The company said, based on its unaudited accounts, revenue for the year in question had fallen by 46% to $548,747.

In the statement, archTIS said it had launched its Kojensi Gov platform during the previous financial year and focused on signing up clients.

Kojensi Gov claims to have a unique security model that enables government agencies to share information and collaborate whilst meeting regulatory, security and sovereign compliance requirements for classified information up to the top-secret level.

"The group also continued to refine and add features to its core product in order to offer its customers enhanced experience whether the solution is in the cloud or on-premise," archTIS said.

"In some cases, this additional research and development effort was funded in-part by customers. In May 2020, the group successfully raised $2.3 million through a share placement and a share purchase plan. This vital funding will give the company the cash runway it needs to convert its sales pipeline and continue the sales momentum into FY21.

"The investment into these activities ended in a loss for the consolidated entity after providing for income tax and non-controlling interest amounted to $3,725,369 (30 June 2019 $3,931,517)."

Contacted for comment, archTIS chief executive Daniel Lai said: "As with all technology investments, there is a capital cost up front before increasing revenue and growth. This is a normal process. The last 12 months have been about launching and investing in commercialising the Kojensi Platform and building up a sales pipeline to be executed across this financial year.

"The investments that archTIS has made over the previous 12 months are now paying off. This is evidenced through the recent sales announcements we have made. So far this financial year archTIS has converted nearly $1 million in contracts. Our operating costs are now significantly lower than last year due to the completion of the development of Kojensi."