BTQ

All right. Okay. Yeah, 9:01 A.M., I think we can get started. Welcome everyone to the BTQ Technologies Q2 2026 investor presentation. Yeah, hope everyone's having a good summer so far and excited to walk you through all the exciting developments that the team's been working on today. Before we get going, I'll just read off the disclaimer as usual. This communication contains forward-looking statements which involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied herein. These statements are based on current expectations and assumptions and are subject to change. The company undertakes no obligation to update or revise them except as required by applicable law. Okay. Sounds good. Today's speakers, so probably familiar by now.

We have Olivier, our Chief Executive Officer, Lonny Wong, CFO, Sean Hackett, Head of Product, Philippe Blot, CEO of the QPerfect division that's now fully integrated. We have Chris Tam, President and Head of Innovation, myself, Mathieu, Head of Corporate Development, and then Guido, who's CTO of the QPerfect division. Yeah, the agenda today, we're going to go through the key highlights that we achieved over the quarter. Then all of the business lines will provide an update on the roadmap and their outlook by product, and then we'll give a general market outlook and overview of financial and public markets. With that, I'll pass it over to Olivier to kick us off here on achievements for the quarter.

Thanks, Mathieu, and thanks to everyone for joining. We've had an exciting quarter that was really marked by a lot of validation of our divisions. I'll start off with us expanding as a full stack platform, which was marked by the QPerfect acquisition that closed finally on July 8th. That gives us a full European Union R&D and commercialization center, which is located in Strasbourg, France, also home of the European Center for Quantum Sciences, where a lot of the team cross-pollinates with. We appointed Dr. Gopi Muraleedharan as our Head of Quantum Algorithms and Application Research. He's based in our Sydney office and works closely with Dr. Gavin Brennen, our Chief Quantum Officer. We were fortunate to bring on Brandt Pasco full-time as our U.S. Strategic Advisor.

He has a lot of experience in government relationships and enterprises, having formerly been general counsel for In-Q-Tel, and worked extensively on cryptographic export controls and a lot of the things that we're seeing policy shift towards in terms of relevance for us as a post-quantum cryptography business. Sydney team has been growing and designated as our APAC hub. Our final QSM hires have been completed, which Sean has been doing a great job of recruiting and those teams are in San Francisco, Portland, and New York, predominantly in the U.S. In terms of product delivery, we've expanded QSSN's main net transactions over 100,000 and reduced the time from 35 seconds to 3.8 seconds and been onboarding several institutions, primarily in Korea.

Our Bitcoin Quantum internal audit was just finalized. Our external audit is underway, and we hope to be shipping things quite soon into September for a launch. An important milestone was QSM and ICTK finalizing with their VIA PUF technology a few weeks ago. The first ITRI-validated FIPS 203, 204, 205 certification in TSMC 28 nanometers was done just about a week and a half ago. In terms of capital markets, we about a month ago launched a CAD 150 million ATM with Cantor that has been used selectively to fund our current operations. We also partnered and were selected for Korea's first bank-led Korean won stablecoin pilot, which QSSN is powering. MIMIQ, which is QPerfect's quantum simulator, went live with SDT in a kind of joint venture collaboration where that product in Korea is called QUREKA. SDT is one of the leading quantum computing companies in Korea.

We also announced a very exciting collaboration with TIDAL PWR, a U.S.-based data center provider with about 10 gigawatts of power in their pipeline on devising quantum data center architectures that comprise of how quantum computers fit into hyperscaler and AI environments, along with the required security feature sets. We are excited for that and to provide updates as that progresses. On Wednesday, we successfully finalized our AGM with the election and appointment of all directors. This quarter is really meaningful as all of our products receive validation towards commercialization into the next quarters that we are gearing up for in terms of sales cycles. In terms of what we speak to prospective clients and people who essentially want exposure to our product roadmap, the underpinning undercurrent of why that is occurring is largely due to government mandates across the board.

We have seen the government of France, the U.S., Korea, all applying their own mandates in terms of standardization protocols, and we see that being a large growth driver for our various products. Obviously, all of these sectors, payments, silicon, digital assets are largely at risk. I think one thing we have been quite excited about is the years and years of R&D footprints that we have made into our products are enabling opportunities in terms of the, I would say, real-time threat environment that new technologies are posing to the world, which I know Sean will go into in a bit more detail. You can flip the slide. In terms of BTQ as a company, what we stand for, obviously as an acronym, Building Trusted Quantum, but that is more so in terms of our product roadmap, which compromises of three divisions.

From a CapEx perspective, most of our CapEx has been going into QSM, which is Quantum Compute-in-Memory, silicon networks. We want our crypto agile hardware to underpin the quantum age of the digitized world. From there, we can build products on top of that, one of which is blockchain networks. QSSN and Bitcoin Quantum, both bringing post-quantum cryptography on chain for the security of a digital money world, which we are seeing increasing adoption in. What we are very excited about with QPerfect acquisition is also quantum accelerated networks.

Building the next generation of cryptography also enabled by quantum computers, which I know Guido and Philippe will go into a bit more extensively, and their standalone products that were developed at QPerfect, MIMIQ and QLU, but also OSS or one-shot signatures, which are a unique format of quantum cryptography that we think will play a pivotal role in the future of the quantum landscape. With that, I'll let Sean dive into silicon networks.

Okay, great. Yep, happy to be here as always. It was only about eight months ago that we started the journey on the QSM product. We went from having no team to having a full team back in April, and now going through a tapeout. So record time from hiring a team towards hitting a silicon team's one of their most prized milestones. Huge hats off to the QSM team. If anybody out there in the audience is on my team, thank you very much for your hard work. I want to give you guys a perspective of where the market is changing around this technology, where we're at in our development process, and where our timelines are. But first, I want to sort of address an important change in the market since the time we started working on this.

In the beginning, QSM had a really important design principle baked in from the start, which is to try to add crypto agility as a property of roots of trust in crypto engines on top of the already really high demand of making a performant chip and a side-channel secure chip. I think what we're starting to see is that crypto agility is taking on a brand new meaning in the age of AI. For the first time over the last couple of months, we're starting to see researchers, cryptographic researchers, begin to use AI tools to find novel attacks on cryptographic schemes. Two major results coming out of Anthropic and a team using OpenAI's Codex are finding that cryptanalysis is finding novel attacks and finding potential ways to weaken the schemes that we trust.

This is completely different from the quantum threat that we've been preparing for. Originally, our crypto agility system was designed to address a fragmenting, standardizing landscape across different countries who were worried about the security of the underlying cryptography of NIST crypto. Now we're starting to see brand new ways in which that can be challenged. AI is posing a meaningful threat to the kind of work that we do, not just on the QSM side, but also on the blockchain side and all the other cryptography work that we do. This has caused us to take a beat, pause, and try to figure out exactly how we want to address the threats coming out of this world and how we can potentially use the design paradigm that we've been starting here to address these threats. Next slide, please.

To help with this, I am very excited to be bringing on another key member to our team. Dr. Michael Grace is one of the original founders of the Samsung Knox security team. Before that, he was a major leader on the Android platform security team. These are two companies that have very elite platform security teams and are frequently providing state-of-the-art cybersecurity work that many of the big tech companies use to protect their secure enclaves, to protect their platforms. We think that this is an extremely important move to be making right now because the threats of quantum computing and AI together are going to compound in a way that will matter, not just to device makers, who our technology was originally gearing towards, but also to people who sit above and depend on this technology for their software and their network security.

Dr. Michael Grace is going to be helping lead an effort, an initiative within our company to begin tying the advantages of QSM to different very important problems that are also worth solving above the part of our stack that we directly engineer. We are extremely excited to bring on Dr. Michael Grace, and we are excited to do great work together. Next slide, please. Onto the development updates, which I know a lot of people have been very antsy to hear about. I think one of the most important things to mention here is that we are in fact taping out the QSM architecture inside of a root of trust.

