Leonovus Inc. (TSXV: LTV) announces another major trial of Leonovus software for a Government of Canada (“GOC”) department.
This department, like many of our customers, is faced with both the preservation of and access to documents over an extended period. The critical requirements provided by the Leonovus solution include WORM (Write Once, Read Many), a blockchain-enabled digital chain of evidence, ultra-secure data storage, multi-cloud vendor management, control over where the data resides and avoiding storage vendor lock-in, which enables the department to take advantage of data storage pricing opportunities. As previously announced, Leonovus is in discussions with several Government of Canada departments. We expect more of these departments to install our unique ‘encrypt – shred – spread’ data storage technology with military-grade data durability by the end of the year.
Currently, there are fifty companies in the company’s sales pipeline with a gross annual revenue potential of more than $8M CAD. Applying a twenty-five percent sales probability model to these opportunities results in the potential for $2M in annual recurring revenues. The sales cycle is twelve to eighteen months, which means this revenue, except for current proof of concept invoices, would begin to appear in 2019. The current sales forecast includes only Canada and the USA.
“Going into the fall of 2018 we expect to increase the number of trial customers further and announce the conversion of our initial proof of concept (“POC”) customers into production customers. To date, we have been 100% successful in retaining POCs and expect most if not all to convert into production customers. Over the past six months our primary investment was in product hardening and building out our marketing. I am very pleased with the sales funnel given that we only had two sales professionals on staff. We are currently increasing our sales staff and expanding our partner program. We believe we can increase our sales pipeline by a factor of five in the next twelve to eighteen months,” said Michael Gaffney, Chairman, and CEO.