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01 Communique Announces its Second Quarter Fiscal 2018 Results and Provides an Update on Future Direction
[June 21, 2018]

01 Communique Announces its Second Quarter Fiscal 2018 Results and Provides an Update on Future Direction


TORONTO, June 21, 2018 /CNW/ - 01 Communique Laboratory Inc. (ONE:TSX-V) today announced results for its second quarter fiscal 2018, which ended April 30, 2018. The Company's loss for the quarter was $35,044 compared to a profit in 2017 of $17,608. The adjusted loss for the second quarter, which excludes non-cash expenses for stock-based compensation and depreciation, was $29,601 compared to an adjusted profit in 2017 of $39,197. As at April 30, 2018 the Company had $142,199 of cash and cash equivalents. 

"We received a decision from the United States Court of Appeals for the Federal Circuit ("Federal Circuit") in respect of our appeal of our patent lawsuit against Citrix Online, LLC ("Citrix") affirming the district court's finding that Citrix does not infringe our patent (Patent Nos. 6,928,479)," said Andrew Cheung, President and CEO for 01 Communique. "We strongly disagree with the ruling.  However, after careful consideration, we decided that it is not in our favor to proceed any further on this matter. This brings this lawsuit to a conclusion and now we turn our attention to refocusing our company with the development of a Post-Quantum Blockchain. Additional information on our plan is outlined below."

An Update on Our Future Direction follows:

Today, we are announcing a plan to transition our focus and strategy to the development of a Post-Quantum Blockchain. In summary, our vision is to develop a Post-Quantum Blockchain, which can be implemented on classical computer systems as we know them today while at the same time powerful enough to safeguard against potential Quantum Computer attacks.

Blockchain is a decentralized, digitized, public ledger of all transactions, using what is known as Distributed Ledger Technology. In recent years Blockchain technology has garnered significant attention because it has successfully raised the bar for cyber security. This is due to the fact that corrupting or altering any piece of information on the Blockchain is virtually impossible as it would require vast amounts of computing power. The reason for this is that the blocks in the Blockchain are digitally signed with private keys and the signatures can only be validated using their corresponding public keys. Using the existing computer systems of today it is virtually impossible (would take longer than the life span of the average human) to get a private key from its corresponding public key.

However, there is a new breed of computer in development called Quantum Computers that threatens the security of Blockchain technology. A Quantum Computer can process information exponentially faster than "classical computers" rendering existing public key encryption unsecure. Since public key encryption is a corner stone of cyber security today, Quantum Computers have the ability to render virtually everything insecure including Blockchain. While not a household name as yet, Quantum Computers are not fiction. They are real. As a result, over the last year the Company has devoted a significant amount of time researching this new disruptive cyber security technology and based on this research we are proceeding with the development of a Post-Quantum Blockchain that we believe will be capable of protecting the network against Quantum Computer attacks.

Conference Call:

A conference call is scheduled for Thursday June 28, 2018 at 4:00 PM.
Dial in number Local (416) 900-2936
Toll free 1-866-279-1594
The pass code when prompted is  532785

During the conference call the Company will provide an update on operations and provide an overview of the new direction as well as answer any questions asked by participants.

An Update on the Company's Operations follows:

Revenue for the second quarter 2018 was $73,809 (2017 - $129,463) a decrease of $55,653. In 2017 there was a one-time payment received for past royalties received from third parties for the sale of DoMobile in Japan by Hitachi Solutions Create, Ltd. Ongoing royalties are still expected at the second quarter 2018 level.

Cash operating expenses, which exclude stock based compensation and depreciation, for the second quarter 2018 were $85,281 (2017 - $64,049) an increase of $21,232 primarily a result of contractor fees paid for product development.    

As previously announced, the Company received a decision from the Federal Circuit in respect of the Company's appeal of its patent lawsuit against Citrix. The Federal Circuit issued its Order affirming the district court's finding that defendants Citrix do not infringe the Company's patent (Patent Nos. 6,928,479) and denying the Company's request for a new trial. This brings the lawsuit to a conclusion.

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 and Uncertainties" in the company's Management`s Discussion and Analysis document 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.

01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Financial Position











30-Apr-18


31-Oct-17





Assets




Current assets





Cash and cash equivalents

$

142,199


$

238,576


Accounts receivable

46,518


28,077


Prepaid expenses and other assets

18,986


6,281


207,703


272,934





Plant and equipment

4,089


2,477


$

211,792


$

275,411





Liabilities & Shareholders' Equity








Current liabilities





Accounts payable and accrued liabilities

$

494,082


$

498,295


Deferred revenue 

11,739


10,899


Liability component of debenture

382,300


391,580


888,121


900,774





Shareholders' equity





Share capital

40,832,777


40,832,777


Contributed surplus

5,418,225


5,407,310


Equity portion of Debenture

64,811


47,111


Deficit

(46,992,142)


(46,912,561)


(676,329)


(625,363)






$

211,792


$

275,411


 

01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Operations and Comprehensive Income
For the 3 and 6 month periods ended April 30, 2018 and 2017






 for the 3 months ending


 for the 6 months ending


30-Apr-18

30-Apr-17


30-Apr-18

30-Apr-17







 Revenue

$

73,809

$

129,462


$

108,653

$

137,093







Expenses (income):






Selling, general and administrative

55,566

64,471


90,041

150,505

Research and development

35,168

21,186


58,942

26,511

Interest

(10)

(19)


(18)

(27)


90,724

85,638


148,965

176,989

Profit (Loss) before interest, accretion on






liability component of debenture and taxes

$

(16,915)

$

43,824


$

(40,312)

$

(39,896)







Interest on debenture

10,295

10,000


20,295

20,000

Accretion on liability portion of debenture

-

4,194


8,420

8,237







Profit (loss) before taxes

$

(27,210)

$

29,630


$

(69,027)

$

(68,133)







Withholding taxes

7,834

12,022


10,554

12,022







Profit (loss) for the period and comprehensive loss

$

(35,044)

$

17,608


$

(79,581)

$

(80,155)







Basic

$

(0.00)

$

(0.00)


$

(0.00)

$

(0.00)

Diluted

$

(0.00)

$

(0.00)


$

(0.00)

$

(0.00)







Weighted average number of common shares

Basic

66,543,807

66,543,807


66,543,807

66,543,807

Diluted

66,543,807

66,543,807


66,543,807

66,543,807

 

01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Cash Flows
For the 3 and 6 month periods ended April 30, 2018 and 2017






three months ending


Six months ending


30-Apr-18

30-Apr-17


30-Apr-18

30-Apr-17

Cash provided by (used in):












Operating activities:







Income (Loss) for the period

$

(35,044)

$

17,608


$

(79,581)

$

(80,155)


Adjustments to reconcile the loss for the period






to net cash flows from operating activities








Depreciation

340

576


783

1,665



Stock-based compensation

5,000

20,500


10,915

73,000



Accretion on liability portion of debenture

-

4,194


8,420

8,237



Interest income

(10)

(19)


(18)

(27)


Change in non-cash working capital 

(2,781)

(70,804)


(34,519)

(87,620)


(32,495)

(17,945)


(94,000)

(64,900)

Interest income received

10

19


18

27


(32,485)

(17,926)


(93,982)

(64,873)







Investing activities:







Purchase of capital assets

(635)

-


(2,395)

-

Increase (decrease) in cash

(33,120)

(27,926)


(96,377)

(84,873)







Cash and cash equivalents, beginning of period

175,319

116,477


238,576

173,424

Cash and cash equivalents, end of period

$

142,199

$

88,551


$

142,199

$

88,551

 

SOURCE 01 Communique Laboratory Inc.


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