# EDGAR Filing Document

**Accession Number:** 0001821866
**File Stem:** 0001062993-25-013820
**Filing Date:** 2025-8
**Character Count:** 1840825
**Document Hash:** 3c454234f98f13550805aa79f0c0f3ab
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001062993-25-013820.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001062993-25-013820

**CONFORMED SUBMISSION TYPE**: 40FR12B

**PUBLIC DOCUMENT COUNT**: 242

**FILED AS OF DATE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BTQ Technologies Corp.
- **CENTRAL INDEX KEY:** 0001821866

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 0131

**FILING VALUES:**
- **FORM TYPE:** 40FR12B
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42794
- **FILM NUMBER:** 251193932

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 16 - 113 555 BURRARD STREET
- **CITY:** VANCOUVER
- **PROVINCE COUNTRY:** A1
- **ZIP:** V7X 1M8
- **BUSINESS PHONE:** 6046822928

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 16 - 113 555 BURRARD STREET
- **CITY:** VANCOUVER
- **PROVINCE COUNTRY:** A1
- **ZIP:** V7X 1M8

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Sonora Gold & Silver Corp.
- **DATE OF NAME CHANGE:** 20200820

------

**UNITED STATES**<br>**SECURITIES AND EXCHANGE COMMISSION**<br>**Washington, D.C. 20549**

**____________________**

**FORM 40-F**

[X] Registration statement pursuant to Section 12 of the Securities Exchange Act of 1934 <br> or <br> [ ] Annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended   Commission File Number  

<u>**BTQ Technologies Corp.**</u><br>(Exact name of Registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| <u>**British Columbia**</u> | <u>**7370**</u> | <u>**Not applicable**</u> |
| (Province or other jurisdiction of <br>incorporation or organization) | (Primary Standard Industrial <br>Classification <br>Code Number) | (I.R.S. Employer<br> Identification Number) |

---

**16 - 113 555 Burrard Street**

**Vancouver, British Columbia V7X 1M8**<br><u>(**807) 790-9591**</u><br>(Address and telephone number of Registrant's principal executive offices)

**____________________**

**C T Corporation System**

**1015 15th Street N.W., Suite 1000**

**Washington, DC 20005**

<u>**(202) 572-3133**</u> <br>(Name, address (including zip code) and telephone number (including<br>area code) of agent for service in the United States)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| <u>Title of each class</u> | <u>Trading Symbol(s)</u> | <u>Name of each exchange on which registered</u> |
| **Common Shares, no par value** | **BTQ** | **Nasdaq Capital Market** |

---

Securities registered pursuant to Section 12(g) of the Act: None.

------

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

For annual reports, indicate by check mark the information filed with this Form:

[ ] Annual information form [ ] Audited annual financial statements

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report: **N/A**

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. [ ] Yes [X] No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). [ ] Yes [ ] No

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging growth company [X]

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. [ ]

The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. [ ]

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. [ ]

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). [ ]

------

**EXPLANATORY NOTE**

BTQ Technologies Corp. (the "Company" or the "Registrant") is a Canadian issuer eligible to file its registration statement pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), on Form 40-F pursuant to the multi-jurisdictional disclosure system ("MJDS") of the Exchange Act. The Company is a "foreign private issuer" as defined in Rule 3b-4 under the Exchange Act. Equity securities of the Company are accordingly exempt from Sections 14(a), 14(b), 14(c), 14(f) and 16 of the Exchange Act pursuant to Rule 3a12-3.

**FORWARD-LOOKING INFORMATION**

This registration statement and the documents incorporated by reference herein contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation (collectively, "forward-looking information") with respect to the Company and its subsidiaries. Forward-looking information may include, but is not limited to: information with respect to amounts and use of available funds; anticipated developments in operations in future periods; planned asset acquisitions; future business operations; the adequacy of financial resources; the costs and timing of development of the Company's business; the costs, timing and receipt of approvals, consents and permits under applicable legislation; executive compensation approaches and practices; the growth of the quantum technology and security market; the future applications of Company products; the timeline for a quantum computer hitting the market; the use of Company office space; the development of and applicability of quantum technologies; the commercialization of the Company's intellectual property; the general adoption of quantum technologies; the Company's research and development plan; the results from Company research and development; future intellectual property registrations of the Company; the future availability of Company products; and the composition of directors and committees.

Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words and phrases such as "will", "may", "is expected to", "anticipates", "estimates", "intends", "plans", "projection", "could", "vision", goals", "objective" and "outlook") are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. In making these forward-looking statements, the Company has made certain assumptions, as contemplated below.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation:

* the performance of the Company's business and operations;

* the intention to grow the Company's business and operations;

* the introduction and continued offering of services and product features;

* the market for the Company's products and services and competitive conditions;

* the Company's pricing and revenue models;

* the future liquidity and financial capacity;

* the treatment of the Company and its subsidiaries under government regulatory and taxation regimes;

* the Company's intellectual property;

* the Company's ability to operate in certain markets;

* the Company's ability to meet current and future obligations;

* the Company's ability to obtain services in a timely manner or at all;

* the Company's ability to obtain financing on acceptable terms or at all;

* the Company's targeted business milestones and related timelines and costs; and

* expectations of the blockchain, quantum computing and cryptocurrency markets and associated regulations;

The above list is not exhaustive of factors that may affect any of the forward-looking information contained in this registration statement and the documents incorporated by reference herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Forward-looking information involves statements about the future and is inherently uncertain, and the actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in both the Annual Information Form for the year ended December 31, 2024 ("AIF") attached hereto as Exhibit 99.66 hereto and in the Management's Discussion and Analysis of BTQ Technologies Corp. for the quarter ended March 31, 2025 ("MD&A") attached hereto as Exhibit 99.71 hereto under the heading "Risk Factors" and elsewhere in the AIF and MD&A. Forward-looking information contained in this registration statement and the documents incorporated by reference herein is based on the beliefs, expectations and opinions of management of the Company on the date the statements are made, and the Company does not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. In making the forward-looking statements in this registration statement and the documents incorporated by reference herein, the Company has applied several material assumptions which may prove to be inaccurate, including, but not limited to, the assumptions that any financing needed to fund the operations of the Company will be available on reasonable terms. Other assumptions are discussed throughout the AIF and, in particular in the "Risk Factors" section of the AIF and MD&A. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking information.

------

**DIFFERENCES IN UNITED STATES AND CANADIAN REPORTING PRACTICES**

The Registrant is permitted, under MJDS adopted by the United States Securities and Exchange Commission (the "SEC"), to prepare this report in accordance with Canadian disclosure requirements, which are different from those of the United States. The Registrant prepares its consolidated financial statements, which are filed with this report on Form 40-F, in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and the audit is subject to Canadian auditing and auditor independence standards. MNP LLP is independent with respect to the Company in accordance with the applicable requirements of the Public Company Accounting Oversight Board (PCAOB) and the SEC.

**PRINCIPAL DOCUMENTS**

In accordance with General Instruction B.(1) of Form 40-F, the Registrant hereby incorporates by reference Exhibits 99.1 through 99.90 inclusive, as set forth in the Exhibit Index attached hereto.

In accordance with General Instruction D.(9) of Form 40-F, the Registrant has filed or will file certain consents attached hereto as Exhibits 99.91 through 99.92 as set forth in the Exhibit Index attached hereto.

**TAX MATTERS**

Purchasing, holding, or disposing of securities of the Registrant may have tax consequences under the laws of the United States and Canada that are not described in this registration statement on Form 40-F.

**DESCRIPTION OF COMMON SHARES**

The required disclosure is included under the heading "*Description of Capital Structure - Common Shares*" in the Registrant's AIF, attached hereto as Exhibit 99.66.

**CURRENCY**

Unless otherwise indicated, all dollar amounts in this registration statement on Form 40-F are in Canadian dollars. The exchange rate of Canadian dollars into United States dollars, on December 31, 2024 based upon the daily exchange rate as quoted by the Bank of Canada was U.S.$1.00 = Cdn.$1.4389.

**OFF-BALANCE SHEET ARRANGEMENTS**

The Registrant has no off-balance sheet arrangements. (as that term is defined in paragraph 11(ii) of General Instruction B to Form 40-F) that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

------

**CONTRACTUAL OBLIGATIONS**

In accordance with General Instruction B.(12) of Form 40-F, the required disclosure is included under the headings "Liquidity Risk" in Management's Discussion and Analysis for the ended December 31, 2024 attached hereto as Exhibit 99.65 to this Registration Statement.

**NASDAQ CORPORATE GOVERNANCE**

The Company is a "foreign private issuer" as defined in Rule 3b-4 under Exchange Act and the Company's common shares are listed on the Cboe Canada ("Cboe") and are expected to be listed on the NASDAQ Capital Market (the "Nasdaq"). Rule 5615(a)(3) of the listing rules of the Nasdaq (the "Nasdaq Stock Market Rules") permits foreign private issuers to follow home country practices in lieu of certain provisions of Nasdaq Stock Market Rules. A foreign private issuer that follows home country practices in lieu of certain provisions of Nasdaq Stock Market Rules must disclose ways in which its corporate governance practices differ from those followed by domestic companies either on its website or in the annual report that it distributes to shareholders in the United States.

