01 Communique Reports Fourth Quarter Fiscal 2015 Results

TORONTO, Dec. 14, 2015 /CNW/ - 01 Communique Laboratory Inc. (ONE:TSX-V) today announced results for its fourth quarter fiscal 2015, which ended October 31, 2015. The loss and comprehensive loss for the fourth quarter 2015 was $463,096 (2014 - $674,589). The adjusted loss, which excludes non-cash expenses for stock-based compensation and depreciation, for the quarter was $333,711 (2014 - $438,087). The Company completed the year with $551,205 of cash and cash equivalents.   

"Throughout 2015 we concentrated our efforts on preparing for our patent lawsuit trial against Citrix, scheduled to commence January 8, 2016," said Andrew Cheung, President and CEO for 01 Communique. "Our results for fiscal 2015 reflect our emphasis on this aspect of our business. With respect to the case, summary judgment motions have been filed and we are waiting for the court's decision on these motions. A pre-trial conference is scheduled for December 21, 2015 and then on to trial. We look forward to our day in court."

An update on the Company's patent lawsuit against Citrix Systems Inc. ("Citrix") follows.  

The Company is protecting its intellectual property against Citrix's GoToMyPC product offering. The Company is seeking damages based upon a reasonable royalty, back to August 2005 the date the patent was issued, for infringement, as well as pre and post judgment interest on awarded damages; treble damages for willful infringement, a permanent injunction and attorneys' fees. An overview of recent events and timelines follows.

The inter partes re-examination. On October 16, 2014 the United States Court of Appeal for the Federal Circuit rendered their decision affirming the United States Patent and Trademark Office`s ("USPTO") Patent Trial and Appeals Board decision that the Company`s patent 6,928,479 (" '479 Patent") is valid and then issued their mandate to the USPTO to issue a re-examination certificate. On May 18, 2015 the USPTO issued that inter partes re-examination certificate.

The Markman Order. On June 12, 2015 the Court issued its claim construction order and memorandum ruling on the meaning of four disputed claim terms, adopting the Company's proposed construction for all four claim terms. The Court also agreed with the Company that the preamble to claim 24 of the '479 Patent was not limiting and hence concluded that it was not necessary to construe two additional claim terms contained in the preamble. 

The timetable. A pretrial conference is scheduled for December 21, 2015 and a trial is scheduled to commence January 8, 2016. Summary judgment motions have been filed and we are waiting for the court's decision on these motions.

An update on financial results follows.

  1. Operating expenses for the fourth quarter 2015 were $461,359 (2014 - $746,101). Excluding non-cash expenses for stock based compensation of $127,992 (2014 - $234,870) and depreciation of $1,393 (2014 - $1,632), and excluding patent litigation and re-examination expenses of $8,596 ($153,272) the cash operating expenses to fund operations were $323,378 (2014 - $356,327), a decrease of $32,949. Much of this decrease is a result of a reduction in administrative related expenses.

  2. For the year ended October 31, 2015 operating expenses were $1,634,097 (2014 - $2,359,345). Excluding non-cash expenses for stock based compensation of $293,410 (2014 - $514,663) and depreciation of $6,112 (2014 - $7,488), and excluding patent litigation and re-examination expenses of $15,254 (2014 - $267,968) the cash operating expenses to fund operations net of patent litigation and re-examination expenses was $1,319,321 (2014 - $1,569,226) a decrease of $249,905. The majority of this decrease is a result of a reduction in salaries and benefits, and a reduction in administrative expenses to run the business.

  3. The loss and comprehensive loss for fourth quarter 2015 was $463,096 (2014 - $674,589). Excluding non-cash expenses for stock-based compensation and depreciation, the adjusted loss for the third quarter 2015 was $333,711 (2014 - $438,087) a reduction of $104,376. While there was a decrease in revenue of $47,704 there was also a decrease in cash operating expenses of $177,625 which more than compensated.

  4. The loss and comprehensive loss for year ended October 31, 2015 was $1,571,724 (2014 - $2,073,332). Excluding non-cash expenses for stock-based compensation and depreciation, the adjusted loss for the year was $1,272,202 (2014 - $1,551,181) a reduction of $278,979. While there was a decrease in revenue of $179,706 there was also a decrease in cash operating expenses of $222,629 which more than compensated.