Unfortunately, I am not able to show you the full diagram there on the right, but our partners over at ICTK have already done all the work to integrate our QSM engine into a full-on root of trust that is being taped out today. It will be capable of running the algorithms in the CNSA 2.0 suite. We are now conducting our security analysis and have been over the last couple of months for a beta release of our IP. As I mentioned before, AI is causing us to slow down a little bit and really consider the security of our product. We have experienced a slight delay in releasing our IP, but we think that this extra precaution is going to be worth it because the product we will be coming out with will be a very interesting one.

In fact, I want to give you all a sneak peek of the performance numbers and some of the advantages from our chip. These are going to be very preliminary estimates that my team has approved for release. Please go to the next slide. What you see on screen here are some performance figures for ML-KEM, which is a NIST post-quantum algorithm, SHA-3, and AES-256, three algorithms that have very little to do with each other that are all running on the same block. Normally in a normal secure enclave, each of these things is going to be supported on a separate ASIC accelerator. One of the most important breakthroughs about our technology here is that we are achieving these performance levels in the same 55,000 gate block. This effectively opens up a new regime for cryptographic performance and support in chips that did not exist before.

Compared to an embedded microcontroller that you would frequently find in a chip, like a Cortex-M4 microcontroller, we are finding that we have much better efficiency running these algorithms and are in fact meeting the standards of what you would call a crypto engine. We are running it all on the same block. Because it is so small running in the same hardware, we are actually finding that we are ending up with gate counts that are much, much smaller than ASICs that run just post-quantum. Compared to the PQ platform copro and the Adams Bridge accelerator, which you find in Caliptra, we are finding that we can hit record low footprints. Not just record low footprints, but a block that is able to add even more algorithms and even reuse the same hardware-level masking techniques that makes its side-channel secure.

A completely new paradigm that we are opening up, and I want to emphasize, these are just preliminary figures. Our team has not yet taken the time to go through the optimization steps to make these figures as competitive as possible. That just leaves a lot of room for even more competitive figures to come out in the future and even more algorithmic support. This is the first time that we are releasing these figures publicly. I think we are going to expect these to improve. We are going to be expecting even more information about our side-channel security guarantees going forward. But already, we have already been seeing 1 million trace resistance on TVLA tests for AES-128 on our own in-lab test benches. Lots to be excited about here.

We think that these advantages combined are going to allow us to address the widest possible amount of chips and provide the easiest upgrade path, and also stay flexible to any of the threats that AI or any other existential threat will pose to cryptography. Super excited. I will wrap up on the last slide here, with just a reminder of our timelines here. Our timelines for releasing ASIC IP and standalone chips are still intact, but we wanted to take the extra time to release our FPGA IP because of security concerns related to the new AI threat. We will be releasing our beta product imminently to some first customers, coming very soon in the next couple weeks or so. We are super excited about that.

Stay tuned for when we finally begin to sign these deals and finally get the technology in the hands of people that are waiting. I want to hand it off now to Chris Tam, who can sort of expand on what I was talking about, the crypto agility, and give some updates on blockchain.

Great. Thanks, Sean, and thanks everybody for tuning in today. I'll take the next two sections on QSSN and Bitcoin Quantum. First for QSSN, which is our quantum-safe control layer for regulated digital money. This is security infrastructure that lets banks and payment companies issue and settle digital money with cryptography that is built to last into the quantum era. There were three major milestones that defined this quarter. First, we were selected as a core security infrastructure for one of Korea's first Korean won stablecoin pilots. In this, we're working with companies that we've been working with extensively thus far, which is iM Bank and FINGER Inc. Second, we've achieved production scale. We've processed over 100,000 transactions on mainnet. We've had a sustained fallback rate of zero, which means that the classical legacy payment path was never used.

All of the transactions were processed using the post-quantum infrastructure that we've been providing end-to-end. The third major milestone, which is what I want to draw some attention to, is the performance gains that we've been able to make over this quarter. Earlier this year, a customer's technical leadership approached us saying transaction speed was pretty much the single major blocker to any production deployment, and we got our team to work on this, and we've removed that blocker. In May, settlement took roughly 35 seconds. By the end of June, it was 11 seconds, and here we show 3.8 seconds, but as of actually this week, we've broken the two-second barrier. Settlement is down over tenfold since it was earlier this year, and we are pretty much at parity with the way that classical transactions are processed on Ethereum and EVM-type blockchains.

We're seeing similar numbers across the different blockchain virtual machines that we're operating on. That was a major breakthrough for us, and similarly, cost per transaction has decreased by roughly a third over this past quarter as well. On the bottom right corner, we said earlier this year that we would be expanding our delivery beyond just Korea, and we've opened our first U.S. commercial engagements this quarter. We are very much working towards that. Next slide, please. Our go-to-market strategy is pretty much unchanged. We start with scoping proof of concepts for enterprises, and then we convert them into production deployments. You can see our footprint projects on the left here. We delivered FINGER Inc. and Goodmorning in Korea earlier this year. We're currently working with Danal Co., Ltd. and iM Bank on projects, and this pipeline is now starting to extend beyond just Korea.

Again, we've scoped our first engagement in the U.S. and in Europe, and are also making inroads into Taiwan's virtual asset provider ecosystem. In Q2, the probably single highest leverage opportunity for us is that Kaia ecosystem line on the table. We are in advanced discussions to provide some pretty core post-quantum infrastructure to Kaia, which is a major layer 1 blockchain operating across the APAC region. They do a lot of work in Japan. They're in Korea. They are home to the Japanese yen, digital dollar. These discussions with Kaia are covering two major things. One is a stablecoin application on that chain using QSSN, and the second is providing a quantum-ready upgrade path for the entire ecosystem. This is a fairly large moment for us. No public blockchain thus far has engaged a commercial partner to deliver on its post-quantum migration.

This would be a first and very attractive opportunity for us because it provides us with some nice leverage. We are able to engage on an ecosystem level through this Kaia channel, and that allows us to provide solutions to every issuer and every application on that chain, instead of having us to go sell to each one of those one at a time. This is demonstrating that our revenue side advisory and integration stream is working well, and this would open up the opportunity for validator node licensing and transaction fee captures in the future. Next slide, please. For the second half of this year, you can expect three things from us, which is to continue to expand and convert and standardize.

We will continue to expand across the Korean banking and fintech ecosystem into Taiwan, which is now where a lot of quantum readiness and crypto agility is sitting at the center of the financial regulators' guidance, and into the U.S. and European stablecoin issuers. We will be continuing to convert these pilots into production projects, with iM Bank, and notably this Kaia ecosystem engagement that we are inching towards production on. Landing our first recurring revenue from the validator node licensing that would come after QSSN has been integrated as a core part of that ecosystem. For standardization, we are continuing to work with KISA, which is the Korean standards committee for cryptography, and sort of replicating this across different standards initiatives that we are working on across the world. Next slide, please. Turning to Bitcoin Quantum, this is our quantum safe digital gold.

A store of value network that was built on Bitcoin's original design with all the post-quantum cryptography swapped in for all the vulnerable classical cryptography. This quarter featured a large sort of movement towards main net deployment, which is first getting our internal audit completed. We ran through this through several months with internal contractors, external contractors, and all of the updates and findings from that audit has been merged and is now in the current version of our test net, which is still up and running and open to public use. Through this, we have shipped a number of new releases through the past quarter, and incorporating some of the feedback and also some new features that we have seen requested from the community. We are also opening now our institutional track this quarter.

We have been speaking to institutional custody, custodial providers, as well as market makers to walk through the process of launching wrapped assets. Wrapped BTQ on other liquid blockchains such as Ethereum and Solana, which would make price discovery much easier for BTQ, and would give a lot of liquidity to the underlying asset. Next slide, please. The timing for this is going well. We will be looking at a main net later this year between Q3 and Q4. None of the attention of quantum risk to blockchain is really going away. We are building off of the momentum from the advancements that Google and others have been making on developing algorithms that decrease the cost of breaking cryptography. To this extent, we have been seeing other very large institutions commit a large amount of funding and attention to securing their digital asset and securing their store of value.

