Skip to main content

OneSoft Solutions Inc. Reports Results for First Quarter ended March 31, 2023 and Provides A Business Update

Revenue Increased 72% over Q1 2022

EDMONTON, AB / ACCESSWIRE / May 17, 2023 / OneSoft Solutions Inc. (the "Company" or "OneSoft") (TSXV: OSS), (OTCQB:OSSIF), a North American developer of cloud-based business solutions, announces its financial results for the three months ended March 31, 2023 ("Q1 2023").

Please refer to the Unaudited Condensed Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A") for the three month period ended March 31, 2023 filed on SEDAR at www.sedar.com for more information. The MD&A contains a complete analysis of Q1 2023 and other information. Unless otherwise specified, all dollar amounts are denominated in Canadian dollars.

FINANCIAL RESULTS

OneSoft Solutions Inc. , Tuesday, May 16, 2023, Press release picture

FINANCIAL HIGHLIGHTS

  • Revenue in Q1 2023 was $2.2 million, an increase of 72% or $0.9 million over Q1 2022 revenue of $1.3 million.
  • Gross profit increased 73% to $1.6 million in Q1 2023 from $0.9 million in Q1 2022. Gross profit as a percentage of sales was 70.5% in Q1 2023 versus 70.1% in Q1 2022.
  • The net loss was $0.7 million in Q1 2023, an $0.4 million improvement over Q1 2022's loss of $1.1 million, driven by the increase in gross profit.
  • Liquid assets increased by $2.7 million to total $7.4 million at March 31, 2023 ($4.7 million as at December 31, 2022), comprised of $5.2 million cash and accounts receivable of $2.2 million. Customers renewing their CIM contracts for CIM usage generated the increase.

Quarterly Revenue

The chart below shows revenue for the past twenty-seven quarters (6.75 years), equating to a compounded quarterly growth rate of 74.1%. Quarterly revenue increased because of the continued addition of new customers and augmented by the influx of customers gained June 20, 2022 in the acquisition of IM Operations. Management's objective is to continue to increase revenues to drive cash flow and profitability which we believe will increase future Company value for shareholders.

OneSoft Solutions Inc. , Tuesday, May 16, 2023, Press release picture

REVIEW OF FISCAL 2023 GUIDANCE

Further to the Company's Fiscal 2023 guidance stated in a news release issued on January 24, 2023, Management currently believes that the Company is on track to achieve Fiscal 2023 financial results as stated in its guidance. Relevant figures for Q1 2023 are summarized in the following table.

OneSoft Solutions Inc. , Tuesday, May 16, 2023, Press release picture

Readers are encouraged to refer to the Q1 2023 MD&A for more information regarding guidance and actual Q1 2023 figures.

BUSINESS UPDATE

Technology Development and Product Roadmaps

To strengthen the Company's competitive moat and in response to input regarding existing customers' functionality requirements, we continue to execute and deliver upon our technology and product development plans. In consultation with current and prospective customers, the Company expended efforts to advance its core Cognitive Integrity Management ("CIM"), Internal and External Corrosion, Crack and Risk modules. Management believes CIM enhancements continue to build and strengthen our competitive moat, encourage customer loyalty and contribute to customer "stickiness". We believe that providing the full complement of SaaS functionality requested by customers will provide opportunities to increase revenues from existing and future customers and preclude them from investigating potentially competitive solutions in future periods.

The Company also continued to research pipeline bending strain and potentially other aspects of geohazard threat management. If this project proceeds beyond the Innovation Lab through to product commercialization, the resulting module(s) will be marketed as additional revenue generating components of CIM.

Sales & Marketing

Sales and marketing initiatives continued in Q1 2023 which included sales efforts with prospective customers in North America and other jurisdictions in the world. OneSoft expects to enter into multi-year CIM SaaS contracts with new customers and to sell CIM components and services to IM Operations customers in Fiscal 2023 and future years.

The Company invested resources to upgrade various marketing processes and tools during the last quarter, which we believe will optimize lead generation and sales efforts in future periods. These processes and tools are expected to improve customer support and enhance referability of CIM and related modules by existing customers to prospective customers.

Please refer to the MD&A for more information regarding the Company's progress.

OUTLOOK

Management believes that sales and revenue growth will continue into the foreseeable future based on three factors: (a) the Company's solutions are continually receiving strong validation as CIM use increases and user experiences are shared amongst industry participants; (b) our pipeline of prospective customers continues to grow; and (c) our competitive moat continues to grow, evidenced by the fact that we have not seen any competing solution to CIM that leverages machine learning, data science and cloud computing commercialized to date, world-wide, at tradeshows or during competitive sales processes. We are encouraged that certain prospective customers, who are not early adopters of new technology and who had no prior interest in replacing their legacy systems and processes with CIM, are now considering CIM as their next generation solution, as a result of the positive user experiences and validations stated by our current customers. We believe that the Company has crossed the chasm from only dealing with innovators and early adopter customers to now include majority market customer cohorts.

