OTTAWA, Ontario, April 18, 2017 /PRNewswire/ --
Validian Corporation (OTCQB: VLDI; "Validian" or the "Company"), a leading innovator in cyber-security technology, today is pleased to provide the following financial highlights of its 2016 fiscal year.
Validian generated its first revenue, which has been audited at $475,000 for Q4 2016 pursuant to the 2 licenses Validian signed in November and December of that year. These particular licenses comprise a payment upon signing of each license agreement, a payment upon integration, testing and acceptance and then a royalty payable quarterly per application endpoint deployed.
The revenue comprised $400,000 for both the initial license fee and the fee for the completed integration, testing, and acceptance of Validian's technology, ValidianProtect, into the Ganthet mobile messaging app in Q4 2016. Quarterly royalties for the Ganthet mobile messaging app are expected to commence during 2017 as the app is deployed.
To offset the risk of some Ganthet shareholders, who also are Validian Note holders, prepaying $400,000 to Validian for some of the development work that extended Validian's technology to be integrated into the Ganthet app, Validian had issued unsecured 10% Convertible Notes for that amount to these shareholders to be redeemed when Validian's extended technology had been integrated into the Ganthet app, tested and accepted. In practice, to accommodate these shareholders with an equivalent value to Validian, when the integration, testing and acceptance was completed in November 2016, Validian accepted as payment from Ganthet an exchange of $400,000 of other Validian unsecured 10% Convertible Notes, which had been issued previously to the Ganthet shareholders. The exchange reduced the fully diluted number of shares issued and issuable by more than 11.7 million shares.
The balance of the revenue of $75,000 was for the initial license fee for the banking application signed in December 2016. An additional $75,000 is due and payable upon integration of Validian's technology, ValidianProtect, plus testing and acceptance, which currently is scheduled for the current quarter (Q2 2017) once the application has been sufficiently developed. In addition to the revenue, Validian also received the detailed architecture and design of the back-end for applications deployed in the banking sector, which is invaluable to Validian and has already enabled the Company to tailor and extend Validian's technology, ValidianProtect, for the banking sector during Q1 2017.
Future licenses will continue to be structured to the requirements of each customer and may be based upon the above structure, a subscription on a SaaS (Software as a Service) basis, or an enterprise license for a set license fee for a set term plus an annual fee for service and maintenance approximating 20% of the original license fee.
Shares issued and outstanding have increased mainly due to conversions of some unsecured convertible debt, but the fully diluted number of shares issued and issuable has not, even though Validian raised additional financing during 2016. Validian was able to raise $1.225 million of the financing for Series A Preferred Shares with a conversion feature at $0.10 per share and no interest coupon and no warrants, Validian also was able to eliminate all of its Secured 10% Convertible Notes which were convertible at $0.03 per share by exchanging approximately $930,000 of these, plus approximately $75,000 of unsecured Convertible Notes which also were convertible at $0.03 per share for Series A Preferred Shares, thereby reducing the fully diluted number of shares issued and issuable by more than 24 million shares. The balance of the Secured 10% Convertible Notes were exchanged for Series B Preferred Shares with a conversion feature at $0.03 per share and no interest coupon and no warrants. Validian also completed a series of exchanges of a total of more than $3 million of unsecured 10% Convertible Notes convertible at $0.03 per share for Series C Preferred Shares with a conversion feature at $0.03 per share and no interest coupon and no warrants. This reduced the fully diluted number of shares issued and issuable by more than an additional 12 million shares. This also eliminated more than $800,000 of ongoing annual interest costs thereby reducing the fully diluted number of shares issued and issuable going forward by more than 26 million annually.
"The year 2016 was significant for Validian on a number of fronts. We have completed the extension of Validian's core technology, ValidianProtect, to encompass and protect the application and the complete life cycle of data, comprising the transfer, storage and now usage of digital information all within ValidianProtect's virtual closed system. While the number of shares issued has increased during 2016, Validian's fully diluted number of shares issued and issuable has not, as the financing for development during 2016 has been virtually non-dilutive. Validian also cleaned up its balance sheet significantly. And most importantly, Validian is now generating licenses, cash flow and revenue," commented Bruce Benn, Validian's CEO. "This clearly positions Validian for significant growth during 2017."
About Validian Corporation
Validian Corporation (OTCQB: VLDI) is a leading innovator in cyber-security technology. Validian's first-to-market cyber-security technology, ValidianProtect, is a rapidly integrated middleware that creates a virtual closed system, which encompasses and seamlessly protects applications and the complete life cycle of data with secure access, retrieval, transfer, receipt, storage and all forms of usage, including creation, opening and reading, editing and manipulation of digital information within that virtual closed system on all devices, operating systems and technology platforms, so that the data cannot be improperly accessed or stolen regardless of any type of cyber attack or vulnerability or if the host device or network has been hacked or improperly accessed, infected with viruses or malware, or otherwise compromised.
Validian technology enables the next generation of secure mobile messaging and communications, cloud computing, cloud storage, distributed computing and web application, web portal access, browsers and usage, software-defined networking, the Internet of Things and SCADA, for computers, servers, data bases, intelligent sensors, tablets and smartphones.
The Company provides solutions that can be customized to the client's business process to ensure end-to-end authenticity, integrity and custody of high value digital assets. Validian is a U.S. public company with offices in the U.S. and Canada.
Visit http://www.Validian.com for more information on its digital asset solutions.
Discuss Validian events here: http://investorshangout.com/Validian-Corporation-VLDI-68278/
Safe Harbor Statement
Investors should carefully consider the information contained in this news release before making an investment in the shares of the company. Information contained in this news release contains "forward looking statements", which can be identified by the use of forward-looking terminology such as "believes," expects," "may," "should," or "anticipates" or negative thereof or given that the future results covered by such forward -looking statements will be achieved. The preceding matters constitute cautionary statements identifying important factors with respect to such forward-looking statements, including certain risks and uncertainties that could cause actual results to vary materially from the future statements. Other factors could also cause actual results to vary materially from the future results covered in such forward-looking statements.
SOURCE Validian Corporation