A description of the ways in which the Company's governance practices differ from those followed by domestic companies pursuant to Nasdaq standards are as follows:

***Executive Sessions***: The Registrant does not follow Nasdaq Stock Market Rule 5605(b)(2), which requires companies to have their Independent Directors regularly schedule meetings at which only Independent Directors are present ("executive meetings"). In lieu of following Nasdaq Stock Market Rule 5605(b)(2), the Registrant follows the rules of Cboe, the *Business Corporations Act* (British Columbia) and Canadian securities laws.

***Shareholder Meeting Quorum Requirements***: The Registrant does not follow Nasdaq Stock Market Rule 5620(c) which requires that the minimum quorum requirement for a meeting of shareholders be 33 1/3 % of the outstanding common shares. In addition, Nasdaq Stock Market Rule 5620(c) requires that an issuer listed on Nasdaq state its quorum requirement in its by-laws. In lieu of following Nasdaq Stock Market Rule 5620(c), the Registrant follows the rules of Cboe, the *Business Corporations Act* (British Columbia) and Canadian securities laws.

The foregoing is consistent with applicable laws, customs and practices in Canada.

**<u>Unaudited Pro Forma Consolidated Statement of Financial Position</u>**

The following unaudited pro forma balance sheet has been prepared to illustrate the impact of a number of events that followed the close of the Company's first fiscal quarter ended March 31, 2025, including the Company's receipt of proceeds from an offering of the Company's common shares that was completed in July 2025, and the Company's resulting compliance with the minimum $5 million stockholders' equity requirement for initial listing on Nasdaq.

The unaudited pro forma balance sheet is based on the Company's unaudited balance sheet as of March 31, 2025. The unaudited pro forma balance sheet has been prepared to reflect events that occurred subsequent to the close of the Mach 31, 2025 quarter, including the Company's receipt of proceeds from the sale of its common shares, as if the events occurred on March 31, 2025. This unaudited pro forma balance sheet is for informational purposes only, and should be read in conjunction with the more detailed unaudited condensed consolidated financial statements for the first fiscal quarter ended March 31, 2025 and related notes attached hereto as Exhibit 99.64.

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**BTQ TECHNOLOGIES CORP.**

Pro Forma Consolidated Statement of Financial Position

(Expressed in Canadian Dollars)

(unaudited)

---

| | | |
|:---|:---|:---|
|  | <br>Note | Pro forma<br>adjustments |
|  |  | $|
| Assets |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash | (1) | 37090407 |
| &nbsp;&nbsp;&nbsp;Other receivables |  |  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses |  |  |
| Total current assets |  | 37090407 |
| Non-current assets |  |  |
| &nbsp;&nbsp;&nbsp;Investments |  |  |
| &nbsp;&nbsp;&nbsp;Deposits |  |  |
| Total non-current assets |  |  |
| Total assets |  | 37090407 |
| Liabilities and shareholders' equity |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Corporate taxes payable |  |  |
| &nbsp;&nbsp;&nbsp;Deferred revenue |  |  |
| &nbsp;&nbsp;&nbsp;Due to related parties |  |  |
| Total liabilities |  |  |
| Shareholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;Share capital | (1) | 36781985 |
| &nbsp;&nbsp;&nbsp;Options reserve |  |  |
| &nbsp;&nbsp;&nbsp;Warrants reserve | (1) | 308422 |
| &nbsp;&nbsp;&nbsp;RSUs reserve |  |  |
| &nbsp;&nbsp;&nbsp;Deficit) |  | –) |
| Total shareholders' equity |  | 37090407 |
| Total liabilities and shareholders' equity |  | 37090407 |

---

**NOTES TO THE PROFORMA CONSOLIDATED STATEMENT OF FINANCIAL POSITION:**

**This Pro Forma Consolidated Statement of Financial Position reflects the Company's Consolidated Statement of Financial Position as reported in the Company's consolidated financial statements for the quarter ended March 31, 2025, filed on SEDAR+ on May 15, 2025, and attached hereto as Exhibit 99.70 adjusted to reflect the closing of the Offering (as defined below):**

**PRO FORMA ADJUSTMENT:** 

(1) On July 11, 2025, there was an increase in cash related to the sale of 5,555,555 common shares at $7.20 per share, net of commission and fees of $2,909,589, and the issuance of placement agent warrants for 138,888 common shares (the "Offering").

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**UNDERTAKING**

The Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to the securities registered pursuant to Form 40-F or transactions in said securities.

**CONSENT TO SERVICE OF PROCESS**

The Registrant has concurrently filed a Form F-X in connection with the class of securities to which this registration statement relates.

Any change to the name or address of the Registrant's agent for service shall be communicated promptly to the Commission by amendment to the Form F-X referencing the file number of the Registrant.

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**SIGNATURES**

Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  |  | **BTQ TECHNOLOGIES CORP.** |
|  | By: | /s/ Olivier Roussy Newton |
|  |  | Name: Olivier Roussy Newton |
| Date: August 7, 2025 |  | Title: Chief Executive Officer & Director |

---

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**EXHIBIT INDEX**

The following documents are being filed with the Commission as Exhibits to this registration statement:

---

| | |
|:---|:---|
| <u>**Exhibit**</u> | <u>**Description**</u> |
| [99.1](exhibit99-1.htm) | [News Release dated December 29, 2023](exhibit99-1.htm) |
| [99.2](exhibit99-2.htm) | [News Release dated February 20, 2024](exhibit99-2.htm) |
| [99.3](exhibit99-3.htm) | [News Release dated March 13, 2024](exhibit99-3.htm) |
| [99.4](exhibit99-4.htm) | [News Release dated March 18, 2024](exhibit99-4.htm) |
| [99.5](exhibit99-5.htm) | [News Release dated March 21, 2024](exhibit99-5.htm) |
| [99.6](exhibit99-6.htm) | [News Release dated March 28, 2024](exhibit99-6.htm) |
| [99.7](exhibit99-7.htm) | [News Release dated April 1, 2024](exhibit99-7.htm) |
| [99.8](exhibit99-8.htm) | [News Release dated April 4, 2024](exhibit99-8.htm) |
| [99.9](exhibit99-9.htm) | [News Release dated April 17, 2024](exhibit99-9.htm) |
| [99.10](exhibit99-10.htm) | [News Release dated May 1, 2024](exhibit99-10.htm) |
| [99.11](exhibit99-11.htm) | [News Release dated May 6, 2024](exhibit99-11.htm) |
| [99.12](exhibit99-12.htm) | [News Release dated May 16, 2024](exhibit99-12.htm) |
| [99.13](exhibit99-13.htm) | [News Release dated May 30, 2024](exhibit99-13.htm) |
| [99.14](exhibit99-14.htm) | [Consolidated Financial Statements of BTQ Technologies Corp. for the years ended December 31, 2023 and 2022 (audited)](exhibit99-14.htm) |
| [99.15](exhibit99-15.htm) | [Management's Discussion and Analysis of BTQ Technologies Corp. for the year ended December 31, 2023](exhibit99-15.htm) |
| [99.16](exhibit99-16.htm) | [Certification of Annual Filings Full Certificate of BTQ Technologies Corp. in connection with filing of annual financial statements and annual MD&A by CEO dated June 3, 2024](exhibit99-16.htm) |
| [99.17](exhibit99-17.htm) | [Certification of Annual Filings Full Certificate of BTQ Technologies Corp. in connection with filing of annual financial statements and annual MD&A by CFO dated June 3, 2024](exhibit99-17.htm) |
| [99.18](exhibit99-18.htm) | [Annual Information Form of BTQ Technologies Corp. for the fiscal year ended December 31, 2023](exhibit99-18.htm) |
| [99.19](exhibit99-19.htm) | [News Release dated June 4, 2024](exhibit99-19.htm) |
| [99.20](exhibit99-20.htm) | [Condensed Interim Financial Statements of BTQ Technologies Corp. for the three months ended March 31, 2024 and 2023 (Unaudited)](exhibit99-20.htm) |
| [99.21](exhibit99-21.htm) | [Management's Discussion and Analysis of BTQ Technologies Corp. for the quarter ended March 31, 2024](exhibit99-21.htm) |
| [99.22](exhibit99-22.htm) | [Certification of Interim Filings Full Certificate of BTQ Technologies Corp. in connection with filing of interim financial statements and interim MD&A by CEO dated June 7, 2024](exhibit99-22.htm) |
| [99.23](exhibit99-23.htm) | [Certification of Interim Filings Full Certificate of BTQ Technologies Corp. in connection with filing of interim financial statements and interim MD&A by CFO dated June 7, 2024](exhibit99-23.htm) |
| [99.24](exhibit99-24.htm) | [News Release dated June 10, 2024](exhibit99-24.htm) |
| [99.25](exhibit99-25.htm) | [News Release dated June 17, 2024](exhibit99-25.htm) |
| [99.26](exhibit99-26.htm) | [Notice of Meeting and Record Date for the Annual General Meeting to be held on September 18, 2024](exhibit99-26.htm) |
| [99.27](exhibit99-27.htm) | [News Release dated August 6, 2024](exhibit99-27.htm) |

