01 Quantum Q4 2025 01 Quantum Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 01 Quantum Inc Earnings Call
I'm Brian Springer.
I'm the Chief Financial Officer for 01 Quantum. And with me today is Andrew Chung, our president and CEO.
Now the format today will be Andrew will give us a rundown on overview of our business.
Uh, the results and business uh developments going forward.
Now, before we get started, there's a disclaimer, uh, which forms a portion of this presentation. So just take a look briefly at it now, following Andrew's presentation,
There'll be a chance for Q&A. So please, uh, everybody, I think understands now with zoom,
uh, how to, uh,
How to answer, just at the bottom, there's a Q&A, click it type your answer. I'll moderate questions at the end and Andrew or Andrew or I will answer all. So now Andrew, uh, it's over to you.
Thank you, Brian. Um, again, my name is Andrew. Um, I am the, uh, the CEO and president of 01 Quantum. Um, so, uh, Welcome to our fourth quarter. Uh, we stopped, um,
Uh, webinar, and, uh, I would not go too deep into about what quantum computers are because it's like, uh, everyone knows about it already. So, I will be focusing on just saying that, uh, the excessive computing power of quantum, computer has indeed created an unprecedented cyber security threat for the world or AKA QA which is the day when the bad guys are using quantum computers to do the Dirty Works. So on and after QA everything, under the sun will be vulnerable. That's why it it matters. So whether you are email, um, AI cryptocurrencies or uh, remote access everything, you know would be, we will be, uh, the v v v vulnerable or, uh, totally naked in front of a, a quantum computers. So, a lot of large companies such as Apple Google Microsoft has already
Started their Quantum migration Journey. So, um, I think, you know, I keep saying that don't listen to this company. Just listen, listen to what the government says. So, first of all, 2 years ago, the, uh, the, the president's office in the US has already issued an official NSM 10 letter, reminding, the agencies to be very mindful about a famous attack, called hndl Harvest. Now, decrypt later, whereby the hackers are
Uh, obtaining your data, um, publicly. But they are encrypted. They cannot do anything but they simply hold on to it until they got hold of a quantum computer, then they decrypt, right? So with this, the problem is not a tomorrow Problem. Whatever you believe whether this this next year, 3 years later or whatever, it's not a tomorrow problem, not even that today problem, but yesterday a problem, you know, for you. And so no wonder why the um, the US Secretary of Commerce. How well nothing about 6 months ago on a CNBC interview, he already opened. It said that the, the worldwide cyber security threat will be totally broken if we don't act immediately and in addition to that, the founder of and and really also said that we are now in the inflection point and found of ethereum also said, there's 20% chance that the QD would actually hit the, um, the the crypto Market by
2029, right? So, so what we have done, you know, is that we, we have, um, invested in this since 8 years ago already. So, um, with multi-millions of of, of, of dollars, spending on creating our engine. We, our plan is not to license, uh, the engine to others during the job. Our, our plan is to give it out for free while we are helping our customer or
More details, 1 by 1. So, first of all the, um, apart from the the Press was only, um, a week ago, we have announced the completion of this project with the Hitachi, in Japan, we signed the the agreement, um uh, in June last year, and the um, product is completed uh, at the end of December and they have commercially launched the product. Uh, just about a week ago, on the, the 15th of January this month. And the, um, the the press release by Hitachi has been made in Japan. And we have also released our joints version in the US and Canada. Right? So so what we have uh, uh, created for them is a, uh, a Quantum State version of Remo access. Now, this is exactly like how I I described we don't want to license this technology for
Technical work. We give you the very simple. We give you the, the quantum vulnerable version. And at the end of the day, you give us back on the other side. You speed out a, a Quantum State version and that's it. So simple. We rather pay you guys a 1 time fee plus royalty moving forward doing this. And, um, this is perfectly uh, fine for us and for them. And uh, this also gives Hitachi a, a, a Quantum State version of remote access to, to Market in Japan. Now, this is very important because, uh, hmdl attack is like a perfect storm for the Remo access you can imagine that. Um, people are working a, a lot remotely these days. So so the the remote access Channel, or the session fundamentally represents, almost a history book of the company. So if the hackers are recording the history book and then, and
