Hello, and welcome to Virtual Investor Conferences. On behalf of OTC Markets, we are very pleased you have joined us for our AI and Technology Conference. The next presentation is from 01 Quantum. Please note you may submit questions for the presenter in the box to the left of the slides. You can also view a company's availability for one-on-one meetings by clicking "Book a Meeting." At this point, I am very pleased to welcome Andrew Cheung, President and Chief Executive Officer, and Brian Stringer, Chief Financial Officer of 01 Quantum, which trades on the OTCQB Venture Market under the symbol OONEF, and on TSXV under the 1 symbol. Welcome, Andrew and Brian. Hi. Thank you for having me here. All right. How are you doing? I'm Andrew Cheung, President and CEO of 01 Quantum. I'd like to make a quick summary of what we do before we go into details. First of all, we make everything quantum safe. I bet a lot of you here probably have already heard about quantum computers. I'm not here to talk about how quantum computer works. I will just be focusing on the excessive computing power of quantum computer has created an unprecedented cybersecurity threat for the world, or aka Q-Day. Which is the date when the bad guys are using quantum computers to do the dirty works. On and after Q-Day, everything that we use under the sun, whether you are using AI, you are on the cryptocurrencies, traditional financing, email, remote access, anything, are all going to be vulnerable or naked in front of quantum computers. No wonder why that most of the major corporations such as Apple, Google, Microsoft, they already have started their post-quantum security update already. A lot of people, I would say that probably the most being asked question in the world is about when exactly will Q-Day hit the market or hit the world. While there's no definitive answer to that question, there are a lot of writings on the wall that you can reference to. For example, IBM has forecast their delivery of the full fault-tolerant quantum computer by 2029. Just fresh about three weeks ago, Google has made an announcement that they have successfully simulated a quantum cracking of the elliptic curve within nine minutes. With that in place, the latest estimate for Q-Day arrival would be 2029. That's based on IBM's prediction, Google's prediction, and other people's assessment on that. Also then no wonder why the U.S. government has already two years ago issued an NSM-10, National Security Memorandum, officially warning their agencies to be very mindful about a very famous attack called HNDL, Harvest Now Decrypt Later attack. Whereby the hackers are getting hold of your data today, and they just simply hold onto it until they get hold of a quantum computer, then they decrypt. The problem becomes, it's not a tomorrow problem. Even though 2029 is only two and a half years away from today. It's not a tomorrow or two and a half years later problem, but it's a problem of today or yesterday already. No wonder why that Gina Raimondo, the U.S. Secretary of Commerce, has openly said that during an interview on CNBC about eight months ago, that the worldwide cybersecurity will be totally broken by quantum computer if we don't act immediately. What we have is not only have created the encryption library that will allow people to convert their applications or to migrate to become quantum safe, but we actually help our customers or partners during the journey. That differentiate ourselves against our competitors. That we have in addition to the technology, we are probably the only one in this industry who has already getting the hands dirty, rolling up the sleeve, created product that is quantum safe either for us or for our customers already. The first example is remote access, and then we have done another project with digital asset and email security, which I will go into these one by one. First of them, it is a project that we have signed up with Hitachi, head office in Japan. I would say about exactly a year ago. We signed an agreement with them whereby they came to us and asking us to very simple. They have a remote access offering in Japan that is quantum vulnerable. They have identified this pain point, and they want us to help them converting that application to become quantum safe. In a very simple term, they said, "Hey, we give you the quantum vulnerable version. We want you guys to spit out on the other side a quantum safe version." Here is... The agreement that we want to pay you some one-time engineering fee plus some ongoing revenue moving forward. We spent about nine months time and completed the project. On the 15th of January, which is several months ago, we have made a joint press release about the completion of project. As we speak now, they are actively marketing this quantum safe remote access called DoMobile in Japan. The good thing about it is, our upside is we have a percentage royalty revenue share with them, and we don't need to spend a dime in doing sales and marketing. They 100% responsible doing that. We are sitting back to enjoy the revenue sharing and the support of the product for them. That's remote access, something that is already available. End user can touch, pay and use for it already. The next thing is that, as I mentioned, we have completed a digital asset project for a crypto foundation called qLABS. Around the same time, about a year ago, qLABS came to us, and they said, "We heard about quantum safety for digital asset, whether it is