---

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| | |
|:---|:---|
| <u>**Exhibit**</u> | <u>**Description**</u> |
| [99.28](exhibit99-28.htm) | [Condensed Interim Financial Statements of BTQ Technologies Corp. for the three and six months ended June 30, 2024 and 2023 (Unaudited)](exhibit99-28.htm) |
| [99.29](exhibit99-29.htm) | [Management's Discussion and Analysis of BTQ Technologies Corp. for the quarter ended June 30, 2024](exhibit99-29.htm) |
| [99.30](exhibit99-30.htm) | [Certification of Interim Filings Full Certificate of BTQ Technologies Corp. in connection with filing of interim financial statements and interim MD&A by CEO dated August 13, 2024](exhibit99-30.htm) |
| [99.31](exhibit99-31.htm) | [Certification of Interim Filings Full Certificate of BTQ Technologies Corp. in connection with filing of interim financial statements and interim MD&A by CFO dated August 13, 2024](exhibit99-31.htm) |
| [99.32](exhibit99-32.htm) | [News Release dated August 14, 2024](exhibit99-32.htm) |
| [99.33](exhibit99-33.htm) | [Notice of Annual General Meeting of Shareholders to be held on September 18, 2024](exhibit99-33.htm) |
| [99.34](exhibit99-34.htm) | [BTQ Technologies Inc. Management Information Circular for the Annual General Meeting of Shareholders to be held on September 18, 2024](exhibit99-34.htm) |
| [99.35](exhibit99-35.htm) | [Form of Proxy of BTQ Technologies Inc. for the Annual General Meeting of Shareholders to be held on September 18, 2024](exhibit99-35.htm) |
| [99.36](exhibit99-36.htm) | [News Release dated September 18, 2024](exhibit99-36.htm) |
| [99.37](exhibit99-37.htm) | [Report of Voting Results dated September 18, 2024](exhibit99-37.htm) |
| [99.38](exhibit99-38.htm) | [News Release dated September 24, 2024](exhibit99-38.htm) |
| [99.39](exhibit99-39.htm) | [News Release dated October 16, 2024](exhibit99-39.htm) |
| [99.40](exhibit99-40.htm) | [News Release dated November 5, 2024](exhibit99-40.htm) |
| [99.41](exhibit99-41.htm) | [Condensed Interim Financial Statements of BTQ Technologies Corp. for the three and nine months ended September 30, 2024 and 2023 (Unaudited)](exhibit99-41.htm) |
| [99.42](exhibit99-42.htm) | [Management's Discussion and Analysis of BTQ Technologies Corp. for the quarter ended September 30, 2024](exhibit99-42.htm) |
| [99.43](exhibit99-43.htm) | [Certification of Interim Filings Full Certificate of BTQ Technologies Corp. in connection with filing of interim financial statements and interim MD&A by CFO dated November 14, 2024](exhibit99-43.htm) |
| [99.44](exhibit99-44.htm) | [Certification of Interim Filings Full Certificate of BTQ Technologies Corp. in connection with filing of interim financial statements and interim MD&A by CEO dated November 14, 2024](exhibit99-44.htm) |
| [99.45](exhibit99-45.htm) | [Notice of Change of Auditor dated November 12, 2024](exhibit99-45.htm) |
| [99.46](exhibit99-46.htm) | [Letter from Successor Auditor dated November 12, 2024](exhibit99-46.htm) |
| [99.47](exhibit99-47.htm) | [Letter from Former Auditor dated November 12, 2024](exhibit99-47.htm) |
| [99.48](exhibit99-48.htm) | [News Release dated December 16, 2024](exhibit99-48.htm) |
| [99.49](exhibit99-49.htm) | [News Release dated December 19, 2024](exhibit99-49.htm) |
| [99.50](exhibit99-50.htm) | [Material Change Report dated December 19, 2024](exhibit99-50.htm) |
| [99.51](exhibit99-51.htm) | [News Release dated December 23, 2024](exhibit99-51.htm) |
| [99.52](exhibit99-52.htm) | [News Release dated December 31, 2024](exhibit99-52.htm) |
| [99.53](exhibit99-53.htm) | [News Release dated January 15, 2025](exhibit99-53.htm) |
| [99.54](exhibit99-54.htm) | [News Release dated January 27, 2025](exhibit99-54.htm) |
| [99.55](exhibit99-55.htm) | [Amended and Restated Condensed Interim Financial Statements of BTQ Technologies Corp. for the three and nine months ended September 30, 2024 and 2023 (Unaudited)](exhibit99-55.htm) |

---

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| | |
|:---|:---|
| <u>**Exhibit**</u> | <u>**Description**</u> |
| [99.56](exhibit99-56.htm) | [Amended and Restated Management's Discussion and Analysis of BTQ Technologies Corp. for the quarter ended September 30, 2024](exhibit99-56.htm) |
| [99.57](exhibit99-57.htm) | [Certification of Refiled Interim Filings of BTQ Technologies Corp. in connection with filing of interim financial statements and interim MD&A by CEO dated February 6, 2025](exhibit99-57.htm) |
| [99.58](exhibit99-58.htm) | [Certification of Refiled Interim Filings of BTQ Technologies Corp. in connection with filing of interim financial statements and interim MD&A by CFO dated February 6, 2025](exhibit99-58.htm) |
| [99.59](exhibit99-59.htm) | [News Release dated February 10, 2025](exhibit99-59.htm) |
| [99.60](exhibit99-60.htm) | [News Release dated February 12, 2025](exhibit99-60.htm) |
| [99.61](exhibit99-61.htm) | [News Release dated February 19, 2025](exhibit99-61.htm) |
| [99.62](exhibit99-62.htm) | [News Release dated February 27, 2025](exhibit99-62.htm) |
| [99.63](exhibit99-63.htm) | [News Release dated March 12, 2025](exhibit99-63.htm) |
| [99.64](exhibit99-64.htm) | [Consolidated Financial Statements of BTQ Technologies Corp. for the years ended December 31, 2024 and 2023 (audited)](exhibit99-64.htm) |
| [99.65](exhibit99-65.htm) | [Management's Discussion and Analysis of BTQ Technologies Corp. for the year ended December 31, 2024](exhibit99-65.htm) |
| [99.66](exhibit99-66.htm) | [Annual Information Form of BTQ Technologies Corp. for the year ended December 31, 2024](exhibit99-66.htm) |
| [99.67](exhibit99-67.htm) | [News Release dated April 9, 2025](exhibit99-67.htm) |
| [99.68](exhibit99-68.htm) | [News Release dated April 28, 2025](exhibit99-68.htm) |
| [99.69](exhibit99-69.htm) | [Notice of Meeting and Record Date for the Annual General Meeting to be held on June 26, 2025](exhibit99-69.htm) |
| [99.70](exhibit99-70.htm) | [Condensed Interim Financial Statements of BTQ Technologies Corp. for the three months ended March 31, 2025 and 2024 (Unaudited)](exhibit99-70.htm) |
| [99.71](exhibit99-71.htm) | [Management's Discussion and Analysis of BTQ Technologies Corp. for the quarter ended March 31, 2025](exhibit99-71.htm) |
| [99.72](exhibit99-72.htm) | [Certification of Interim Filings Full Certificate of BTQ Technologies Corp. in connection with filing of interim financial statements and interim MD&A by CFO dated May 15, 2025](exhibit99-72.htm) |
| [99.73](exhibit99-73.htm) | [Certification of Interim Filings Full Certificate of BTQ Technologies Corp. in connection with filing of interim financial statements and interim MD&A by CEO dated May 15, 2025](exhibit99-73.htm) |
| [99.74](exhibit99-74.htm) | [News Release dated June 2, 2025](exhibit99-74.htm) |
| [99.75](exhibit99-75.htm) | [News Releasedated May 22, 2025](exhibit99-75.htm) |
| [99.76](exhibit99-76.htm) | [News Release dated June 27, 2025](exhibit99-76.htm) |
| [99.77](exhibit99-77.htm) | [News Release dated June 24, 2025](exhibit99-77.htm) |
| [99.78](exhibit99-78.htm) | [News Release dated May 27, 2025](exhibit99-78.htm) |
| [99.79](exhibit99-79.htm) | [News Release dated June 10, 2025](exhibit99-79.htm) |
| [99.80](exhibit99-80.htm) | [News Release dated July 3, 2025](exhibit99-80.htm) |
| [99.81](exhibit99-81.htm) | [News Release dated July 8, 2025](exhibit99-81.htm) |
| [99.82](exhibit99-82.htm) | [News Release dated July 8, 2025](exhibit99-82.htm) |
| [99.83](exhibit99-83.htm) | [News Release dated July 10, 2025](exhibit99-83.htm) |
| [99.84](exhibit99-84.htm) | [News Release dated July 11, 2025](exhibit99-84.htm) |
| [99.85](exhibit99-85.htm) | [Material Change Report dated July 14, 2025](exhibit99-85.htm) |
| [99.86](exhibit99-86.htm) | [News Release dated July 23, 2025](exhibit99-86.htm) |
| [99.87](exhibit99-87.htm) | [BTQ Technologies Inc. Management Information Circular for the Annual General Meeting of Shareholders to be held on August 26, 2025](exhibit99-87.htm) |
| [99.88](exhibit99-88.htm) | [Form of Proxy of BTQ Technologies Inc. for the Annual General Meeting of Shareholders to be held on August 26, 2025](exhibit99-88.htm) |
| [99.89](exhibit99-89.htm) | [News Release dated July 30, 2025](exhibit99-89.htm) |
| [99.90](exhibit99-90.htm) | [News Release dated August 5, 2025](exhibit99-90.htm) |
| [99.91](exhibit99-91.htm) | [Consent of BDO Canada LLP](exhibit99-91.htm) |
| [99.92](exhibit99-92.htm) | [Consent of MNP LLP (PCAOB ID: 1930)](exhibit99-92.htm) |