Galaxy committed $5 million earlier this year. MicroStrategy similarly launched a quantum risk initiative. All of this is being covered in real time. We had the Delphi Digital report earlier this year. We are continuing to see a lot of mainstream press cover these types of stories. We think with our launch later this year, it will be a very apt time to provide the first real solution to a quantum safe upgrade to Bitcoin. The second half for, or I think, next slide, please. Great. Yeah, so for the second half of this, we will be shipping main net later this year.

We will be issuing a wrapped asset and focusing on ways to realize price discovery across liquid spot markets, across centralized exchanges, decentralized exchanges, with market-making relationships, all in place by the time we launch and continuing to build those relationships over the course of the remainder of the second half of this year. With this, I will hand it off back to Olivier.

Yep. Thanks, Chris, for that. Yeah, just wanted to give a bit of a preface on kind of I think how important we feel about QPerfect as a company. It was, I think it was over a year in terms of government approvals. Just kind of highly sensitive kind of quantum-related stuff. But glad we got that behind us. We are seeing a lot of adoption, which we have announced of MIMIQ, and I think we see kind of the MIMIQ as kind of the corollary for a lot of institutions and enterprises to basically access quantum computing.

Barriers to entry for quantum computing hardware still remain quite hard, quite large. CAD 10, CAD 20, CAD 50 million a piece with depreciation of that equipment being very quick, a matter of months. Without that, I would say killer kind of AI-like GPU complex as of now, I think that will change quite quickly.

With MIMIQ, we have a product that can be accessed into the cloud, and really kind of revolutionize the way enterprises access it. We have been working with a lot of institutions on using it for cyber risk identification across their enterprises and coming up with more novel solutions. So very excited to kind of hear the team speak about that. Also their partnership with PASQAL, which is the first public neutral atom quantum computer available to the public, and a large part of the reasons why we aligned with QPerfect was due to our Chief Quantum Officer, Gavin Brennen, being a pioneer in the neutral atom space, and QPerfect really being a fully fledged neutral atom company, which we think will underpin quantum computing and also quantum-based cryptography, which we have been working on extensively.

I will leave it to the team, Philippe and Guido, but could not be more excited that this is finally wrapped up and we have a great European neutral atom force within BTQ.

Thanks, Olivier. On behalf of our team, of course, in Strasbourg, more than happy for your trust and support this quarter. Next slide. As we go to market, turning now to MIMIQ, which is, as Olivier was saying, our most mature product. It now runs commercially on two platforms. You have heard in July that SDT was now in production. Their platform, QUREKA, is running, and anyone in Korea can start their journey in Quantum on this platform, along with our platform in France, which run on OVHcloud, where everyone in Europe can also start their journey with our emulator. You have heard as well, but I remind here that we have the Quobly version, their emulator, called QLEO, which have been announced previously, on the NVIDIA CUDA-Q framework. On deployment, we are pushing on two fronts.

First, on premises, which is a very big news for us. It is a self-hosted or air-gap version under perpetual and nod-lock license, that are going to come in three flavors. First, desktop, cluster, and HPC versions, and we are driving commercial adoption on that very hard for Q4, where we will do some announcement at SC26. With more to say on hardware partners on that progress. Second, cloud. We will be expanding distribution through additional ecosystem provider. One we are very glad to work with now in France, called Scaleway, where we will have a first webinar and preview September 16th, and one we are in discussion in the U.S. It will be our first partner in the U.S., called Qubrid, and that is something we want to fully be in production by the end of the year.

We are also rewriting the MIMIQ SaaS platform from scratch, shipping end of Q3. Why it is important? Because it enable to build MIMIQ into a services-beyond MIMIQ, starting with the digital twin I will talk in a minute. Think of it as a layer. First brick, second brick, third brick, and at the end, you have a full operating system for fault-tolerant quantum algorithm. That is the plan here, and that is what we do. On production, SDT is live, and our goal is simple. We wish anyone, anywhere worldwide to be able to reach one of our platforms to start with emulation. That is the only way, as Olivier was saying, that you can benefit of really the quantum computation today. Internationally, we have also the France 2030 export program.

We are operating this with two new markets, Saudi Arabia, that this summer we have been working on, where I have already met six organization and the government, and we will do Vietnam this fall. We are also in discussion in Korea with many other potential customers in quantum finance, for instance. We shouldn't forget what we do in Europe with project we have announced and discuss, Quanval at the European level, and at the French level, MaQuEst, two programs that promote quantum computing to Fortune 500. So including the new MIMIQ on-premise offering. The reason all of this matters, it's on-premises deployment opens up new market for us, the regulated one, and sovereign customers who don't want to use cloud services or our quantum as a service offering. That's very exciting. Next slide, please.

Our second product line, as you have heard, is the digital twin. The headline here is public. It was announced on July 22nd. We announced QPerfect joining the Access team. As Olivier said, France first publicly accessible neutral atom platform, and targeting more than 400 qubits. It is led by the European Center for Quantum Sciences, and we are more than happy to do a digital twin of that machine, because that's really the next layer in our strategy. The twin machine using MIMIQ, reproducing it at the circuit level. It will run both on-premise and as a cloud services. Our target for this call is a first full digital twin running by year-end 2026, moving from an accurate model to a validated twin sitting right beside the physical machine.

You will have the Access machine on one side, and you will have the digital twin MIMIQ on the other side, and you will be able to reach the two with your algorithm. This program is backed by the non-dilutive funding, Bpifrance, i-Lab companies that you know, which was awarded to us, and continue with the collaboration with the university and the CNRS. CNRS is the leading research institution here in France. It's also connect to a wider push that we have talked about, but has been announced and kickoff, the Q-PLANET European grant. So 15 million EUR pilot line for neutral atom chips. It is coordinated by PASQAL. We are 28 partners in this program across 11 member state, and it has been kickoff last July. I will close on this.

It's time to give software, I would remind this, its place of honor, good to do material, but software makes a difference, which is a nice de-transition, I believe, for you, Guido, and what we do with QLEO and our roadmap for the second part of the year.

Thank you, Philippe. Happy to be here, like every time. I will start maybe explaining what the quantum logic unit actually is, because maybe it is the least familiar of our product. A fault-tolerant quantum computer should correct its own errors, and the quantum logic unit actually is the software stack that allows that. It allows a quantum computer exactly to detect and correct error. It takes an algorithm, breaks it into logical operation, protects those operations against errors, and schedules the live computation and the live feedback on the real hardware. Recently, we hit a milestone on the quantum logic unit, where the team in Strasbourg finalized the first prototype and is now using it internally. For example, it is using it to apply on the BTQ one-shot signature algorithm. Our next milestone actually is really connected to that for Q2 2027, to deliver a blueprint of this algorithm.

A design, a detailed plan on how one-shot signature would run on a fault-tolerant machine on neutral atoms, a neutral-atom quantum computer. After that, we plan to deliver a first release of QLU by the end of the year 2027, so we can start to test it on hardware. Our goal is always to use the technology of QLU to make possible to run application like one-shot signature in a quantum advantage regime, so where no classical alternative can reach. In the meantime, we have also filed two patents on fault-tolerant operation for neutral atom quantum computers. Together with BTQ in June, we published a paper on a circuit-level implementation of one-shot signatures, and a second one should follow this quarter. Next slide, please. Looking ahead for the second half of 2026, for QPerfect, we will continue working on our non-dilutive funding.

We have own research and collaboration, so with University of Strasbourg and also hardware partners. We will continue our integration with BTQ Technologies and with the PQC roadmap also. First on funding, QPerfect received during the years several non-dilutive grants for several millions of non-dilutive funding, and every one of them has been won in competition. Independent reviewers examined the technologies and backed the research and development of it. We are working now on finalizing most of these grants, for example, the i-Lab Grand Prix, and on kickoff new ones, like Philippe mentioned, the Q-PLANET grant, which is part of the broader European action on building chips for neutral atoms quantum computers, and we are part of that.

Second, on research, our R&D team is continuing the push to the state of the art in emulation and quantum error correction with several papers and preprints published during the 2026, the first half of 2026, especially in the last quarter. Our next milestone, recently, we started a collaboration with the Access Platform of University of Strasbourg to deliver a digital twin of the quantum computer there. Our next milestone is to deepen the relationship with the European Center for Quantum Sciences at University of Strasbourg, and we expect this to happen by the end of the year. I think this is all for the QPerfect update. Thank you all of it, and thank you back to Olivier or Mathieu.

