 30, 2017 and 2016, and from $711,000 to $777,000 for the 6 month periods as the company decreased general and administrative expenses but increased research and development and sales and marketing expenses.

Cash increased by $133,000 in 2Q17 compared to the June 30, 2016 balance of $51,000.

“The company continues to develop and enhance its software defined object storage solution. In August, we sold our first Leonovus 3.0 solution to global marketing company that will use L3.0 to optimize its global storage requirements and facilitate an accelerated process to onboard customers that have data security and compliance requirements. We expect more sales to large corporate customers by the end of 3Q. The recruitment and development of channel partners is ongoing and anticipate the signing of an additional sales partner in 3Q. Additional resources were invested in 3Q to continue the validation our media script acceleration patents and IP. While this is a longer-term source of funds for the company, we remain focused on trying to find the key monetization triggers in the IP. In addition, the company is exploring the integration of its decentralized technology for new applications in the Blockchain market. We believe that our distributed storage and distributed compute solutions, when combined with Blockchain technology, could become a powerful new product offering,” said Michael Gaffney, chairman and CEO.