Hold on until they got hold of a quantum computer. Then decrypt, you know, the whole company secret will be naked. So so basically, this I wouldn't want that to happen to us or to our customers. So, so we wanted to be to be Quantum safe and we did it. So, the market is, um, a potential is huge in Japan alone. It is, uh, the growing from 45 million last year to 72 in the the by 2030. So, uh, 01
On, um, typically we see a 1-time fee as I said, plus royalty, moving forward. So that, uh, Hitachi number 1. So number 2, you know, is even bigger. This is actually, uh, something that we have announced um, in July of last year. Uh, we signed up with a, um, a crypto foundation called qabs. Um, so qabs, um, basically asked us to create the, the world, first fully true Quantum, save token for them, right? So
This token, you know, is going to be, um, to be used as something. They call pqc like Quantum, uh, guest fee token, right? So, that it is designed to, to be, to be used to protect other assets, like, ethereum any kind of smart contract based asset like ethereum hyper liquid on whatsoever. So that these uh, holder of the digital asset, would simply go to that site and click the button to do what they call Quantum block and Quantum unlock, right? So after locking, it will be saved against quantum, computer attack. And then when they want to sell, and they want to trade, they do unlock first. And then after that, they lock again, right? So the only thing is that we are, um, asking them to, uh, to pay a very small fee.
When they do the lock and unlock process in the currency that we are, uh, creating or at the at the very end stage of cute, QA quality assurance right now. Uh, the Quant, the the we call the q1 token. So, um, this process is at the very, uh, uh, last stage of QA process and it's slated to be, uh, go to go public, um, probably the last day of January this month or the the first week of February. So we're talking about this weeks away. And, uh, the market is huge, uh, simply because the whole 4 trillion dollar digital asset must be Quantum safe before QD. Now, this is, this doesn't, it's not only applicable to token but it also applicable to uh, stable coin, which is huge um, in the, in the world right now, right? So typically, uh, 01 is
Also receiving similar to Hitachi receiving a 1-time engineering fee plus um the royalty sharing of the asset um the token sale and um money raised and things like that. So it's moving forward with a very big opportunity for us from a technical point of view. Uh, this also uh, this whole process also um, causing us to have filed uh 3
Um, uh, the business tool in the world. But yet, they are 100% Quantum vulnerable. And they are also 91% of the, um, the source of ransomware attack through fishing. So, what we have done, um, was the created the world first email security, uh, product that is comply with, um, the the NIS standard and it's also you giving the the end to end Quantum State digital signature now, with Quantum State digital signature, it means guaranteeing the authenticity of the standard. So giving the authenticity of the sender meaning that, um, you know, it is real. And this is plugging the hole of phishing email, which in Tern Club 91% the source of a ransomware attack. Now, this is unplanned. You know, originally we were, uh, slid to just creating, uh, Quantum, save email security but the
Quantum space signature has a side effect of also plugging, um, the 91% source of ransomware, and then on top of that, it also has end-to-end encryption, which guarantees privacy that when the a like, when the, the Peter is, sending a message to Mary, the message is, uh, totally encrypted end to end. So that even the authority in the middle, um, get hold of or intercepted. The
The email, there's no chance that the CIA or, or, or MSA, or whatever, uh, can read the message because the message is encrypted that only, uh, Mary as the recipient, having the the private key can decrypt, the, the message. So, um, this is later to be assessed a product, uh, for the typical ten dollars a month and the channel, after the channel, discount, um, of $7 we are receiving 3 per month from the channel. And the market is huge because uh, very simply that there are 730 business email addresses in the world. If only 10% are serious and wanting uh, Quantum protection and paying $3 a month that is already. Um, equated to
2.6 billion, uh, per year of recurring, revenue of a graph, right? So, so what I have described are the 3, um, uh, the 3 legs of the, the revenue generation still that we have and, uh, number 1 Remo access by Hitachi, number 2. Um, the quantum says digital asset by qlabs and number 3 is the email security product by ourselves. So, on top of of these 3 current, um, Revenue generating, uh, uh, uh, the machine we are also, uh, creating for the
Immediate future. That is a platform related to AI security, which is really a crossover between Ai and um, uh and Quantum safety now.
