OneSoft Solutions Inc. Reports Financial and Operational Results for Q2 2022. Revenue Grows 26.6% Quarter-Over-Quarter and Year-To-Date Revenue Up 30.2% over Last Year

Rhea-AI Summary

OneSoft Solutions Inc. (OSSIF) reported its financial results for Q2 2022, showcasing a 26.6% increase in revenue year-over-year, totaling $1.334 million. The company also achieved a 30.2% revenue growth for the first half of 2022. Despite a net loss of $984,000 in Q2, cash and accounts receivable stood at $5.9 million. Operational highlights include the acquisition of the Integrity Management business unit and positive customer engagement, indicating confidence in future revenue generation. The company aims to expand its market share and enhance technology solutions.

Positive

• Revenue for Q2 2022 increased by 26.6% year-over-year to $1.334 million.
• Revenue for the six-month period ended June 30, 2022, grew by 30.2% year-over-year.
• The company completed the acquisition of the Integrity Management business unit, enhancing its service offerings.
• CIM revenue demonstrated significant growth with a compounded annual growth rate of 75.7% over 23 quarters.
• Deferred revenue rose by 164% from $1.2 million to $3.1 million, indicating strong customer demand.

Negative

• Net loss of $984,000 in Q2 2022 compared to a loss of $1.131 million in Q2 2021.
• Gross profit for Q2 2022 was $907,000, an increase from $792,000 in Q2 2021, but still reflects ongoing operational costs.

EDMONTON, AB / ACCESSWIRE / August 18, 2022 / OneSoft Solutions Inc. (the "Company" or "OneSoft") (TSX-V:OSS)(OTCQB:OSSIF), a North American developer of cloud-based business solutions, announces its financial results for the quarter ended June 30, 2022 ("Q2 2022"). Please refer to the interim unaudited condensed Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A") for the three and six months ended June 30, 2022 filed on SEDAR at www.sedar.com for more information.

FINANCIAL SUMMARY FOR THREE AND SIX MONTHS ENDED JUNE 30, 2022

The following table summarizes the second quarter ended June 30, 2022, compared to June 30, 2021:

(in C$,000, per share in C$)		Three months ended				Six months ended
		June 30, 2022		June 30, 2021		June 30, 2022	June 30, 2021
		$		$		$		$
Revenue		1,334		1,054		2,614		2,008
Gross profit		907		792		1,804		1,500
Net loss		(984)		(1,131)		(2,048)		(2,126)
Exchange (loss) gain on translation of foreign operations		(22)		61		(8)		53
Comprehensive loss		(1,006)		(1,070)		(2,055)		(2,073)
Weighted average common shares outstanding - basic and fully diluted (000)'s		118,572		116,221		118,525		116,054
Net loss per share		(0.01)		(0.01)		(0.02)		(0.02)

OPERATIONAL HIGHLIGHTS FOR Q2 2022

• On June 23, 2022 the Company's subsidiary, OneBridge Solutions Canada Inc., acquired the Integrity Management business unit ("IM Operations") from Mesa Industries, Inc. and assumed operational control effective July 1, 2022. This transaction was conducted on an arms-length basis with no finders' fees paid and no debt being assumed.
• Revenue for Q2 2022 increased by 26.6% over Q2 2021, driven by new customer additions in 2021 and Q1 2022.
• Revenue for the six month period ended June 30, 2022 increased 30.2% year over year resulting from the addition of new clients, of which one large client was responsible for a major portion of the increase.
• CIM revenue continued its quarterly growth trend with a compounded annual growth rate of 75.7% and compounded quarterly growth rate of 14.6% over the past 23 quarters. Management believes these metrics are indicative of future value creation.

• The Company's technology development roadmap progressed in accordance with Management's expectations during the quarter. On June 29, 2022 the Company released its new Internal Corrosion Management solution for general market sales. The Company continues to work on new product development for products that we believe will increase future revenue opportunities.
• Marketing and sales activities during the quarter included hosting of the first in-person customer event in Houston since the Covid shutdown; several on-line product seminars and numerous other marketing and sales activities involving potential customers in North and South American, European, Middle East and Australian regions, which we believe will assist to generate new sales in future periods.
• Cash and accounts receivable were $5.9 million as at June 30, 2022 versus $5.7 million at December 31, 2021. The Company has no debt. Assuming no significant changes in current business strategies and cash consumption, Management believes the Company has sufficient cash on hand to fund its business plan as envisioned for Fiscal 2022.
• The Company held its annual general and special meeting on May 3, 2022, wherein all resolutions proposed by Management were voted on and adopted by shareholders.
• The Company continued to engage with current and prospective shareholders, including hosting of numerous on-line meetings and attendance at the first in-person investor events since the Covid shut-down in March of 2020. The Company presented at the Planet Microcap Showcase in May, 2022 and the LD Micro Invitational event in June, 2022
• In August 2022, OneSoft announced the addition of another Fortune 50 customer, who entered into a multi-year agreement to use CIM for integrity management of its pipeline assets.

