OneSoft Solutions Inc.
TSX VENTURE : OSS

OneSoft Solutions Inc.

January 16, 2017 07:00 ET

OneSoft Solutions Inc. Announces Major Milestone with the Commercial Release of New Software Based on Machine Learning

EDMONTON, ALBERTA--(Marketwired - Jan. 16, 2017) - OneSoft Solutions Inc. (the "Company" or "OneSoft") (TSX VENTURE:OSS), a North American developer of cloud business solutions is pleased to announce that its wholly owned subsidiary, OneBridge Solutions Inc. ("OneBridge"), has made its Cognitive Integrity Management ("CIM") software solution available for commercial use. Management believes that CIM may present a revolutionary approach to data analytics which uses Machine Learning and other cutting edge data science cloud technologies to assist oil and gas pipeline operators and industry regulators to achieve their objective of zero failure.

Commercial Release of CIM

The commercial release of CIM marks a significant milestone for the Company. Work on CIM foundational technology first commenced in August, 2015 following establishment of the Company's OneBridge division. Development efforts advanced significantly as a result of OneBridge's participation in Microsoft Venture's first Accelerator program to focus on Machine Learning, Data Sciences and Big Data, which took place at Microsoft's Seattle and Redmond facilities between February, 2016 and June, 2016. Participation in this program enabled OneBridge personnel to fast-track design of the underlying technology and development of the core CIM product. By mid 2016, CIM was sufficiently advanced to engage early adopter customers to commence use of the solution. OneBridge garnered two such "private preview" customers, who provided historic inline inspection ("ILI") data for approximately 13,000 miles of pipeline infrastructure to serve as "truth data", which we used to further develop, refine and test the solution.

"The purpose of using truth data was to compare the analyses of anomalies conducted manually with results generated by our proprietary Machine Learning algorithms" stated Brandon Taylor, CTO and President of OneBridge US operations. "Using an iterative process, we evolved our algorithms to increase in accuracy as more and more ILI data was analyzed. Starting with our initial analysis, which took hours of computing time and generated only 20% accuracy, the algorithms have now "learned" to the point where we can now compare multiple ILI data sets to match pipe girth welds and compare anomaly growth over time using Machine Learning, with capability to deliver results in seconds or minutes rather than days or weeks. Our process is highly accurate, and in most cases greatly exceeds the performance of manual efforts."

"Machine Learning is the extraction of knowledge from data" stated Tim Edward, President and visionary of OneBridge. "Our proprietary algorithms support the concept of community and population. The patterns derived from analysis of company "A's" data gets incorporated into our algorithms, without disclosing any actual data of company A. This benefits companies "B" and "C' and so on, so the industry as a whole can benefit from improved accuracy of the algorithms. This will eventually lead to better understanding of the multiple factors that contribute to corrosion and potential pipeline failures, particularly once other causal factors such as coatings, seismic, soil type, and other environmental factors are added to the mix. This concept is essentially the process that the US Department of Transportation used to improve airline safety, and now wants to apply it to the pipeline industry who, along with industry operators, are seeking a path to achieve a zero-failure objective."

Mr. Edward continued, "CIM essentially provides capability for pipeline operators to conduct predictive analytics using 100% of their data to provide the information they need to track the growth of corrosion over time, and ultimately predict future failure points. Companies today have only limited ability to do this, because only the most critical data gets analysed today, as the manual process to do this is so onerous and dependent on highly skilled human interaction. CIM's Machine Learning provides capability for operators to manage their pipelines as smart infrastructure, to more effectively increase useful life, reliability and safety of their assets."

Mr. Taylor continued, "Our work at Microsoft Venture's accelerator has greatly advanced our development efforts. We had several instances during the development of CIM where technological hurdles we faced, which could have been show-stoppers for us, were able to be resolved because we had access to Microsoft's product teams. We are now collaborating with Microsoft sales teams to get CIM to market, as an Azure-dependent SaaS solution. We are also very pleased that our CIM development project has just been profiled and posted on Microsoft's website as a customer story."

CIM release is expected to commence revenue generation from commercial product sales

OneSoft had ceased to generate revenue from its legacy commercial software products in July, 2014, when it sold its Serenic operating subsidiaries. At that time, the Company operated with a business model, wherein the sale of desktop on-premise products required supplementary implementation and training services that were provided by company personnel or consultants. In the four fiscal quarters preceding the sale (i.e., between June 1, 2013 and May 31, 2014) the Company's total revenue was $12.1 million, of which only 53% was recurring maintenance revenue from existing customers who wanted to keep their software current.

Software as a Service ("SaaS") Revenue Model

With CIM and future cloud products, the Company will utilize a software-as-a-service, or SaaS, business model. Customers will pay monthly or annual fees to use the functionality components they require. The revenue by customer is expected to be relatively constant and recurring, and may increase if more functionality is consumed. We believe that SaaS is a preferred deployment model for new customers, as they have no requirement to pay the full software costs up front, or invest in computer hardware and IT infrastructure that would be required to implement and operate on-premise solutions. We anticipate that the SaaS model will be more cost efficient for the Company to administer, as all updates and enhancements will be conducted internally by Company personnel who have a high degree of specialized expertise.

From a product development perspective, customers will benefit from continual product enhancements that we anticipate will be regularly integrated into the products and automatically deployed for use. The SaaS model is also ideally structured to accommodate sales of new software functionality components, as customers will be able to access and use new functionality for incremental fees. We believe it is because of these compelling reasons that Microsoft and many other software companies have taken steps to move from legacy to SaaS cloud platforms.

About OneSoft Solutions Inc.

OneSoft Solutions Inc., through its operating subsidiaries, has developed software technology and products that have capability to transition legacy, on premise licensed software applications to operate on the Microsoft Cloud, in conjunction with Office 365, CRM Online, Microsoft Power BI Embedded and Microsoft Azure Machine Learning. OneSoft's business strategy is to seek opportunities to convert legacy business software applications that are historically cumbersome to deploy and costly to operate, to a more cost efficient subscription based business model utilizing the Microsoft Cloud platform and services, with accessibility through any internet capable device. Visit www.onesoft.ca for more information.

About OneBridge Solutions Inc.

OneSoft's wholly owned subsidiary, OneBridge Solutions Inc., is developing what Management believes are revolutionary new applications for the Oil & Gas pipeline industry, which we believe will be able to predict pipeline failures and thereby save lives, protect the environment, reduce operational costs and address regulatory compliance requirements. OneBridge utilizes a single geo‐spatial database that accommodates pipe‐centric, structured and unstructured big data, with capability to address the key functions that pipeline companies require to manage, operate and maintain their pipelines. OneBridge solutions are designed to address two key areas of functionality - Safety Management Systems and Compliance Analytics ("SMS/CA"), and Cognitive Integrity Management ("CIM") solutions, all of which will be deployed as SaaS solutions that leverage Data Science, Azure Machine Learning, HoloLens, Microsoft Power BI Embedded and other components of the Microsoft Cloud platform and services. Visit www.onebridgesolutions.com for more information.

ON BEHALF OF THE BOARD OF DIRECTORS

ONESOFT SOLUTIONS INC.

Douglas Thomson, Chair

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 for the purpose of delivering 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 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 a number of 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 as a result 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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