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archTIS Ltd finalising June quarter Kojensi Gov commercial launch

The flagged launch in April is expected to accelerate product revenue growth.

Cyber security image of a lock in front of data
Kojensi Gov is a secure information sharing and collaboration service
  • The Kojensi Gov information sharing platform is expected to make its commercial debut early in the June quarter
  • archTIS has a high-profile chairman and includes people with quality professionals with insider knowledge of the workings of government
  • Revenues will come with the Kojensi Gov commercial launch, as cash burn is reduced significantly

What does archTIS do?

archTIS Ltd (ASX:AR9) specialises in software platform development in Australia. It is run by information sharing specialist Daniel Lai and chaired by Australia's former defence and foreign affairs minister Stephen Smith.

Lai, an investor in the company, has extensive experience in senior management roles in the Australian Government, leading a single information environment initiative for  the Department of Defence and spearheading enterprise change at Australian Customs and Border Protection Service.

Former Labor Party federal politician Smith is a University of Western Australia international law professor and former Member for Perth who had a 20-year career in politics.

What does archTIS own?

The key asset is the Kojensi Gov information sharing platform.

A cloud version of the system was beta tested at the Australian Commonwealth Attorney General’s Department (AGD) in December 2018 and built on top of a solution used inside the nation’s Defence Department.

archTIS has previously shared its plans to host Kojensi Gov on its partner Vault System’s Australian Signals Directorate-certified cloud platform for government clients.

Kojensi Gov allows for communication and collaboration between select personnel in an agency, or across agencies.

System users can be granted differential access to different versions of a document in line with their respective security clearances.

Clearance can also be site and device specific, showing less information in insecure environments such as external sites like a Qantas lounge or while in insecure environments such as on open WiFi networks.

Collaborators using the system can share documents, comment on them and work simultaneously as they focus on being productive while keeping security in mind.

Kojensi Gov’s unique security model enables government agencies to share and collaborate on their information while meeting regulatory, security and sovereign compliance requirements.

The system enables productivity while ensuring a trusted environment that takes into account the security context.

archTIS’ strategic partner Vault has had the backing of a number of other high-profile former secretaries to government who have sat on the private company’s board since November 2017.

These include its chairwoman, former finance and health secretary Jane Halton and non-executive director, Department of Foreign Affairs and Trade (DFAT) former secretary Dennis Richardson, who was previously security director-general at the Australian Security Intelligence Organisation (ASIO) and an Australian ambassador to the US in the years following the 9/11 report.

archTIS the company has its origins in Australia’s national government response to the 9/11 attacks in the US and the challenges highlighted in the US Senate’s National Commission on Terrorist Attacks Upon the United States’ final 9/11 Commission Report.

Vault is backed by the Moelis Australia Ltd (ASX:MOE)’s Moelis Australia Government Infrastructure Fund and was founded by former JN solutions chief executive officer Rupert Taylor-Price.

archTIS is also working with attribute-based access control provider Axiomatics, giving archTIS access to the financial sector, new data sets and new applications for its systems.

Canberra-based archTIS paid down all debt in December quarter and expects a material decrease in its cash burn after it launches the system in the second half of the June half-year.

It expects to spend $60,000 a month until the Kojensi Gov commercial launch, which is tipped for the June quarter.

The company’s cash outflows were $1.9 million in the December quarter as it generated $169,000 from customers.

It had $5.4 million cash on December 31 and forecast $1.8 million of cash outflows for the March quarter in its latest quarterly report.

Inflection points

  • Commercial launch of Kojensi Gov

  • archtTIS product revenue milestones

  • Continued client sign-ups to the company’s information systems offerings

  • Ongoing outputs from its collaboration with Vault and access to its clients in the cloud

  • Product development outcomes enabled by more revenues and fundraising

CEO Daniel Lai outlines system’s key points of difference

“What we are trying to solve is (an) information sharing challenge,” archTIS chief executive officer and executive director Daniel Lai told Proactive Investors in a Big Picture interview last December.

“We built security into the base of the system and then built how people collaborate and use that information on top of it.

“It was fundamentally put down at the base and not added on as an afterthought afterwards.”


Quick facts: archTIS Ltd

Price: 0.16 AUD

Market: ASX
Market Cap: $25.81 m

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