BUSINESS OUTLOOK

The Company continues to execute strategies and tasks in support of its vision to advance the Company. Management will continue to focus on key growth objectives - to increase its competitive moat through delivery of integrated technology leading solutions, sign new customers and increase revenue. The acquisition of the IM Operations adds Risk and High Consequence Area ("HCA") modules and contributes to our strategy of delivering a full suite of products to our customers as a single vendor. Management believes that this strategy will maintain the Company's technological leadership and is necessary to capture majority market share with new solutions that will ultimately replace the legacy systems and processes that have been used for the past few decades and still represent the main competition to sales of our solutions.

We are pleased that our customers are engaged in helping us to advance our technology, progress our products and assist us to promote our vision within the industry. CIM user experiences continue to be positive and user data supporting their increased operational efficiencies and improved risk mitigation are providing growing justifications that compel peer operators to investigate the adoption of CIM. Management believes that the Company has crossed the chasm wherein innovator and early adopter customers have proven the value of our products, which can now be marketed to more pragmatic customers who, while not early adopters, seek the competitive advantages of proven new technologies. We are optimistic that the long sales cycles that characterized our customers to date will reduce in the future, as the CIM platform and companion products are now validated and known to work in accordance with expectations.

Management believes other factors contributing to revenue growth are customers increasing their CIM consumption through onboarding more of their pipeline asset data; incorporating CIM for more operational divisions (e.g., incorporating international operations, acquiring additional pipeline assets, and/or rolling out of CIM to their partner pipeline operators); and adopting additional SaaS modules such as the Corrosion Management System that was commercialized at the end of Q2 2022.

While sales initiatives to date have been focused on major U.S. industry players, Management has embarked on additional marketing and selling strategies aimed at the more than 1,800 U.S. O&G pipeline companies that each operate less than 1,000 miles of pipeline assets. Our objective in targeting this market is to sell ILI "Runcom" and other Integrity-as-a-Service ("IaaS") functions on a "pay-as-you-go" basis to replace the legacy consulting services used today that are generally much slower, less effective and more costly. We anticipate the initial Runcom offering will be introduced in 2022.

Deferred revenue, which represents pre-paid CIM usage fees, increased by 164% from $1.2 million at December 31, 2021 to $3.1 million at June 30, 2022. The Company's balance sheet remains strong, with $5.9 million of cash and accounts receivable as at June 30, 2022, up from $5.7 million at December 31, 2021. Considering the expected growth in CIM utilization and current liquid asset balances, Management believes the Company has sufficient cash on hand to execute current business plans as envisioned without requirement to raise additional capital.

ON BEHALF OF THE BOARD OF DIRECTORS
ONESOFT SOLUTIONS INC.

Douglas Thomson
Chair

For more information, please contact

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 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; 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 rate and foreign exchange rates; planned synergies, capital efficiencies and cost-savings; the sufficiency of budgeted capital expenditures in carrying out planned activities; interest rate and exchange rate fluctuations; competition; ability to access sufficient capital from internal and external sources; 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.

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.

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FAQ

What were the financial results for OneSoft Solutions (OSSIF) in Q2 2022?

OneSoft reported a revenue increase of 26.6% year-over-year, totaling $1.334 million, with a net loss of $984,000.

How much did OneSoft's revenue grow in the first half of 2022?

Revenue for the six months ended June 30, 2022, grew by 30.2% compared to the same period in 2021.

What acquisition did OneSoft Solutions complete in Q2 2022?

OneSoft acquired the Integrity Management business unit from Mesa Industries, enhancing its service capabilities.

What was the deferred revenue increase for OneSoft Solutions in Q2 2022?

Deferred revenue increased by 164% from $1.2 million at December 31, 2021, to $3.1 million by June 30, 2022.