Thanks, Guido. Yeah, Olivier, you want to cover the execution?

Yeah. For end of 2026, large priority is commercializing our QSM IP in various formats with everything ranging from semiconductors to data centers to defense applications, telecom. The good news is, ITRI's research institute has validated things and ICTK stuff remains on track, and we're super excited with, I think, the abundance of opportunities that the AI cybersecurity environments are presenting for what our crypto agility was built for, as Sean said. When we first thought of the QSM IP, it was really for the ability to port various post-quantum cryptography algorithms in and out as they potentially could be broken or as different countries have different standards. That has brought on a new life of meaning as we see AI threats affect software and hardware.

As Chris alluded, Bitcoin Quantum going live, which I think is a great demonstration of the largest digital asset class decentralized in a quantum environment. QSSN pilots rapidly spilling over from Korea into the rest of the world. I think, like we've done in Korea, where we've worked with KISA, standards body, in terms of getting QSSN into regulatory frameworks, we'll be able to do so in Europe, the U.S., and other geographies. I don't think there's any case where digitized money and their environments are not mandated to be quantum secure, and we have a great business model to secure those. As Guido and Philippe covered, MIMIQ enabling access to quantum computing in an affordable and scalable manner by way of emulation and our expansion into QLEO and one-shot signatures are exciting. So happy to keep everyone up to speed as those things progress.

Okay, great. Thanks for that, Olivier. So yeah, just quick snapshot on the position. So here we have our cash balance as of quarter end, so 9.73 million CAD. I'll have a slide on the ATM following this one. But yeah, we're pretty happy with where we're at with the ATM. With the run rate that we have, we're confident with our cash position. I think there was a few one-time expenses last quarter related to QPerfect and other endeavors. But yeah, we're really happy with the way that the ATM's been going to date. Then, yeah, so I have the breakdown on this slide. So, this is all part of the disclosures in our financials that we filed yesterday. But we just have the shares issued to date, and then the proceeds from at the market offering.

We have been careful in trading in the market when opportunistic. We are happy with the performance of the program so far, and we see that as ongoing way to fund our operations and something that is good to have and obviously common in the space to be leveraged. As a reminder, it is part of our base shelf that we filed earlier. With this and the previous fundraise that we did, we have about CAD 100 million left on our base shelf if we were to look at opportunistically M&A or any other big funding needs. As of right now, we are happy with the position that we are in following the ATM and with the current cash position and run rate expenses.

QPerfect, as we alluded to earlier, is relying a lot on some great grant funding opportunities in Europe, and kind of self-funding at this time. With that wraps up the presentation here, so we can move on to the Q&A section next. Please use the chat box to submit your questions. Any questions that we will not have time to cover today, here is the email, so [email protected], and we will follow up with folks individually. There is also a question about the investment. Someone asked what the total investments were constitutive on the financials that we just filed. I would just refer to the notes. A lot of that investment is our stake in ICTK, and then there was also a chunk that was the QPerfect investment prior to closing.

As a reminder, QPerfect closed early July, so it would have been reflected after the Q2 filing. Hopefully that clears up that question. I will let folks submit any further questions here in the chat. Chris, I saw you answered one of the QSSN revenue questions, but do you want to give any further guidance on that?

The question was, is there any revenue from QSSN yet? Can we expect any revenue in the third quarter? We are working very hard on establishing those contracts. We are in deep negotiations at this point with Kaia, for example, and with the projects that we have been doing so far. I think it is looking optimistic that we will have revenue in the second half of this year as a result of those projects.

Okay, great. Thank you. Maybe one for Olivier. There is one out of the four verticals, how should we rank the monetization of opportunities, QSM, QPerfect, QSSN, Bitcoin Quantum, which is the most probable to earliest? Yeah, just the sequencing of when we expect revenue by product line, basically.

Yeah. We are in contract discussions based on shipments across all MIMIQ, QSSN, QCIM. I expect all of those to be validated and scaled in the next quarter.

Okay, great. Yeah, there is one, given the plans for the second half of the year, are you fully staffed to execute the plans? Yeah, I think we are super happy with the team. As we alluded to, Sean has done a great job building the QCIM team, on the R&D side for QCIM. Same with QSSN and QPerfect. Yeah, all the business lines I think of the key.

I think Mathieu just dropped, but yeah. What he was saying is that we have pretty much the entire team that we need to deliver on the goals that we have set out thus far. There are some, as Sean had alluded to, some very exciting opportunities, especially relating to the unique problems that cyber offensive enable AI poses. As a result, working on silicon, we have some really, a really interesting opportunity to solve that risk, using the technology that we have. We are certainly contemplating expanding the team to capitalize on that opportunity.

Sorry, everyone, I got kicked off. Back sitting here.

No problem. I finished up the.

Okay.

Answer that you were providing.

Okay. Appreciate it. I think I see other questions in the chat. I think we can answer some of those offline. Yeah, I think if there is nothing else, we can wrap it up. Yeah, thanks a lot everyone for the time today on the earnings call, and yeah, looking forward to connecting for the Q3 call, yeah, in the fall. Thanks, all.

Thank you, everybody.

Thanks, everyone. Bye

Welcome to BTQ's Q3 2025 earnings call. Before we start, I'll just read off some disclaimers. This communication contains forward-looking statements which involve known and unknown risks, uncertainties, and some factors that may cause actual results to differ materially from those expressed and implied herein. These statements are based on current expectations and assumptions and are subject to change. The company undertakes no obligation to update or revise them except as required by applicable law. All right. Now that's out of the way, we'll just present today's speakers. We have Olivier, our CEO, Lonny Wong, CFO, Sean Hackett, Head of Product. We have Philippe Blot, Co-founder and CEO of QPerfect, company that we just acquired. We have Chris Tam, Director and Head of Innovation, myself and Matt, Head of Corporate Development.

Yeah, I'll pass it off to Ollie to get us started.

Good morning, everyone, and happy Monday. Thanks for joining our Q3 webinar earnings call. Yeah, we've spent a lot of time putting together some slides and presentations that will be available on our website shortly, as lots has been transpiring at a company development level. We thought we would go through kind of, you know, take things at a high level, kind of go from a, you know, update in terms of what's going on with the quantum market, and then dive into what we're doing as a company to address the concerns and also the exciting advancements pertaining to the space.

As you can see from this slide, quantum market, the U.S. has picked up on their National Quantum Initiative Act and almost doubling the size of funds available to just under CAD 3 billion. The EU, where QPerfect is based and some of our other subsidiaries, has really been the first time I was at the Quantum Flagship was 2015, 2014 in Amsterdam, where the EU first declared CAD 1 billion in funding. EU is outpacing every other nation around the world with over CAD 7 billion in national programs. Aside from China and that's obviously concerning.

That's what they're disclosing, upfront. You know, China's investing CAD 15 billion through 2030. I think it's a lot more under the table. South Korea as well, where we have our a subsidiary and office and a lot of business operations is investing CAD 2.4 billion.

In terms of, you know, post-quantum cryptographic mandates, which, you know, Sean will touch on in depth and in a lot deeper, you know, NIST, I mean, the National Institute of Standards and Technology has been spearheading the development and standardization of post-quantum cryptographic standards for the past 10 years, which were, you know, finally finalized in August 2024, so about 1 year and 3 some months ago, which really kind of kicked things off in terms of the addressable, the sector for PQC hardware implementations, which we're actively, you know, a part of.

There's been a lot of, you know, NSA movements, you know, complex mandates, completion of the transition of the Quantum Resistant Algorithms program for the national security systems, which needs to be put in place by 2035, with classical cryptography providing 112 bits or less of security, to deprecated after 2030 and completely disallowed after 2035. You know, for example, ECDSA, which is the, you know, fundamental cryptographic encryption algorithm under Bitcoin, is supposed to be deprecated in 2030. You know, that will kind of imply, you know, volatile changes to a bunch of, you know, differentiated landscapes, digital assets being one.

