RE:New Press Release - 01 Communique Provides Update on Business Developments and Second Quarter Fiscal 2024 Results Same old PR - we believe! lol - more options for management at the expense of us shareholders (company owners)
TORONTO, ON / ACCESSWIRE / June 20, 2024 / 01 Communique Laboratory Inc. (the "Company") (TSXV:ONE)(OTC PINK:OONEF), 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 2024 results, which ended April 30, 2024.
Andrew Cheung, CEO of the Company, commented, "We continue to witness increased attention towards quantum-safety in many technological fields including AI and cryptocurrencies. With a goal to establish standards for Post-Quantum Cryptography ("PQC"), in April 2024, the National Institute of Science and Technology ("NIST") hosted what is believed to be their last PQC conference prior to publishing their final recommendation of PQC algorithms expected later this year. We believe we have a significant advantage over our competitors as we have been able to predict NIST's recommendations years before their final announcement. To date 4 out of 5 of NIST's recommendations have been incorporated in our existing IronCAP PQC cryptographic engine. We are now waiting for NIST's final announcement to be a perfect 5/5. Q-Day attention witnessed this year was dovetailed by our recent activities with existing and new potential partners, of which announcements will be made at the appropriate times if/when they happen."
Andrew Cheung continued, "Our business roadmap continues as planned. With the major part of our development complete and the release of a number of practical PQC applications, we have entered a different stage of operation whereby we continue to reduce our operation loss moving towards breakeven and looking to becoming profitable with revenue building from our partners and customers."
Financial Highlights:
The loss for the quarter was $68,638 (2023 - $187,292). The adjusted loss excluding stock-based compensation and depreciation, which are non-cash expenses, was $28,508 (2023 - $123,091) a reduction of $94,583. The Company completed the quarter with $175,830 of cash. Ongoing cash operating expenses have been significantly reduced. The goal is to keep them in line with the level of ongoing recurring revenue.
Cash operating expenses which exclude stock-based compensation and depreciation for the quarter were $128,240 (2023 - $240,239) a reduction of $111,999.
Product development expenses were $44,812 (2023 - $118,312 a decrease of $73,500. A number of development projects were completed throughout fiscal 2023 allowing the Company to reduce development expenses. The Company makes use of third-party independent contractors for the majority of its product development.
SG&A expenses, net of stock-based compensation was $85,627 (2023 - $124,337) a decrease of 38,710.
Revenue for the quarter was $106,220 (2023 - $127,782) a decrease of $21,562. Revenue was negatively impacted by a weakening of the Japanese Yen to the Canadian dollar.
Grant of Stock Options
The Company granted stock options pursuant to its stock option plan to directors and executives of the Company to purchase up to an aggregate of 1,320,000 common shares in the Company. The options were granted on June 19, 2024 and are exercisable at a price of $0.05 per share for a period of four years from the date of grant. The options vest over a period of two years, with 25% vesting on each of December 19, 2024, June 19, 2025, December 19, 2025 and June 19, 2026. The options, and the shares issuable upon exercise, will be subject to applicable securities and regulatory laws. After granting these stock options there will be a total of 6,265,000 options outstanding under the stock option plan.