01 Communique Laboratory Inc. (ONE) AI Stock Analysis

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TSE:ONE Dividends

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01 Communique Laboratory Inc.

(ONE)

45Neutral

01 Communique Laboratory Inc. is currently facing significant challenges with negative financial performance and valuation concerns. Despite these hurdles, the company has potential growth avenues through technology advancements and strategic partnerships. However, technical indicators show weak momentum, reflecting market caution. Overall, improvements in profitability and cash flow generation are essential to enhance investor confidence.

01 Communique Laboratory Inc. (ONE) vs. S&P 500 (SPY)

Market Cap

C$29.18M

Dividend YieldN/A

Average Volume (3M)45.02K

Price to Earnings (P/E)―

Beta (1Y)0.39

Revenue Growth-13.98%

EPS Growth42.62%

CountryCA

Employees11

SectorTechnology

Sector Strength66

IndustrySoftware - Application

Share Statistics

EPS (TTM)>-0.01

Shares Outstanding100,614,555

10 Day Avg. Volume57,657

30 Day Avg. Volume45,016

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

01 Communique Laboratory Inc. Business Overview & Revenue Model

Company Description01 Communique Laboratory Inc., together with its subsidiaries, provides cyber security and remote access solutions in the United States, Asia-Pacific, and Canada. It offers I'm InTouch, suite of secure remote access products and services; I'm OnCall; and I'm InTouch Meeting. The company also provides IronCAP X, a cybersecurity product for email/file encryption; and IronCAZ API to build post-quantum systems for blockchain, 5G/IoT, data storage, remote access/VPN, encryption, digital signing etc. using the standard PKCS#11 and OpenPGP formats. 01 Communique Laboratory Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.

How the Company Makes Money01 Communique Laboratory Inc. generates revenue primarily through the sale of its cybersecurity and remote access software products. The company's revenue streams include licensing fees for its IronCAP encryption software, which is aimed at businesses and organizations seeking protection against potential quantum computing threats. Additionally, ONE earns income from subscription fees for its remote access services, which facilitate secure remote connections for businesses and individual users. Significant partnerships with other technology firms and service providers also contribute to its earnings by expanding the reach and adoption of its products in the market. The company's focus on innovation in cybersecurity and remote access solutions positions it to capitalize on the increasing global demand for secure digital communications and data protection.

01 Communique Laboratory Inc. Financial Statement Overview

Summary

01 Communique Laboratory Inc. faces substantial challenges with declining revenues and persistent losses. The company maintains a strong equity position but struggles with negative profitability metrics. Cash flow analysis reveals cash generation difficulties, impacting overall financial health. Continued focus on improving operational efficiency and revenue growth is crucial.

Income Statement

Negative

The company shows a declining revenue trend with a revenue decrease from $474,491 in 2023 to $400,983 in the TTM (Trailing-Twelve-Months). Gross profit margin remained high at 93.16% in the TTM, but net profit margin is negative due to consistent losses, with a net income of -$341,948 in the TTM. EBIT and EBITDA margins are also negative, indicating challenges in core operations and earnings before depreciation and amortization.

Balance Sheet

Neutral

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.13 in the TTM, suggesting low leverage risk. However, return on equity is negative at -33.57%, indicating inefficiencies in generating returns on shareholder equity. The equity ratio stands at 82.02%, showing strong asset financing through equity.

Cash Flow

Negative

The cash flow statement reveals negative free cash flow growth and consistent negative operating cash flow. The operating cash flow to net income ratio is slightly positive, indicating some alignment between cash operations and reported income. Nonetheless, the free cash flow to net income ratio remains negative, highlighting challenges in generating free cash.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
412.95K	474.49K	1.03M	885.35K	521.79K
	Gross Profit
358.16K	183.37K	709.37K	542.34K	286.14K
	EBIT
-321.59K	-686.36K	-717.87K	-635.39K	-567.26K
	EBITDA
-261.86K	-664.23K	-666.43K	-582.66K	-514.32K
	Net Income Common Stockholders
-318.79K	-722.11K	-662.00K	-656.85K	-657.17K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
139.13K	352.54K	637.18K	994.92K	1.02M
	Total Assets
240.48K	483.94K	1.11M	1.36M	1.29M
	Total Debt
21.07K	59.88K	106.87K	149.45K	18.70K
	Net Debt
-118.06K	-212.66K	-380.31K	-845.48K	-943.63K
	Total Liabilities
129.06K	209.88K	385.14K	338.30K	177.49K
	Stockholders Equity
111.42K	274.06K	724.85K	1.02M	1.11M
Cash Flow		Free Cash Flow
-125.31K	-305.15K	-514.28K	-408.61K	-581.33K
	Operating Cash Flow
-124.77K	-303.96K	-497.52K	-400.18K	-575.91K
	Investing Cash Flow
79.46K	68.81K	-168.26K	51.57K	234.58K
	Financing Cash Flow
-88.10K	20.51K	158.03K	381.20K	1.02M

