01 Communique Provides Update on Business Developments and First Quarter Fiscal 2022 Results

Rhea-AI Summary

01 Communique Laboratory reports its Q1 fiscal 2022 results, ending January 31, 2022, showing revenue of $189,031, down from $213,262 in 2021. The net loss increased to $207,641, compared to $112,734 the previous year. The company emphasizes global expansion, particularly through a partnership in Europe, targeting cybersecurity solutions amid rising market demands. Cash reserves at the end of the quarter stood at $881,246, expected to support ongoing development of its IronCAP technology. The firm continues to grow its Asia-Pacific subscriber base, now exceeding 3,800 corporations using its secure access solution.

Positive

• Expansion of international partnerships, enhancing global market access.
• Cash reserves of $881,246 sufficient for continued investment in development.
• Over 3,800 corporations utilizing DoMobile, indicating strong demand.

Negative

• Revenue decreased by $24,231 compared to Q1 2021.
• Net loss increased by $94,907 year-over-year, indicating growing financial strain.
• Cash operating expenses rose by $45,289, reflecting increased operational costs.

TORONTO, ON / ACCESSWIRE / March 17, 2022 / 01 Communique Laboratory Inc. (the "Company") (TSXV:ONE)(OTCQB:OONEF), 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 2022 results, which ended January 31, 2022.

Andrew Cheung, CEO of 01 Communique, stated, "During the first quarter we increased our exposure internationally. As previously announced, we added a global technology partner headquartered in Paris, France which expands our exposure in Europe. We look forward to further development of our business in Europe. I am also very excited about the prospects for IronCAP™ in Asia/Pacific. These strong partnerships have essentially opened a global network of excellent opportunities. We completed the quarter with $881,246 of cash, which along with our existing and near term revenue opportunities, should be sufficient to allow us to continue our investment in development and commercialization of IronCAP™. When I look at the concerns expressed today around the world in respect of cybersecurity, I am encouraged about the potential market opportunity for our IronCAP™ technology. It is now primarily a matter of execution."

Highlights:

In November, 2021 the Company received a notice of allowance from the United States Patent and Trademark Office ("USPTO") for its Cryptographic System and Method. The patent has now been granted #11/271,715. This is further support for the innovative nature of the IronCAP™ technology which the Company believes is superior to anything on the market today. It is designed to protect customers against the ever-evolving illegitimate and malicious means of gaining access to their data.

The net loss for the first quarter 2022 was $207,641 (2021 - $112,734) an increase of $94,907. The adjusted net loss, which excludes noncash expenses, was $158,355 (2021 - $89,697) an increase of $68,658. The adjusted net loss excludes stock-based compensation and depreciation which are non-cash operating expenses.

Revenue for the first quarter 2022 was $189,031 (2021 - $213,262) a decrease of $24,231. The trend of working from home continues to be popular which has contributed to growth year over year in subscriber numbers and subsequent recurring royalties from the Company's Asia-Pacific business. One-time development and maintenance fees received for DoMobile enhancements were higher in 2021 over 2022 resulting in the overall decrease year over year in revenue. DoMobile is a secure remote access solution exclusively marketed by the Company's partner in Japan. The strong security underlying DoMobile allows for marketing not only to small to medium sized businesses, but also to government agencies, financial industries, health sectors, etc. which require a highly secure remote access environment. There are now more than 3,800 corporations using DoMobile as their telework solution with the numbers continuing to grow.

Cash operating expenses for first quarter 2022 were $327,765 (2021 - $282,476) an increase of $45,289. The Company expanded its product development team to complete product development initiatives aimed at increasing market share for its remote access service in Japan and near term opportunities to roll out new products built on its IronCAP™ technology.

