Fourth Quarter Fiscal 2019 Results
The Company today reported a profit for its 4th quarter 2019 of
Business Development Highlights:
The Company has several ongoing initiatives to help ensure the successful commercialization of IronCAP X and IronCAP API including:
- Increased business development activities have resulted in the signing of a memorandum of understanding (MOU) with
Hitachi Solutions Create Ltd inJapan and with ixFintech inHong Kong with respect to licensing IronCAP technology. Discussions with other leading technology firms are in progress. - The Company had a successful business development trip in
Asia inJanuary 2020 . The trip included attending theAsian Financial Forum where management met with 14 potential customers in the finance industry. In addition, management met with 6 potential customers in mainlandChina and had further meetings with Hitachi inTokyo to discuss plans following the MOU. - A world class development team has been assembled for the completion of IronCAP X as well as for the development of an impressive product road map that would incorporate the Company's IronCAP technology into a number of new products.
- The addition of new board and advisory committee members with significant business expertise.
- A new web site (www.ironcap.ca) has been launched to provide quick access to critical information about IronCAP technology and its family of products, including IronCAP X.
- The new web site provides IronCAP X beta users the ability to register for a trial of IronCAP X when it is available.
The Company has received several endorsements supporting management's belief that IronCAP is secure enough to safeguard against potential attacks from quantum computers:
- IronCAP proved to be un-hackable after the Company issued a world-wide challenge to hackers to crack their quantum-safe encryption in 36 days in exchange for a
$100,000 . All 517 hackers from various countries failed miserably, validating the strength of IronCAP's encryption platform. - IronCAP was selected to receive the Editor's Choice Award in a special "Quantum Computing" edition of the
CIOReview magazine . CIOReview profiled the "10 Most Promising Quantum Computing Solution Providers" of 2019, and selected IronCAP as the Editor's choice.
About IronCAP and IronCAP X:
IronCAP is at the forefront of the cyber security market and is designed to protect our customers from cyber-attacks. IronCAP's patent-pending cryptographic system is designed to protect users and enterprises against the ever-evolving illegitimate and malicious means of gaining access to their data today as well as in the future with the introduction of powerful quantum computers. Based on improved Goppa code-based encryption it is designed to be faster and more secure than current standards. It operates on conventional computer systems so users are protected today while being secure enough to safeguard against future attacks from the world of quantum computers. An IronCAP API is available which allows vendors of a wide variety of vertical applications to easily transform their products to ensure their customers are safe from cyber-attacks today and from quantum computers in the future.
IronCAP X, a new cybersecurity product for email/file encryption, incorporates our patent-pending technology and is planned for commercial release around Q1 2020. The new product has two major differentiations from what is in the market today. Firstly, many offerings in today's market store users secured emails on email-servers for recipients to read, making email-servers a central target of cyber-attack. Our new product, on the other hand, delivers each encrypted message end-to-end to the recipients such that only the intended recipients can decrypt and read the message. Consumer's individual messages are protected, eliminating the hackers' incentive to attack email servers of email providers. Secondly, powered by our patent-pending IronCAP technology, we believe our new product will be the world's first quantum-safe end-to-end email encryption system; secured against cyberattacks from today's systems and from quantum computers in the future. Consumers and businesses using our new products will have tomorrow's cybersecurity today.
