01 Communique Reports Second Quarter 2025 Results and Provides an Update on Business Developments
Toronto, Ontario--(Newsfile Corp. - June 19, 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 second quarter fiscal 2025 results for the period ended April 30, 2025.
CEO Commentary
Andrew Cheung, CEO of 01 Communique, stated, "The second quarter marked significant progress across multiple fronts. We strengthened our balance sheet, secured a co-development agreement with a major Japanese systems integrator receiving upfront development fees and ongoing royalties, filed a patent for our PQC-enabled Artificial Intelligence ("AI") technology, and expanded our investor relations program. As we move forward our game plan for fiscal 2025 and beyond remains to grow our Company by advancing our Post Quantum Cryptography ("PQC") compliant quantum-safe technologies. We are committed to help our 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, energy 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 now in advanced stages."
Operational Highlights:
- Patent Application for PQC- Compliant AI
March 2025 - Filed a U.S. Patent Application for the underlying technology supporting the Company's PQC-compliant AI platform. Development is currently ahead of schedule with the release of a proof of concept ("PoC") product expected later this year.
- Private Placement Financing
June 2025 - Completed a non-brokered private placement of units ("Units") for gross proceeds of $511,500. Each Unit was issued at $0.30 and consists of one common share and one-half of one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share at an exercise price of $0.50 per common share before June 6, 2027. A 4 month hold period applies, expiring October 7, 2025.
https://www.01com.com/pdf/2025/Private-Placement-June-2025.pdf
- Co-Development Agreement
June 2025 - Entered into an agreement with a major Japanese global systems integrator for the co-development of a PQC version of a zero-trust remote access solution. The Company will receive a one-time development fee and a royalty based on revenue generated from the PQC-enabled solution going forward. http://01com.com/pdf/2025/Release-PQC-Remote-Access.pdf
- Investor Relations Program Expanded
The Company is expanding its investor relations program with the goal to enhance liquidity and to increase brand as well as company awareness within the investment community.
- February 2025 - Entered into a market making agreement with a goal to maintain a reasonable market and enhance the liquidity of the Company's common shares.
Integral-Market-Making-Press-Release.pdf
- June 2025 - Engaged an investor relations firm to heighten market and brand awareness for the Company within the investment community via email and phone campaigns.
Oakhill-Financial-Services-June-2025-release.pdf
- IronCAP XTM Upgrade
We are expanding the Company's IronCAP XTM product. The current version supports Office Outlook for Windows. The Company plans to expand its support to cross-platform users of Windows, Mac, iOS, and Android. The end result will be a truly end-to-end email/file encryption and digital signing system that is PQC-compliant.
Financial Highlights:
The Company ended the quarter with $823,235 of cash and securities. On June 9, 2025 the balance sheet was strengthened with an additional $511,500 of cash via a private placement providing the Company with $1,334,735 of available cash.
- Net loss for the second quarter was $286,783 (2024 - $68,638). The adjusted loss excluding stock-based compensation and depreciation, which are non-cash expenses, was $205,801 (2024 - $28,508).
- Revenue for the second quarter was $102,807 (2024 - $106,220). 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.
Cash operating expenses which exclude stock-based compensation and depreciation for the second quarter were $308,753 (2024 - $128,240) an increase of $180,513.
Selling, general and administrative, net of stock-based compensation: $113,118 (2024 - $85,627) an increase of $27,491.
Research and development: $190,175 (2024 - $44,812) an increase of $145,363.
The increase in expenses reflects an investment to increase the value of the Company by expanding its investor relations program as well as increasing expenditures in product development. These expenses include costs associated with patent filings as well as support for its product roadmap which includes the Company's PQC enabled AI product and other projects that are underway.