Bitcoin or Ethereum or Hyperliquid or whatsoever, are all vulnerable to quantum attack because of the digital signature that are using elliptic curve, which is quantum vulnerable." They came to us similar to Hitachi. They came to us and saying that, "Hey, you guys are the expert. We want you to implement the quantum safety for us and so that we will have a token that is quantum safe, and then we will use that token to help other people quantum saving their existing digital assets." We took on the project, and it is about to be completed. Some milestone has been released already. The final qVAULT product, which is a quantum vault that would allow other digital asset to put in. It's kind of like you can view that as a safe that you can put your Ethereum, your Hyperliquid or something into the vault. It would become quantum safe against quantum hackers. If you want to sell it or you want to transfer to someone, you take it out of the vault before you sell, right? The business concept is very simple, and we are requiring the end user to pay some kind of quantum gas fee when they are doing the quantum locking and quantum unlocking in and out of the qVAULT. The quantum gas fee will be paid in the currency of $qONE token, which we have helped them doing the TGE, the token generation event in February. It is already available. The end user will need to buy some $qONE token in order to be used to quantum lock, unlock of the digital asset in and out of the qVAULT. Right. The market is extremely huge because there are basically $4 trillion worth of digital asset that has to be protected before the arrival of Q-Day. The project is very similar to Hitachi that we receive two things. Number one is the one-time engineering fees, and then the number two is the upside that we would share the token. As a result, we receive 22.5 million of the qONE token. The simple math is for every $1 worth of the qONE token, it will represent $22.5 million on our balance sheet. Right. That's the digital asset. On top of that, we have created another product, which is the world's first end-to-end quantum-safe email security. Email is probably the most used business tool in the world, but yet it is 100% quantum vulnerable. It is 91% of the source of ransomware attacks through a very simple phishing email. What we have created is a quantum-safe email security that is operating as a plug-in of the Microsoft Office Outlook. In other words, it is mainstream ready because Office Outlook is kind of the de facto standard in corporate email. If a corporation, whether it is a law firm, accounting firm or government agencies or whatsoever, and if they're using Outlook and they can, today, they can download and install the IronCAP X mail to push into automatically, the installation would be plugging it into Outlook so that your Outlook inbox and outbox, you can send and receive quantum safe end-to-end email already. Right. That's the email. Then the digital certificate would guarantee the authenticity of the sender. Once the authenticity has been guaranteed, as we all know, it would block the 91% source of ransomware because you can tell very clearly and easily whether this email is coming from the real sender, is not an impersonated email that looks like the sender, right? That's email. The market is extremely huge here because very open, the data you can find out that there are 730 million business email addresses in the world. If only 10% are serious and wanting some kind of quantum safe protection and paying $3 a month, that's representing $2.6 billion of potential, recurring revenue up for grabs. That's email. What we have released, as you can see, was that a end user-ready remote access for Hitachi and end user-ready digital asset, quantum safe vault for qLABS foundation. We have a quantum safe email security product ready. All these things are either generating revenue or about to generate revenue. We are likely one of the very few, if not the only, post-quantum company in the world who has exited from the pre-money stage and starting to generate revenue already. On top of what we have created, all these three that is already there, ready to generate revenue, we are also creating something for the immediate future. What we have been doing in the last two years was a particular separate division doing a crossover between AI and quantum safety. As we all know, AI is huge. If there's one particular obstacle that is preventing AI from achieving the maximum potential, it is privacy. Whether you are a financial industry or the credit card industry or military drone or medical, or whatsoever, the user data are usually highly confidential. Okay. Then the AI model itself are also highly confidential. Think about if you have a military drone that is using AI to detect certain pattern and things like that. Those kind of AI model incorporated in the drone are highly confidential and cannot be reverse engineered. After identifying that pain point, which is that all AI operations today are open, and that's why it is preventing a lot of people from using AI. What we have been doing in the last two years was heavy research into a certain we call math-preserving encryption, so that we can encrypt the user data and the AI model. That the AI model sounds like magic, but what we have created is that the AI model will be able to find you the answer, although the model really doesn't know what the question is in terms of the plain text. Because the question is encrypted and