Sonasoft Corp (SSFT)

[NJ_TOAD]

$SSFT – Undervalued OTCQB Tech Stock could be Poised for Significant Growth through 2019

February 1, 2019

Sonasoft Corp, ticker symbol SSFT, is not a stock likely to have been on many investor’s radars AS OF YET. But a number of BULLISH investors expect that to change shortly, and in a BIG way. While the trading volumes in this name have been relatively low to date – The company has been quietly setting the stage for a potential explosion in awareness, and share price.

In the OTC Markets it can be extremely rare to see a company with true long-term growth potential. Many are un-reporting companies with little-to-no actual business operations.

In contrast, Sonasoft Corp (SSFT) appears to be the anomaly and part of the seemingly 1% of OTC companies with actual LONG-TERM POTENTIAL. Based out of San Jose California, with a recently acquired subsidiary directly in the technology epicenter of Silicon Valley, Sonasoft has been making some major moves towards becoming an absolute POWERHOUSE in the Artificial Intelligence, Legal Software (eDiscovery), and Data/Email Archiving space.

First a brief overview of the company

· Sonasoft Corp is publicly traded tech/software company on the OTC Markets under ticker symbol SSFT.
· Focusing on Artificial Intelligence (AI) software, data archiving, and eDiscovery solutions
· The company was founded in 2003 and went public through an S-1 listing in 2012 (Which means a CLEAN shell without skeletons in the closet like most OTC reverse takeover deals).
· Large offering of software and services
· Large list of SMB’s which contribute recurring revenue for software and services
· NO TOXIC FINANCING
· Large management and advisory team with decades of experience at major tech firms
· Recently acquired revenue producing tech company (Cornerstone Technologies – estimated to do $13M in annual recurring revenues)
· Announced January 31, 2019 and LOI to acquire Hotify Inc., and AI software company

So, whilst it was a solid company, with a REAL business, over 20 employees, and established offices and clients prior to 2018… At the beginning of 2018, they announced a new “2018 Growth and Revenue Strategy” which listed a number of lofty goals, which IF achieved, would position the company for MASSIVE growth...

Let’s have a look at what they ACTUALLY accomplished in 2018;

· Completed 2-year audit, and up listed to the OTCQB Venture Market from the Pink Sheets
· Completed Acquisition of Cornerstone Technologies (A Silicon Valley based tech firm that does an estimated $13M/year in revenues) – This compares to the $570K that SSFT did in 2017. This would account for an over 2300% increase year over year, JUST from that acquisition ALONE.
· Completed ‘Preferred Stock Initiative” – This action reduced the outstanding common share count by over 48%, bringing the share count down to 181M shares
· Won multiple major service contracts and partnerships with large organizations including; The San Jose Sharks, The Golden Gate Bridge, Exterro, and unnamed Fortune 500 and Fortune 1000 companies.
· Announced primary focus change to Artificial Intelligence technology – then launched the technology and has since announced it has won a major contract to provide its AI solution to a Fortune 1000 Tech Company… Let’s discuss this further.

The Artificial Intelligence (AI) market worldwide value was estimated at $18B annually in 2018, with growth predictions reaching $89 BILLION annually by 2025. The development of Artificial Intelligence has become an arms race with over 90% of tech companies aggressively trying to gain market share with the best product.



Artificial intelligence has been one of the fastest-growing technologies in recent years. AI is associated to human intelligence with similar characteristics such as language understanding, reasoning, learning, problem solving, and others. Manufacturers in the market witness enormous underlying intellectual challenges in the development and revision of such a technology. AI is positioned at the core of the next gen software technologies in the market. Companies such as Google, IBM, Microsoft, and other leading players have actively implemented AI as a crucial part of their technologies.

So, with major tech companies such as Google, IBM, and Microsoft offering Artificial Intelligence solutions… How is it that an unheard-of OTC company like Sonasoft was able to launch its AI solution, and so quickly secure a Fortune 1000 Tech Company as their FIRST customer, within 1 year of launching the technology? The Company has been holding its cards closely, but this fact alone in my opinion, speaks volumes for the potential here. Company’s on the Fortune 1000 list would TYPICALLY use the solutions by other providers on the “Fortune” list… So, what happened? At this point, we can only speculate.

Here is the information disclosed regarding the AI technology to date;

https://www.sonasoft.com/products/artificial-intelligence-ai/
https://www.otcmarkets.com/stock/SSFT/news/Sonasoft-SSFT-Wins-Significant-Contract-to-Provide-Artificial-Intelligence-AI-Solution-to-Fortune-1000-Tech-Company?id=211783

Now after everything achieved throughout 2018, and the ongoing potential of the AI technology, and the revenue growth added by the Cornerstone Technologies acquisition, the company has recently released its 2019 Goals. Equally as ambitious as the 2018 goals, all of which they achieved.

