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8-K - CURRENT REPORT - SOLLENSYS CORP. | sols_8k.htm |
Exhibit 99.1
Sollensys Corp Announces Year-End 2020 Results
Launches High Gross Margin Regional Service Centers
Palm Bay, Fl. - April 1, 2021 Sollensys Corp (OTC: SOLS),
the developer of the proprietary Blockchain Archive Server,
reported results for its nine-month transition period ended
December 31, 2020. On December 29, 2020, the Board of Directors of
Sollensys Corp approved the change of Sollensys Corp’s fiscal
year end from March 31 to December 31. As required, Sollensys Corp
filed a transition report on Form 10-K covering the transition
period from March 31, 2020 to December 31, 2020 with the Securities
and Exchange Commission.
Financial
highlights for Sollensys Corp’s transition period ended
December 31, 2020 are as follows:
●
The current value
of the backlog of Regional Service Center contracts as of December
31, 2020 to be recognized as revenue over a five year period is
approximately $2.2 million.
●
Revenue
amounted to $180,000.
●
The
gross profit margin on revenue was 83.33%.
●
The net loss for the transition period
ended December 31, 2020 was $2,828,132 and includes a one-time,
non-cash, non-operating charge of $1,900,000 for stock-based
compensation expense relating to the issuance of pre-merger
preferred stock to Sollensys Corp’s former court-appointed custodian.
Operational achievements in 2020
●
Awards
On
September 15, 2020, the Blockchain Archive Server product won at TV
Worldwide's CyberSecurity Shark Fest. The event was produced live
by CyberSecurity TV on the TV Worldwide Network with remote
interviewing and judging via a virtual platform. The contest was
viewed by a worldwide audience of cyber security professionals
seeking improved solutions for data protection. Sollensys Corp also
sponsored the event.
●
Initial
product launch
The
Blockchain Archive Server was launched in August 2020. The
Blockchain Archive Server protects client data from
“ransomware”—malicious software that infects your
computer and displays messages demanding a fee to be paid in order
for your system to work again. Blockchain technology is a
leading-edge tool for data security, providing an added layer of
security against data loss due to all types of software
specifically designed to disrupt, damage, or gain unauthorized
access to a computer system (i.e., malware).
●
Regional service center
In
December 2020, Sollensys Corp made its second product offering -
the Regional Service Center - available on a limited test market
basis. The Regional Service Center was added to the standard
product line effective January 1, 2021. A Regional Service Center
is a single unit system of Blockchain Archive Servers capable of
servicing up to 2,580 individual small accounts, and is marketed
primarily to existing IT service providers with established
accounts. The Regional Service Center offers small businesses the
same state of the art technology previously available only to large
or very well-funded companies.
In
December 2020, Sollensys Corp entered into Regional Service Center
contracts representing an aggregate of $2.25 million in potential
gross sales over the term of the five year contract.
Don
Beavers, Chairman and CEO of Sollensys Corp stated, “We are
pleased with our early performance as a public company. We want to
thank our shareholders for their continued support. As new clients
are utilizing our products and services, we are creating an ongoing
revenue stream that we believe will help to support our long-term
growth. During 2020, we incurred significant legal and accounting
expenses to consummate the share exchange pursuant to which Eagle
Lake Laboratories became a wholly owned subsidiary of Sollensys
Corp and the business of Eagle Lake Laboratories became the
business of Sollensys Corp. We expect those expenses to normalize
going forward.”
About Sollensys Corp
Sollensys Corp is a math, science, technology, and engineering
solutions company offering products that ensure its clients’
data integrity through collection, storage, and transmission. Our
innovative flagship product is the Blockchain Archive Server, a
turn-key, off-the-shelf, blockchain solution that works with
virtually any hardware and software combinations currently used in
commerce, without the need to replace or eliminate any part of the
client’s data security that is being utilized. The
company recently introduced our second
product offering—the Regional Service Center, which offers
small businesses the same state of the art technology previously
available only to large or very well-funded
companies.
Forward-Looking Statements
This
press release contains certain forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements are identified by
the use of the words “could,” “believe,”
“anticipate,” “intend,” “estimate,
”expect,” “may,” “continue,”
“predict,” “potential,”
“project” and similar expressions that are intended to
identify forward-looking statements. All forward-looking statements
speak only as of the date of this press release. You should not
place undue reliance on these forward-looking statements. Although
we believe that our plans, objectives, expectations, and intentions
reflected in or suggested by the forward-looking statements are
reasonable, we can give no assurance that these plans, objectives,
expectations, or intentions will be achieved. Forward-looking
statements involve significant risks and uncertainties (some of
which are beyond our control) and assumptions that could cause
actual results to differ materially from historical experience and
present expectations or projections. Actual results could differ
materially from those in the forward-looking statements and the
trading price for our common stock may fluctuate significantly.
Forward-looking statements also are affected by the risk factors
described in our filings with the U.S. Securities and Exchange
Commission. Except as required by law, we undertake no obligation
to update or revise publicly any forward-looking statements,
whether as a result of new information, future events or otherwise,
after the date on which the statements are made or to reflect the
occurrence of unanticipated events.
CONTACT:
Donald
Beavers
Phone: (866) GET-SOLS
Email: info@sollensys.com
866.438.7657
www.sollensys.com