the AI model is encrypted. In other words, they are both protected. The AI model doesn't know what exactly is the question, although they can provide the answer. On the other hand, the user cannot reverse engineer the learning of the knowledge of the AI model because the AI model is also encrypted, right? This give rise to a huge market that is kind of unlocking the major obstacle for AI particularly it is the small language model, or some people call it special purpose AI model market. This kind of product represents a huge opportunity not only in the business side but also in the government side. If you remember I mentioned about one example is military. We can help the military drone encrypting the AI model before incorporating the drone. If the drone is down and the enemy get hold of the drone, they cannot know. There's no chance that they can reverse engineer your AI model and find some kind of disclosure of some of the secret knowledge that has been incorporated into the AI model. Sales and marketing is starting right now as we speak. We are going out with event presentation, conference sponsoring, and all kinds of activities to help market this product. This is going to be the cash cow for the remaining 2026, mainly in 2027 and beyond. That's the AI side. We have the roadmap already identified for this year and next year. First milestone has been achieved, and we have been publicly demonstrating the fully homomorphic encrypted model. Then in Q2, end of Q2, we will have the private AI expanded into private AI for the same encrypted AI model platform. Then we will proceed to a hybrid model by Q1 2027. Q2 of next year, we will reach another milestone of releasing a marketplace, which you can imagine that it is going to be similar to Amazon or eBay, but only that the product that we accept would be AI models. The vendor can list the model here for end user to use while the end user data and the model are all encrypted so that they are not disclosing anything to each other, and we just sitting in the middle, collecting a percentage or the fee, about 15%-25% of the fees, and very similar, again, as I said to Amazon. You can view that as an Amazon for AI or eBay for AI. By Q2 of next year, we will expand the AI marketplace to an optimized FHE model, and then finally a hybrid model by the end of next year. That's a very clear bright line roadmap that we have identified for the product and the go-to-market strategy, basically. After all these, whether it is AI, remote access, digital asset, or email, or something, the most important thing is that all of these are backed by our global partnership network, which we have signed up many of them, more or less around the world, such as CGI in North America, Hitachi in Japan, Thales in France, and qLABS in Dubai, and PwC in Asia, and things like that. We have many partners around the world that is co-marketing the product for us. I would say we have everything ready. I'm sure that now you have a question about our financial picture. We have Brian Stringer, as introduced by Lily at the beginning. He's our CFO, Chief Financial Officer. I think the best person to give you a picture of the financial would be Brian, while I am focusing more on the business side. Brian, off to you. Thank you, Andrew. Very quickly. Taking a look at our cash burn. We've been running over the past several quarters, on average, $250,000 cash burn. We got $3.3 million of cash and no debt, zero debt. So you can see that's sufficient funding for the time being to fulfill the business plan, the rollout of the products Andrew's just talked about. Okay. We have revenue, which is development fees, and of course, some royalties on top. Our cash expenses have been in the area of about $700,000 or thereabouts a quarter, and we expect that to continue for the current and foreseeable quarters. We will expand our cash burn if we need to, and we see investment opportunities in building revenue as we go forward. In other words, we are comfortable with our level of cash. Okay. Basic shares, 108 million outstanding. Options, $8.2 million, and that ranges from $0.10-$0.80. We have 6.5 million warrants. They've got two years life left, from $0.50-$0.75. Okay. Our market cap today, running at around the $48 million-$50 million mark. The two competitors that trade public companies in Canada, Quantum eMotion, QNC, they've got a market cap of over $800 million. BTQ, a market cap of just under $600 million. Both these companies, their revenue, they're pre-revenue. We have turned a corner with our development fees, and now we're starting to market an integrated solution with our technology, incorporating applications that I think Andrew's given a good overview as to what they are. With that, Andrew, I'm going to open it up now for the Q&A. Okay. I will moderate the Q&As. I've had a number that have come in, so let's get started. Andrew, the first one, I'm going to start in kind of sequential order of your presentation, has to do with Q-Day. One of the questions is why worry now? Then the second one is, okay, with the Q-Day coming, is that unleashing budgets with companies, especially in defense, healthcare, and finance? Yeah. Thank you. Yeah. Thank you, Brian. I think this is kind of like a loaded questions. First of all, I would try to address from the Q-Day side, because this is actually the most being asked questions in the post-quantum cybersecurity sectors. Q-Day, why worry now is very simple. There are reason why the