Goals for 2019 (taken from Jan 10 2019 PR)

· Additional Acquisitions & Mergers
The Company intends to acquire at least one more company in 2019, but it may acquire up to three companies if there is a strong value proposition. The Company has entered negotiations with two complementary companies which would add significant value to the organization. Sonasoft is looking for perfect fits that will strengthen its intellectual property (IP) and boost immediate bottom-line revenue as well as deliver an overall profit.

They have already announced LOI to acquire Artificial Intelligence (AI) software company, Hotify Inc., on January 31, 2019
https://www.otcmarkets.com/stock/SSFT/news/Sonasoft-Corp-SSFT-Signs-Letter-of-Intent-LOI-to-Acquire-Artificial-Intelligence-AI-Company-Hotify-Inc?id=217086



· Emphasis on Enterprise Market Accounts
The Company is shifting away from the SMB market and moving towards larger enterprise-sized accounts. This is a natural progression for the business following the 2018 acquisition of Cornerstone Technologies and its strategic partnership with Exterro, the recognized leader in the eDiscovery and legal software market. Sonasoft’s eDiscovery and email archiving solutions are ready for the enterprise market. The recently announced customer-win of NHL team, the San Jose Sharks, where Sonasoft’s solution displaced a leading enterprise-level competitor clearly demonstrates that Sonasoft can compete and become a key player in this market.

· Expand on the Strategic Partnership with Exterro
The Company intends to expand on its strategic partnership with Exterro. The Company will further integrate its SonaVault Archiving and eDiscovery Solution to enhance Exterro’s Orchestrated E-Discovery Suite. This will make the Company’s own IP solution a high-value proposition that is expected to increase revenue in the enterprise market.

· Expand Its Artificial Intelligence (AI) Platform & Increase Sales
Sonasoft further intends to expand its artificial intelligence (AI) platform to offer new solutions to an array of industry needs. As announced last year, the Company won a major contract from a Fortune 1000 Tech Company to increase the accuracy of its online technical support search portfolio to reduce costs and increase customer satisfaction. For 2019, the Company also intends to offer AI-based solutions that will predict and then prevent non-performing assets in the financial sector, forecast sales and revenue, calculate the demand for support, and apply other predictive applications to real business challenges. The Company has already tested these enhanced AI functionalities and is currently engaged with potentially interested enterprise customers to adopt them.

· Increase Revenue
Following the acquisition of Cornerstone Technologies, the launch of its AI Solution, and after securing a number of large customers last year, the Company projects significant revenue increases for 2019 compared to 2018. Further, the Company continues to press forward with the sales process for its AI solution, targeting large enterprise customers and has a number of deals progressing well. With all of this considered, it is difficult to accurately forecast revenues, however, the potential is enormous. As the year progresses, the Company intends to release its revenue predictions for 2019 year-end.

· Strategic Marketing Initiatives
Sonasoft has engaged with a marketing firm to add a stream of fresh and engaging content to position itself as a thought leader in the eDiscovery and Artificial Intelligence (AI) space. The goal is to increase enterprise-level leads, awareness of the brand and its products, and position itself as a recognized leader in the industry through organic SEO and various other forms of marketing and online advertising.

Some pretty massive forward-looking statements again! While the majority are targeting further exponential growth initiatives, one of the most exciting for current shareholders might be the “Strategic Marketing Initiatives”. If implemented effectively, this could potentially be the initiative which lights the fuse propelling the share price north!

Importantly, the share structure remains tightly held, with a low float and undervalued market cap;

Share Structure

Market Cap (as of 1/18/2019) 17,698,820

Outstanding Shares (as of 1/18/2019) 181,489,129

Float (as of 8/23/2018) 60,196,672*

*The company released press release overviewing the share structure and public float on 6/13/2018 where it was stated that the majority of the float was locked up by “insiders, employees, friends/family, and/or long-term stakeholders. Therefore, the majority of the outstanding share count AND the public float is locked up by insider restrictions, restricted shares, or being held firmly by long-term shareholders. The Company further estimates that the remaining public float remains tight at approximately 13 million shares.”
Source:
https://www.otcmarkets.com/stock/SSFT/news/Sonasoft-Provides-Overview-of-Corporate-Share-Structure-and-Public-Float?id=195329

Management Team

Frank Velasquez

Current CEO of Sonasoft, and Board Member

Frank Velasquez was the Founder and CEO of Cornerstone Technologies, which was recently acquired/merged with SSFT. Frank has now been named the new CEO of Sonasoft to lead the company’s growth/expansion.

