Revenue Increases 76% Year-Over-Year; Strengthened Balance Sheet Supports Growth

Edmonton, Alberta, Canada (June 25, 2018) – OneSoft Solutions Inc. (the “Company” or “OSS”) (TSX-V: OSS, OTCQB: OSSIF), a North American developer of cloud-based business solutions, provides a business update and announces its financial results for the fourth quarter and year ended February 28, 2018. Please refer to the Audited Consolidated Financial Statements, Management’s Discussion and Analysis (“MD&A”) and the Annual Information Form for the year ended February 28, 2018 filed on SEDAR at for more information. Unless otherwise stated, all dollar amounts are Canadian dollars.


Year Ended February 28, 2018

  • Revenue increased 76.1% year over year to $1,005,045 as a result of the Company signing its first two commercial software agreements with Fortune 500 customers during the year. The Company also reported deferred revenue of $2,153,435 in Q4 of F2018, associated with customers’ prepayments for future use of CIM and development of the Polaris solutions.
  • Gross profit more than doubled over the prior year, increasing to $910,390 from $450,230. Gross margin improved to 90.6% from 78.9%.
  • Operating expenses, after cost capitalization, increased to $3,684,333 from $2,167,801 in the prior year, as a result of the Company increasing its marketing of CIM to prospective customers, developing new functionality in the CIM product and promoting the Company to potential investors.
  • The comprehensive loss for the year was $2,880,440 and was reflective of the Company’s status as a maturing start-up, which is now transitioning from the developmental stage to a revenue generating phase.
  • The loss was financed by cash of $3,468,877 received from exercise of warrants and from an increase in deferred revenue liability of $2,153,435 from customer pre-payments for future use of and development of the Company’s solutions. The Company ended the year with cash of $3,661,057, up from $92,274 at the end of F2017.

Q4 Fiscal 2018

  • Q4 revenue increased to $283,202, a 16.4% increase from Q4 of the prior year. Gross margin in the quarter was 88.2% compared to 65.7% in Q4 of the prior year.
  • Expenses for the quarter were $1,064,327. Salaries and employee benefits increased by $210,034 while the non-cash costs decreased by $144,656.
  • The net comprehensive loss in Q4 this year was $964,462, versus $720,695 in Q4 last year. The increase in the gross profit partially offset by the increased expense was the primary reason for the change quarter over quarter.


The Company has identified approximately 50 US-based pipeline operators with whom Microsoft (MSFT:NASDAQ) has business relationships, who collectively operate 380,000 miles of pipeline infrastructure. We are currently active in various stages of sales processes with 17 potential customers from this group who collectively operate 253,000 miles of pipeline, who are either considering, implementing or concluding Pilot Projects.

  • Two commercial licensees signed: Phillips 66 (PSX:NYSE) and a Fortune 500 company.
  • OneBridge signed an agreement with Phillips 66 to migrate Phillips 66’s pipeline management system to the Cloud and incorporate OneBridge Machine Learning and Data Science intellectual property components. OneSoft will own all rights in and to the new derivative solution (code named “Polaris”), which is scheduled for commercial release in calendar Q4 of 2018.
  • All of the Company’s 32,679,666 outstanding warrants were exercised between March 1, 2017 and March 22, 2018, raising cash of $4,040,567. Stock option holders also exercised 463,333 stock options, which generated additional cash of $58,333.
  • Management believes the Company is fully funded to execute its business and operational plans through the next fiscal year ending February 28, 2019 with no requirement for additional financing.



“We have successfully advanced collaborative efforts with Microsoft, Phillips 66 and WorleyParsons, who are all evangelizing the benefits of our technology and solutions to joint potential customers,” said Dwayne Kushniruk, CEO of OneSoft.  “We continue to see strong interest in pilot projects and commercial adoption of our CIM solution, and our new Polaris solution is on track for commercial release in the Fall of 2018. Based on the increasing awareness and current interest in our solutions by potential customers, and our strong balance sheet, we believe we have sufficient cash to achieve positive adjusted-EBITDA operations.


The Company has now entered into working relationships with three multi-billion-dollar revenue companies – Microsoft, Phillips 66 and WorleyParsons – who contribute synergistic value regarding cloud technology and sales assistance, industry operational expertise, and industry sales and marketing expertise, respectively.  These companies are all invested in our success, as OneBridge products will result in:

  • driving consumption of cloud technology, and thus revenue, for Microsoft;
  • increased operational capabilities and efficiencies for Phillips 66; and,
  • provision of a cloud software platform upon which WorleyParsons can leverage their high-value engineering services to assist their oil and gas pipeline customers to achieve better operational efficiencies through digital transformation of their businesses.

We believe that working with these companies validates the credibility of our technology and strategies and bodes well for future opportunities. Collaborative sales efforts with Microsoft and WorleyParsons to market our CIM solutions in the U.S.A., Canada, Europe, Middle East, Africa, Asia-Pacific and South America are already underway.

Our SaaS solutions have been designed to support an “economic consumption” SaaS recurring revenue business model which encourages a “land and expand” sales model.  Based on customer feedback, we developed a new pricing model, which charges customers a fixed monthly fee to enable CIM usage and additional fees arise when specific functionality is used (e.g., loading of an ILI data log, running a crack detection routine, etc.). Customers can start using our solutions for small segments of their total pipeline infrastructure before marking commitments for their entire assets infrastructure.

Our highest operational priorities in Fiscal 2019 are:

  • to release Polaris prior to calendar 2018 year-end; and,
  • to focus on initiating new pilot projects with multiple companies whom we believe can ultimately become long-term customers.

We believe our Polaris solution, integrated with CIM, will change the way oil and gas pipeline companies conduct their integrity management processes. Based on the API-AOPL Annual Liquids Pipeline Safety Excellence Performance Report & Strategic Plan, 2016  report, USD $1.6 billion was expended in 2014 for integrity management costs associated with liquid pipelines in the U.S.A. Based on our estimated ratio of 1:3 liquid to gas pipelines installed within the U.S.A., and by extrapolating the known market metrics for liquid pipelines as disclosed in the above and other reports, we estimate that annual aggregated costs associated with integrity management for the piggable segment of the U.S.A. oil and gas pipeline infrastructure [which represents our sales “sweet spot” because it already has decades of inline inspection (“ILI”) data collected] exceeds USD $7.4 billion annually and USD $11.9 billion global annually.  We believe that Data Science and Machine Learning technologies, like our CIM and Polaris solutions, may be able to disrupt a significant portion of the Evaluation, some portion of the Inspection, and potentially some portion of the Maintenance components of the legacy processes currently being used in the industry.

Please refer to our MD&A for the fiscal year February 28, 2018 for further information regarding adjusted EBITDA and our calculation of USA and global pipeline integrity management costs.

From Management’s perspective, we are very pleased with our progress to date and look forward to a productive Fiscal 2019.



Douglas Thomson


For more information, please contact

Dwayne Kushniruk, CEO


Sean Peasgood, Investor Relations


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: interest and foreign exchange rates; planned synergies, capital efficiencies and cost-savings; applicable tax laws; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour 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 costs of performing pipeline evaluation, inspection and maintenance in the USA are representative of those in the rest of the world, are reasonably accurate; the success of growth projects; future operating costs; that counterparties to material agreements will continue to perform in a timely manner; that there are no unforeseen events preventing the performance of contracts; and that there are no unforeseen material development or other costs related to current growth projects or current operations. 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.


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