Sales efforts are currently underway with prospective customers in North and South America, Europe, Middle East and Australia, and several U.S. based customers have initiated efforts to expand their use of our solutions to their international operating divisions. Management believes that OneSoft is poised for approximately 50% revenue growth in Fiscal 2023 over Fiscal 2022 and to achieve near cash-neutral monthly operations late in Fiscal 2023. With a strong balance sheet, sufficient cash on hand and a strong base of hallmark customers who generate recurring revenues, we believe there will be no requirement to raise additional capital to execute current business and operational plans.

POST REPORTING DATE EVENT

On July 27, 2020, the Company published a news release advising that the Company had filed a Statement of Claim ("Lawsuit") against Cylo Technologies Incorporated and its principals ("Cylo"). On May 10, 2023, the Company settled the Lawsuit, terms of which included discontinuance on a without costs basis, the assignment to OneBridge Solutions Canada Inc. of two patents and one patent application registered by Cylo which embody portions of past generation OneBridge technology, payment by Cylo of approximately $40,000 in settlement of unpaid royalties, non-competition and non-solicitation agreements, cancellation of the prior software license agreement and adoption of a replacement software license agreement that allows Cylo to continue to use OneBridge past-generation technology.

WEBCAST: ANNUAL GENERAL AND SPECIAL MEETING OF THE SHAREHOLDERS MAY 23, 2023

The Annual General and Special Meeting of the Shareholders will be held May 23, 2023 at 1:00 pm Mountain time and may be attended by clicking this link or by telephone access at 888-816-4438 using access code 682-314-015. After the formal portion of the Meeting, Management will review the Fiscal 2022 results and answer shareholder questions.

ABOUT ONESOFT AND ONEBRIDGE

OneSoft has developed software technology and products that have capability to transition legacy, on-premises licensed software applications to operate on the Microsoft Azure Cloud Platform. Our business strategy is to seek opportunities to incorporate Data Science and Machine Learning, business intelligence and predictive analytics to create cost-efficient, subscription-based software-as-a-service solutions. Visit www.onesoft.ca for more information.

OneSoft's wholly owned OneBridge subsidiaries develop and market revolutionary new SaaS solutions that use advanced Data Sciences and Machine Learning to analyze big data using predictive analytics to assist Oil & Gas pipeline operators to predict pipeline failures and thereby save lives, protect the environment, reduce operational costs, and address regulatory compliance requirements. Visit www.onebridgesolutions.com for more information.

For more information, please contact.

OneSoft Solutions Inc.
Dwayne Kushniruk, CEO
dkushniruk@onesoft.ca
587-416-6787
Sean Peasgood, Investor Relations
Sean@SophicCapital.com
647-494-7710

Forward-looking Statements

This news release contains forward-looking statements relating to the future operations and profitability of OneSoft Solutions Inc. (the "Company") and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects", "believe", "will", "intends", "plans" and similar expressions. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking information is provided to deliver information about management's current expectations and plans relating to the future. Investors are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions.

In respect of the forward-looking information and statements the Company has placed reliance on certain assumptions that it believes are reasonable at this time, including expectations and assumptions concerning, among other things: the impact of Covid-19 on the business operations of the Company and its current and prospective customers; the availability and cost of labor and services; the efficacy of its software; our interpretation based on various industry information sources regarding the total miles of pipeline in the USA and globally and which segments are piggable; our understanding of metrics, activities and costs regarding evaluation, inspection and maintenance is in alignment with various industry information sources and is reasonably accurate; that counterparties to material agreements will continue to perform in a timely manner; that there are no unforeseen events preventing the performance of contracts; that there are no unforeseen material development or other costs related to current growth projects or current operations; the success of growth projects; future operating costs; interest and foreign exchange rates; planned synergies, capital efficiencies and cost-savings; the sufficiency of budgeted capital expenditures in carrying out planned activities; and no changes in applicable tax laws. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release. Since forward-looking information addresses future events and conditions, such information by its very nature involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to many factors and risks. These include but are not limited to the risks associated with the industries in which the Company operates in general such as: costs and expenses; interest rate and exchange rate fluctuations; competition; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws.

Readers are cautioned that the foregoing list of factors is not exhaustive. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether because of new information, future events or otherwise, except as expressly required by Canadian securities law.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities within the United States. The securities to be offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act or other laws.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE: OneSoft Solutions Inc.



View source version on accesswire.com:
https://www.accesswire.com/755417/OneSoft-Solutions-Inc-Reports-Results-for-First-Quarter-ended-March-31-2023-and-Provides-A-Business-Update

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.