Everyone knows about AI. But the, uh, the the general AI market today is just basically llm large language model.
What most people don't know is about the slm which is a larger market, a small language model or some people calling it a special purpose. Um the AI for example, credit card, fraud detection, anomaly detection, uh facial recognition medical advice and those are all slm Market but the slm market has been lost. The Paralyzed by 1 thing which is privacy. A lot of the organization doesn't even allow the people like the bank, or the national security or something. They just don't even allow. The, the people to go into, uh, AI for a privacy issue, right? So after identifying this pain point about 2 years ago, we spent most of 2024 and 2025 we invented a technology whereby we are calling it the um the qaw quantum AI rapper technology. Um we have
file pattern application about 6 months ago and we are fundamentally using, um, uh,
Full homomorphic encryption to encrypt both the user data and the AI model before doing the the uh, the AI, the inference, right? So this allow us to um, uh,
a threshold Market is already very huge number 1 because
There are 3 times more likely for people to use slm, you know, if it is secure. So the, um, the the total addressable Market is expected to be huge because, as I mentioned, we have essentially lifted 1, major obstacle for the, um, the SRM privacy, right? So the market is expecting to grow from 0.9 billion now to about 5.4 by 2030, which is a 600% increase. The market is already there. It's just been paralyzed, you know, by, by privacy and, uh, fxg is just a subset of it. You know, is already 880% and then the, um, the the target segment uh, that we initially targeting like Finance, government and health already also represents 650 million in size. So it's a huge Market. We are, we are tapping into, right? So very preposition, we we build
For this is very simple because we make slm secure, not only secure in terms of privacy, but also secure in the, uh, in the post-quantum fashion. So what we will be, the building is not just the, the, um, uh, uh, uh, service business, professional service or manage business, but also,
So we're going to build what we call an AI Marketplace, which is kind of like an uh you can imagine, it's kind of like a AI oriented Amazon or Ebay whereby. We are allowed the AI model vendors to list the model on our platform and we Bridge them with the user. And we are, we are encrypting both side right before doing the AI inference so that they are not exposed to each other. So, the the, uh, uh, uh, the, the Privacy issue. Remember, is not only applying to the user data, but also apply to the AI model because the AI model, if it is, uh, performing in the UN encrypted fashion, it is up for anyone to copy, right? Just like, simply the, uh, the deep sea copying, chat, GPT and build on top of it. Nothing wrong, you know? But it is, you know, if it is unencrypted, it can be copied. And, and the the slms or or or or or special purpose. AI model doesn't
Like that to happen, right? So, so, we are opening up to, um, uh, as I said Community, open source, professional and managed Service Enterprise support and for the AI Marketplace, we typically, um, charging 15 or 20% commissions similar to to Amazon or Ebay. And this is also opening up to, to Government funding such as provincial provincial and federal Innovation funds from the government and procurement the, the business. So,
So we will be using 2026 and 2027 as our go-to Market, um, time, uh, with staged approach where we will be, um, uh having the the uh, like the stage 1 to be later in the q1 this year to have an optimized fxe offering and followed by Q2 of the the project Ai and then q1 of next year to have a hybrid fxg model then uh you would be the AI Marketplace for the managed and hosted. Um the prophet AI by Q2 2027, followed by AI Marketplace for the optimized model Q3 2027 and then and then finally culminated with the uh the full um hybrid model. So that's kind of like a 6 stages of a road map that we have identified for the uh Q8 W. Um uh the market for the next 2 years. So
I guess you as a, as a conclusion, you know, this is very, uh, obvious. You know why we are, um, uh, we have exited from the pre-money stage if you were compared to, um, our competitors. So so it is also fully um, uh, reflected in in our core to the resource. So, maybe I will turn over to Brian, uh, CFO to, um, explain a little bit about our financial picture and where we stand today. So, um, Brian
um,
back to you.
Okay, thank you, Andrew.
Well, let's take a look at our Q4 results.
