01 Communique Provides Update on Business Developments and First Quarter 2025 Results

Rhea-AI Summary

01 Communique Laboratory (OTC: OONEF) reported its Q1 2025 results and business developments. The company strengthened its balance sheet through a $920,000 private placement, completing the quarter with $1,011,066 in cash and GIC.

Q1 financial highlights include a net loss of $135,439 (vs $112,281 in 2024), revenue of $86,505 (vs $98,470 in 2024), and cash operating expenses of $135,740.

The company announced strategic initiatives including:

• Expansion of IronCAP XTM product to support cross-platform functionality
• Development of PQC-compliant AI platform scheduled for H2 2025
• Creation of first PQC-compliant end-to-end mobile messaging platform
• Partnership with Real Matter Technology Company to integrate IronCAP PQC technology into fintech solutions

Positive

• Secured $920,000 in strategic financing
• Strong cash position of $1,011,066
• New partnership with Real Matter Technology for fintech market expansion
• Reduced product development expenses to $40,856 from $51,747 YoY

Negative

• Revenue declined to $86,505 from $98,470 YoY
• Net loss increased to $135,439 from $112,281 YoY
• Current revenue primarily from legacy products, not new PQC solutions

Balance Sheet Strengthened with Financing

Toronto, Ontario--(Newsfile Corp. - March 20, 2025) - 01 Communique Laboratory Inc. (TSXV: ONE) (OTC Pink: OONEF) (the "Company"), one of the first-to-market, enterprise level cybersecurity providers for the quantum computing era, is pleased to report the Company's first quarter fiscal 2025 results for the period ended January 31, 2025.

Andrew Cheung, CEO of the Company, commented, "We are committed to advancing our Post Quantum Cryptography (PQC) compliant quantum-safe technologies and using this technology to expand our product lineup with a series of products aimed at the enterprise end-users. During the quarter we strengthened our Balance Sheet with a $920,000 private placement which I am confident provides us with sufficient working capital to fund our product roadmap. I invite you to join us later today on our quarterly conference call, where our products and our roadmap will be featured."

Andrew Cheung further commented, "Significant advancements in quantum computing are raising substantial concerns about the security of current encryption methods. Quantum computers are expected to possess the capability to crack widely-used encryption algorithms, such as RSA and ECC, posing a serious threat to global digital security. Consequently, we strongly urge companies to proactively integrate PQC into their applications. Our IronCAP™ PQC technology is specifically designed to address these concerns, ensuring that sensitive data remains secure against the power of quantum attacks. Our PQC roadmap encompassing enterprise end-user products as well as developments with our partners are summarized below. Our operating focus for 2025 is to build revenue based on our PQC related products/services."

1. Expanding the Company's IronCAP X^TM product. The current version supports Office Outlook for Windows. The Company has committed to expand its support to cross-platform users of Windows, Mac, iOS, and Android. The Company believes this is the world's first truly end-to-end email/file encryption and digital signing system that is PQC-compliant.

2. The Company is accelerating its development of a PQC-compliant Artificial Intelligence ("AI") platform. The Company's goal is on schedule to demonstrate the product in the latter half of 2025. An international patent application for our innovative technology will be submitted.

3. The Company has committed to develop the world's first PQC-compliant true end-to-end mobile messaging platform without a master key or backdoor. The end result would be a completely secure product as no one will have unauthorized access.

4. The Company has committed to help its partners and their customers in their post-quantum transformation journey. Our IronCAP™ PQC engine enables businesses in different industries, such as the cryptocurrencies industry, the nuclear power industry, the remote access software industry, the financial industry, etc. to transform their systems to withstand the inevitable attacks from both classical and quantum computers. Discussions on collaborative efforts with several partners are in the advanced stage now.

