A struggling Ottawa software firm that’s banking on government contracts to lift it out of a decade-long funk generated the highest revenues in its history in 2020, the company says.
Leonovus (TSX-V:LTV) reported revenues of $327,000 last year in recent financial filings, a tenfold increase over its total of $32,000 from 2019. The company recorded a net loss of $1.8 million, down significantly from a loss of $6.9 million the previous year as it slashed expenses by nearly 70 per cent.
The company says it expects to further grow revenues this year after recently getting the green light to sell its products to more than 100 federal government departments and agencies.
Leonovus says it has successfully tested its secure data-transfer technology at three federal departments – agriculture, justice and national defence – and sees its new approved-vendor status as the key to finally unlocking a revenue stream that’s been shut tight for years as the company continually searched for the right market fit.
“It’s taken us this long to get this far,” CEO Michael Gaffney told OBJ last month. “That’s not the end. All it means is I’ve got a way for people to buy my product. It’s one step in the process, but it’s a critical step.”
Leonovus launched a public offering in April aimed at raising up to $4 million. The company, which has eight employees, says it plans to use the capital to expand its sales and marketing team in anticipation of new opportunities with both the feds and private customers.