TORONTO, Sept. 24, 2018 /CNW/ - 01 Communique Laboratory
Inc. (TSXV: ONE) today announced results for its third quarter
fiscal 2018, which ended July 31,
2018. The Company's loss for the quarter was $78,948 compared to a profit in 2017 of
$68,383. A conference call is
scheduled for Thursday September 27,
2018 at 4:00PM EDT.
"We are now implementing our previously announced plan to
transition our focus and strategy to the development of
Post-Quantum Blockchain ("PQBC") and Post-Quantum Cryptography
("PQ-Crypto") technologies," said Andrew
Cheung, President and CEO for 01 Communique. "On
September 18, 2018 we closed a
financing and I now feel confident we have sufficient working
capital to complete commercial development of our PQBC and
PQ-Crypto technologies as well as develop strategic partnerships to
assist us in our plan to grow our business."
An update on the Company's progress as it moves forward with
its new strategy follows:
- As at July 31, 2018 the Company
had $73,992 of cash and cash
equivalents on hand. Subsequent to the end of the quarter, on
September 18, 2018, as previously
announced the Company completed a private placement raising gross
proceeds of $1,000,000, which will be
used for completing commercial development of PQBC and PQ-Crypto
technologies, to develop strategic partnerships, and for general
working capital purposes.
- During the third quarter announced the addition of a new board
member, Ms. Jane Yang, who brings
with her a wealth of experience in the area of Blockchain
technology.
- Engaged the services of Hybrid Financial Ltd. to assist the
Company in developing and implementing an investor relations
program.
- Added new members to the development team, entering into
agreements with several leading experts in Blockchain technology to
assist in the development of a Post-Quantum Blockchain for the
Company.
An update on the Company's results follows:
Revenue for the third quarter 2018 was $45,439 (2017 - $247,269) a decrease of $201,830. 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. and contract engineering fees
received for enhancements made to DoMobile for Japan. Ongoing royalties for the fourth
quarter 2018 are expected to continue at the third quarter 2018
level.
Cash operating expenses, which exclude stock based compensation
and depreciation, for the second quarter 2018 were $$89,284 (2017 -
$129,699) a decrease of $40,415 primarily a result of contractor fees
paid for product development in 2017 related to the enhancement of
DoMobile.
Conference Call:
A conference call is scheduled for Thursday September
27, 2018 at 4:00
PM.
Dial in number Local (416)
507-1616
Toll free 1-866-279-1594
The pass code
when prompted is 893466
During the conference call the Company will provide an update
on operations and provide an update on the new direction as well as
answer any questions asked by participants.
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. (TSXV: ONE)
has always been at the forefront of technology. The Company's
legacy business provides its customers with a suite of secure
remote access services and products. In early 2018 the Company
began transitioning its business focusing on cybersecurity with the
development and implementation of Post-Quantum Blockchain and
Post-Quantum Cryptography technologies, which can be implemented on
classical computer systems as we know them today while at the same
time secure enough to safeguard against potential Quantum Computer
attacks. The Company's legacy products are protected in the
U.S.A. by its patents #6,928,479 /
#6,938,076 / #8,234,701; in Canada by its patents #2,309,398 /
#2,524,039 and in Japan by its
patent #4,875,094. For more information visit the Company's web