  5. Patent litigation and re-examination expenses of $8,596 were minimal in the fourth quarter 2015 (2014 -$153,272). These expenses fluctuate with the level of activity in respect of patent litigation as well as the re-examination that had been requested by Citrix and, with the receipt of the re-examination certificate, it is now complete and no further costs are expected. With respect to the Citrix litigation, expenses have reached a cap and the Company's lawyers are now responsible for such expenses for which they are to be reimbursed out of proceeds of settlement or an award of damages, if any.

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 Factors" in the company's Annual Information Form 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-Oct-15

31-Oct-14




Assets



Current assets




Cash and cash equivalents

$

551,205

$

1,370,813


Accounts receivable

112,034

105,551


Prepaid expenses and other assets

21,618

35,938


684,857

1,512,302




Property and equipment

8,596

12,549


$

693,453

$

1,524,851




Liabilities and Shareholders' Equity






Current liabilities




Accounts payable and accrued liabilities

$

549,499

$

711,679


Deferred revenue

15,081

17,810


564,580

729,489




Liability component of Debenture

359,714

---




Shareholders' equity




Share capital

40,628,777

40,288,777


Equity component of Debenture

47,111

---


Contributed surplus

5,036,997

4,878,587


Deficit

(45,943,726)

(44,372,002)


230,841

795,362


$

693,453

$

1,524,851

01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Operations and Comprehensive Income
For the 3 and 12 month periods ended October 31, 2015 and 2014|



 for the 3 months ending


 for the 12 months ending


31-Oct-15

31-Oct-14


31-Oct-15

31-Oct-14







Revenue

$

10,674

$

57,748


$

86,985

$

266,691

 

Expenses (income):






Selling, general and administrative

258,795

370,266


834,524

1,327,639

Patent litigation and re-examination expenses

8,596

153,272


15,254

267,968

Research and development

193,968

222,563


784,319

763,738

Interest

(952)

(13,764)


(2,863)

(19,322)


460,407

732,337


1,631,234

2,340,023

Loss before interest and accretion on liability






component of debenture

$

(449,733)

$

(674,589)


$

(1,544,249)

$

(2,073,332)







Interest on debenture

10,000

-


20,650

-

Accretion on liability portion of debenture

3,363

-


6,825

-







Loss for the period and comprehensive loss

$

(463,096)

$

(674,589)


$

(1,571,724)

$

(2,073,332)













Loss per common share 






Basic

$

(0.01)

$

(0.01)


$

(0.02)

$

(0.03)

Diluted

$

(0.01)

$

(0.01)


$

(0.02)

$

(0.03)







Weighted average number of common shares  

Basic

66,243,807

65,743,807


65,882,163

65,496,739

Diluted

66,243,807

65,743,807


65,882,163

65,496,739

01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Cash Flows
For the 3 and 12 month periods ended October 31, 2015 and 2014


three months ending


fiscal year ending


31-Oct-15

31-Oct-14


31-Oct-15

31-Oct-14

Cash provided by (used in):












Operating activities:







Loss for the period

$

(463,096)

$

(674,589)


$

(1,571,724)

$

(2,073,332)


Adjustments to reconcile the loss







for the period to net cash flows from operating activities:







Depreciation

1,393

1,632


6,112

7,488


Stock-based compensation

127,992

234,870


293,410

514,663


Accretion on liability component of debenture

3,363

-


6,825

-


Interest paid on debenture

10,000

-


20,650

-


Interest income

(952)

(13,764)


(2,863)

(19,322)


Change in non-cash working capital

40,516

203,241


(157,073)

(223,666)


(280,784)

(248,610)


(1,404,663)

(1,794,169)

Interest income received

952

13,764


2,863

19,322


(279,832)

(234,846)


(1,401,800)

(1,774,847)







Financing activities:







Issue of common shares

-

-


205,000

75,600


Issue of debenture

-

-


400,000

-


Interest paid on debenture

10,000

-


20,650

-

Investing activities:







Purchase of capital assets

(400)

(2,221)


(2,158)

(2,221)

Increase (decrease) in cash

(290,232)

(237,067)


(819,608)

(1,701,468)







Cash and cash equivalents, beginning of period

841,437

1,607,880


1,370,813

3,072,281

Cash and cash equivalents, end of period

$

551,205

$

1,370,813


$

551,205

$

1,370,813

SOURCE 01 Communique Laboratory Inc.

For further information: INVESTOR CONTACT: Brian Stringer, Chief Financial Officer, 01 Communique, (905) 795-2888 x204, brian.stringer@01com.com

RELATED LINKS
http://www.01com.com

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