I think, you know, we're seeing kind of in real time, you know, a trade in the market where people are recognizing the value of quantum encryption, in the form of Zcash, which is kind of the only kind of, you know, cryptocurrency that's green over the past kind of one, two weeks. So it's very interesting to see. I think we will flip to the next slide. You know, obviously also, you know, tons of different, you know, governments around the world are putting together, you know, quantum initiative acts.

We're in active developments, discussions with a lot of them about how they fit in, you know, post-quantum cryptography, but also look at quantum as a market holistically, with this idea of the quantum internet coming to fruition. You know, I think we will. This slide kind of just represents, you know, where we are, where exponential technologies are rising and kind of, you know, as mentioned earlier, you know, BTQ's mission is to accelerate quantum advantage. Quantum computers will one day sit alongside the internet, with traditional high performance computing solutions, sharing the infrastructure that has been built over the past several decades.

You know, I think, you know, the internet that was created at CERN, you know, the reason we went from an obscure, you know, communication network into one of the most powerful business platforms is the simple fact that we trust the underlying infrastructure enough to trust, you know, store all of our valuable assets from money investments, personal information, and access to, you know, critical infrastructure and more. Universal support for encryption and authentication in every internet-connected device in the world is the technology that has made this possible. Thanks to the world's trust in cryptography, the world has a way to manage tens of trillions of CAD of valuable assets across the world and, you know, basically secure every nation-state's GDP globally.

This is all gonna change, it's all gonna change dramatically. You know, we're seeing kind of exponential shifts, and new, you know, entire industries being built in very short time horizons such as AI compute, cryptocurrency, digitization of said, you know, digital assets, scientific computing. It's very hard to overemphasize the massive demand for compute and just how difficult it is for computing companies to keep up. Quantum computing represents one of the most exciting opportunities to supply the world with unprecedented computing power in various different modalities that we will, you know, dive into, on our neutral atom computing platform. I think we'll go to the next slide here.

BTQ has been a 13-year expedition for myself, when we think about BTQ as a company, we really want to combine quantum hardware, software, and networks and have them all essentially correspond and add value to the different platforms so that they all work essentially holistically. They need to, right? You can't scale quantum software without underpinning it with quantum hardware, and that can be in the form of security and/or future modalities of quantum computing, such as neutral atom infrastructure.

you know, within BTQ, we have our quantum hardware division, which, you know, specific, you know, boson samplers, neutral-atom quantum processors, FISCs, which is a coin, Dr. Gavin Brennen, our Chief Quantum Officer, you know, penned, which is, you know, the existence that, essentially quantum computers can be smaller scale devices than these just gigantic big black boxes and can perform quantum advantage at much smaller qubit levels in the, you know, hundreds of thousands, and potentially less than that. obviously we have our PQC secure chip elements, which Sean will touch on, which we call QSM, which stands for quantum computing memory.

We have our quantum software division, where we've come up with, you know, what we believe to be, you know, the first, you know, evidence of, you know, Quantum Proof-of-Work. What does that mean? That means taking, basically, you know, quantum hardware and doing something that classical computers can't do, in a more efficient manner. Using Quantum Proof-of-Work, we've replicated what proof of work, the operation that powers Bitcoin, and came up with, you know, 99.9% more energy saving and the enablement of post-quantum security, which we are hopeful that, you know, Bitcoin will eventually transition to.

We're also working on one-shot signatures, which is a fascinating technology that will, you know, we believe one day completely replace consensus mechanisms in blockchain as a whole and the entire digital certificate basically industry. In terms of, you know, quantum networks, and we'll touch on that, kind of our software division. We've developed a topological consensus network called Leonie. We've demonstrated, you know, a version of Bitcoin in its, you know, quantum form as well as Solana. You know, what one of the things I'm most excited about is essentially bringing the digitization of financial transactions globally on chain and being the security and settlement layer.

You know, all of these kind of, you know, specific quadrants within our company's pipeline, you know, work together to fulfill one another. Yeah, we can switch to the next slide. With all of this, cool and, you know, fun stuff we're working on, obviously there is the need to work within regulators, governments and shape essential, you know, future policy that is, that is yet to be really, I think, defined. You know, NIST has gone out and said, "Okay, there's these algorithms that we're standardizing. How do you know, employ them in various form factors? What, what are they gonna be used for?

How do they, you know, fit into advanced AI infrastructure, digital asset infrastructure?" Has all yet to be really kind of, you know, yet to be seen. I think the SEC has done a great job of, you know, basically underpinning the importance of basically a post-quantum financial future. Like in mid-September, they came out with a PQFIF framework, which stands for Post-Quantum Financial Infrastructure Framework, where BTQ's Quantum Secure Stablecoin Network was highlighted, as kind of like, you know, this is a framework that needs to be employed, deployed across financial transactions. That's something that we're, you know, working hard on.

I think, we've been fortunate enough to also co-chair KWINSA, which is kind of the equivalent of NIST in Korea, which has kind of mandated QSSN as well as our Quantum Proof-of-Work into law. We are, you know, now working, and Chris, who's been leading the software team and development out of Taiwan on that initiative, will go into more detail. We've, you know, been fortunate to really kind of have our products put into law and then, you know, work with leading industry companies that are looking to essentially roll out their stablecoins. That's happening in Korea, which is, I think, you know, in terms of cryptocurrency, digital asset adoption, third largest in the world.

Tons of transactions, tons of users, tons of users of stablecoins. The equivalent of the GENIUS Act was passed several weeks ago in Korea. We will be, we're very excited about underpinning security and government reporting that these internet giants in Korea will be, as they issue their stablecoins, underpinning with QSSN. I think, I've said this for, I think probably six or seven years, but I have a 15 something, I think it's probably longer, I've lost track, but since around 2010, 2011, exposure to Bitcoin, blockchain, building companies in that space.

I strongly believe and we will see it play out and roll out with QSSN that quantum technologies in the near term, for sure will be the most utilized in digitized monetary transactions which will be enforced by regulators globally. I think this is probably the highest revenue generation product that one will see out of the quantum ecosystem. It also doesn't require billions of CAD of CapEx such as a quantum computer. We're very excited as a company to, you know, lead the charge with regulators around the world, implement this much needed technology for the scalability of basically the digitization of financial transactions.

It's really not just the cryptocurrency market, but the entire, you know, all of the large banks from JP Morgan to, you know, Morgan Stanley and all of these players will be rolling out their own, you know, stable coins or whatever they call them, distributed ledgers, for, you know, cheaper, more efficient, transactions. QSSN will be the settlement layer for post-quantum security. We can go to the next slide. See, I'll keep this short. You know, the amount of assets at risk, you know, globally, is massive, right?

I think, you know, the I was at a, at a conference, in Miami and, you know, everyone was worried about, you know, basically kind of, you know, a public company having to buy back, you know, Bitcoin 'cause they borrowed it within debt and, you know, Bitcoin slipping and things like that. Once we see kind of, you know, key addresses and things like that compromised with quantum attack vectors, it's essentially game over, I think for kind of a, you know, a very disruptive technology, but the premise of that technology has been it's, you know, cryptographic, security, one. The fact that it can be, you know, passed down from generations to generations like digital gold.

One thing that's been overlooked is the quantum age. That's just kind of, you know, it's something we have, you know, we're passionate about, you know, potentially helping to assist, secure, but it's just kind of a small, I would say a small test case, in terms of, you know, what disruption could look like when, you know, nation-states start implementing quantum-related attacks. Across critical infrastructure. We need to be, you know, deploying and getting our act together on, you know, basically what we believe is a holistic technology stack that we've developed at BTQ to secure, you know, the future of the, you know, internet-based economy as we know it.

I've briefly touched on our three core pillars, and I will let you know the respective teams dive into them specifically. I'm not sure if there's a slide after this, but you know, we specifically touched on QSSN, and you know, we see this as kind of, you know, a kind of basically kind of the future SWIFT/DTCC that's required in a post-quantum era to process transactions. We're obviously kind of initially focusing on stablecoin implementations like I mentioned in Korea. You know, there's some points here of why we win, first mover advantage, relationships with regulators, and stablecoin issuers.

