01 Communique Reports Second Quarter Fiscal 2015 Results

TORONTO, June 4, 2015 /CNW/ - 01 Communique Laboratory Inc. (ONE:TSX-V) today announced results for its second quarter fiscal 2015, which ended April 30, 2015. The loss and comprehensive loss for the second quarter 2015 was $370,893 (2014 - $369,632). The adjusted loss, which excludes non-cash expenses for stock-based compensation and depreciation, for second quarter 2015 was $295,488 (2014 - $324,559). The Company completed the quarter with $923,720 of cash and cash equivalents.  

"The first and foremost goal for us during this year is to get ready for trial for our patent lawsuit against Citrix," said Andrew Cheung, President and CEO for 01 Communique. "Our results reflect our emphasis on this aspect of our business. With respect to the case, on May 18, 2015 we received the inter partes re-examination certificate from the USPTO bringing that part to a successful conclusion. We are now waiting for the Court's claim construction finding after which we expect a scheduling conference to set a trial date. 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 to get to trial 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 Claim Construction Hearing. A claim construction tutorial and hearing took place on November 12 and 13, 2014. We are now waiting for the Court's findings.

The timetable. Expert discovery was completed on February 27, 2015. Following the Court's findings on the November 13, 2014 Claim Construction Hearing we expect a scheduling conference will take place to set dates regarding filing and/or renewing dispositive motions, trial preparation and trial.

An update on financial results follows.

  1. Operating expenses for second quarter 2015 were $413,029 (2014 - $456,523). Excluding non-cash expenses for stock based compensation of $72,986 (2014 - $43,200) and depreciation of $1,529 (2014 - $1873), the cash operating expenses to fund the business for second quarter 2015 were $338,514 (2014 - $411,450), a decrease of $72,936. Much of this decrease is a result of a reduction in compensation related expenses.

  2. The loss and comprehensive loss for first quarter 2015 was $370,003 (2014 - $369,632). Excluding non-cash expenses for stock-based compensation and depreciation, the adjusted loss for the second quarter 2015 was $295,488 (2014 - $306,043).

  3. Revenue for the second quarter 2015 was $42,185 (2014 - $84,665). The majority of this decrease is a result of a reduction in contract engineering fees.

  4. There were no patent litigation and re-examination expenses incurred in the second quarter 2015 (2014 -$18,516). 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.

  5. Cash and cash equivalents were $923,720 as at April 30, 2015 compared to $851,466 as at January 31, 2015 an increase of $72,254 for the second quarter 2015. This increase is primarily a result of funding the adjusted loss of $295,488 and a decrease in non cash working capital of $31,548. A source of funds, which more than offset this use of funds, was provided by the completion of a $400,000 Debenture previously announced on April 24, 2015.

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 achieveme*nts 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
Unaudited






30-Apr-15

31-Oct-14




Assets



Current assets




Cash and cash equivalents

$

923,720

$

1,370,813


Accounts receivable

43,032

105,551


Prepaid expenses and other assets

72,524

35,938


1,039,276

1,512,302




Property and equipment

9,963

12,549


$

1,049,239

$

1,524,851




Liabilities and Shareholders' Equity






Current liabilities




Accounts payable and accrued liabilities

$

488,540

$

711,679


Deferred revenue

9,719

17,810


498,259

729,489




Liability portion of Debenture

353,109

---




Shareholders' equity




Share capital

40,288,777

40,288,777


Equity portion of Debenture

47,111

---


Contributed surplus

4,996,657

4,878,587


Deficit

(45,134,674)

(44,372,002)


197,871

795,362





$

1,049,239

$

1,524,851






01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Operations and Comprehensive Income
For the 3 and 6 month periods ended April 30, 2015 and 2014

Unaudited





 for the 3 months

ending


 for the 6 months

ending



30-Apr-15

30-Apr-14


30-Apr-15

30-Apr-14









 Revenue

$

42,185

$

84,665


$

53,293

$

159,588


 Cost of revenue

-

-


-

-



42,185

84,665


53,293

159,588









Expenses (income):







Selling, general and administrative

212,598

249,428


413,696

539,321


Patent litigation and re-examination

-

18,516


6,658

29,696


Research and development

200,431

188,579


396,155

362,479


Interest

(841)

(2,226)


(1,414)

(2,909)



412,188

454,297


815,095

928,587


Loss before interest and accretion on







Liability component of Debenture

$

(370,003)

$

(369,632)


$

(761,802)

$

(768,999)









Interest on Debenture

650

-


650

-


Accretion on liability portion of Debenture

220

-


220

-









Loss for the period and comprehensive loss

$

(370,873)

$

(369,632)


$

(762,672)

$

(768,999)
















Loss per common share







Basic

$

(0.01)

$

(0.01)


$

(0.01)

$

(0.01)


Diluted

$

(0.01)

$

(0.01)


$

(0.01)

$

(0.01)









Weighted average number of common shares







Basic

65,743,807

65,294,818


65,743,807

65,248,312


Diluted

65,743,807

65,294,818


65,743,807

65,248,312









01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Cash Flows
For the 3 and 6 month periods ended April 30, 2015 and 2014
Unaudited








three months

ending


six months

ending


30-Apr-15

30-Apr-14


30-Apr-15

30-Apr-14

Cash provided by (used in):












Operating activities:






Loss for the period

$

(370,873)

$    (369,632)


$

(762,672)

$

(768,999)

Adjustments to reconcile the loss for the period






to net cash flows from operating activities






Depreciation

1,529

1,873


3,327

4,224

Stock-based compensation

72,986

43,200


118,070

90,150

Accretion on liability portion of Debenture

220

-


220

-

Interest income

(841)

(2,226)


(1,414)

(2,909)

Change in non-cash working capital

(31,548)

(223,167)


(205,297)

(371,787)


(328,527)

(549,952)


(847,766)

(1,049,321)







Interest income received

841

2,226


1,414

2,909


(327,686)

(547,726)


(846,352)

(1,046,412)







Financing activities:






Issue of common shares

-

75,600


-

75,600

Issue of Debenture

400,000

-


400,000

-







Investing activities:






Purchase of capital assets

(60)

-


(741)

-

Increase (decrease) in cash

72,254

(472,126)


(447,093)

(970,812)







Cash and cash equivalents, beginning of period

851,466

2,573,595


1,370,813

3,072,281

Cash and cash equivalents, end of period

$

923,720

$

2,101,469


$

923,720

$

2,101,469

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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