01 Communique Laboratory Inc. Technical Analysis

Technical Analysis Sentiment

Positive

Last Price0.32

Price Trends

50DMA

0.26

Positive

100DMA

0.32

Negative

200DMA

0.19

Positive

Market Momentum

MACD

<0.01

Negative

RSI

72.62

Negative

STOCH

95.56

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ONE, the sentiment is Positive. The current price of 0.32 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.26, and above the 200-day MA of 0.19, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 72.62 is Negative, neither overbought nor oversold. The STOCH value of 95.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ONE.

01 Communique Laboratory Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$10.83B	10.47	-6.71%	2.99%	7.73%	-12.97%
RIWI	48 Neutral	C$8.46M	―	-34.33%	―	3.65%	-25.74%
ONE	45 Neutral	C$29.18M	―	-55.42%	―	-13.98%	42.62%
AXCP	39 Underperform	C$31.91M	―	-51.45%	―	―	42.32%
IAI	38 Underperform	C$5.84M	―		―	21.41%	70.98%
LQWD	38 Underperform	C$24.23M	―	-24.05%	―	―	-94.83%
VXTR	34 Underperform	C$19.28M	―	-602.31%	―	-50.81%	2.30%

* Technology Sector Average

Performance Comparison

TSE:ONE

01 Communique Laboratory Inc.

0.32

0.27

540.00%

TSE:LQWD

LQwD FinTech Corp

1.15

0.50

76.92%

TSE:IAI

infinitii ai

0.04

0.00

0.00%

TSE:AXCP

Netcoins Holdings Inc

0.19

0.13

216.67%

TSE:VXTR

Voxtur Analytics

0.02

-0.06

-75.00%

TSE:RIWI

RIWI Corp

0.47

-0.37

-44.05%

01 Communique Laboratory Inc. Earnings Call Summary

Earnings Call Date:Mar 20, 2025

(Q3-2024)

% Change Since: 10.34%|

Next Earnings Date:Jun 12, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a cautiously optimistic outlook with the company nearing a break-even point and having strategic advancements in post-quantum cryptography. However, uncertainties in revenue growth and low stock prices pose challenges.

Q3-2024 Updates

Positive Updates

Near Break-Even Financial Position

The financial operating loss in Q3 was down to just about $5,000, indicating a near break-even position.

Strategic Position in Post-Quantum Cryptography

01 Communique has incorporated FIPS 203, 204, and 205 standards into its IronCAP engine since 2021, positioning itself ahead of competitors.

Debt-Free Operation

The company continues to operate in a debt-free mode, ensuring financial stability.

Potential Growth in Quantum-Safe Applications

The company is exploring potential partnerships in AI, cryptocurrencies, remote access, and file sharing, which are seen as lower-hanging fruit for post-quantum conversion.

Negative Updates

Slow Revenue Materialization

There is uncertainty about when revenue will start to materialize significantly, despite the company being in a break-even position.

Low Stock Price Concerns

Despite positive outlooks and global partnerships, the stock is trading low at $0.04, reflecting market skepticism.

Company Guidance

During the Q3 2024 earnings call for 01 Communique, CEO Andrew Cheung highlighted the company's strong position in the emerging post-quantum cybersecurity market. He emphasized the alignment of their IronCAP cryptographic engine with recently announced NIST standards, FIPS 203, 204, and 205, which have been integrated since 2021. Cheung noted that the company's financial operating loss was reduced to approximately $5,000, effectively reaching a breakeven point. Revenue showed a small uptick, and the company continues to operate debt-free. With over $6 million invested in IronCAP development, Cheung expressed confidence in crossing into profitability as the quantum safety market gains traction, particularly in AI, cryptocurrencies, and remote access sectors.

01 Communique Laboratory Inc. Corporate Events

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures

01 Communique Strengthens Financial Position and Advances PQC Technologies

Positive

Mar 20, 2025

01 Communique Laboratory Inc. reported its first quarter fiscal 2025 results, highlighting a strengthened balance sheet with a $920,000 private placement. The company is advancing its PQC-compliant technologies, including expanding its IronCAP X product to support multiple platforms and developing a PQC-compliant AI platform. The company also entered a partnership with Real Matter Technology to integrate its IronCAP technology into fintech products. Despite a net loss for the quarter, the company remains confident in its working capital to support its product development roadmap.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.