---

------

## Exhibit 99.1

------

**BTQ Announces Participation and Sponsorship at CfC St. Moritz Conference**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● BTQ Technologies Inc. announces its participation and sponsorship at CfC St. Moritz, a premier digital assets and blockchain conference for investors and decision-makers in the Swiss Alps.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Christopher Tam, BTQ's Head of Partnerships, will lead a workshop titled "Future-Proofing Digital Assets: Exploring the Sustainability of Digital Assets in the Quantum Era," focusing

on the challenges and potential of post-quantum cryptography (PQC).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The conference, featuring sponsors like Algorand Foundation, Kraken, and others, will serve as a crucial platform for discussions on digital assets, blockchain, and traditional finance, highlighting the importance of quantum technology in the future of digital assets.

**VANCOUVER, BC, December 29, 2023 -- BTQ Technologies Inc.** (the "**Company**" or "**BTQ**") (NEO: BTQ, FSE:NG3, OTCQX:BTQQF), a global quantum technology company focused on securing mission critical networks, is pleased to announce its participation and sponsorship at the upcoming CfC St. Moritz, a highly curated digital assets and blockchain conference for investors and decision-makers, set in the Swiss Alps from January 10 -12, 2024.

Christopher Tam, BTQ's Head of Partnerships, will represent BTQ at the conference. Mr. Tam's workshop, titled "Future-Proofing Digital Assets: Exploring the Sustainability of Digital Assets in the Quantum Era," promises to be a highlight of the event. Mr. Tam will explore the challenges and potential of post-quantum cryptography (PQC), aiming to equip the audience with insights into the quantum security of decentralized networks.

This year's CfC St. Moritz is set to be a pivotal gathering, with a focus on the intersection of traditional finance and the burgeoning crypto industry. Over three days, selected opinion leaders, investors, governmental representatives, and experts from academia and decentralized organizations will engage in in-depth discussions and exchange knowledge on digital assets, blockchain, and traditional finance.

BTQ's involvement, alongside other prominent sponsors like Algorand Foundation, Kraken, Galaxy Digital, Ripple, Bitcoin Suisse, ZK Sync, and Julius Baer, highlights the importance of this event in shaping the future of digital assets, especially in light of emerging quantum technologies. The conference offers a critical platform for BTQ to share its expertise in post-quantum cryptography (PQC) and the quantum security of decentralized networks.

------

For more information about BTQ's participation in the CfC St. Moritz and their contributions to the field of digital assets and blockchain technology, please visit https://cfc-stmoritz.com/.

**About CfC St. Moritz**

An intimate circle of selected opinion leaders and investors in the truly private and unique setting of the Swiss Alps. For over 6 years, the application-only conference fosters a culture of genuine connection and deliberately admits a maximum of only 250 international UHNWI, family offices, funds, and institutional investors, uniting the traditional finance sector and the crypto industry in the heart of the snowy Engadin valley.

During three days, opinion leaders and high-ranking representatives from governmental and supranational bodies, the private sector, academia, and decentralized organizations exchange their knowledge on digital assets, blockchain and traditional finance in various formats on- and off-stage. For more information, please visit <u>https://cfc-stmoritz.com/</u>

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: Website \| LinkedIn

**ON BEHALF OF THE BOARD OF DIRECTORS**

Olivier Roussy Newton

CEO, Chairman

For further information:

E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: bill@btq.com

------

*Neither the NEO nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

*This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "**1933 Act**") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.*

*<u>Forward Looking Information</u>*

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

------

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.2

------

**BTQ Technologies, CSIRO, and Leading Universities Unite in** **the Next Generation Emerging Technologies Graduates** **Program (NGETGP) to Cultivate Tech Talent**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Strategic Partnership:** BTQ Technologies collaborates with Commonwealth Scientific and Industrial Research Organisation ("CSIRO"), top Australian universities, Sydney Quantum Academy, and Diraq Pty Ltd in the Next Generation Emerging Technologies Graduates Program (NGETGP), aiming to advance the field of emerging technologies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Program Focus:** The NGETGP, a consortium of leading institutions and industry experts funded and administered by CSIRO, is dedicated to nurturing tech innovators and bridging the skills gap in emerging technology sectors through hands-on projects and placements.

**VANCOUVER, BC, February 20, 2023 --** BTQ Technologies Corp. (NEO: BTQ, OTCQX: BTQQF, FRA: NG3), a publicly-listed and leading quantum technology company focused on securing mission-critical networks, proudly announces its participation in the Commonwealth Scientific and Industrial Research Organisation's Next Generation Emerging Technologies Graduates Program (NGETGP). This groundbreaking initiative aims to cultivate the next wave of tech talent and advance the field of emerging technologies.

BTQ Technologies joins forces with the Commonwealth Scientific and Industrial Research Organisation (CSIRO), top Australian universities, Sydney Quantum Academy, and Diraq Pty Ltd to create the next generation of quantum technology specialists as part of the Next Generation Emerging Technologies Graduates Program (NGETGP).

The NGETGP is a consortium of renowned institutions and industry leaders funded by the Australian Government and administered by CSIRO. The program is dedicated to developing future innovators in technology. It specifically targets talent gaps in critical areas like quantum computing, cybersecurity, and data science. Through this program, students will engage in advanced research projects, gain hands-on experience in real-world applications, and develop skills in business management and human-centric design, essential for modern technological challenges.

As a participant in the NGETGP, BTQ Technologies will fund one research scholarship, sharing its expertise in quantum technology and network security and providing invaluable resources and opportunities to foster a new generation of tech talent.

*"Being part of the Next Generation Emerging Technologies Graduates Program is a critical milestone in our quest to forge a technologically superior and secure future," stated Olivier Roussy Newton, CEO of BTQ Technologies. "Our collaboration with CSIRO, premier Australian universities, Sydney Quantum Academy, and Diraq Pty Ltd, underscores our dedication to fostering innovation and nurturing the next generation of tech experts. At BTQ, we see this program as more than just technological advancement; it's about molding a future where technology opens new horizons for progress and development."*

<br> ------

*"Within this ambitious program, BTQ Technologies will find innovative ways to use quantum processing to make future communications faster, more secure, and less energy demanding," said Dr. Gavin Brennen, BTQ's Quantum Information Advisor. "Internships with mentored training in quantum computing and information are available now at the BTQ office in The Quantum Terminal, Sydney."*

*Find out more about CSIRO's Next Generation Graduates Program: <u>https://www.csiro.au/nextgen</u>*

**About CSIRO**

The Commonwealth Scientific and Industrial Research Organisation (CSIRO) is an Australian Government agency responsible for scientific research.

CSIRO works with leading organizations around the world. From its headquarters in Canberra, CSIRO maintains more than 50 sites across Australia and in France, Chile and the United States, employing about 5,500 people. For more information visit <u>https://www.csiro.au/en/</u>

**About Diraq**

Diraq is a world leader in building quantum processors using silicon 'quantum dot' technology, leveraging over two decades in engineering and research expertise at UNSW Sydney and backed by an extensive IP portfolio. Diraq's goal is to revolutionize full-stack quantum computing by driving qubit numbers on a single chip to the billions needed for useful commercial applications

Earlier this year, Diraq was awarded a $3 million grant from the NSW Quantum Computing Commercialisation Fund (QCCF) to progress its ground-breaking research and development program aimed at bringing ultra-powerful quantum computers into existence.