U.S. government has issued the NSM-10, National Security Memorandum letter to the agencies. First of all, even you follow just the IBM roadmap and the Google prediction of 2029 Q-Day, it is only 2.5 years from today. Often the migration process depends how complicated is your system. The migration process can take a lot longer than 2.5 years. Some migration process takes shorter time. For example, the one that we did for Hitachi took us about 12 months from end to end, start and finish. For something like the government or the banking, especially the banking sector, that they have intertwining with other banks and the clearings, services, central banks and the SWIFT transfer, all these things, it would take a long time. If it takes more than two and a half years to complete, that's basically, it's already too late if they have not already started. Now, this is all based on the information about, as I said, the writings on the wall, 2029. Then all these writing on the wall are only from the open world. There are some closed world that we all know, either from China or Russia, that they never publish the roadmap of the vendors over there. If there's any kind of event happen similar to the DeepSeek alike event in the AI world, that there's all of a sudden, on a very unexpected day, a company you never heard the name from China or whoever suddenly say, "This is the quantum computer we have," and move the needle earlier. If you're not ready by that day, basically you're toasted. Right? We don't know exactly when that day will come. All we know is that it is going to be at the latest between now and 2029. If this comes in 2028 or 2027 or tomorrow or six months later, we have to get ready now, not in the future. Coping with the HNDL, if you remember, the harvest now, decrypt later, making things 100x worse because the hackers can get hold of your data today, which you think it is encrypted. Yes, they are encrypted and safe against classical computer, but those data that they can get hold of today are not safe against quantum computer. The hacker simply hold onto the data and then wait until they get hold of a quantum computer, then they decrypt. The problem becoming is not a problem of 2029, even though there is no one from the closed world coming up with something beating 2029. Let's use 2029 as a guideline. It's not a 2029 problem. It is a problem of today because the hackers can get all the data already and maybe even the problem of yesterday. That's kind of like a short answer to your question. Great. Thank you, Andrew. Next question has to do with Hitachi, and I'm cognizant of time, so I'm going to hurry it up. Andrew, the questions center around one, is it exclusive in Japan? Two, do you think this will lead to other partnerships such as Hitachi? And three, what's the initial feedback? Do you think by adding PQC to the remote access service, we're going to generate more traffic? Yeah, I think a quick answer to the question is all of the above. First of all, it is exclusive for Japan for that product. Also we have our own remote access too, which is for the rest of the world. That's number two. Number three, definitely having an agreement, completed the project for a Fortune 500 company with a joint press release helps us a lot. It's almost like a calling card, is an endorsement, a rubber stamp that we are the leader in this industry. That's probably for this reason we are getting a lot of inbound inquiries about helping the PQC post-quantum cybersecurity conversion journey right after the announcement in January. Yeah. Okay. Thank you. Next one quickly. You mentioned 22.5 million, $qONE tokens. What do you think the impact of the qVAULT will be on valuation? Fundamentally, $qONE token is the currency to pay for quantum lock, unlock in and out of the qVAULT, right? That's the currency. qVAULT is the technology that is helping the digital asset holder to quantum safe their digital asset. The release of qVAULT is 100% related to the value of $qONE token because the qVAULT will require a digital asset holder to pay in qONE currency in order to lock and unlock. Let's say they are holding some Hyperliquid Ethereum, and they want to protect their digital assets. They would go to qVAULT and will click a button trying to lock, and they would have to have some $qONE token to pay. They have to purchase some $qONE token. This kind of demand would drive the value of $qONE token. Yeah, that's basically a quick answer to the question. That is, it is going hand in hand. One is the currency, the other is the technology that would generate the currency. It's just like you want to buy oil, you need to buy some U.S. dollar to buy oil, right? Yes, very similar concept. Okay, very last question because I've been told we have to wrap up. Do you expect, with the growing awareness of quantum threats to accelerate government or enterprise funding for pilots in our AI security offerings? Yeah. Short answer, yes. All of the above. We are seeing a lot of inbound inquiry from the government, from even national defense that they really want to go. It's not only limited to quantum safe, but it is kind of like a crossover between quantum safe and AI. They are really working hand in hand. They cannot afford to be naked in front of quantum computer, especially for AI operations. Okay. Thank you, everybody. Thank you. We have to wrap up. Please carry on the conversation. Click. You got our meeting availability. Thank you all for attending. Have a great day.