TORONTO, Dec. 20, 2018 /CNW/ - 01 Communique
Laboratory Inc. (ONE:TSX-V) today announced results for its fourth
quarter fiscal 2018, which ended October 31,
2018. The Company's loss for the fourth quarter 2018 was
$229,095 (2017 - $13,136) and for the 2018 fiscal year a loss of
$387,624 (2017 - $24,908). We completed the year with $813,760 of cash and cash equivalents and
guaranteed investment certificate.
"Fiscal 2018 was a significant year for us as we transitioned
into a technology solution provider of cyber security. With our
innovative Post-Quantum Cryptography ("PQ-Crypto") and Post-Quantum
Blockchain ("PQBC") technologies our clients' data will be
protected against vulnerabilities arising from new technologies
such as quantum computing," said Andrew
Cheung, President and CEO for 01 Communique. "We made
inroads in our new direction during the year. I have outlined a
number of initiatives below that I believe will be instrumental in
helping us complete commercial development of our PQ-Crypto and
PQBC technologies as well as develop strategic partnerships to
assist us in our plan to grow our business."
Initiatives in the development of our PQBC and PQ-Crypto
technologies:
- In this new development we entered into a Memorandum of
Understanding with Hitachi Solutions Create, Ltd. to undertake a
market feasibility study in Japan
with respect to our PQ-Crypto and PQBC technologies and their
impact on the various markets in Japan.
- To assist us in achieving our objectives we strengthened our
balance sheet completing a private placement raising net cash
proceeds, after deducting cash expenses of $147,048 relating to the financing, of
$852,952.
- We strengthened our technology leadership in our new
undertaking with the addition of two new board members, Ms.
Jane Yang who has extensive
experience in Blockchain technology and Ms. Joanna Ng who founded Devarim Design an AI tech
company focusing on providing users augmented cognitive assistance
by integrating Blockchain, Artificial Intelligence and IoT using
Design Thinking methodology.
- In addition, we added new members to the development team,
entering into agreements with several leading experts in Blockchain
technology to assist in the development of our PQ-Crypto and PQBC
technologies.
An update on the Company's financial results follows:
Revenue for the fourth quarter 2018 was $48,875 (2017 - $119,625) a decrease of $70,750. 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.
Cash operating expenses, which exclude stock based compensation
and depreciation, for the fourth quarter 2018 were $225,952 (2017 - $100,339) an increase of $125,613 primarily a result of an increase of
$69,661 in research and development
expenses related to the development of our PQ-Crypto and PQBC
technologies and an increase of $55,952 in selling, general and administrative
expenses primarily related to compensation and professional
fees.
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)
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 Cryptography and
Post-Quantum Blockchain 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
As at October 31, 2018 and 2017
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
113,760
|
$
|
238,576
|
|
Guaranteed investment
certificate
|
|
700,000
|
|
-
|
|
Accounts
receivable
|
|
62,696
|
|
28,077
|
|
Prepaid expenses and
other assets
|
|
6,275
|
|
6,281
|
|
Total current
assets
|
|
882,731
|
|
272,934
|
|
|
|
|
|
|
Property and
equipment
|
|
16,085
|
|
2,477
|
|
|
|
|
|
|
Total
assets
|
$
|
898,816
|
$
|
275,411
|
|
|
|
|
|
|
Liabilities and
Shareholders' Deficit
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
584,552
|
$
|
498,295
|
|
Deferred
revenue
|
|
8,455
|
|
10,899
|
|
Liability component
of debenture
|
|
390,733
|
|
391,580
|
|
Total current
liabilities
|
|
983,740
|
|
900,774
|
|
|
|
|
|
|
Shareholders'
deficit:
|
|
|
|
|
|
Share
capital
|
|
41,186,529
|
|
40,832,777
|
|
Contributed
surplus
|
|
5,511,832
|
|
5,407,310
|
|
Warrants
|
|
417,700
|
|
47,111
|
|
Agent's compensation options
|
|
99,200
|
|
-
|
|
Deficit
|
|
(47,300,185)
|
|
(46,912,561)
|
|
Total shareholders'
deficit
|
|
(84,924)
|
|
(625,363)
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' deficit
|
$
|
898,816
|
$
|
275,411
|
|
01 Communique
Laboratory Inc.