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: Website \| LinkedIn

------

**ON BEHALF OF THE BOARD OF DIRECTORS**

Olivier Roussy Newton

CEO, Chairman

For further information:

E: desk@btq.com

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: bill@btq.com

*Neither the NEO nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

*This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "**1933 Act**") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.*

*<u>Forward Looking Information</u>*

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

------

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.3

------

**BTQ Technologies Joins the Cybersecurity and Privacy Institute at the University of Waterloo**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● BTQ is pleased to announce its sponsorship with the Cybersecurity and Privacy Institute

("CPI") at the University of Waterloo and establishing a multi-year relationship for R&D collaboration

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● CPI's mission is to be internationally recognized as a leading interdisciplinary research institute making significant impacts in improving information security and human privacy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Earlier this year, CPI secured over $3.3 million in funding from the National Cybersecurity Consortium (NCC) under the Cyber Security Innovation Network (CSIN) program

**VANCOUVER, BC, March 13, 2024 -- BTQ Technologies Inc.** (the "**Company**" or "**BTQ**") (Cboe CA: BTQ, FSE:NG3, OTCQX:BTQQF), a global quantum technology company focused on securing mission critical networks, is pleased to announce its sponsorship with the <u>Cybersecurity and Privacy Institute</u> at the University of Waterloo. CPI's mission is to gain international recognition as a leading interdisciplinary research institute that makes significant impacts on improving information security and human privacy. To this end CPI is forging a path through interdisciplinary focus areas including quantum computing, data science, cryptography, artificial intelligence (AI), and the policy, legal, and social impacts of security and privacy.

BTQ is delighted to join the following leading companies supporting CPI: Mastercard, Blackberry, Tauria, RBC, and Amazon Web Services. CPI's mandate is to nurture and enhance Canada's leadership position in cybersecurity and privacy research by partnering with industry sponsors on real-world challenges and fostering world leading interdisciplinary talent. Through the ecosystem at CPI, BTQ will further benefit from an applied focus on complex real-world challenges.

Last year, CPI marked a significant milestone by securing over <u>$3.3 million in funding</u>, representing 30% of total awards, from the National Cybersecurity Consortium (NCC) under the Cyber Security Innovation Network (CSIN) program. This funding is a testament to CPI's pivotal role in shaping the future of cybersecurity and privacy research, further enhancing its capabilities and reach in these critical areas.

CPI is collaborating with BTQ to continue research and optimization on <u>Preon</u> by enabling efficient zero-knowledge proof-based post-quantum digital signature schemes. In July 2023, BTQ introduced Preon, a robust and efficient post-quantum signature scheme, showcasing distinctive features including small key size, rapid key generation, minimal assumptions, and flexible functionality. These attributes make it resistant to potential threats from both classical and quantum computers.

------

*"BTQ is excited to be a part of the Cybersecurity and Privacy Institute at the University of Waterloo, a hub of groundbreaking research and innovation. This partnership underscores our commitment to addressing the complex challenges of the post-quantum era. Together, we aim to spearhead the development of advanced security protocols that will protect critical networks against emerging quantum threats. Our collaboration with Waterloo is a significant stride in safeguarding the digital infrastructure of the future and equipping the next wave of cybersecurity experts with the tools they need to succeed in this dynamic landscape."*

*- Olivier Roussy Newton, CEO of BTQ*

*"CPI is thrilled to partner with our new sponsor BTQ, to leverage our collective expertise and*

*proactively contribute to the development of standards and solutions that overcome the challenges posed by quantum advancements. This sponsorship also fosters graduate level talent at UWaterloo, not only through spurring novel research, but by also supporting our <u>CPI Excellence Graduate Scholarship</u> . This commitment reflects our shared dedication to applied post-quantum cybersecurity research and talent development."*

*- Colin Russell, Managing Director, Cybersecurity and Privacy Institute*

**Cybersecurity and Privacy Institute**

Cybersecurity and privacy are emerging as central issues our society must address in the coming decade to secure our future. The Cybersecurity and Privacy Institute (CPI) at the University of Waterloo, is tackling these challenges head-on by fostering interdisciplinary research collaborations and increasing the visibility and strength of Waterloo's cybersecurity and privacy research. CPI is advancing discoveries and partnerships in numerous application areas including: Quantum computing & communication, Data science, Cryptography, Artificial intelligence, as well as Policy, Legal, and Social impacts of security and privacy. CPI's vision is to be internationally recognized as a leading interdisciplinary research institute making significant impacts in improving information security and human privacy. UWaterloo and CPI are uniquely capable of devising effective cybersecurity and privacy tools and technologies, commercializing these advancements, developing the next generation of cybersecurity leaders, and leading industry-academic collaboration.

For more information on CPI, visit<u> </u><u>Website</u> \| <u>LinkedIn</u>

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: Website \| LinkedIn

------

**ON BEHALF OF THE BOARD OF DIRECTORS**

Olivier Roussy Newton

CEO, Chairman

For further information:

<u>E:</u> <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither the NEO nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

*This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "**1933 Act**") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.*

*<u>Forward Looking Information</u>*

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

------

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.4

------

![](exhibit99-4x1x1.jpg)

**BTQ TECHNOLOGIES CORP.**

**ANNOUNCES**

**FILING TIMELINE FOR 2023 ANNUAL FILINGS**

**Vancouver, British Columbia, March 18, 2024 - BTQ Technologies Corp.** (the "**Company**") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF) announces that it will delay the filing of its annual consolidated financial statements for the year ended December 31, 2023 (the "**Financial Statements**") and the related management's discussion and analysis and certifications (collectively, with the Financial Statements, the "**Annual Filings**"). Filing is required within 90 days of the financial year-end being April 1, 2024, under applicable Canadian securities laws. As further described below, the Company expects to file the Annual Filings on or before May 1, 2024.

On February 17, 2023, the Company closed its acquisition of BTQ AG (the "**Transaction**"), which was accounted for as a reverse acquisition transaction. The Financial Statements will include the accounts of the Company since the date of the closing of the Transaction and historical accounts of the business of BTQ AG prior to such date. The default is primarily due to delays relating to the restatement of the comparative period in the Financial Statements, comprised of BTQ AG's financial statements for the period ended December 31, 2022, which were audited by another auditor. The restatement items in the comparative period are expected to include expense cut-off errors and improperly capitalized intangible assets. In addition, there may be other items that may be impacted by the restated comparative period and all such adjustments are subject to change until the Annual Filings are approved by the Company's Audit Committee and Board of Directors and filed on SEDAR+. Management is working diligently with its auditor to complete the audit of the Financial Statements. The effect of the restated comparative period does not impact the Company's ongoing operations or cash position.

As a result of the delays, the Company has applied for a management cease trade order (an "**MCTO**") under National Policy 12-203 Management Cease Trade Orders ("**NP 12-203**") in respect of the default, which is subject to approval by the British Columbia Securities Commission, as principal regulator of the Company. If granted, the MCTO would not in any way impact the ability of shareholders and investors to engage in the trading of BTQ's common shares.

Until the Company files the Annual Filings, it will comply with the alternative information guidelines set out in NP 12-203. The guidelines, among other things, require the Company to issue bi-weekly default status reports, in the form of news releases, for so long as the Annual Filings have not been filed.

The Company confirms that, other than as disclosed in prior press releases and material change reports, there have been no material business developments since the filing on November 14, 2023 of the Company's latest interim financial reports for the period ended September 30, 2023.

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

------

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

*Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes, but is not limited to, statements regarding the timing, review, completion and filing of the Annual Filings, and duration of the MCTO; business goals and objectives of the Company, and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.*

*Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: the Company may not complete its audit and file the Annual Filings as currently anticipated, or at all; the Company will be subject to a general cease trade order in the event that the Annual Filings are not completed and filed; and other related risks as more fully set out in the documents disclosed under the Company's filings at www.sedarplus.ca.*

*The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to complete and file the Annual Filings. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.*

------

## Exhibit 99.5

------

BTQ Technologies Announces Christopher Tam as Featured<br>Speaker at ETHTaipei

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **BTQ Technologies at EthTaipei:** BTQ Technologies Corp. announces that Christopher Tam, Head of Partnerships, will be a featured speaker at ETHTaipei, where he will discuss transitioning Ethereum towards quantum resistance, addressing the impacts and challenges posed by quantum technologies on digital currencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Global Collaboration and Innovation at EthTaipei:** ETHTaipei will serve as a platform for global Ethereum-focused teams, facilitating connections and collaborations while emphasizing Taiwan as a significant hub for blockchain technology. The conference will feature discussions from leading experts and hands-on experiences, such as hackathons and workshops, fostering a collaborative environment for innovation.

Vancouver, Canada, March 21, 2024 -- BTQ Technologies Corp. (the "Company" or "BTQ") (NEO: BTQ) (OTCQX: BTQQF) (FSE: NG3), a global quantum technology company focused on securing mission-critical networks, is pleased to announce that Christopher Tam, Head of Partnerships at BTQ, will be a featured speaker at the upcoming ETHTaipei event. Mr. Tam is set to deliver a compelling presentation on the transition towards a quantum-resistant Ethereum, addressing the significant impacts and challenges posed by quantum technologies on digital currencies.

ETHTaipei stands out for bringing together Ethereum-focused teams globally, positioning Taiwan as a crucial center for blockchain technology. The conference provides Taiwanese teams with an outstanding opportunity to connect with the international community, thereby enhancing their presence and influence.

In his session, Mr. Tam will explore the complex realm of quantum technologies and their implications for Ethereum and Central Bank Digital Currencies (CBDCs). He will offer a thorough analysis of the hurdles presented by post-quantum cryptography and illustrate how these advancements could bolster the quantum security of Ethereum and other EVM-based decentralized networks. Participants will acquire crucial insights into the evolving landscape of digital currencies and the strategies necessary to protect them from quantum vulnerabilities.

