01 Communique Reports Second Quarter Fiscal 2016 Results and Provides an Update on its Operations

TORONTO, June 9, 2016 /CNW/ - 01 Communique Laboratory Inc. (ONE:TSX-V) today announced results for its second quarter fiscal 2016, which ended April 30, 2016. The loss and comprehensive loss for the second quarter was $216,006 (2015 - $370,873). The adjusted loss, which excludes non-cash expenses for stock-based compensation and depreciation, was $79,883 (2015 - $296,358). The Company completed the period with $267,003 of cash and cash equivalents.   

"Our plan is to continue operations as well as pursue the matter with Citrix Systems Inc. ("Citrix") until its conclusion," said Andrew Cheung, President and CEO for 01 Communique. "We have significantly reduced our operating expenses in an effort to conserve our cash as we work through this process. With respect to the lawsuit with Citrix, we 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. All briefs with respect to these motions have been filed and we are now waiting for a decision by the District Court and then an appeal to the United States Court of Appeals for the Federal Circuit can be taken, if needed."

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 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 second quarter 2016 were $189,328 (2015 - $212,598). Excluding non cash expenses for stock based compensation and depreciation the cash operating expenses for second quarter 2016 were $103,831 (2015 - $338,514) a reduction of $234,683. After taking into account the expense reductions that took place earlier this year the cash operating expenses for the third quarter 2016 are expected to be approximately $50,000.

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 http://www.01com.comor call (905) 795-888 or [phone] (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
Unaudited
	30-Apr-16		31-Oct-15
Assets
Current assets
Cash and cash equivalents	$267,003		$551,205
Accounts receivable	31,880		112,034
Prepaid expenses and other assets	86,101		21,618
	384,984		684,857
Property and equipment	6,373		8,596
	$          391,357		$         693,453
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities	$          511,162		$         549,499
Deferred revenue	15,033		15,081
	526,195		564,580
Liability portion of Debenture	366,824		359,714
	893,019		924,294
Shareholders' equity
Share capital	40,832,777		40,628,777
Equity portion of Debenture	47,111		47,111
Contributed surplus	5,233,687		5,036,997
Deficit	(46,615,237)		(45,943,726)
	(501,662)		(230,841)
	$           391,357		$         693,453

01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION Consolidated Statements of Operations and Comprehensive Income
For the 3 and 6 month periods ended April 30, 2016 and 2015
Unaudited

	for the 3 months ending			for the 6 months ending
	30-Apr-16	30-Apr-15		30-Apr-16	30-Apr-15
Revenue	$        37,509	$             42,185		$         47,003	$         53,293
Expenses (income):
Selling, general and administrative	189,328	212,598		453,089	413,696
Patent litigation & re-examination expenses	-	-		-	6,658
Research and development	50,625	200,431		239,078	396,155
Interest	(59)	(841)		(763)	(1,414)
	239,894	412,188		691,404	815,095
Loss before interest and accretion on liability
component of debenture	$    (202,385)	$         (370,003)		$    (644,401)	$    (761,802)
Interest on debenture	10,000	650		20,000	650
Accretion on liability portion of debenture	3,620	220		7,110	220
Loss for the period and comprehensive loss	$    (216,005)	$         (370,873)		$     (671,511)	$    (762,672)
Loss per common share
Basic	$      (0.003)	$            (0.01)		$       (0.010)	$         (0.01)
Diluted	$      (0.003)	$            (0.01)		$       (0.010)	$         (0.01)
Weighted average number of common shares
Basic	66,543,807	65,743,807		66,443,807	65,743,807
Diluted	66,543,807	65,743,807		66,443,807	65,743,807

01 Communique Laboratory Inc.
SELECTED FINANCIAL INFORMATION
Consolidated Statements of Cash Flows
For the 3 and 6 month periods ended April 30, 2016 and 2015
	three months ending			six months ending
	30-Apr-16	30-Apr-15		30-Apr-16	30-Apr-15
Cash provided by (used in):
Operating activities:
Loss for the period	$        (216,005)	$   (370,873)		$      (671,511)	$    (762,672)
Adjustments to reconcile the loss for the period to net cash flows from operating activities
Depreciation	1,322	1,529		2,877	3,327
Stock-based compensation	134,800	72,986		277,690	118,070
Accretion on liability portion of debenture	3,620	220		7,110	220
Interest paid on debenture	10,000	-		20,000	-
Interest income	(59)	(841)		(763)	(1,414)
Change in non-cash working capital	(35,519)	(31,548)		(22,713)	(205,297)
	(101,841)	(328,527)		(387,310)	(847,766)
Interest income received	59	841		763	1,414
	(101,782)	(327,686)		(386,547)	(846,352)
Financing activities:
Issue of common shares	-	-		123,000	-
Issue of debenture	-	400,000		-	400,000
Interest paid on debenture	(10,000)			(20,000)
Investing activities:
Purchase of capital assets	-	(60)		(655)	(742)
Increase (decrease) in cash	(111,782)	72,254		(284,202)	(447,093)
Cash and cash equivalents, beginning of period	378,785	851,466		551,205	1,370,813
Cash and cash equivalents, end of period	$          267,003	$     923,720		$        267,003	$      923,720

SOURCE 01 Communique Laboratory Inc.

INVESTOR CONTACT: Brian Stringer, Chief Financial Officer, 01 Communique, [phone] x204, [email protected]