Mr. Douglas Thomson reports

ONESOFT SOLUTIONS INC. REPORTS RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2019

OneSoft Solutions Inc. has released its financial results for the three and six months ended June 30, 2019. Please refer to the interim unaudited condensed consolidated financial statements, and management's discussion and analysis for the three and six months ended June 30, 2019, filed on SEDAR for more information.

Effective in 2018, the company changed its financial year-end from Feb. 28 to Dec. 31. The information presented in this news release is for the three and six months ended June 30, 2019, and for May 31, 2018.

                                      FINANCIAL SUMMARY

                                                 Three months ended             Six months ended
in $000s, per share in $                June 30, 2019  May 31, 2018  June 30, 2019  May 31, 2018

                                                    $             $              $             $
Revenue                                           710           293          1,302           576
Gross profit                                      533           280          1,046           529
(Loss) before other income and expense          (459)         (537)        (1,130)       (1,076)
Net (loss)                                      (907)         (767)        (1,822)       (1,731)
Comprehensive (loss)                            (836)         (767)        (1,804)       (1,731)
Net (loss) (per share)                         (0.01)        (0.01)         (0.02)        (0.02)
Cash and cash equivalents                      12,144         3,508         12,144         3,508

Highlights of Q2 2019:

• The company's commercially contracted client list increased during the first half of 2019, from two clients as at Dec. 31, 2018, to six clients as at June 30, 2019, and now includes one independent pipeline operator, four Fortune 500 companies and one industry supermajor. These clients collectively operate approximately 51,000 miles of oil and gas pipeline infrastructure for which the company anticipates data will be loaded into the company's Cognitive Integrity Management (CIM) software-as-a-service solution on a staged timing basis. For historical comparison and context, CIM associated revenue totalled approximately $1.3-million during the 10 months ended December, 2018, and was primarily derived from only two clients who collectively analyzed approximately 13,000 miles of pipeline data.
• On April 4, 2019, the company announced an $8-million bought deal financing, with an overallotment option for $1.2-million. The company filed a preliminary short-form prospectus in connection with the financing on April 9, 2019, followed by a final short-form prospectus on April 17, 2019. The company closed the fully subscribed $9.2-million financing on April 25, 2019, and issued 11.5 million common shares at 80 cents per share and 600,000 broker share purchase warrants exercisable at $1, and expiring April 25, 2020. Institutional investors subscribed for approximately 75 per cent of the financing.
• In accordance with the company's announced intentions regarding use of proceeds of the April, 2019, financing, management commenced progressing certain technology road map and development plans, including conducting market research into new CIM companion products, and identifying and hiring additional personnel to accelerate new product development sprints.
• Revenue for the current quarter increased by 142.4 per cent from $292,783 for the three-month period ended May 31, 2018, to $709,740 for the period ended June 30, 2019. The revenue increase was primarily due to increased usage of the company's software solutions by more clients in 2019.
• Cash at quarter end increased to $12,143,799, from $2,015,428 at Dec. 31, 2018, significantly strengthening the company's balance sheet. The company has no debt.

Subsequent to quarter end:

• Subsequent to the quarter end, on July 22, 2019, the company announced it had teamed up with Worley (formerly WorleyParsons) to conduct a pilot project with a United States-based Fortune 500 electricity and natural gas supplier, which will trial OneBridge's CIM software over several months.
• On July 22 and 23, 2019, the company and Microsoft held a workshop entitled "Digital Transformation: Making Pipeline Failures a thing of the Past" at the Microsoft training centre in Houston. The event was very well attended by staff from many pipeline companies, and featured a CIM product presentation and demonstration by four clients that are actively using CIM. The workshop generated several sales leads for the company.

Business outlook

OneSoft is focused on growing the revenue generated by CIM, its first commercial SaaS solution, and concurrently is pursuing development of new accretive solutions the company believes will accelerate future revenue growth. CIM future revenue growth is dependent upon three factors: (a) the pace at which current clients load and process data for their pipelines; (b) customers' schedules of pipeline inspection, which drives a variable element of revenue; and (c) the pace of adoption of CIM by prospective new clients. OneSoft believes the positive user experience and validation of its solutions by its initial clients is now resonating positively within the U.S. marketplace, boosting confidence and encouraging wider industry acceptance of OneSoft's innovative machine-learning technologies and processes to replace legacy systems that serve the industry today.

As was disclosed in prior communiques, the company intended to accelerate its research and development efforts beyond the evolution of CIM functionality, once client interest for participation and appropriate financing resources had been investigated and arranged. Following completion of the financing in April, 2019, the company is now taking steps to ramp its R&D efforts to grow the revenue potential from current and prospective clients, develop new CIM accretive solutions, and strengthen the company's machine learning and data sciences technological lead in the marketplace.