Conference Call Reminder and Information:
01 Communique will host a live teleconference allowing for questions and answers later today at 10:00AM EST (June 19, 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 April 30, 2025 and October 31, 2024
| 30-Apr-25 | 31-Oct-24 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash | $ | 133,235 | $ | 139,126 | ||
| Guaranteed investment certificate | 690,000 | - | ||||
| Accounts receivable | 91,977 | 62,902 | ||||
| Prepaid expenses and other assets | 46,089 | 6,037 | ||||
| 961,301 | 208,065 | |||||
| Plant and equipment | 136,074 | 32,418 | ||||
| Total assets | $ | 1,097,375 | $ | 240,483 | ||
| Liabilities and Shareholders' Deficit | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 162,040 | $ | 104,122 | ||
| Deferred revenue | 4,655 | 3,869 | ||||
| Lease liability | 40,048 | 21,071 | ||||
| 206,743 | 129,062 | |||||
| Non-current liabilities | ||||||
| Lease liability | 85,375 | - | ||||
| Total liabilities | 292,118 | 129,062 | ||||
| Shareholders' deficit | ||||||
| Share capital | 44,656,198 | 44,282,090 | ||||
| Contributed surplus | 6,562,144 | 6,460,194 | ||||
| Warrants | 640,000 | - | ||||
| Deficit | (51,053,085 | ) | (50,630,863 | ) | ||
| 805,257 | 111,421 | |||||
| Total liabilities and shareholders' deficit | $ | 1,097,375 | $ | 240,483 |
01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
UNAUDITED
Consolidated Statements of Operations and Comprehensive Income
For the 3 and 6 month periods ended April 30, 2025 and 2024
| three months ended | six months ended | |||||||||||
| 30-Apr-25 | 30-Apr-24 | 30-Apr-25 | 30-Apr-24 | |||||||||
| Revenue | $ | 102,807 | $ | 106,220 | $ | 189,312 | $ | 204,690 | ||||
| Expenses: | ||||||||||||
| Selling, general and administrative | 192,418 | 123,558 | 365,106 | 275,672 | ||||||||
| Research and development | 190,175 | 44,812 | 231,031 | 96,559 | ||||||||
| Withholding taxes | 7,142 | 7,623 | 14,967 | 16,133 | ||||||||
| 389,735 | 175,993 | 611,104 | 388,364 | |||||||||
| Loss before other income and expense | (286,928 | ) | (69,773 | ) | (421,792 | ) | (183,674 | ) | ||||
| Interest income | 972 | 1,548 | 972 | 3,660 | ||||||||
| Interest expense | (827 | ) | (413 | ) | (1,402 | ) | (905 | ) | ||||
| Loss for the period and comprehensive loss | $ | (286,783 | ) | $ | (68,638 | ) | $ | (422,222 | ) | $ | (180,919 | ) |
| Loss per common share: | ||||||||||||
| Basic | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) |
| Diluted | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) |
| Weighted average number of common shares: | ||||||||||||
| Basic | 100,614,554 | 96,364,554 | 99,031,221 | 96,364,554 | ||||||||
| Diluted | 100,614,554 | 96,364,554 | 99,031,221 | 96,364,554 | ||||||||
01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
UNAUDITED
Consolidated Statements of Cash Flows
For the 3 month and 6 periods ended April 30, 2025 and 2024
| three months ended | six months ended | |||||||||||
| 30-Apr-25 | 30-Apr-24 | 30-Apr-25 | 30-Apr-24 | |||||||||
| Cash provided by (used in): | ||||||||||||
| Operating activities: | ||||||||||||
| Loss and comprehensive loss for the period | $ | (286,783 | ) | $ | (68,638 | ) | $ | (422,222 | ) | $ | (180,919 | ) |
| Adjustments to reconcile loss for the period | ||||||||||||
| to net cash flows from operating activities: | ||||||||||||
| Depreciation of property and equipment | 1,682 | 2,199 | 3,786 | 4,668 | ||||||||
| Amortization of right-of-use asset | 11,307 | 11,593 | 22,900 | 22,812 | ||||||||
| Stock-based compensation expense | 79,300 | 37,931 | 155,000 | 91,598 | ||||||||
| Change in non-cash working capital | 25,069 | (14,339 | ) | (10,423 | ) | (50,052 | ) | |||||
| (169,425 | ) | (31,254 | ) | (250,959 | ) | (111,893 | ) | |||||
| Financing activities: | ||||||||||||
| Payment of loan | - | - | - | (40,000 | ) | |||||||
| Exercise of stock options | - | - | 58,500 | - | ||||||||
| Proceeds from private placement | - | - | 920,000 | - | ||||||||
| Issuance costs on private placement | (5,886 | ) | - | (17,442 | ) | - | ||||||
| Lease payments made | (44,988 | ) | (12,380 | ) | (24,448 | ) | (24,274 | ) | ||||
| (50,874 | ) | (12,380 | ) | 936,610 | (64,274 | ) | ||||||
| Investing activities: | ||||||||||||
| Proceeds from guaranteed investment certificate | 110,000 | 20,000 | - | 80,000 | ||||||||
| Purchase of guaranteed investment certificate | - | - | (690,000 | ) | - | |||||||
| Purchase of property and equipment | (632 | ) | - | (1,542 | ) | (543 | ) | |||||
| 109,368 | 20,000 | (691,542 | ) | 79,457 | ||||||||
| Increase (decrease) in cash | (110,931 | ) | (23,634 | ) | (5,891 | ) | (96,710 | ) | ||||
| Cash, beginning of period | 244,166 | 199,464 | 139,126 | 272,540 | ||||||||
| Cash, end of period | $ | 133,235 | $ | 175,830 | $ | 133,235 | $ | 175,830 | ||||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/255992