site at www.01com.com
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
|
|
31-July-18
|
|
31-Oct-17
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
73,992
|
|
$
|
238,576
|
|
Accounts
receivable
|
46,225
|
|
28,077
|
|
Prepaid expenses and
other assets
|
27,630
|
|
6,281
|
|
147,847
|
|
272,934
|
|
|
|
|
|
Plant and
equipment
|
4,499
|
|
2,477
|
|
$
|
152,346
|
|
$
|
275,411
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
499,034
|
|
$
|
498,295
|
|
Deferred
revenue
|
10,291
|
|
10,899
|
|
Liability component
of debenture
|
386,414
|
|
391,580
|
|
895,739
|
|
900,774
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Share
capital
|
40,832,777
|
|
40,832,777
|
|
Contributed
surplus
|
5,430,109
|
|
5,407,310
|
|
Equity portion of
Debenture
|
64,811
|
|
47,111
|
|
Deficit
|
(47,071,090)
|
|
(46,912,561)
|
|
(743,393)
|
|
(625,363)
|
|
|
|
|
|
$
|
152,346
|
|
$
|
275,411
|
01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Operations and Comprehensive Income
For the 3 and 9 month periods ended July 31,
2018 and 2017
|
for the 3
months ending
|
|
for the 9
months ending
|
|
31-Jul-18
|
31-Jul-17
|
|
31-Jul-18
|
31-Jul-17
|
|
|
|
|
|
|
|
Revenue
|
$
|
45,439
|
$
|
247,269
|
|
$
|
154,092
|
$
|
384,362
|
|
|
|
|
|
|
|
Expenses
(income):
|
|
|
|
|
|
|
Selling, general and
administrative
|
77,893
|
47,097
|
|
167,935
|
197,602
|
|
Research and
development
|
23,580
|
93,487
|
|
82,522
|
119,998
|
|
Interest
|
(23)
|
(7)
|
|
(41)
|
(34)
|
|
101,450
|
140,577
|
|
250,415
|
317,566
|
|
Profit (Loss) before
interest, accretion
|
|
|
|
|
|
|
on liability
component of debenture and
taxes
|
$
|
(56,011)
|
$
|
106,692
|
|
$
|
(96,323)
|
$
|
66,796
|
|
|
|
|
|
|
|
Interest on
debenture
|
15,000
|
10,000
|
|
35,295
|
30,000
|
|
Accretion on
liability portion of debenture
|
4,114
|
4,352
|
|
12,534
|
12,589
|
|
|
|
|
|
|
|
Profit (loss) before
taxes
|
$
|
(75,125)
|
$
|
92,340
|
|
$
|
(144,152)
|
$
|
24,207
|
|
|
|
|
|
|
|
Withholding
taxes
|
3,823
|
23,957
|
|
14,377
|
35,979
|
|
|
|
|
|
|
|
Profit (loss) for the
period and comprehensive loss
|
$
|
(78,948)
|
$
|
68,383
|
|
$
|
(158,529)
|
$
|
(11,772)
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.001)
|
$
|
0.001
|
|
$
|
(0.002)
|
$
|
(0.000)
|
|
Diluted
|
$
|
(0.001)
|
$
|
0.001
|
|
$
|
(0.002)
|
$
|
(0.000)
|
|
|
|
|
|
|
|
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 9 month periods ended July 31, 2018 and 2017
|
three months
ending
|
|
nine months
ending
|
|
31-Jul-18
|
31-Jul-17
|
|
31-Jul-18
|
31-Jul-17
|
|
Cash provided by
(used in):
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
Income (Loss) for the
period
|
$
|
(78,948)
|
$
|
68,383
|
|
$
|
(158,529)
|
$
|
(11,772)
|
|
Adjustments to
reconcile the profit (loss)
to net cash flows
from operating
activities
|
|
|
|
|
|
|
|
Depreciation
|
282
|
378
|
|
1,065
|
2,043
|
|
|
Stock-based
compensation
|
11,884
|
10,500
|
|
22,799
|
83,500
|
|
|
Accretion on
liability portion of debenture
|
4,114
|
4,352
|
|
12,534
|
12,589
|
|
|
Interest
income
|
(23)
|
(7)
|
|
(41)
|
(34)
|
|
Change in non-cash
working capital
|
(4,847)
|
71,474
|
|
(39,366)
|
(16,146)
|
|
(67,538)
|
165,080
|
|
(161,538)
|
100,180
|
|
Interest income
received
|
23
|
7
|
|
41
|
34
|
|
(67,515)
|
165,087
|
|
(161,497)
|
100,214
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
Purchase of capital
assets
|
(692)
|
-
|
|
(3,087)
|
-
|
|
Increase (decrease)
in cash
|
(68,207)
|
155,087
|
|
(164,584)
|
70,214
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
142,199
|
88,551
|
|
238,576
|
173,424
|
|
Cash and cash
equivalents, end of period
|
$
|
73,992
|
$
|
243,638
|
|
$
|
73,992
|
$
|
243,638
|
SOURCE 01 Communique Laboratory Inc.