01 Quantum (ONE) Q2 2024 earnings summary

Executive summary

• Growing momentum in post-quantum cybersecurity, with industry and regulatory developments accelerating adoption and integration of 4 of 5 anticipated NIST PQC recommendations into the IronCAP engine.

• Business model focuses on providing a free encryption engine and monetizing end-user applications and partner conversions to quantum-safe solutions.

• Transitioning from development to commercialization, aiming to reduce operational losses and move toward profitability as partner/customer revenue builds.

• Execution of the business plan has led to a significant reduction in operating loss, nearing break-even.

Financial highlights

• Operating loss for the quarter reduced to approximately CAD 28,000, with a total quarterly loss of $68,638, down from $187,292 year-over-year.

• Revenue for the quarter was $106,220, a decrease of $21,562 year-over-year, impacted by a weaker Japanese Yen.

• Cash position at quarter-end was CAD 175,000.

• Product development expenses fell to $44,812 from $118,312 year-over-year as major projects completed.

• Company continues to operate debt-free.

Outlook and guidance

• Profitability expected with any increase in revenue momentum, and management expects to maintain reduced operating expenses in line with recurring revenue.

• Anticipates reaping returns on over $6 million invested in IronCAP as the quantum safety market gains traction through 2024 and 2025.

• Optimism for future quarters based on reduced operating loss and reliable recurring revenue.

• Anticipates further business development announcements with partners as quantum-safety demand grows.