Quantum eMotion Corp Annual Report - How They Did This Year

I’m writing this guide to help you understand how Quantum eMotion Corp (QeM) performed this year. My goal is to turn complex filings into plain English so you can decide if this company fits your investment strategy.

1. What does this company do?

Based in Montreal, QeM builds "quantum-safe" security. As quantum computers grow more powerful, they threaten to crack today’s standard encryption. QeM uses the "quantum tunneling effect"—where particles pass through barriers—to generate "true randomness" via their Quantum Random Number Generator (QRNG). This randomness creates unbreakable security keys. They are moving from research into selling software-as-a-service security tools and physical computer chips.

2. A Big Move: Listing on the NYSE

QeM listed its shares on the NYSE American exchange (symbol: QNC) on February 12, 2026. This move gives the company access to larger U.S. markets, making it easier to buy and sell shares and increasing visibility among large investors. To meet exchange rules, they reorganized their board to include more independent directors and created an independent audit committee, signaling a shift toward the strict financial reporting standards required of U.S. public companies.

3. Financial Performance: From Lab to First Revenue

QeM is in the early stages of selling its products, spending heavily on research while just starting to bring in revenue.

• The Business Model: The company is moving from consulting to a scalable model based on royalties. By embedding their technology into partner platforms—like the Greybox digital health ecosystem and Krown’s blockchain—QeM earns a recurring fee from transactions or subscriptions.
• Funding: They strengthened their cash position with a $22 million private investment in Q3 2025. They also secured $600,000 in government funding from Canada’s SDTC program to develop their next-generation security chips.

4. Major Wins: Expanding the Ecosystem

QeM is scaling its products to win market share in high-security sectors:

• New Products: They launched Qastle, a quantum-secured crypto wallet, which now has about 15,000 active users. Their Excalibur hardware security module is in the pilot phase, with plans to produce 50,000 units for businesses.
• Strategic Growth: Their new Irvine, California office targets U.S. defense contractors. They also acquired SKV Technology for $4.2 million, adding encryption software to their product lineup.
• Validation: They earned ISO 27001 certification, which allows them to bid on government and major financial contracts that typically take 6 to 18 months to close.

5. Key Risks

This is a high-risk, high-reward investment:

• Dilution: The company has 112 million shares outstanding. With a monthly cash burn of $850,000, they may need to raise more money in the next 12–18 months. This would involve issuing more shares, which reduces your ownership percentage.
• Execution: Success depends on the "quantum threat" timeline. If major tech companies adopt quantum-resistant standards slower than expected, QeM may face challenges in reaching the revenue needed to break even.

6. Future Outlook

QeM is moving from a research lab to a commercial supplier. By targeting the QRNG chip market, they aim to become a critical part of future hardware. Their main goal for the coming year is to turn their 12 current pilot programs into long-term, multi-year licensing deals.

Investor Takeaway: QeM is currently in a transition phase. They have the technology and the initial partnerships in place, but their success now hinges on converting pilot programs into consistent, recurring revenue. If you are considering an investment, keep a close eye on their ability to secure these long-term contracts and how they manage their cash reserves over the next year.