ETHTaipei will also offer attendees the chance to hear from distinguished experts, scholars, and industry pioneers discussing Ethereum's latest trends, challenges, and applications. The conference promises an engaging lineup of hands-on experiences, including hackathons, workshops, and various activities aimed at encouraging collaboration and the sharing of ideas among developers worldwide.

------

By participating at ETHTaipei, BTQ Technologies reaffirms its commitment to advancing blockchain security and underscores the critical need for quantum preparedness within the digital currency landscape. The conference presents an unparalleled opportunity for attendees to delve into state-of-the-art technological debates and work alongside both local and global communities to propel the development of significant blockchain applications.

Furthermore, in alignment with our dedication to the Ethereum community and the broader push for quantum security, BTQ is proud to highlight our contribution of an <u>Ethereum Improvement Proposal (EIP) for Falcon Verification</u>. This proposal represents a significant stride towards quantum resistance on the Ethereum blockchain by supporting a pre-compile for Falcon signature verification. Our initiative underlines BTQ's commitment to enhancing blockchain security and promoting a quantum-resistant future.

Tickets are available for purchase at <u>ETHTaipei Tickets</u>. For more information about the event, please visit <u>ETHTaipei</u>.

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: Website \| LinkedIn

**ON BEHALF OF THE BOARD OF DIRECTORS**

Olivier Roussy Newton

CEO, Chairman

For further information:

E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: bill@btq.com

------

*Neither the NEO nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

*This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "**1933 Act**") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.*

*<u>Forward Looking Information</u>*

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate.*

------

*Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.6

------

BTQ Unveils Breakthrough Research on Quantum Energy Advantage

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Breakthrough in Quantum Computing:** BTQ Technologies Corp. has published groundbreaking research highlighting the "Quantum Energy Advantage," focusing on quantum computing's ability to significantly reduce energy consumption, beyond its well-known speed capabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Quantum Proof-of-Work:** The research showcases a quantum proof-of-work (QPoW) algorithm that leverages quantum computing for blockchain technology, offering a practical solution to significantly lower the energy demands of cryptocurrencies like Bitcoin, thus addressing environmental concerns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Sustainability and Efficiency:** This advancement signals a shift towards more sustainable computing by demonstrating quantum technology's potential not only in enhancing computational speed but also in promoting energy efficiency, marking a significant step towards the application of quantum computing in solving real-world problems.

**Vancouver, Canada, March 28, 2024** -- BTQ Technologies Corp. (the "**Company**" or "**BTQ**") (NEO CA: BTQ) (OTCQX: BTQQF) (FSE: NG3), a global quantum technology company focused on securing mission-critical networks, is pleased to announce groundbreaking research findings that redefine the energy efficiency paradigm in quantum computing. This significant advancement, discussed in an insightful blog post, introduces the concept of "<u>Quantum Energy Advantage</u>," shifting the narrative from quantum computing's speed capabilities to its potential in reducing energy consumption.

Historically, quantum computing has been heralded for its ability to solve problems at speeds unachievable by classical computing methods, a phenomenon often referred to as "quantum supremacy." BTQ's latest research, however, suggests that the real value of quantum computing lies in its superior energy efficiency. This revelation is crucial in an era where the energy demands of computational processes are skyrocketing.

The study delves into the fundamental differences between classical computing, which utilizes bits for information processing, and quantum computing, which operates with qubits. Qubits have the unique ability to exist in multiple states simultaneously due to the principle of quantum superposition. This characteristic enables quantum computers to tackle certain computational problems with exponentially lower energy consumption than classical computers, particularly in areas where traditional computing methods falter due to complexity.

------

One of the most compelling aspects of BTQ's research is its application to the blockchain technology sector, specifically concerning the energy-intensive proof-of-work (PoW) mechanism utilized by cryptocurrencies like Bitcoin. By implementing boson-sampling, a method in quantum computing, BTQ researchers have developed a <u>quantum</u> <u>proof-of-work</u> (QPoW) algorithm that dramatically reduces the energy expenditure required for blockchain transactions. This innovation not only exemplifies a practical use case for quantum computing but also addresses a significant environmental concern associated with blockchain technology.

"Our findings mark a pivotal moment in the exploration of quantum computing, highlighting its potential to revolutionize both computational speed and energy efficiency," stated Olivier Roussy Newton, CEO of BTQ. "The application of quantum computing in reducing the environmental impact of digital networks exemplifies our commitment to leveraging cutting-edge technology for solving real-world problems. We stand on the brink of a new computing era, where quantum technology not only enhances performance but also champions sustainability."

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: Website \| LinkedIn

**ON BEHALF OF THE BOARD OF DIRECTORS**

Olivier Roussy Newton

CEO, Chairman

For further information:

E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: bill@btq.com

------

*Neither the NEO nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

*This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "**1933 Act**") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.*

*<u>Forward Looking Information</u>*

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

------

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.7

------

**BTQ Technologies Corp. Partners with the Australian**

**Quantum Software Network to Advance Quantum Computing**

**and Security**

**VANCOUVER, BC, April 1, 2024 -- BTQ Technologies Inc.** (the "**Company**" or "**BTQ**") (Cboe CA: BTQ, FSE: NG3, OTCQX: BTQQF), a global quantum technology company focused on securing mission critical networks, is pleased to announce its partnership with the newly incorporated <u>Australian Quantum Software Network</u> (AQSN), a not-for-profit organization dedicated to pioneering advancements in quantum software development in Australia.

As a partner organization, BTQ Technologies is collaborating with AQSN to develop open-source quantum computing software, including quantum compilers and resource estimators. These tools are essential for the advancement of quantum applications, particularly in the areas of quantum error correction, overlapping with BTQ's existing project QByte, and algorithms for quantum enhanced communications.

Dr. Gavin Brennen, BTQ's Quantum Information Advisor, has been appointed as co-director of the AQSN, alongside Associate Professor Simon Devitt from the University of Technology Sydney (UTS) and Professor Jingbo Wang from the University of Western Australia (UWA). This leadership trio is set to guide the AQSN towards becoming a pivotal entity in the global quantum landscape.

**About Australian Quantum Software Network**

The Australian Quantum Software Network (AQSN) links together researchers from universities, government, start-ups and corporations who are all at the forefront of research into quantum software and information. AQSN represents one of the largest collections of experts and technology pioneers in the world pushing forward the fundamental theory and software tools that will underpin the quantum economy of the 21st century. For more information please visit <u>https://www.quantumsoftware.org.au/</u>

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: Website \| LinkedIn

------

**ON BEHALF OF THE BOARD OF DIRECTORS**

Olivier Roussy Newton

CEO, Chairman

For further information:

E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither the NEO nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

*This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "**1933 Act**") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.*

*<u>Forward Looking Information</u>*

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

------

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.8

------

![](exhibit99-8x1x1.jpg)

**BTQ TECHNOLOGIES CORP.**

**ANNOUNCES MANAGEMENT CEASE TRADE ORDER**

**Vancouver, British Columbia, April 4, 2024 - BTQ Technologies Corp.** (the "**Company**") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF) confirms that it has delayed the filing of its annual consolidated financial statements for the year ended December 31, 2023 (the "**Financial Statements**") and the related management's discussion and analysis, annual information form and certifications (collectively, with the Financial Statements, the "**Annual Filings**"). As further described below, the Company expects to file the Annual Filings on or before May 2, 2024.

On February 17, 2023, the Company closed its acquisition of BTQ AG (the "**Transaction**"), which was accounted for as a reverse acquisition transaction. The Financial Statements will include the accounts of the Company since the date of the closing of the Transaction and historical accounts of the business of BTQ AG prior to such date. The default is primarily due to delays relating to the restatement of the comparative period in the Financial Statements, comprised of BTQ AG's financial statements for the period ended December 31, 2022, which were audited by another auditor. The restatement items in the comparative period are expected to include expense cut-off errors and improperly capitalized intangible assets. In addition, there may be other items that may be impacted by the restated comparative period and all such adjustments are subject to change until the Annual Filings are approved by the Company's Audit Committee and Board of Directors and filed on SEDAR+. Management is working diligently with its auditor to complete the audit of the Financial Statements. The effect of the restated comparative period does not impact the Company's ongoing operations or cash position.

As a result of the delays, the Company has applied for a management cease trade order (an "**MCTO**") under National Policy 12-203 Management Cease Trade Orders ("**NP 12-203**") in respect of the default, which has been approved by the British Columbia Securities Commission, as principal regulator of the Company. The MCTO does not in any way impact the ability of shareholders and investors to engage in the trading of BTQ's common shares.

Until the Company files the Annual Filings, it will comply with the alternative information guidelines set out in NP 12-203. The guidelines, among other things, require the Company to issue bi-weekly default status reports, in the form of news releases, for so long as the Annual Filings have not been filed.

The Company confirms that, other than as disclosed in prior press releases, including with respect to the application for the MCTO on March 18, 2024, and material change reports, there have been no material business developments since the filing on November 14, 2023 of the Company's latest interim financial reports for the period ended September 30, 2023.