You know, we've been working on the technology to make sure that it's seamlessly integrated, without, you know, the user ever knowing it exists. I think we can skip to the next slide there. QSim, I mean, extremely excited to, you know, be working with Sean and Zach, and our growing quantum hardware team, stateside. Sean will go into this in far more detail than I can, just because he created it. You know, essentially we wanna build, and are building and have tested and shown that, you know, this is the, you know, leading and most secure, space efficient, transaction efficient, chip design, to secure anything and everything that requires a secure enclave.

From drones to iPhones, to critical infrastructure, everything will be secured with QSim, which again stands for quantum computing in memory. Yeah, I mean, Sean can touch on this further, but compute-in-memory and compute-in-memory, you know, has had CAD billions and billions spent on it in the past few years because it's been the cornerstone to artificial intelligence chip design. You know, the Radical Semiconductor guys as well as our hardware team in Taiwan for many years, basically realized that no one was applying compute-in-memory towards the acceleration of post-quantum cryptography algorithms. That's where we've created a, you know, moated intellectual property defensibility position and the best team to execute on.

I think we can go to the next slide. Likewise, we also have the honor of having Philippe Blot calling in from Strasbourg, but I'll let him take this a bit further. You know, we're, I think this is for some people on our team has been a kind of a 20-plus year exercise. Our Chief Quantum Officer, Dr. Gavin Brennen, you know, co-invented neutral atom quantum computing, which has now, you know, I think in the last two years taken a life on of its own.

QPerfect has been, you know, essentially at the forefront of, you know, quantum emulation for, you know, basically kind of advancing computing architectures required to, you know, basically make quantum computers at scale, test algorithms and functional, you know, designs, applications on such devices, which is, you know, of key importance to this whole space. You know, one can kind of think of it as kind of like Android, an operating system for quantum computers and have been working with some of the largest and from Quantinuum to QuEra, to assist with the measurements. We have a demo prepared on, you know, what that all looks like shortly.

Yeah, I think highlights of recent news as I've mentioned, we've exercised the option to acquire QPerfect, which gives us a very great alignment with some of the smartest people I've met in the quantum computing space. Philippe, Guido squared, Guido Pupillo, Guido Masella, Shen, and Johan. They're based in Strasbourg, where they've helped create the European Center for Quantum Sciences. It's amazing to see how much talent is going in and out of those doors.

We look to kind of use this as a stepping stone to build, further invest and really become a dominant force in the European and obviously global scene for neutral atoms and technologies pertaining to what else is being kind of uncovered. I think we're, you know, just scratching the surface of, you know, basically a software layer on top of quantum computers and what that can mean and do for all of the industries that are, you know, reaching out and saying, you know, "How do we use quantum computers? How do we run applications?" You need quantum emulation to do that. I think we can go to the next slide.

Again, the team I'm not gonna touch too much into these 'cause we have the industry domain experts on the calls here.

Actually, this would be a good time to bring up Philippe Blot from QPerfect.

Absolutely. Philippe, it's you.

Yeah. Thank you, gentlemen. Thank you, Olivier, for the introduction. It's our pleasure to be with you today and to get a chance to present QPerfect. I'm on the call with our CTO and founder, Guido Masella, and we are happy to be with you. QPerfect, I mean, accelerating quantum advantage, it's also our mission. We are more than glad that you tell this, make quantum computing practical, building the software and the control layer, making the bridge that's really scalable and reliable for quantum systems really depends on this software. The software is key to the future of quantum computing.

As you have introduced MIMIQ on the previous with the benchmark that Guido is going to demonstrate in a minute. This quantum logical unit, start with MIMIQ because emulation is a first way to prove that the quantum algorithm has a need and that the benefit versus classical computing HPC centers, et cetera. What we are trying to achieve here is first, and that's what the extreme reason where we are happy with ZIL. First is the integration. For us, OSS, one-shot signatures, is a real use case. It's something we were dreaming of, having a real use case which may change the world.

With a quite short target, 2026, to demonstrate that we can run one-shot signatures on the quantum neutral atom computers using our quantum logic platform. Second, is a strong validation, Olivier said a word as well regarding the first software we have presented and the benchmark around it with Quantinuum QuEra. Also some customers will deploy it like Quobly, which is a spin qubit hardware company. Tomorrow, we will announce on supercomputing our platform on CUDA-Q from NVIDIA. It will be a major release for us on GPUs.

Also initiative with government programs at the European level, like the France-Singapore program, where we are working on the Eureka initiative with Antropica. For us, it is very important also to see that the story start with emulation before going to quantum computers. Last, the positioning, we said a word about it with Olivier, it is purely to be at the core of Europe. Strasbourg is well-placed. We have a strong academic presence. We are a spinoff of the European Centre for Quantum Sciences, where we are also, our founders are also building a neutral atom computers, and the teams are working together every day. I don't want to say too much on this yet.

First, let's focus on what is the simulation and how it brings advantages. Guido is going to show you the platform today and how anyone from any place worldwide can reach our platform. Guido?

Thank you. Thank you, Philippe. Thank you, Olivier. Chris, thank you all. Let me share my screen. You should be able to see it right now.

Yes, we do.

Perfect. I prepared a very quick, short demo on how our platform and the first product of QPerfect works. It's built for quantum computer and emulator of quantum computers that can run the same kind of algorithm that run on a real quantum computer. Here as a first demonstration, I use a Greenberger-Horne-Zeilinger state. A circuit, an algorithm that prepare a quantum state that is given by the superposition of two state. One in which all the qubits, the quantum bits of information are in a zero state. One which all the quantum bits of information are in one state. This exemplifies notion of nonlocal correlations in a quantum system of entanglement.

It's often used, this algorithm to prove and demonstrate the ability to manipulate complex entangled state in a quantum computer. When simulating quantum state on a classical computer, memory is a huge resource. For simulating a system of only 16 qubits, we will need 1 MB of RAM. By adding 1 single qubit, we will double the amount. For a kilo, we will have 4 MB. By going higher and higher, for example, for 54 qubits, we would need 260 PB of RAM. With the naive technique, it's more than any computer on the face of the earth can do as of today.

With MIMIQ we can, we use a matrix realistic technique that allow to simulate larger and larger system. This allow to design, test, and benchmark quantum algorithms even before than on quantum computer and one or two generation ahead of current quantum computers. I can run, for example, a simple simulation here on 14 qubits, a very small system which can be done quite easily by MIMIQ in only a few tenths of milliseconds with perfect fidelity, so a perfect simulation of the system. I retrieve state that I was expecting, all qubits being at zero state and all qubits being one. What is important I think with MIMIQ is that we can go to very high state.

For example, here, for 58 qubit, when the RAM to simulate this naively on a classical computer, needed would be 4 exabyte. While here, thanks to the advanced algorithm that we use in MIMIQ, we can simulate this right away in just few cents of seconds. Quantum Fourier transform is another algorithm that is very important. It's one of the building blocks, it's a more complex algorithm that achieves that state preparation. It's one of the building blocks of many of the algorithms that we know in quantum computing. It's also used, for example, in Shor's algorithm, which is used to factor prime numbers, which has a lot of users and application in security. Here are the same.

We can run a simulation with 10 qubit, something that is possible even on a laptop just in few cents of a second. Also we can scale simulation up to scales which are impossible to simulate naively on a classical computer. This allow us to test and validate quantum algorithms even before. One last thing that I wanted to show you, it's an application that has connection with of the emulator, which has connection with the security, with cyber security, and cryptography, which is factoring prime numbers. Here what we want to do is that given a number N, we want to find the 2 factors, P and Q, that multiplied together gives this number.

This is a very hard problem in classical computer, and there are already algorithms in quantum computing such as the Shor algorithm that will be able to solve this problem giving exponential advantages over classical computer. Here we demonstrate on our simulator an algorithm that has been developed also here in QPerfect at University of Strasbourg, which uses Grover's search algorithm to factorize prime numbers. I will skip the details on how this is implemented, but just as a comparison, on current quantum computer, the biggest number that is being factored is 21, which is 3 by 7.