About
Established in 1992,
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 timing of the release 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, the execution of a memorandum of understanding signed with
Neither
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Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ | 283,712 | $ | 113,760 | |
Guaranteed investment certificate | 300,000 | 700,000 | |||
Accounts receivable | 96,055 | 62,696 | |||
Prepaid expenses and other assets | 11,124 | 6,275 | |||
690,891 | 882,731 | ||||
Plant and equipment | 16,335 | 16,085 | |||
$ | 707,226 | $ | 898,816 | ||
Liabilities and Shareholders' Deficit | |||||
Current liabilities | |||||
Accounts payable and accrued liabilities | $ | 140,962 | $ | 584,552 | |
Deferred revenue | 8,906 | 8,455 | |||
Liability component of debenture | 390,703 | 390,733 | |||
540,572 | 983,740 | ||||
Shareholders' equity | |||||
Share capital | 41,414,233 | 41,186,529 | |||
Contributed surplus | 5,668,916 | 5,511,832 | |||
Share purchase warrants | 598,247 | 417,700 | |||
Agent compensation options | 99,200 | 99,200 | |||
Deficit | (47,613,942) | (47,300,185) | |||
166,654 | (84,924) | ||||
Total liabilities and shareholders' deficit | $ | 707,226 | $ | 898,816 |
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the years ended | the 3 months ended | |||||||
Revenue | $ | 283,107 | $ | 202,967 | $ | 80,832 | $ | 48,875 |
Expenses (income): | ||||||||
Selling, general and administrative | 562,200 | 306,401 | 158,532 | 138,467 | ||||
Research and development | 384,007 | 204,900 | 104,968 | 122,379 | ||||
946,207 | 511,301 | 263,499 | 260,845 | |||||
Loss before accretion on liability component of | ||||||||
debenture, interest, other income, unusual | (663,100) | (308,334) | (182,667) | (211,970) | ||||
Interest on debenture | 60,000 | 50,295 | 15,000 | 15,000 | ||||
Accretion on liability portion of debenture | 17,731 | 16,853 | 4,320 | 4,319 | ||||
Loss before other income and taxes | (740,831) | (375,482) | (201,987) | (231,289) | ||||
Foreign exchange gain | - | 5,069 | - | 5,069 | ||||
Interest income | 9,900 | 1,210 | 5,006 | 1,169 | ||||
Reversal of accrued liability | 441,809 | - | 441,809 | - | ||||
Profit (loss) before taxes | (289,122) | (369,203) | 244,828 | (225,051) | ||||
Withholding taxes | 24,635 | 18,421 | 6,334 | 4,044 | ||||
Profit (loss) for the period and comprehensive | $ | (313,757) | $ | (387,624) | $ | 238,494 | $ | (229,095) |
Basic | $ | (0.00) | $ | (0.01) | $ | 0.00 | $ | (0.00) |
Diluted | $ | (0.00) | $ | (0.01) | $ | 0.00 | $ | (0.00) |
Weighted average number of common shares | ||||||||
Basic | 77,488,373 | 67,749,286 | 80,212,646 | 71,326,416 | ||||
Diluted | 77,488,373 | 67,749,286 | 80,212,646 | 71,326,416 |
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the years ended | three months ending | |||||||
Cash provided by (used in): | ||||||||
Operating activities: | ||||||||
Comprehensive loss for the period | $ | (313,757) | $ | (387,624) | $ | 238,494 | $ | (229,095) |
Adjustments to reconcile loss for the period | ||||||||
to net cash flows from operating activities: | ||||||||
Depreciation of property and equipment | 5,376 | 1,346 | 1,439 | 281 | ||||
Stock-based compensation expense | 139,384 | 57,411 | 24,806 | 34,612 | ||||
Accretion on liability portion of debenture | 17,731 | 16,853 | 4,320 | 4,319 | ||||
Interest income | (9,900) | (1,210) | (5,006) | (1,169) | ||||
Change in non-cash working capital | (481,346) | 49,200 | (385,574) | 88,566 | ||||
(642,512) | (264,024) | (121,521) | (102,486) | |||||
Interest income received | 9,900 | 1,210 | 5,006 | 1,169 | ||||
(632,612) | (262,814) | (116,515) | (101,317) | |||||
Financing activities: | ||||||||
Proceeds from private placement | 437,000 | 1,000,000 | - | 1,000,000 | ||||
Cash share issuance costs | (31,279) | (147,048) | - | (147,048) | ||||
Exercise of stock options | 2,500 | - | 2,500 | - | ||||
Total cash provided by financing activities | 408,221 | 852,952 | 2,500 | 852,952 | ||||
Investing activities: | ||||||||
Net proceeds from guaranteed investment certificate | 400,000 | - | ||||||
Purchase of property and equipment | (5,657) | (14,954) | (311) | (11,867) | ||||
Purchase of guaranteed investment certificate | - | (700,000) | (100,000) | (700,000) | ||||
Total cash used in investing activities | 394,343 | (714,954) | (100,311) | (711,867) | ||||
Increase (decrease) in cash and cash equivalents | 169,952 | (124,816) | (214,326) | 39,768 | ||||
Cash and cash equivalents, beginning of | 113,760 | 238,576 | 498,038 | 73,992 | ||||
Cash and cash equivalents, end of period | $ | 283,712 | $ | 113,760 | $ | 283,712 | $ | 113,760 |
SOURCE
© Canada Newswire, source