He has over 20 years of experience in business and technology sales leadership gained at companies such as AVCOM Technologies, Veritas, and Symantec Corporation. The portfolio of early startup companies Frank drove results for include: PIC Systems (acquired by Ingram Books), Azor Inc. (acquired by Tescom), and Web Harbor a subsidiary of AVCOM Technologies. Frank’s relentless desire to achieve is unparalleled, but what really makes him an asset to our customers is his exceptional drive to achieve goals and his high ethical standards. Frank’s desire to maintain his high-principles while conducting business, was the motivation to start Cornerstone Technologies. His leadership has built a knowledgeable and experienced team to ensure our skillful expertise in the solutions that we offer. Frank holds a Bachelor of Science from California State University, Hayward.

Andy Khanna


Founder and PREVIOUS CEO, and remains on in an advisory role

Andy Khanna brings to Sonasoft over 25 years of senior management in the high-tech sector with a background in sales. Andy started his high-tech career at NCR Corporation and Control Data, where he was recognized for his sales achievements. In his first nine months at Control Data, Andy was presented the Bill Norris Shark Club Award for regional sales. In the early 80’s, Andy quickly earned his startup stripes where he built a company, Univation, from scratch and took the company public. At Univation, he was the CEO, President, and Chair, as well as one of the first Indo-Americans to take a company public in Silicon Valley.

After Univation, Andy’s ability to innovate led him to become President of Datus, Inc., a startup division of Daewoo, where he built, managed, and lead team of engineering, marketing, sales and operational professionals from scratch. It is there that Andy invented the Route Finder PNA, the first, handheld portable car navigation system (GPS). It was the first third-party consumer device that utilized Microsoft Windows CE OS. Mr. Bill Gates introduced the Route Finder PNA at the Consumer Electronics Show in Las Vegas in January 1998.

Inspired from his experience from working with the Microsoft team, Andy decided that his next start up would focus on software solutions based around Microsoft Business Software. In 2003, Andy founded Sonasoft. Sonasoft’s first products were for backup, recovery, and replication of Microsoft SQL Server and Microsoft Exchange Server, and evolved into email archiving solutions for Microsoft Exchange Server. Sonasoft is a Microsoft Gold Certified Partner.

Andy holds a BS in Business and Marketing from the University of San Francisco and an MBA from Golden Gate University.


Bilal Ahmed

CTO, Vice President of Engineering

Bilal Ahmed is the chief software architect for all of Sonasoft’s software products. He leads the company’s global engineering team in the development, delivery, and maintenance of these products.

With over 20 years of experience and several patents pending, Bilal is a technology leader with an entrepreneurial mindset. Achievements include successful product management, product strategy, software architecture, and innovative product development across start-ups and Fortune 500 corporations. His goal is to excel at understanding the latest technology trends, and incorporating these to address business problems and opportunities.

Bilal has initiated and developed database and system monitoring and reporting software for IBM’s small to medium sized customers. He also managed globally database servers for William Mercer Canada, a Marsh & McLennan Company.

Bilal was a key leader in developing the industry’s first private online degree audit system while at the University of Planet. He also led the development of the first private Internet Service Provider (ISP) and the first proprietary Airline Reservation software in Pakistan. Bilal holds a Bachelor’s degree in Computer Systems Engineering from NED University of Engineering and Technology.

Neil Kumar Khanna

Vice President of Client Services and Operations

Neil Kumar Khanna has over 16 years of high tech experience in corporate operations, information systems, customer support, quality, finance, and human resources management.

Prior to co-founding Sonasoft, Neil Kumar Khanna was a co-founder and VP of Operations at Fastcenter, a database protection company focused on automated disaster recovery for Oracle databases and flat files. At Fastcenter, he managed technical operations, human resources, and finance. Neil also setup and managed relationships with Oracle and other software and hardware vendors.

Prior to Fastcenter, he served as VP of Operations at Intraport, Inc. a software development and consulting company. At Intraport, Neil created strategic partnerships and provided services to HP, SUN, Cisco, NEC, and Charles Schwab. Before becoming the VP of Operations, Neil served as the Director of Operations overseeing the information systems, finance, human resources, administration, and customer support. Mr. Khanna holds a B.S. degree in Information Systems Management from the University of San Francisco.