With MIMIQ, we can factor 20 bigger numbers, such as, for example, here, six-digit numbers in a matter of seconds by running a full quantum simulation of the algorithms, and go even as high as 24-bit numbers. As you can see in just few seconds, eight to 10 bits numbers. As you can see here, when we have a eight digits number being factorized in less than one second. Thank you.

Fantastic. Thank you, Guido. This is obviously has massive implications for the security that BTQ is working on. On one hand, you know, we're providing security to prevent from such quantum attacks as the one that Guido outlined here. It's a confluence of the two where we're straddling both sides that gives us a unique insight into how to protect digital security systems and also upgrade them to be quantum secure. Next, I'd like to invite Sean to the stage to talk about the hardware development we're doing with ICTK.

Hi, everybody. Good to talk to you. My name is Sean Hackett. I am the head of product for silicon at BTQ Technologies. I'm gonna talk publicly for the first time about a very exciting product that I've been developing over the past four years that we're now calling QSim. Recently, BTQ Technologies has formally announced a strategic partnership with ICTK Holdings, which is a global leader in secure chip design, and they're going to develop a secure semiconductor solution with us, opening a lot of new OEM and device-level opportunities. I would like to give some context about why this is an exciting development, but first, I wanna give a little bit of background about me. Next slide, please, Chris. I founded a small startup called Radical Semiconductor in 2020 with BTQ's new head of hardware security, Zach Belates, as my CTO.

Our goal was to build the most compact, most power-efficient cryptographic accelerator technology for post-quantum algorithms. Now, the technology that we rely on, as Olivier mentioned earlier, is called compute-in-memory. In short, compute-in-memory is a technique to reduce costly data movements in a high-speed processor, and it's commonly used in the AI architectures we see today. Let me tell you why we wanted to make a security product out of this technology. When we started, we were very cognizant of the changing post-quantum cryptographic landscape happening worldwide between NIST and other regulatory bodies around the world. Choices that you make in hardware-secure elements are permanent, and while we were developing this architecture, we were seeing cryptographic schemes that we thought were secure broken on laptops within a couple of days. We also saw a number of other countries around the world start to deviate from the NIST recommendations.

We knew that part of the solution of making post-quantum secure algorithms universal on all devices was to keep the architecture flexible to future algorithms. As we spoke with chip makers and device makers, we were learning that staying flexible to future changes would not be easy for most secure enclaves. Post-quantum cryptographic algorithms being chosen now could sometimes have 10 times larger key sizes or bigger compared to the previous public key algorithm, ECC. Even with very optimized IP blocks for post-quantum, we were ending up with really large power-hungry circuits compared to previous algorithms, and this poses a challenge. Adding a dedicated PQC IP block to a secure enclave increases the power and area in ways that device makers have a hard time adapting to.

not only that, but not all the end users are 100% convinced that these algorithms, the security of them, are going to be 100% secure in the future. If they're shown to be vulnerable, then they have to be changed, which likely means the secure enclave chips themselves will have to go through another four-year redesign and certification process to get it out into the market. this is a concept that's commonly known as crypto agility in our field, the ability to change the cryptographic suite of the products, when they're out in the field while they're running. right now, the current way we design secure enclaves makes this very hard.

With these migration deadlines appearing as early as 2030 and a worldwide regulatory push to secure all the systems by 2035, these are some very hard hurdles to jump over. This is why we wanted to use compute-in-memory. It's a completely new way to make secure enclaves. Finally, we have a way to make a reprogrammable secure enclave that doesn't sacrifice performance, doesn't sacrifice area and power resources on the chip, and doesn't sacrifice the security guarantees that you expect in a secure silicon product. After several years of development, what we came up with was one of the most efficient cryptographic architectures in the world. We call it Cryptographically Agile Secure Hardware or CASH. When it comes to efficiency of processing, especially at low power and area, we find that CASH is a best-in-class architecture.

It can be used to make the smallest post-quantum secure enclaves in the world, and when you scale it up, the most efficient. Our benchmarks are showing breakthrough performance, not just in NIST PQC, but also in the existing algorithms, ECDSA, AES, and SHA-3, with fewer gates than the competing solutions. Now, one of the great benefits of our compute-in-memory architecture, aside from the high efficiency, allowing it to fit even in the most constrained devices, is that our design is reprogrammable. What we see. Sorry. Excuse me. Losing my voice. My apologies. What we see is a cryptographic migration that's highly driven by compliance to new standards, many of which haven't been fully approved. We're thinking not just of NIST, but in South Korea, there are four completely different algorithms like HAETAE, SMAUG-T, NTRU+, and AIMer.

In EU, the algorithms FrodoKEM and Classic McEliece are all being recommended to several member states. This gives our secure enclave, QSM, a unique advantage compared to other secure enclaves by reducing the time needed to go from newly approved PQC algorithm to deployment. Now, instead of having to redesign our secure enclaves from scratch and recertify the hardware, which could take 4 years or longer, what we have is a path to implement a secure version of the algorithm on QSM, making the same hardware security guarantees and shortening the development and deployment time to four and a half months. That is a 10 times faster deployment time compared to redeveloping the hardware from scratch.

This major advantage doesn't just open the possibility of being the most crypto-agile secure enclave, but it can also adapt to new lightweight cryptographic algorithms that get released in the future. This is super important for products in blockchain who are constantly experimenting with new algorithms. This also is important for privacy technology like multi-party compute, zero-knowledge proofs, and any other advanced cryptography advancement that's made in the cryptography world. We think that standing at the start of a 10-year compliance-driven migration to PQC, that the 1 trillion dollar semiconductor market is in need of secure enclaves that can be future-proof, stay agile to the new regulations, and also open the door to new innovations that come out in cryptography in the next 10 years.

Among the use cases that we're most excited about in the near term, cell-enabled devices in telecom and IoT high security systems and payment and safety critical uses in defense, automotive, critical infrastructure. These markets I'm mentioning now represent a CAD 400 billion annual market in the near future. In addition to QSIM, which is the standalone chip product, we're also developing the technology as an IP block. We can deliver this as an FPGA or as a soft IP and start getting these solutions integrated in more products in AI, data centers, and high-performance networking. The grand total of semiconductor sales is gonna reach a CAD 1 trillion a year.

The sheer amount of products that have to come with fresh security IP will be enormous, and we think that this is the best solution to stay compliant and flexible to all the new innovations that will come out. Zach and I are very, very excited to be working on this project here at BTQ. We think the team here at BTQ Technologies is amazing. These guys have been forming relationships for a very long time in the quantum space, the same people who want these solutions, and we think that strategic partnerships with BTQ are gonna shorten the time needed to get this solution in true commercial deployments in the near term. Very excited, and I'll pass it back over to Chris.

Great. Thanks, Sean. We've been making some great progress with our Quantum Secure Stablecoin Network, QSSN, with some notable deployments in Korea. This establishes Korea as the regulatory proving ground for quantum-resilient digital asset infrastructure. Again, QSSN is a way for companies, stablecoin issuers, financial institutions to secure the mint, burn, and transfer operations of any digital asset, with stablecoins driving a bulk of that demand.

We're seeing CAD 8 trillion worth of stablecoins being transferred annually, set to grow, especially with the adoption of US-denominated stablecoins in the form of USDT, a Tether-backed, a Tether-denominated stablecoin, as long as some other countries and major corporations adopting the use of stablecoins and digital ledger technology, such as JPMorgan Chase, who is serving as, you know, they do CAD trillions per day in trading infrastructure, and they are moving the majority of their infrastructure over to this technology. We see a major opportunity for QSSN to be the underpinning technology behind all of these quantum secure transactions. Our Korean partners also represent the entire value chain when it comes to these deployments in Korea. We have KWINSA, which is a NIST-level Korean equivalent standards body leading the de facto standardization of quantum technologies.