Evolution of CIM solution to CIM platform

To date, OneSoft's processing of tens of thousands of miles of pipeline data from many operators and pipeline-tool vendors involving more than 30 million features has trained OneSoft's software with the learnings from it being incorporated as permanent knowledge in multiple iterations of its proprietary machine-learning algorithms. OneSoft believes this work represents unique and unparalleled analysis capability, that even the largest of pipeline operators and industry inspection tool (PIG) vendors are not able to replicate as they individually have neither the access to such a diverse amount of data nor the specific data science capabilities to analyze it.

OneSoft intends to transform CIM from a solution to a CIM platform to which various new software modules can be integrated to address more functionality requirements of the company's clients. OneSoft believes this will allow the company to monetize the ever-increasing cognitive learnings it is deriving from its continued analyses of pipeline data provided by OneSoft's clients. This initiative may involve development of new probabilistic risk and advanced analytics models, in part designed to operate in accordance with current and future regulatory guidance requirements prescribed by the Pipeline and Hazardous Materials Safety Administration (PHMSA), the U.S. regulator of hazardous pipeline operations. Similar to prior product development sprints, OneSoft intends to follow the lean start-up software development model wherein client and prospect feedback drives functionality specifications and development priorities, and minimally viable revenue-generating products are developed and released to market as soon as is practical. Some of OneSoft's clients who understand the benefits of transforming CIM to a platform have expressed potential interest in contributing collaborative user input and/or other resources to develop new algorithms and products to be part of the CIM platform.

OneSoft believes that the new algorithms, predictive analytical models and other data science capabilities, when completed as envisioned, will increase the potential total addressable market for the company's products. OneSoft believes that by integrating and correlating pipeline inline inspection (ILI) data with other data sets (such as cathodic protection, types of pipeline steel, coatings and soil), OneSoft will be able to develop and market innovative new solutions that will use direct assessment analyses, risk management processes, and other analytical and predictive functions that operators seek to maintain and improve their operational compliance with PHMSA regulations on a more efficient and effective basis.

Technology development to increase revenue potential and competitive moat

As noted in previous communiques, OneSoft believes that revenue from new functionality and solutions will be accretive to current CIM revenues, supporting the company's expectation that revenue metrics can be increased once new functionality and products are commercialized in the future.

Regarding technology, OneSoft believes that its first-mover advantage in having developed and commercialized the first oil and gas pipeline integrity management solutions based on cloud computing, machine learning and data science has established a highly competitive go-to-market position. Potential competitors who might embark on development of similar CIM type functionality will likely face formidable obstacles to catch up to and displace OneSoft solutions, as such competitors will first need to assemble data science development teams, establish collaborative technology and sales relationships with companies like Microsoft and Worley, undertake significant efforts to get access to pipeline ILI data from pipeline operators, expend millions of dollars to develop their solutions, identify and engage private preview software users, and then execute extensive product validation efforts, before their solutions will be purchased by clients.

OneSoft believes the enormity of replicating its technology and solutions may dissuade certain current industry vendors who provide legacy products from embarking on such an extensive project due to the very significant development costs and lengthy time frame which would likely be required to replicate OneSoft's intellectual property, from initial development to market validation by clients. Providing the company continues to pursue cutting-edge R&D initiatives, OneSoft believes it will be very challenging for new entrants to catch up to OneSoft and deliver superior solutions, because of its significant head start regarding the technology, client and business advancements it has achieved.

Operational expectations -- fiscal 2019 and beyond

OneSoft believes that it is positioned as the machine-learning technology leader within its markets today. The April, 2019, financing strengthened the company's balance sheet, and provided the resources necessary to maintain and advance its technological lead. New personnel have been hired to augment the development and sales teams since closing of the April, 2019, financing, and efforts are continuing to hire additional staff to further increase the company's capability to accelerate product development and business growth. Although OneSoft is not aware of any competing solutions today that rival CIM's capabilities, or any potential competitors that are close to releasing a similar machine-learning solution, OneSoft believes that the industry is becoming well aware of the benefits of these types of solutions and that its efforts to date have positioned the company to evolve the CIM platform for future opportunities to support revenue growth.

New R&D sprints commenced in fiscal 2019 are not expected to complete before year-end and recognition of revenue associated with these development sprints, if any, is not likely to occur until at least fiscal 2020. The company is well positioned to pursue accelerated development, marketing and sales initiatives. Whereas the investment in new product development is expected to result in operational losses until such time as new products are commercialized and revenue generating, OneSoft believes the company's strategies, business, technology and operational plans will ultimately result in increasing shareholder value through achievement of two key objectives -- advancing its technological lead and competitive moat, and increasing market potential and revenues.

We seek Safe Harbor.