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

------

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

*Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes, but is not limited to, statements regarding the timing, review, completion and filing of the Annual Filings, and duration of the MCTO; business goals and objectives of the Company, and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.*

*Factors that could cause actual results to differ materially from those described in such forward - looking information include, but are not limited to: the Company may not complete its audit and file the Annual Filings as currently anticipated, or at all; the Company will be subject to a general cease trade order in the event that the Annual Filings are not completed and filed; and other related risks as more fully set out in the documents disclosed under the Company's filings at www.sedarplus.ca.*

*The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to complete and file the Annual Filings. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.*

------

## Exhibit 99.9

------

![](exhibit99-9x1x1.jpg)

**BTQ TECHNOLOGIES CORP.**

**PROVIDES BI-WEEKLY MCTO STATUS UPDATE**

**Vancouver, British Columbia, April 17, 2024 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF) is providing this bi-weekly update on the status of the management cease trade order issued on April 3, 2024 (the "MCTO"), by its principal regulator, the British Columbia Securities Commission (the "BCSC"), under National Policy 12-203 - Management Cease Trade Orders ("NP 12-203"), after the Company's previous announcement on March 18, 2024 (the "Default Announcement"), that it expected to be unable to file its audited annual financial statements for the year ended December 31, 2023 and associated management's discussion and analysis and certifications, along with its annual information financial form for the year ended December 31, 2023 (collectively, the "Annual Filings"). The Company anticipates filing the Annual Filings on or before May 2, 2024.

Except as herein disclosed, there are no material changes to the information contained in the Default Announcement or the Company's subsequent press release on April 4, 2024 with respect to the issuance of the MCTO. In addition, (i) the Company is satisfying and confirms that it intends to continue to satisfy the provisions of the alternative information guidelines under NP 12-203 and issue bi-weekly default status reports for so long as the delay in filing the Annual Filings is continuing, each of which will be issued in the form of a press release; (ii) the Company does not have any information at this time regarding any anticipated specified default subsequent to the default in filing the Annual Filings; (iii) the Company is not subject to any insolvency proceedings; and (iv) there is no material information concerning the affairs of the Company that has not been generally disclosed.

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

------

*Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes, but is not limited to, statements regarding the timing, review, completion and filing of the Annual Filings, and duration of the MCTO; business goals and objectives of the Company, and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.*

*Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: the Company may not complete its audit and file the Annual Filings as currently anticipated, or at all; the Company will be subject to a general cease trade order in the event that the Annual Filings are not completed and filed; and other related risks as more fully set out in the documents disclosed under the Company's filings at www.sedarplus.ca.*

*The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to complete and file the Annual Filings. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.*

------

## Exhibit 99.10

------

![](exhibit99-10x1x1.jpg)

**BTQ TECHNOLOGIES CORP.**

**PROVIDES BI-WEEKLY MCTO STATUS UPDATE**

**Vancouver, British Columbia, May 1, 2024 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF) is providing this bi-weekly update on the status of the management cease trade order issued on April 3, 2024 (the "MCTO"), by its principal regulator, the British Columbia Securities Commission (the "BCSC"), under National Policy 12- 203 - *Management Cease Trade Orders* ("NP 12-203"), after the Company's previous announcement on March 18, 2024 (the "Default Announcement"), that it expected to be unable to file its audited annual financial statements for the year ended December 31, 2023 and associated management's discussion and analysis and certifications, along with its annual information financial form for the year ended December 31, 2023 (collectively, the "Annual Filings").

The Company had anticipated filing the Annual Filings by May 2, 2024; however, the auditor of the Company has advised that it will not be in a position to complete the audit by May 2, 2024, and has advised that it requires additional time to complete the audit. As a result, the Company now anticipates filing the Annual Filings on or before May 24, 2024.

As a result of the delay in filing the Annual Filings, the Company will be unable to file its interim financial statements for the three months ended March 31, 2024, and associated management's discussion and analysis and certifications (collectively, the "Interim Filings"). The Company anticipates filing the Interim Filings on or before May 29, 2024.

Except as herein disclosed, there are no material changes to the information contained in the Default Announcement or the Company's subsequent press releases on April 4 and April 17, 2024 with respect to the issuance of the MCTO. In addition, (i) the Company is satisfying and confirms that it intends to continue to satisfy the provisions of the alternative information guidelines under NP 12-203 and issue bi-weekly default status reports for so long as the delay in filing the Annual Filings is continuing, each of which will be issued in the form of a press release; (ii) the Company does not have any information at this time regarding any anticipated specified default subsequent to the default in filing the Annual Filings; (iii) the Company is not subject to any insolvency proceedings; and (iv) there is no material information concerning the affairs of the Company that has not been generally disclosed.

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

------

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

*Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes, but is not limited to, statements regarding the timing, review, completion and filing of the Annual Filings, and duration of the MCTO; business goals and objectives of the Company, and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.*

*Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: the Company may not complete its audit and file the Annual Filings as currently anticipated, or at all; the Company will be subject to a general cease trade order in the event that the Annual Filings are not completed and filed; and other related risks as more fully set out in the documents disclosed under the Company's filings at www.sedarplus.ca.*

*The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to complete and file the Annual Filings. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.*

------

## Exhibit 99.11

------

Nicolas Roussy Newton, Co-Founder and COO of BTQ Technologies, to Present Quantum Innovations at IQT Vancouver · Pacific Rim 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Nicolas Roussy Newton, Co-Founder and COO of BTQ Technologies, will be a featured speaker at IQT Vancouver · Pacific Rim 2024, showcasing BTQ's latest advancements in quantum computing and security alongside representatives from leading companies and organizations such as AWS, Honeywell, Toshiba, Xanadu, and the University of Waterloo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The conference, scheduled from June 4-6, 2024, will provide attendees with insights into the practical applications of quantum technologies across industries and offer a platform for collaboration among industry leaders and policymakers.

**Vancouver, Canada, May 6, 2024** -- BTQ Technologies Corp. (the "**Company**" or "**BTQ**") (CBOE CA: BTQ) (OTCQX: BTQQF) (FSE: NG3), a global quantum technology company focused on securing mission-critical networks, is pleased to announce its participation at the upcoming IQT Vancouver · Pacific Rim 2024 conference. Nicolas Roussy Newton, Co-Founder and COO of BTQ Technologies, will be a featured speaker at the event.

IQT Vancouver · Pacific Rim 2024, hosted by the Quantum Algorithms Institute, will serve as a platform for showcasing advancements in quantum computing, communications, and security, featuring participation from leading companies and organizations such as AWS, Honeywell, Toshiba, Xanadu, and the University of Waterloo. The conference will go beyond theoretical discussions to spotlight practical applications of quantum technologies across various industries, including pharmaceuticals, transportation, finance, and more.

Nicolas Roussy Newton's presentation will explore the intersection of quantum computing and security, emphasizing BTQ Technologies' commitment to developing real-world solutions for securing critical networks. With his extensive expertise in quantum technology and cryptographic infrastructure, Mr. Newton will provide valuable insights into the future of quantum computing and its implications for cybersecurity.

"We are thrilled to participate in IQT Vancouver · Pacific Rim 2024 and share our latest innovations in quantum computing and security," said Nicolas Roussy Newton, Co-Founder and COO of BTQ Technologies. "This conference provides an excellent opportunity to collaborate with industry leaders and policymakers to advance the adoption of quantum technologies and address cybersecurity challenges."

------

Attendees of IQT Vancouver · Pacific Rim 2024 will have the opportunity to engage with experts and gain valuable knowledge about the practical applications of quantum computing, communications, and security. The conference will take place from June 4-6, 2024, in Vancouver, Canada.

For more information about IQT Vancouver · Pacific Rim 2024 and to register for the event, please visit https://iqtevent.com/vancouver/register/.

**About IQT Vancouver · Pacific Rim 2024**

With Vancouver as North America's gateway to the Pacific Rim, IQT and the Quantum Algorithms Institute are bringing together partners across North America and Asia to showcase the state of quantum computing, communications, and security. This international conference moves beyond the quantum hype to profile quantum computing and communications technologies and quantum expertise in real world settings. Sessions will highlight practical applications of quantum algorithms and networking in industries such as pharmaceuticals, transportation, finance, and more. Attendees will include industry and government executives, end-users and investors who will learn about the latest developments in these technologies, pathways for companies to get ready for quantum solutions, and ethics and policy considerations in this fast-growing industry. For More information please visit <u>https://iqtevent.com/vancouver/</u>

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: Website \| LinkedIn

**ON BEHALF OF THE BOARD OF DIRECTORS**

Olivier Roussy Newton

CEO, Chairman

For further information:

E: <u>d</u><u>esk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: bill@btq.com

------

*Neither the NEO nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

*This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "**1933 Act**") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.*

*<u>Forward Looking Information</u>*

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

------

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.12

------

![](exhibit99-12x1x1.jpg)

**BTQ TECHNOLOGIES CORP.**

**PROVIDES BI-WEEKLY MCTO STATUS UPDATE**

**Vancouver, British Columbia, May 16, 2024 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF) is providing this bi-weekly update on the status of the management cease trade order issued on April 3, 2024 (the "MCTO"), by its principal regulator, the British Columbia Securities Commission (the "BCSC"), under National Policy 12**-**203 - *Management Cease Trade Orders* ("NP 12-203"), after the Company's previous announcement on March 18, 2024 (the "Default Announcement"), that it expected to be unable to file its audited annual financial statements for the year ended December 31, 2023 and associated management's discussion and analysis and certifications, along with its annual information financial form for the year ended December 31, 2023 (collectively, the "Annual Filings").