We have Fingpay, which is a leading platform processing billions in mobile payments annually, and they're now piloting QSSN for secure settlement and cross-border remittances. We have Danal, who is one of Korea's largest payment processors, who's integrating our post-quantum cryptography into their telecom billing infrastructure, to secure micro-transactions. As a nation, Korea has committed over CAD 3 trillion to quantum technology by 2035, and has designated quantum security as a national priority. This fits hand in hand with their agenda. Our deployments with these companies are being referenced as architectures, and they're being watched by regulators, central banks, and payment networks worldwide.

In the scenario where stablecoins reach a CAD 1 trillion market cap, which represents less than 5% of the M1 money supply, with only 1/3 of the transactions flowing through QSSN by 2030, our QSSN network stands to generate over CAD 1 billion in revenue. This reflects a highly scalable business model with near 99% operating cost margins. With increasing digitization of fiat dollars in both U.S. and non-U.S. denominated money supplies, we see a very strong case where QSSN becomes the backbone of any centralized or regulated digital currency network. Here I'll pass it back to Oli.

Yeah. Thanks, Chris. I think we've touched on all this. I'll let you.

Yeah.

I mean, I'm happy to kick things off. I mean, it's kind of a childhood dream to be working at the University of Cambridge, where, you know, Sir Isaac Newton, you know, invented and really changed the world. It also goes back to the, you know, essentially first few employees that ever worked on BTQ IP out of the University of Cambridge. It's been a, you know, 13-year trajectory with University of Cambridge, and it's, you know, arguably, you know, the number one university in the world across a number of different fields, specifically quantum computing, photonics.

you know, we're providing, you know, grants, and we'll be doing a lot of stuff in terms of collaboration around, you know, basically kind of providing commercialization frameworks, for intellectual property coming out of the University of Cambridge, to be formally, you know, monetized and receive the value that it deserves.

Chris, I'm not sure if you wanted to mention anything else on Cambridge. Yeah, public market overview. I think we started trading on the Nasdaq around a month ago. I think we're, you know, fairly unknown in terms of what we're doing. That's fine with us. We're happy to, you know, build and let the numbers speak for ourselves on the products that we have. We do have several initiatives. You know, we've been in talks with a number of, I would say, kind of institutional kind of U.S. capital market banks and things of that.

You know, obviously, cause for concern or, you know, something that, you know, people love to kind of bring up and speak without absolutely no knowledge of our company or, you know, financial discipline, is the fact that we have, you know, a shelf that's just, you know, customary for a company in a volatile market to have. We are in, you know, discussions with, you know, strategic partners who will be, you know, potentially large customers, you know, who, you know, potentially wanna have the optionality to be buyers in large amounts of equity. That enables us with flexibility, you know, as a public company. We've turned down hundreds of millions of dollars almost every trading day since being listed on the Nasdaq. </edited_transcript We have no plans for a immediate capital raise and/or the need to. We have more than enough money in the bank to withstand a multi-year run rate. We are in Korea, Taiwan, Australia, France, Canada soon to be a few other countries that all have multi-billion dollar non-dilutive grants and things of that nature that we're you know more than active with in terms of bringing down the cost of operationals. I would just comment on that. Out of any you know publicly listed company we have the highest insider ownership by miles. Instead of selling shares we buy shares. That's my overview on our public market position.

Yeah, I just wanna highlight the inclusion on the KoAct Quantum Computing ETF managed by Samsung's asset management arm. Yeah, it's great to see ourselves being alongside, you know, pure play quantum companies as well as more, you know, quantum adjacent companies like chip makers and whatnot. Something that we're working on to get included in more ETFs going forward.

Yeah. As Olivier referenced, our working capital position is about CAD 38 million as of the end of our recent quarter, September 30, 2025. We do have sufficient working capital to fund our current initiatives over the next few years. Our base shelf prospectus that we filed in April is valid for 25 months. We obviously are in no rush to do financing in the near term, but we remain flexible due to the rapidly evolving industry that we're in.

All right. We can skip to the Q&A session. A lot of questions submitted obviously. We'll try to answer a few here. We won't have time to go through all of them, of course. We invite people to submit their questions at [email protected], and we'll get back to all them. I'll just read a few off from the chat. First one, as it relates to QPerfect, can you provide some specs on total qubits the company has achieved, fidelity rates and gate speeds for those systems? Probably Philippe, well, you can take that one to start.

Philippe,

Oh, you mute. You're muted. Yeah.

Okay, sorry. Yeah, what I was saying, what is very important to understand, and Guido will add on that, but that the number of qubit versus quantum error correction, it is very important to count that you need less and less number of atoms in order to correct the code. Today, quantum error correction represent more than 90% of the quantum number of qubits count, and it's very important to decrease that. What we have done with Guido Pupillo at CESQ is just tremendous. The way we are using the quantum state in order to decrease the number of need of qubits is just wonderful. Every Caltech, MIT are using it, are using this methodology.

Perhaps, Guido, you want to add a few things on that, as it is really important.

Yes, as a company, we are focused on, as Olivier said, as Philippe said, in building the software to bring quantum error correction to the actual hardware, to take application and compile them down to fault-tolerant and make them run fault-tolerantly so without errors on the hardware. In this sense, we are committed into reducing the overheads of quantum error corrections in terms of number of qubits and in terms also of quantum resources, which is gates, gate times and entanglement, all quantum resources that we can have, especially in number of qubits, where here we pioneer LDPC codes, which are special quantum error correction codes that have very high rates.

We can have many logical qubit with respect to the number of physical qubit that we may have. These are particularly useful for neutral atom quantum computers due to the degrees of freedom that we have, especially long range interactions here. where we can leverage the more physical qubits, less physical qubits to get more logical ones.

Okay, awesome. Thank you. Okay, next one. In terms of PQC, you have announced a lot of promising announcements from prior stablecoins, security standards to CASH, ventures for Bitcoin and Solana security, just to name a few. How should we think about monetization over the near term, next six to nine months and medium term, and which use cases will drive the most meaningful contribution in those timeframes?

I can take that one. With respect to our QSSN product, I mean, as noted, we've been doing pilot projects for some time and are maturing the tech significantly. It's, you know, we're at the stage now where we are in the point of basically waiting on government regulation and mandates. We've been following the GENIUS Act quite closely, which is, you know, the first piece of legislation that has been applied to stablecoins. There they provided some rough guidance for PQC as it pertains to stablecoins. You know, we expect more regulation and more certainty to come down the pipeline with the onset of the Clarity Act coming in.

You know, as these standards are basically implemented and mandated into law, we'll see a lot of pressure for companies and institutions to adopt this technology. You know, we'll be really well-positioned to capture on that opportunity given all of the existing projects.

Okay, great. There's one about the competitive landscape. Who or what will be your biggest competitor?

I mean, there's I'd say very few companies who are straddling, as we said, both sides of the problem here, where, you know, on one hand, we have our quantum defensive applications securing hardware and payment networks and software. On the other hand, you know, developing the core technologies underpinning very important scaling, error correction for neutral atom quantum computers, which are the most scalable, at least as it looks today, the most scalable architecture for these, for quantum processors. I think we're pretty unique when it comes to having both sides of this covered.

Obviously, we have, you know, competitors in each one of those industries, verticals such as, you know, Infineon, NXP, you know, semiconductor manufacturers. None of them are really looking at crypto agility in the way that we are. You also have, you know, other, call it stablecoin issuers who are our partners at the end of the day. We're not looking to launch our own stablecoins, but rather secure their networks. Then obviously with the onset of, you know, all of these, especially recently, quantum computing companies, we have the oldest and a world-class team when it comes to specifically neutral atom quantum technologies. So we feel really, really well-positioned in each one of those respects.

Okay, great. Then there's questions about QPerfect. I'd say for that acquisition, I would refer to the subsequent event notes in the financial statements for now. Then the kind of like acquisition closing PR will have some more details. You know, we expect that to close kind of before the end of Q1 of 2026. Yeah, I think, you know, we're at time now, so wanna be respectful of the allotted time. Yeah, if your question hasn't been answered, you know, email [email protected] and we'll get back to everyone. Yeah, appreciate everyone's attending this call and, yeah, hope everyone has a good day.

Thank you all very much.

Thank you.

All right. Thanks, everyone.

Thank you all. Cheers. Have a good one.