Operational and Financial Highlights:

As announced on January 21, 2025 (www.01com.com/pdf/2025/Partnership-Real-Matter.pdf) the Company entered into a partnership agreement with Real Matter Technology Company ("Real Matter"), a fintech-semiconductor research company headquartered in Hong Kong. Under the terms of the agreement, Real Matter plans to integrate the Company's IronCAP™ PQC technology into its product line aiming at marketing and selling a true PQC solution to key sectors such as banks and Virtual Asset Service Providers (VASPs) through initiatives including roadshows, HK Science Park seminars, and HKMA Sandbox Proof-of-Concept demonstrations.

The Company strengthened its Balance Sheet with the completion of a strategic financing raising $920,000 with several strategic investors led by Antanas Guoga (Tony G). The financing consisted of 4,000,000 units ("Units") at $0.23 per Unit. Each Unit consists of one common share in the capital of the Company (a "Common Share") and one Common Share purchase warrant (a "Warrant") with each Warrant entitling the holder to acquire one Common Share at a price of $0.75 per Common Share at any time on or before January 7, 2028. Tony G along with the other investors voluntarily agreed to a contractual hold for twelve months which hold will expire on January 7, 2026.

Operating results were relatively flat year over year. Completing the quarter with $1,011,066 of cash and a GIC the Company remains confident it has sufficient working capital to complete its product development roadmap.

• Net loss for the first quarter was $135,439 (2024 - $112,281). The adjusted loss excluding stock-based compensation and depreciation, which are non-cash expenses, was $57,635 (2024 - $56,145).

• Cash operating expenses which exclude stock-based compensation and depreciation for the first quarter were $135,740 (2024 - $147,725).

• Product development expenses for the first quarter were $40,856 (2024 - $51,747). Going forward throughout 2025 the Company plans to increase its level of product development to support its roadmap of product expansion.

• SG&A expenses, net of stock-based compensation for the first quarter were $96,988 (2024 - $98,447). Going forward throughout the remainder of 2025, with the expected completion of several PQC-compliant products with more to come, the Company plans to increase its sales and marketing activities.

• Revenue for the first quarter was $86,505 (2024 - $98,470). Revenue is derived from licenses associated with ongoing recurring subscription fees from the Company's legacy remote access service. Going forward revenue growth is expected to come from the Company's PQC-compliant quantum-safe technologies.

Conference Call Reminder and Information:

01 Communique will host a live teleconference allowing for questions and answers later today at 10:00AM EST (March 20, 2025) to discuss the Company's results as well as providing an update on the business prospects for IronCAP™ and IronCAP X™.

Browser (please cut-and-paste the following link into your browser):
https://us02web.zoom.us/j/83272630612?pwd=rberpQ7lrxbZtxITlhRQNTyFxY7a3e.1
Passcode: ironcap25

Dial-in:
Within Canada (647) 374-4685 or (647) 558-0588
Within the USA (646) 558 8656 or (669) 900 9128
Webinar ID when prompted is 832 7263 0612
Passcode: 046927852

About 01 Communique

Established in 1992, 01 Communique (TSXV: ONE) (OTC Pink: OONEF) has always been at the forefront of technology. The Company's cyber security business unit focuses on post-quantum cybersecurity with the development of its IronCAP™ product line. IronCAP™'s technologies are patent-protected in the U.S.A. by its patents #11,271,715 and #11,669,833. The Company's remote access business unit provides its customers with a suite of secure remote access services and products under its I'm InTouch and I'm OnCall product offerings. The remote access offerings 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.ironcap.ca and 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. Such statements include statements regarding the expansion of the Company's product lineup, the timing of commercialization of the Company's PQC technologies, the timing of the development of the Company's PQC-compliant Artificial Intelligence ("AI") platform, the timing and ability to develop the world's first PQC-compliant true end-to-end mobile messaging platform without a master key or backdoor,, the commercial success of IronCAP X™, the future of quantum computers and their impact on the Company's product offering, the functionality of the Company's products and the intended product lines for the Company's technology and the potential licensing of the Company's technology. 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.

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.

