01 Quantum Inc. — Interim / Quarterly Report 2024

Sep 19, 2024

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01 Communique Provides Update on Business Developments and Third Quarter Fiscal 2024 Results

TORONTO, ON – September 19, 2024. 01 Communique Laboratory Inc. (the "Company") (TSX-V: ONE; OTC Pink: OONEF), one of the first-to-market, enterprise level cybersecurity providers for the postquantum computing era, is pleased to report the Company’s third quarter fiscal 2024 results, which ended July 31, 2024.

Andrew Cheung, CEO of the Company, commented, “On August 13, 2024, the National Institute of Science and Technology (“NIST”) announced 3 official Post-Quantum Cryptography (“PQC”) standards - the FIPS-203, FIPS-204, and FIPS-205. These 3 standards were anticipated by our cryptographers and, accordingly, they were incorporated into our existing IronCAP PQC cryptographic engine, which was launched in 2021. As a result, our customers have enjoyed 3 years of being ahead of these best practices in the PQC market. We understand that NIST expects to announce additional standards in the near future in light of the ever-increasing attention towards quantum-safety in many technological fields, including AI and cryptocurrencies.”

Andrew Cheung continued, “I am very happy to report that our business roadmap has been proceeding as planned. Most notably, we continued to march towards the break-even line, essentially reaching the goal on an adjusted non-cash basis. We have now set the stage to becoming profitable if and when revenue starts building from our partners and customers.”

Financial Highlights:

• The loss for the quarter was $40,173 (2023 - $119,652). The adjusted loss excluding stock-based compensation and depreciation, which are non-cash expenses, was almost breakeven at $5,891 (2023 - $73,998) a reduction of $68,107. The Company completed the quarter with $125,716 of cash. Ongoing cash operating expenses have been significantly reduced. The goal is to continue 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 $119,335 (2023 - $173,395) a reduction of $54,060.

• Product development expenses were $34,538 (2023 - $73,995) a decrease of $39,457. 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 allowing flexibility with respect to the level of product development expenses required.

• SG&A expenses, net of stock-based compensation was $86,860 (2023 - $101,754) a decrease of $14,894.

• Revenue for the quarter was $126,103 (2023 - $106,197) an increase of $19,906. The majority of the revenue is derived from licenses associated with ongoing recurring subscription fees.

Conference Call Reminder and Information:

01 Communique will host a live teleconference allowing for questions and answers later today at 10:00AM EST (September 19, 2024) 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=cEdhZGhRU3BQMjBGOWRlY1dtcjA4dz09

Passcode: ironcap24

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: 046969719

About 01 Communique

Established in 1992, 01 Communique (TSX-V: 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 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 July 31, 2024 and October 31, 2023

Assets Current assets Cash Guaranteed investment certificate Accounts receivable Prepaid expenses and other assets Plant and equipment Total assets Liabilities and Shareholders' Deficit Current liabilities Accounts payable Deferred revenue Lease liability Canadian emergency business account loan Shareholders' deficit Share capital Contributed surplus Warrants Deficit Total liabilities and shareholders' deficit	31-Jul-24 $ 125,716 - 101,026 7,651 234,393 46,074 $280,467 $ 65,830 4,490 33,356 - 103,676 44,282,090 6,490,991 16,875 (50,533,165) 176,791 $280,467		31-Oct-23
			$ 272,540 80,000 87,966 6,060
			446,566 37,375
			$483,941
			$ 145,989 4,009 19,878 40,000
			209,876 44,282,090 6,287,173 16,875 (50,312,073)
			274,065
			$483,941

01 Communique Laboratory Inc. SELECTED FINANCIAL INFORMATION UNAUDITED

Consolidated Statements of Operations and Comprehensive Income For the 3 and 9 month periods ended July 31, 2024 and 2023

Revenue Expenses: Selling, general and administrative Research and development Withholding taxes	three months ended 31-Jul-24 31-Jul-23 $ 126,103 $ 106,197 119,080 145,054 34,538 73,995 12,303 10,220	nine months ended 31-Jul-24 31-Jul-23
		$ 330,793 $ 340,782 394,752 530,407 131,097 339,990 28,436 32,865
	165,920 229,269	554,284 903,262
Loss before interest Interest income Interest expense	(39,817) (123,072) 367 3,925 (723) (505)	(223,491) (562,480) 4,027 10,267 (1,628) (2,239)
Loss for the period and comprehensive loss	$ (40,173) $ (119,652)	$ (221,092) $ (554,452)
Loss per common share Basic Diluted Weighted average number of common shares Basic Diluted	$ (0.00) $ (0.00) $ (0.00) $ (0.00) 96,364,554 96,101,646 96,364,554 96,101,646	$ (0.00) $ (0.01) $ (0.00) $ (0.01) 96,364,554 96,101,646 96,364,554 96,101,646

01 Communique Laboratory Inc. SELECTED FINANCIAL INFORMATION UNAUDITED Consolidated Statements of Cash Flows For the 3 and 9 month periods ended July 31, 2024 and 2023

Cash provided by (used in): Operating activities: Loss and comprehensive loss for the period Adjustments to reconcile loss for the period to net cash flows from operating activities: Depreciation of property and equipment Amortization of right-of-use asset Stock-based compensation expense Change in non-cash working capital Financing activities: Payment of loan Lease payments made Investing activities: Proceeds from guaranteed investment certificate Purchase of property and equipment Decrease in cash Cash, beginning of period Cash, end of period	three months ended 31-Jul-24 31-Jul-23 $ (40,173) $ (119,652) 2,062 2,354 11,593 11,220 32,220 43,300 (44,277) 8,911 (38,575) (53,867) - - (11,539) (11,113) (11,539) (11,113) - 40,000 - (848) - 39,152 (50,114) (25,828) 175,830 316,188 $125,716 $290,360	nine months ended 31-Jul-24 31-Jul-23
		$ (221,092) $ (554,452) 6,730 7,286 34,405 33,658 123,818 164,182 (94,329) 50,832
		(150,468) (298,494) (40,000) - (35,813) (34,637)
		(75,813) 32,863 80,000 70,000 (543) (1,188)
		79,457 68,812 (146,824) (196,819) 272,540 487,179
		$125,716 $290,360

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