Bob Serafini

Vice President of OEM Sales

Bob Serafini brings more than 30 years of executive sales management experience to Sonasoft. Bob served as the VP of Sales with ADP Brokerage Services Division. He was also a founder and VP Sales at DeCarta, Inc. where he created and closed an investment of $20 million from Ford Motor Company. Bob’s most recent positions include Vice President Enterprise Sales of Pharos Science and VP of Sales of Vectra GS; these positions included software and hardware solutions.

Advisory Board

Sonasoft also maintains an Advisory Board consisting of Leading Industry Professionals. The list includes members such as the recently added Hal Fadden who is an eDiscovery subject matter expert who according to recent press “recently concluded a successful three-year, multimillion-dollar eDiscovery implementation for the corporate legal department for one of California’s oldest and largest quasi-state agencies.” Source: https://www.otcmarkets.com/stock/SSFT/news/Sonasoft-SSFT-Expands-its-eDiscovery-Capabilities-for-Enterprise-Organizations-with-Addition-of-eDiscovery-Subject-matte?id=199603
The entire list of the Advisory Board members with Profiles can be found here; https://www.sonasoft.com/company/advisors/#


Board Of Directors

Sonasoft’s board of Directors consisting of distinguished, highly established and respected individuals in their fields. The experience and insights provided by these professionals is a huge asset to the company.

Dr. Romesh K. Japra, M.D., F.A.C.C.

Chairman of the Board

Dr. Romesh Japra has a distinguished career in the field of medicine for over three decades. Currently he is the President of Cardiology Associates, Fremont, CA. He has also held various positions including Chief of Staff, Chief of Medicine, President and Secretary at various hospitals and organizations across the U.S. He has been active in the High-Tech industry and has funded many startup companies. Dr. Japra has been an active member of the community in the Bay Area in general and the Indian American Community in particular. He has organized and contributed to numerous charity organizations and events across the globe. Dr. Japra has received numerous awards and honors during his illustrious career including Presidential Meritorious Award, Pride of India Gold Medal, Best Immigrant Award, Physician’s Recognition Award and many others. He is also active in the publishing industry and at present is the Publisher & CEO India Post Weekly, India Post TV and India Web Post. Dr. Japra is Fellow of the American College of Cardiology and graduated from All India Institute of Medical Sciences, New Delhi, India.

Romi Randhawa

Board Director

Romi Randhawa has more than 25 years of high technology management experience. In 1994, he founded HPM Networks and transformed it from a mid-market service provider to a leader in enterprise hardware solutions.

During his tenure with HPM Networks, Mr. Randhawa established valuable partnerships with HP and other major OEMs. Romi also served as President of the HP SMB Council from 2010 to 2012 and provided strategic leadership for joint go-to-market strategies in emerging markets. HPM is one of Hewlett-Packard's largest enterprise partners on the West Coast and a top VMware enterprise partner. It was No. 87 on the 2013 Solution Provider 500 with $270 million in annual sales.

Mr. Randhawa built up HPM Networks which was ultimately acquired by tech firm CANCOM for and ESTIMATED $300M and the combined companies had revenues of over $1B in 2014.

https://www.crn.com/news/cloud/300071913/german-tech-giant-buys-hpm-networks-to-launch-u-s-midmarket-cloud-offensive.htm

https://www.otcmarkets.com/stock/SSFT/news/Romi-Randhawas-Leadership-to-Ramp-up-Sonasofts-Sales--Marketing-Initiatives?id=150083

Summary

With all of the above considered, it is no wonder that some investors are very BULLISH on SSFT and consider it to be insultingly UNDER-VALUED. SSFT has near-term growth potential which could carry through to long term consistent revenue and asset growth. With an expanding management team of seasoned professionals, as well as the continued growth of existing revenue streams plus 1 completed and 1 pending strategic acquisitions in some of the fastest growing sectors, it is safe to speculate that the potential for this company and its stock to be nearly LIMITLESS.

It can be safely assumed that some big investors will be watching very closely to this company as it continued maneuvering through the AI and technology sectors moving forward.

Definitely one to keep on close watch.

For an overview of SSFT on otcmarkets.com click below.
https://www.otcmarkets.com/stock/SSFT/overview

Sonasoft’s Website: https://www.sonasoft.com/

Cornerstone Technologies website: https://www.cornerstonetechnologies.com/
Replies:
BOOM! THAT is some MONSTER DD!! Can't wait
slambino on 2/3/2019 2:03:37 AM
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DFLY on 2/4/2019 8:53:41 AM
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DFLY on 2/4/2019 9:17:46 AM



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