SELECTED FINANCIAL
INFORMATION
Consolidated Statements of Operations and
Comprehensive Income
For the 3 and 12 month periods ended
October 31, 2018 and 2017
|
|
|
|
|
|
3 months
ending
|
|
fiscal year
ending
|
|
31-Oct-18
|
31-Oct-17
|
|
31-Oct-18
|
31-Oct-17
|
|
|
|
|
|
|
|
Revenue
|
$
|
48,875
|
$
|
119,625
|
|
$
|
202,967
|
$
|
503,987
|
|
Expenses:
|
|
|
|
|
|
|
Selling, general and
administrative
|
138,466
|
60,653
|
|
306,401
|
258,255
|
|
Research and
development
|
122,379
|
52,718
|
|
204,900
|
172,716
|
|
260,845
|
113,371
|
|
511,301
|
430,971
|
|
Profit (loss) before
accretion on
|
|
|
|
|
|
|
liability component
of debenture and interest, and other income and taxes
|
$
|
(211,970)
|
$
|
6,254
|
|
$
|
(308,334)
|
$
|
73,016
|
|
Interest on
debenture
|
15,000
|
10,000
|
|
50,295
|
40,000
|
|
Accretion on
liability portion of debenture
|
4,319
|
4,515
|
|
16,853
|
17,104
|
|
Profit (loss) before
other income and taxes
|
$
|
(231,289)
|
$
|
(8,261)
|
|
$
|
(375,482)
|
$
|
15,912
|
|
Foreign exchange
gain
|
(5,069)
|
(5,073)
|
|
(5,069)
|
(5,073)
|
|
Interest
income
|
(1,169)
|
(7)
|
|
(1,210)
|
(41)
|
|
Profit (loss) before
taxes
|
(225,051)
|
(3,181)
|
|
(369,203)
|
21,026
|
|
Withholding
taxes
|
4,044
|
9,955
|
|
18,421
|
45,934
|
|
Profit (loss) for the
period and comprehensive loss
|
$
|
(229,095)
|
$
|
(13,136)
|
|
$
|
(387,624)
|
$
|
(24,908)
|
|
|
|
|
|
|
|
Basic loss per common
share
|
$
|
(0.00)
|
$
|
(0.00)
|
|
$
|
(0.01)
|
$
|
(0.00)
|
|
Diluted loss per
common share
|
$
|
(0.00)
|
$
|
(0.00)
|
|
$
|
(0.01)
|
$
|
(0.00)
|
|
|
|
|
|
|
|
Weighted average
number of common shares
|
|
|
|
|
|
|
Basic
|
70,326,416
|
66,543,807
|
|
67,749,286
|
66,543,807
|
|
Diluted
|
70,326,416
|
66,543,807
|
|
67,749,286
|
66,543,807
|
|
01 Communique
Laboratory Inc.
SELECTED FINANCIAL
INFORMATION
Consolidated Statements of Cash
Flows
For the 3 and 12 month periods ended October 31,
2018 and 2017
|
|
|
|
|
|
|
|
3 months
ending
|
|
fiscal year
ending
|
|
|
31-Oct-18
|
31-Oct-17
|
|
31-Oct-18
|
31-Oct-17
|
|
Cash provided by
(used in):
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
Income (Loss) for the
period
|
$
|
(229,095)
|
$
|
(13,136)
|
|
$
|
(387,624)
|
$
|
(24,908)
|
|
Adjustments to
reconcile the loss for
the
period to net cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
281
|
377
|
|
1,346
|
2,420
|
|
Stock-based
compensation
|
34,612
|
12,655
|
|
57,411
|
96,155
|
|
Accretion on
liability portion of debenture
|
4,319
|
4,515
|
|
16,853
|
17,104
|
|
Interest
income
|
(1,169)
|
(7)
|
|
(1,210)
|
(41)
|
|
Change in non-cash
working capital
|
88,566
|
(8,541)
|
|
49,200
|
(24,687)
|
|
(102,486)
|
(4,137)
|
|
(264,024)
|
66,043
|
|
Interest income
received
|
1,169
|
7
|
|
1,210
|
41
|
|
Total cash provided
by (used in)
operations
|
(101,317)
|
(4,130)
|
|
(262,814)
|
66,084
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
Proceeds from private
placement
|
1,000,000
|
-
|
|
1,000,000
|
-
|
|
Cash issuance
costs
|
(147,048)
|
-
|
|
(147,048)
|
-
|
|
Total cash provided
by financing
activities
|
852,952
|
-
|
|
852,952
|
-
|
|
Investing
activities:
|
|
|
|
|
|
|
Purchase of capital
assets
|
(11,867)
|
(932)
|
|
(14,954)
|
(932)
|
|
Purchase of
guaranteed investment
certificate
|
(700,000)
|
-
|
|
(700,000)
|
-
|
|
(711,867)
|
(932)
|
|
(714,954)
|
(932)
|
|
|
|
|
|
|
|
Increase (decrease)
in cash
|
39,768
|
(5,062)
|
|
(124,816)
|
65,152
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of
period
|
73,992
|
243,638
|
|
238,576
|
173,424
|
|
Cash and cash
equivalents, end of period
|
$
|
113,760
|
$
|
238,576
|
|
$
|
113,760
|
$
|
238,576
|
SOURCE 01 Communique Laboratory Inc.