Conference Call Reminder and Information:

01 Communique will host a live teleconference allowing for questions and answers later today at 10:00AM EST (March 17, 2022) 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=K1ZmRGhYKy9xaVE4UUVRMzJYTUFyQT09

Passcode: ironcap22

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: 066489703

About 01 Communique

Established in 1992, 01 Communique (TSX-V:ONE) (OTCQB: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™ technology. IronCAP™'s cryptographic system is an advanced Goppa code-based post-quantum cryptographic technology that can be implemented on classical computer systems as we know them today while at the same time can also safeguard against attacks in the future post-quantum world of computing. The Company's IronCAP™ technology is protected in the U.S.A. by its patent #11/271/215. 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 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
Consolidated Statements of Financial Position
As at January 31, 2022 and October 31, 2021
Unaudited

	31-Jan-22				31-Oct-21
Assets
Current assets
Cash	$	861,246			$	994,924
Accounts receivable		172,085				205,527
Prepaid expenses and other assets		23,504				31,743
		1,056,835				1,232,174
Plant and equipment		111,977				125,584
Total assets	$	1,168,812			$	1,357,758
Liabilities and Shareholders' Deficit
Current liabilities
Accounts payable and accrued liabilities	$	165,591			$	182,354
Deferred revenue		5,634				6,502
Lease liability		44,299				42,532
		215,524				231,388
Non-current liabilities
Lease liability		54,574				66,915
CEBA loan payable		40,000				40,000
Total liabilities		310,098				338,303
Shareholders' deficit
Share capital		43,963,582				43,963,582
Contributed surplus		5,937,197				5,890,297
Warrants		93,533				93,533
Deficit		(49,135,598	)			(48,927,957	)
		858,714				1,019,455
Total liabilities and shareholders' deficit	$	1,168,812			$	1,357,758

01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Operations and Comprehensive Income
For the 3 month periods ended January 31, 2022 and 2021
Unaudited

	three months ended
	31-Jan-22			31-Jan-21
Revenue	$	189,031		$	213,262
Expenses:
Selling, general and administrative		201,502			168,284
Research and development		175,549			137,229
Withholding taxes		18,389			20,784
		395,440			326,297
Loss before other income and expense		(206,409	)		(113,035	)
Interest income		(186	)		(576	)
Interest expense		1,418			275
Loss for the period and comprehensive loss	$	(207,641	)	$	(112,734	)
Loss per common share
Basic	$	(0.00	)	$	(0.00	)
Diluted	$	(0.00	)	$	(0.00	)
Weighted average number of common shares
Basic		94,451,221			91,793,701
Diluted		94,451,221			91,793,701

01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Cash Flows
Unaudited
For the 3 month periods ended January 31, 2022 and 2021

	three months ended
	31-Jan-22			31-Jan-21
Cash provided by (used in):
Operating activities:
Comprehensive loss for the period	$	(207,641	)	$	(112,734	)
Adjustments to reconcile loss for the period to
net cash flows from operating activities:
Depreciation of property and equipment		2,386			1,850
Amortization of right-of-use asset		11,219			11,061
Stock-based compensation expense		46,900			21,187
Change in non-cash working capital		24,030			57,274
		(123,106	)		(21,362	)
Financing activities:
Exercise of stock options		-			1,750
Exercise of debenture warrants		-			52,000
Proceeds from loan		-			60,000
Lease payments made		(10,572	)		(11,658	)
		(10,572	)		102,092
Investing activities:
Purchase of property and equipment		-			(2,191	)
		-			(2,191	)
Increase in cash and cash equivalents		(133,678	)		78,539
Cash, beginning of period		994,924			962,337
Cash, end of period	$	861,246		$	1,040,876

SOURCE: 01 Communique Laboratory, Inc.

View source version on accesswire.com:
https://www.accesswire.com/693441/01-Communique-Provides-Update-on-Business-Developments-and-First-Quarter-Fiscal-2022-Results

FAQ

What were 01 Communique's Q1 2022 revenue results for stock symbol OONEF?

The revenue for Q1 2022 was $189,031, a decrease from $213,262 in Q1 2021.

What was the net loss reported by 01 Communique for the first quarter of fiscal 2022?

The net loss for Q1 2022 was $207,641, up from $112,734 in the same quarter of 2021.

How many corporations are using DoMobile as of Q1 2022 for OONEF?

More than 3,800 corporations are now using DoMobile as their telework solution.

How has 01 Communique's cash position changed in Q1 2022?

At the end of Q1 2022, the company reported cash reserves of $881,246.

What is the main focus of 01 Communique's business development strategy?

The company is focusing on expanding its market presence internationally, particularly in Europe and Asia/Pacific.