Our adjusted PL p&l which uh is essentially our cash burn.
if you take a look revenues of 434,000,
Of 130,000.
Which is down significantly from Q3.
And our Revenue specifically is up. The revenue is derived from, uh,
Development fees that we received as Andrew's talked about for the qabs project and The Itachi project.
There's still more to come for q1 and a bit into Q2, as well.
So when you take a look at that adjusted burn, we can proceed knowing the revenue that we have.
And the expenses were committed to of a similar type of adjusted uh p&l for the next 2 quarters and we essentially look at it as this plus or minus a bit 200,000 a quarter. Compare that to our cash at 3.1 million. We've done a financing and Q4 in October with Hampton Securities for uh net proceeds 2.1 million.
You can see we've got a reasonable Runway.
Okay. And if you, if you could move to the next slide,
Our market cap today about 76 million.
Cash. The reason is 3.5 is subsequent to the year and we had some warrants exercised. So we've now got about 3.5 million dollars cash, which extends, the runway
Uh, before we turn profitable.
Basic shares. 108 million options. Outstanding today, 8.2 million.
And warrants 6.5 million. As I say our cash burn quarterly average approximately 200,000 per quarter.
Uh, with respect to our market cap, you can see 76 million others in our space. Good technology Quantum. Quantum, emotion q and C 960 million. Ptq 1 billion. So there are about a billion dollar market cap
Throughout 2024, we were nose to the grindstone developing, uh they were better known.
We're now with a full marketing program, a full public awareness program.
Um, and I think last year it was for us proof of performance, because we were, uh,
We were playing catch-up so to speak. I think we're performing now, so we hope to catch up.
And uh, with that Andrew, I'll turn it back to you.
Thank you, Brian. So, um, before I take a break, um, uh, a pause for a question and answer, I just want to um, um, do a closing. Uh, basically timing is everything, you know. Um, the the quantum Market is coined by a lot of uh independent uh analysts TB at the infection point where it is, kind of like the AI Market, the 3 years ago. So the, the the total addressable Market is extremely huge. And as Brian mentioned, we are also the undervalued compared to our peers. And um, most importantly we have already leveraged a multi segment, uh, product offering moving into the future. And I guess, you know, it is all being back, you know, by our, uh, Global partnership network. Uh, we signed up many partners working together and more notable, uh, like I mentioned earlier, is Hitachi,
In Japan and also a PWC in Asia, talus in the in France and CGI in the backyard qlabs in the Europe and training them in in in Australia. So so with these Partnerships um uh uh Network, you know, it is um the duct tailings, you know, into our uh expansion plan. So um at the end we also
Back by strong IP portfolio whereby we have patent protected technology and patent pending Technologies which is all adhering to um uh our products. So so I'm going to take a quick pause here to allow sometimes for question and answer. As I mentioned by Brian earlier um I'm sure everyone is already familiar with how the Q&A feature works at Zoom. So uh please feel free to um uh type in your questions. And Brian will as usual act as the moderator to uh uh uh list your question. And I would do my best to answer everyone 1 by 1.
And they're all commercial. Commercialized relate related.
And can you elaborate on the marketing role out for the q1 token? When do you think it'll start? That's the marketing part.
Uh, how much do you think the q1 token will be worth?
And how do you get paid for the gas utility 8 day. He said he just, it wasn't clear on that.
Yeah. Uh, thank you, Brian. I think this is very loaded question from this investor, which, but, but they are good questions. Um, first of all, a let me let me try to answer in a in a short way, right? The in a short answer is that they are slated um to release the q1 token.