INVESTOR CONTACT:

Brian Stringer
Chief Financial Officer
01 Communique
(905) 795-2888 x204
Brian.stringer@01com.com

01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
UNAUDITED
Consolidated Statements of Financial Position
As at January 31, 2025 and October 31, 2024

		31-Jan-25			31-Oct-24
Assets
Current assets
Cash	$	211,066		$	139,126
Guaranteed investment certificate		800,000			-
Accounts receivable		78,244			62,902
Prepaid expenses and other assets		3,873			6,037
		1,093,183			208,065
Plant and equipment		148,431			32,418
Total assets	$	1,241,614		$	240,483
Liabilities and Shareholders' Deficit
Current liabilities
Accounts payable	$	82,414		$	104,122
Deferred revenue		3,263			3,869
Lease liability		41,611			21,071
		127,288			129,062
Non-current liabilities
Lease liability		95,700			-
Total liabilities		222,988			129,062
Shareholders' deficit
Share capital		44,462,084			44,282,090
Contributed surplus		6,482,844			6,460,194
Warrants		640,000			-
Deficit		(50,766,302	)		(50,630,863	)
		1,018,626			111,421
Total liabilities and shareholders' deficit	$	1,241,614		$	240,483

 

01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
UNAUDITED
Consolidated Statements of Operations and Comprehensive Income
For the 3 month periods ended January 31, 2025 and 2024

three months ended
		31-Jan-25			31-Jan-24
Revenue	$	86,505		$	98,470
Expenses:
Selling, general and administrative		172,688			152,114
Research and development		40,856			51,747
Withholding taxes		7,825			8,510
		221,369			212,371
Loss before other income and expense		(134,864	)		(113,901	)
Interest income		-			2,112
Interest expense		(575	)		(492	)
Loss for the period and comprehensive loss	$	(135,439	)	$	(112,281	)
Loss per common share
Basic	$	(0.00	)	$	(0.00	)
Diluted	$	(0.00	)	$	(0.00	)
Weighted average number of common shares
Basic		97,470,532			96,364,554
Diluted		97,470,532			96,364,554

 

01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
UNAUDITED
Consolidated Statements of Cash Flows
For the 3 month periods ended January 31, 2025 and 2024

three months ended
		31-Jan-25			31-Jan-24
Cash provided by (used in):
Operating activities:
Loss and comprehensive loss for the period	$	(135,439	)	$	(112,281	)
Adjustments to reconcile loss for the period to net cash flows from operating activities:
Depreciation of property and equipment		2,104			2,469
Amortization of right-of-use asset		11,593			11,219
Stock-based compensation expense		75,700			53,667
Change in non-cash working capital		(35,492	)		(35,713	)
		(81,534	)		(80,639	)
Financing activities:
Payment of loan		-			(40,000	)
Exercise of stock options		58,500			-
Proceeds from private placement		920,000			-
Issuance costs on private placement		(11,556	)		-
Lease payments made		(12,560	)		(11,894	)
		954,384			(51,894	)
Investing activities:
Proceeds from guaranteed investment certificate		-			60,000
Purchase of guaranteed investment certificate		(800,000	)		-
Purchase of property and equipment		(910	)		(543	)
		(800,910	)		59,457
Increase (decrease) in cash		71,940			(73,076	)
Cash, beginning of period		139,126			272,540
Cash, end of period	$	211,066		$	199,464

 

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/245275

FAQ

What were 01 Communique's (OONEF) Q1 2025 financial results?

The company reported Q1 2025 revenue of $86,505, a net loss of $135,439, and ended with $1,011,066 in cash and GIC.

How much did OONEF raise in their recent private placement?

01 Communique raised $920,000 through a private placement of 4,000,000 units at $0.23 per unit, including warrants exercisable at $0.75.

What is the strategic partnership between OONEF and Real Matter Technology?

Real Matter will integrate OONEF's IronCAP PQC technology into their product line for banks and Virtual Asset Service Providers, including roadshows and demonstrations.

What are the main product developments announced by OONEF for 2025?

OONEF plans to expand IronCAP XTM for cross-platform support, develop a PQC-compliant AI platform, and create a PQC-compliant end-to-end mobile messaging platform.