01 Communique Reports Third Quarter Fiscal 2016 Results and Announces a Change in Auditors

TORONTO, Sept. 12, 2016 /CNW/ - 01 Communique Laboratory Inc. (ONE:TSX-V) today announced results for its third quarter fiscal 2016, which ended July 31, 2016. The loss and comprehensive loss for the third quarter was $162,660 (2015 - $345,956). The adjusted loss, which excludes non-cash expenses for stock-based compensation and depreciation, was $70,206 (2015 - $297,216). The Company completed the period with $211,172 of cash and cash equivalents.   

"We remain committed to our plan of continuing operations as well as pursuing the matter with Citrix Systems Inc. ("Citrix") until its conclusion," said Andrew Cheung, President and CEO for 01 Communique. "Earlier in the year we significantly reduced operating expenses to conserve our cash as we work through this process. With respect to the lawsuit with Citrix, all briefs with respect to post-trial motions were filed in April 2016. We are now waiting for a decision by the District Court and then an appeal to the United States Court of Appeals for the Federal Circuit can be taken, if needed. The motions included motions for renewed judgment as a matter of law and for a new trial."  

An Update on the Company's Operations follows:

At the request of the Company, KPMG LLP has resigned as the Company's auditors. The Company has appointed Shimmerman Penn LLP to replace them. The board of directors of the Company and its audit committee has approved the resignation of KPMG LLP and the appointment of Shimmerman Penn LLP.

In addition to moving forward with the appeal process in its patent lawsuit against Citrix the Company plans to continue and work with Hitachi as well as approach other companies with a goal for them to license the Company's products and technology. Substantially all development work has been completed on the products that the Company is looking to license and with respect to the appeal process the Company relies on its lawyers and hence minimal internal resources are expected. Accordingly, the Company has reduced operating expenses significantly as it works through the appeal process. To assist in achieving this expense reduction the Company's executive management and board of directors are not drawing a salary.

Operating expenses for third quarter 2016 were $158,438 (2015 - $356,229). Excluding non cash expenses for stock based compensation and depreciation the cash operating expenses for third quarter 2016 were $65,984 (2015 - $307,489) a reduction of $241,505.

On September 12, 2016 stock options were granted to members of the Company's executive management and directors. There were 2,150,000 stock options granted in total expiring on September 12, 2020, with an exercise price of $0.05 and vesting on March 12, 2017.   

Background on the Company's patent lawsuit against Citrix:

In February 2006, the Company commenced a lawsuit in the United States District Court, Northern District of Ohio, Eastern Division, against Citrix alleging infringement by their GoToMyPC product line of the '479 Patent. On January 11, 2016 a jury trial commenced in the lawsuit with the jury reaching and returning a unanimous verdict on January 19, 2016. The Court entered Judgment as follows:

1. Defendants Citrix have not infringed claims 24 or 45 of 01 Communique's patent (United States Patent No. 6,928,479);
   
   
2. Claims 24 and 45 of United States Patent No. 6,928,479 are not invalid;
   
   
3. Plaintiff 01 Communique takes no damages from Citrix;
   
   
4. Except as set forth above or adjudicated through Summary Judgment, all other claims and counterclaims in this matter were dismissed;
   
   
5. Each party retains its right to, and does not waive its right to, file timely motions for renewed judgment as a matter of law, for new trial, for the award of attorneys' fees, for the award of costs, and to prosecute an appeal from any aspect of the case to the extent allowed by statute, the Federal Rules of Civil Procedure, and/or this Court.

On March 7, 2016 the Company filed post-trial motions with the District Court that presided over the trial. These included motions for renewed judgment as a matter of law and for a new trial. Citrix's opposition brief to these motions was filed and the Company's reply brief was filed on April 28, 2016. Now that all briefs are filed we are waiting for a decision by the District Court on this matter and then an appeal to the United States Court of Appeals for the Federal Circuit can be taken, if needed.

Neither TSX Venture Exchange ("TSX-V") nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About 01 Communique
Established in 1992, 01 Communique Laboratory Inc. (TSX-V:ONE) offers a suite of remote access services designed for small-medium sized business, mobile professionals and IT service providers. 01's software as a service offerings are deployed on-demand and include functionality enabling on-line meetings, remote computing and IT support. 01's suite of products includes its remote access offering I'm InTouch (www.imintouch.com), its online meeting offering (www.imintouchmeeting.com) and its remote support offering I'm OnCall (www.imoncall.com) products are protected in the U.S.A. by its patents #6,928,479 / #6,938,076 / #8,234,701 and in Canada by its patents #2,309,398 / #2,524,039 and Japan by its patent #4,875,094. For more information, visit www.01com.com or call (905) 795-888 or (800) 668-2185 (North America only).

Cautionary Note Regarding Forward-looking Statements.
Certain statements in this news release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements use such words as "may", "will", "expect", "believe", "plan", "intend", "are confident" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this news release.  Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved.  A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under "Risk Factors" in the company's Annual Information Form filed on SEDAR. Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward looking statements. These forward-looking statements are made as of the date of this news release, and the company assumes no obligation to update or revise them to reflect new events or circumstances.

SOURCE 01 Communique Laboratory Inc.

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