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The company
has been extremely pleased with results in this area of the business, as the technology has gained
significant traction with successful proof of concept demonstrations for several large OEM
partners. These early green shoots are anticipated to drive rapid growth in AI based revenues from
both POC’s and production licensing agreements in 2020, as the company solidifies its AI-first
orientation. Opportunities in the energy and financial sectors are particularly promising.
Looking ahead, the business has successfully consolidated the four merged entities into the
Sonasoft business and has returned its focus to optimizing operations and execution with a primary
emphasis on AI. This will lead to significant cost savings in 2020 due to synergies in administration
and finance, and a focused pursuit of combined AI sales opportunities across the entities. This
improvement in operational efficiency is expected to offset margin pressures in the Cornerstone
business, while creating new opportunities for AI revenue growth. Continued investment in AI
development and sales will result in continued net losses for 2020, but the resulting OEM
partnerships are expected to result in a rapid increase in AI revenues. The net profitability benefits
of these opportunities are not expected to fully materialize until 2021.
The Company will continue to develop its NuGene AI platform in conjunction
with OEM partners. It is expected that these partnerships will lead to the
development of AI enabled products and services to be sold or used by the
partners, leading to licensing and subscription income for Sonasoft. Sonasoft will
also continue developing the core features of its SonaVault product, focusing on
additional AI enablement of search functions.