Uh, by the end of this month, or the first week of February. So we're talking about just weeks away from that. And then, the second thing is I, I have to always stress the point that, you know, we are, uh, the the cyber security and blockchain expert. We are not the, um, the, the digital asset or crypto marketing expert. The, the best technology that I always use is that we know how to build the best, uh, plane in the world, but we are not the Top Gun we don't, we are not even the pilot, right? But we know how to build the plane and, uh, they are the pilot. So, so they are doing the job they doing the marketing. In fact, they are doing a lot of marketing. Uh, I mean pre-marketing before the before the launching
Right. So um,
From the, from the, from the compensation point of view, as I mentioned earlier, 01 received 1 time um, development fee in cash and also um, sharing, you know, of the the proceed moving forward. The proceed moving forward is composed of, uh, cash rates that they do and also a percentage of the fund the token, which is the the, the the cue the q1 q. O. N d token. They they are releasing. We'll get a percentage of that. So, so the, the upside to us is definitely in these 2 things. Um, in a nutshell that every, you know, the daughter value of the token. They they, they, they successfully promote it, we will receive
Equivalence of a lot of um, uh, dog. A lot of US dollar Revenue, you know, for us to, uh, to go into into our genes so. So I guess that's a long-winded. Um, answer to your questions. Yeah.
Okay. The next 1 has to do on the um the financials. Um uh it's a good job on the financials. Thank you for the cash burn of 130k.
And how do you see this year, uh, turning out any insight on potential revenue and level of expenses?
Yeah, I I would say that, um, we we expect I think I think Brian has, um, kind of, you know, alluded a little bit when, when talking about the financial picture, we we expect the, um, the revenue still, you know, happening more or less the same way in, in the q1 and Q2 and then because, um, the partners has already completed the, the, the, the quantum sails product, for example, Hitachi has released the product and last week and starting to Market this week. So we would, we would expect them to generate revenue and how much obviously, we don't know. Because, um, again, the good thing is they are the marketing. Um, they are spending, uh, sales and marketing dollar. We don't need to spend a dime. We just sit back to collect the, the, the royalty percentage, right? And uh, the best thing is that we don't is is, is their job.
But they are a huge uh, Fortune 500 company. You know, they know what they're doing. So we expect them to, uh, to to generate the revenue for us to share. And then, um, number 2, the the token as I just briefly mentioned, uh, is also slated to, uh, complete, you know, in, in a few weeks from today. So,
Safety. So, uh, yeah. We we got we believe we got all the base cover. Okay, Andrew. This came in as you were talking on Hitachi.
Uh, as you were giving that answer and the question is, do you have any information you can share about Itachi's marketing plans? Um, in fact, I I, I think it's part of my, uh, my answer to it is that marketing. So we, we don't have any um, uh,
Anything, you know, on how they are going to Market. But I, I, I believe they are going to Market to their existing customers and new customers in Japan which, um, in general, they are, they are they, their customers are no lack of the the large company. Um, the government University, um, the basically larger organizations in, in Japan,
Okay. And uh, cognizant of time, this is the last question and Andrew here in Canada. There appears to be a by Canadian mentality. And, you know, it's especially in governments.
Uh, there seems to be a good business case for security surrounding your technology.
Are you and if so, how are you going after government business? Because it seems like a good proposition
Yes. Uh this last question is is also a good 1. Um yeah, the by Canadian mentality is is very good for us and uh indeed you know we have started um since a few months ago Heading by our new coo Tyson who is also a board member of us. Um he has already started a whole um campaign with the staff focusing on the uh uh uh.
You know, marketing to the, the government, in terms of 2 things, um, not only just the government funding Federal funding, but also the government's, uh, procurement, uh, specifically in the area of secure AI. Because, uh, this is a very important, uh, sector that for example, the national security or the military, they need AI technology but they cannot use it because of privacy issues. So, with the lifting of the Privacy problem of slm, you know, we have opened the market and, uh, uh, we believe is, is, is a very important, um, uh, footstep into the, into the government Market. You know, not only, just for, by can can even without by Canada is already there. But the the the by Canadian is just a catalyst.
Um, making it happen even better.
Okay, thank you Andrew. And as I say I'm cognizant of time, if anybody has any questions that weren't answered in this couple, uh feel free to contact myself or Andrew. And with that, thank you very much for joining us. I'll turn it back to Andrew for any closing comments.
Thank you Brian. So in closing, as I said, timing is everything. You know, we have crossed the uh the bridge. And I'm very happy to uh re to, to announce this very uh encouraging quarter. And um I'm looking forward for a lot of more, good things to happen. So please stay tuned and I'll see you in our next meeting. Thank you very much for joining.
