01 Communique Reports Fourth Quarter Fiscal 2016 Results and Provides an Update

TORONTO, Feb. 3, 2017 /CNW/ - 01 Communique Laboratory Inc. (ONE:TSX-V) today announced results for its fourth quarter fiscal 2016, which ended October 31, 2016. The loss and comprehensive loss for the fourth quarter was $109,756 (2015 - $463,096). The adjusted loss, which excludes non-cash expenses for stock-based compensation and depreciation, was $122,333 (2015 - $333,711). The Company completed the period with $173,424 of cash and cash equivalents.   

"We are committed to our plan of continuing operations as well as pursuing the matter with Citrix Systems Inc. ("Citrix") until its conclusion," said Andrew Cheung, President and CEO for 01 Communique. "At the beginning of 2016 we significantly reduced operating expenses to conserve our cash as we work through this process. With respect to the lawsuit with Citrix, we are waiting for a decision by the District Court in respect of our post-trial motions for renewed judgment as a matter of law and for a new trial and then if needed an appeal to the United States Court of Appeals for the Federal Circuit can be taken."  

An Update on the Company's Operations follows:

In addition to moving forward with the appeal process in its patent lawsuit against Citrix the Company plans to continue and work with Hitachi as well as approach other companies with a goal for them to license the Company's products and patented technology. Substantially all development work has been completed on the products that the Company is looking to license and with respect to the appeal process the Company relies on its lawyers and hence minimal internal resources are expected. Accordingly, the Company has reduced operating expenses significantly as it works through the appeal process. To assist in achieving this expense reduction the Company's executive management and board of directors are not drawing a salary.

Operating expenses for fourth quarter 2016 were $106,056 (2015 - $461,359). Excluding non cash expenses for stock based compensation and depreciation the cash operating expenses for fourth quarter 2016 were $118,633 (2015 - $331,974) a reduction of $213,341. In addition the Company paid $10,000 (2014 - $10,000) interest on its debenture.

One of the Company's directors, Mr. Kelvin Zweep, has resigned from the board of directors. "We thank Kelly for his contribution as a member of our board over the past years," said Andrew Cheung. "We wish him all the best in the future."   

Background on the Company's patent lawsuit against Citrix:

In February 2006, the Company commenced a lawsuit in the United States District Court, Northern District of Ohio, Eastern Division, against Citrix alleging infringement by their GoToMyPC product line of the '479 Patent. On January 11, 2016 a jury trial commenced in the lawsuit with the jury reaching and returning a unanimous verdict on January 19, 2016. The Court entered Judgment as follows:

1. Defendants Citrix have not infringed claims 24 or 45 of 01 Communique's patent (United States Patent No. 6,928,479);

2. Claims 24 and 45 of United States Patent No. 6,928,479 are not invalid;

3. Plaintiff 01 Communique takes no damages from Citrix;

4. Except as set forth above or adjudicated through Summary Judgment, all other claims and counterclaims in this matter were dismissed;

5. Each party retains its right to, and does not waive its right to, file timely motions for renewed judgment as a matter of law, for new trial, for the award of attorneys' fees, for the award of costs, and to prosecute an appeal from any aspect of the case to the extent allowed by statute, the Federal Rules of Civil Procedure, and/or this Court.

On March 7, 2016 the Company filed post-trial motions with the District Court that presided over the trial. These included motions for renewed judgment as a matter of law and for a new trial. Citrix's opposition brief to these motions was filed and the Company's reply brief was filed on April 28, 2016. Now that all briefs are filed we are waiting for a decision by the District Court on this matter and then an appeal to the United States Court of Appeals for the Federal Circuit can be taken, if needed.

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-16

31-Oct-15




Assets



Current assets




Cash and cash equivalents

$173,424

$551,205


Accounts receivable

27,696

112,034


Prepaid expenses and other assets

6,975

21,618


208,095

684,857




Plant and equipment

3,965

8,596


$212,060

$693,453




Liabilities & Shareholders' Equity






Current liabilities




Accounts payable and accrued liabilities

$522,119

$549,499


Deferred revenue

12,075

15,081


534,194

564,580




Liability portion of Debenture

374,476

359,714

Total liabilities

908,670

924,294




Shareholders' equity




Share capital

40,832,777

40,628,777


Contributed surplus

5,311,155

5,036,997


Equity portion of Debenture

47,111

47,111


Deficit

(46,887,653)

(45,943,726)


(696,610)

(230,841)


$212,060

$693,453




 

 

01 Communique Laboratory Inc.

SELECTED FINANCIAL INFORMATION

Consolidated Statements of Operations and Comprehensive Income

For the 3 and 12 month periods ended October 31, 2016 and 2015














 for the 3 months ending


 for the 12 months ending


31-Oct-16

31-Oct-15


31-Oct-16

31-Oct-15







Revenue

$

8,905

$

10,674


$

65,361

$

86,985







Expenses (income):












Selling, general and administrative

62,816

258,795


646,498

834,524







Patent litigation & re-examination expenses

-

8,596


-

15,254







Research and development

43,240

193,968


310,163

784,319







Interest

(1,291)

(952)


(2,135)

(2,863)








104,765

460,407


954,526

1,631,234

Loss before interest and accretion on liability












component of debenture

$

(95,860)

$

(449,733)


$

(889,165)

$

(1,544,249)







Interest on debenture

10,000

10,000


40,000

20,650







Accretion on liability portion of debenture

3,896

3,363


14,762

6,825







Loss for the period and comprehensive loss

$

(109,756)

$

(463,096)


$

(943,927)

$

(1,571,724)













Loss per common share 






Basic

$

(0.002)

$

(0.007)


$

(0.014)

$

(0.024)

Diluted

$

(0.002)

$

(0.007)


$

(0.014)

$

(0.024)







Weighted average number of common shares:






Basic

66,543,807

66,243,807


66,493,670

65,882,163

Diluted

66,543,807

66,243,807


66,493,670

65,882,163

 

 

01 Communique Laboratory Inc.

SELECTED FINANCIAL INFORMATION

Consolidated Statements of Cash Flows

For the 3 and 12 month periods ended October 31, 2016 and 2015














three months ending



fiscal year ending



31-Oct-16

31-Oct-15


31-Oct-16

31-Oct-15

Cash provided by (used in):












Operating activities:







Loss for the period

$

(109,756)

$

(463,096)


$

(943,927)

$

(1,571,724)


Adjustments to reconcile the loss for the period






to net cash flows from operating activities







 Depreciation

1,205

1,393


5,287

6,112


Stock-based compensation

(13,782)

127,992


355,158

293,410


Accretion on liability portion of debenture

3,896

3,363


14,762

6,825


Interest income

(1,291)

(952)


(2,135)

(2,863)


Change in non-cash working capital

80,689

40,516


68,595

(157,073)








(39,039)

(290,784)


(502,260)

(1,425,313)

Interest income received

1,291

952


2,135

2,863








(37,748)

(289,832)


(500,125)

(1,422,450)







Financing activities:







Issue of common shares

-

-


123,000

205,000


 Issue of debenture

-

-


-

400,000

Investing activities:







Purchase of capital assets

-

(400)


(656)

(2,158)







Increase (decrease) in cash

(37,748)

(290,232)


(377,781)

(819,608)







Cash and cash equivalents, beginning of period

211,172

841,437


551,205

1,370,813

Cash and cash equivalents, end of period

$

173,424

$

551,205


$

173,424

$

551,205

 

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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