The Company had anticipated filing the Annual Filings by May 24, 2024; however, the auditor of the Company has advised that it will not be in a position to complete the audit by May 24, 2024, and has advised that it requires additional time to complete the audit. As a result, the Company now anticipates filing the Annual Filings on or before June 3, 2024.

As a result of the delay in filing the Annual Filings, the Company will be unable to file its interim financial statements for the three months ended March 31, 2024, and associated management's discussion and analysis and certifications (collectively, the "Interim Filings"). The Company anticipates filing the Interim Filings on or before June 10, 2024.

Except as herein disclosed, there are no material changes to the information contained in the Default Announcement or the Company's subsequent press releases on April 4, April 17, and May 1, 2024 with respect to the issuance of the MCTO. In addition, (i) the Company is satisfying and confirms that it intends to continue to satisfy the provisions of the alternative information guidelines under NP 12-203 and issue bi-weekly default status reports for so long as the delay in filing the Annual Filings is continuing, each of which will be issued in the form of a press release;

(ii) the Company does not have any information at this time regarding any anticipated specified default subsequent to the default in filing the Annual Filings; (iii) the Company is not subject to any insolvency proceedings; and (iv) there is no material information concerning the affairs of the Company that has not been generally disclosed.

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

------

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

*Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes, but is not limited to, statements regarding the timing, review, completion and filing of the Annual Filings, and duration of the MCTO; business goals and objectives of the Company, and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.*

*Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: the Company may not complete its audit and file the Annual Filings as currently anticipated, or at all; the Company will be subject to a general cease trade order in the event that the Annual Filings are not completed and filed; and other related risks as more fully set out in the documents disclosed under the Company's filings at www.sedarplus.ca.*

*The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to complete and file the Annual Filings. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.*

------

## Exhibit 99.13

------

![](exhibit99-13x1x1.jpg)

**BTQ TECHNOLOGIES CORP.**

**PROVIDES BI-WEEKLY MCTO STATUS UPDATE**

**Vancouver, British Columbia, May 30, 2024 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF) is providing this bi-weekly update on the status of the management cease trade order issued on April 3, 2024 (the "MCTO"), by its principal regulator, the British Columbia Securities Commission (the "BCSC"), under National Policy 12-203 - *Management Cease Trade Orders* ("NP 12-203"), after the Company's previous announcement on March 18, 2024 (the "Default Announcement"), that it expected to be unable to file its audited annual financial statements for the year ended December 31, 2023 and associated management's discussion and analysis and certifications, along with its annual information financial form for the year ended December 31, 2023 (collectively, the "Annual Filings").

The Company anticipates filing the Annual Filings on or before June 3, 2024.

As a result of the delay in filing the Annual Filings, the Company will be unable to file its interim financial statements for the three months ended March 31, 2024, and associated management's discussion and analysis and certifications (collectively, the "Interim Filings"). The Company anticipates filing the Interim Filings on or before June 10, 2024.

Except as herein disclosed, there are no material changes to the information contained in the Default Announcement or the Company's subsequent press releases on April 4, April 17, May 1, and May 16, 2024 with respect to the issuance of the MCTO. In addition, (i) the Company is satisfying and confirms that it intends to continue to satisfy the provisions of the alternative information guidelines under NP 12-203 and issue bi-weekly default status reports for so long as the delay in filing the Annual Filings is continuing, each of which will be issued in the form of a press release; (ii) the Company does not have any information at this time regarding any anticipated specified default subsequent to the default in filing the Annual Filings; (iii) the Company is not subject to any insolvency proceedings; and (iv) there is no material information concerning the affairs of the Company that has not been generally disclosed.

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

------

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

*Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes, but is not limited to, statements regarding the timing, review, completion and filing of the Annual Filings, and duration of the MCTO; business goals and objectives of the Company, and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.*

*Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: the Company may not complete its audit and file the Annual Filings as currently anticipated, or at all; the Company will be subject to a general cease trade order in the event that the Annual Filings are not completed and filed; and other related risks as more fully set out in the documents disclosed under the Company's filings at www.sedarplus.ca.*

*The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to complete and file the Annual Filings. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.*

------

## Exhibit 99.14

------

![](exhibit99-14x1x1.jpg)

**BTQ TECHNOLOGIES CORP.**

Consolidated Financial Statements

For the Years Ended December 31, 2023 and 2022

(Expressed in Canadian dollars)

------

---

| | | |
|:---|:---|:---|
| ![](exhibit99-14x3x1.jpg) | Tel: (604) 688-5421 | BDO Canada LLP |
| ![](exhibit99-14x3x1.jpg) | Fax: (604) 688-5132 | Royal Centre, 1055 West Georgia Street, |
| ![](exhibit99-14x3x1.jpg) | www.bdo.ca | Unit 1100, P.O. Box 11101 |
| ![](exhibit99-14x3x1.jpg) |  | Vancouver, British Columbia |
| ![](exhibit99-14x3x1.jpg) |  | V6E 3P3 |
| **Independent Auditor's Report** | **Independent Auditor's Report** | **Independent Auditor's Report** |

---

To the Shareholders of BTQ Technologies Corp.

**Opinion**

We have audited the consolidated financial statements of BTQ Technologies Corp. and its subsidiaries (the Group), which comprise the consolidated statement of financial position as at December 31, 2023, and the consolidated statements of operations and comprehensive loss, changes in shareholders' equity/(deficit) and cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS").

**Basis for Opinion**

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the *Auditor's Responsibilities for the Audit of the Consolidated Financial Statements* section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

**Material Uncertainty Related to Going Concern**

We draw attention to Note 1 in the consolidated financial statements, which indicates that during the year ended December 31, 2023, the Company has not generated any revenues from operations and has negative cash flow from operations. As at December 31, 2023, the Company has an accumulated deficit of $34,568,353. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

**Key Audit Matters**

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the *Material Uncertainty Related to Going Concern* section, we have determined the matters described below to be the key audit matters to be communicated in our report.

***1) Reverse takeover transaction***

*Description of the key audit matter*

The Group completed a reverse takeover transaction during the year ended December 31, 2023. The accounting for these transactions carry significant complexity related to technical accounting and valuation, requiring management to apply significant judgment and estimation in their evaluation of these transactions. We have therefore considered this transaction to be a key audit matter due to the judgment and estimation involved in determining accounting and disclosures.

BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms

------

![](exhibit99-14x3x1.jpg)

Please refer to Note 2 to the consolidated financial statements for the Group's accounting policy on share-based payments and Notes 2, and 3 which detail the critical judgments and estimates applied in determining the accounting and presentation for the reverse take over.

*How the key audit matter was addressed in the audit*

Our approach in addressing this matter included the following procedures, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluated management's analysis of the transactions, related contracts and application of the guidance from IFRS 2, *Share-based Payment*, and IFRS 3, *Business Combinations*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluated management's determination of the accounting acquirer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Considered appropriate evidence to evaluate estimates and judgements applied in management's purchase price allocations that have a material impact on the valuation of the consideration provided, recognized assets and assumed liabilities.

Considered the adequacy of the disclosures included in Note 3.

***2) Estimation uncertainty in stock options***

*Description of the key audit matter*

We identified the accounting for stock options as a key audit matter due to the inherent complexity and high level of estimation uncertainty involved. The fair value of these instruments is not directly observable and requires the use of complex valuation models and assumptions that are subject to significant judgment by management such as stock price volatility in the black scholes calculation.

Please refer to Note 2 to the consolidated financial statements for the Group's accounting policy on stock options and Notes 2 and 11 which detail the critical judgments and estimates applied in determining the accounting and presentation for the stock options.

*How the key audit matter was addressed in the audit*

Our approach in addressing this matter included the following procedures, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Obtained and reviewed methodologies and models used by management to estimate the fair value of stock options to evaluate whether they comply with IFRS 2, *Share-based Payment*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluated the reasonableness of the key assumptions used in the valuation models, specifically stock price volatility given the high estimation uncertainty involved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Involved internal valuation specialists to evaluate the applied methodology and to help assess the volatility assumptions used by management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluated the fair value calculation and agreed assumptions and data to corroborative evidence

Considered the adequacy of the disclosures included in Note 11.

------

![](exhibit99-14x3x1.jpg)

**Emphasis of Matter - Restated Comparative Information**

We draw attention to Note 22 to the consolidated financial statements, which explains that certain comparative information presented:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As at December 31, 2022 and for the year December 31, 2022 has been restated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As at January 1, 2022 has been derived from the statement of financial position as at December 31, 2021 (not presented herein).

Our opinion is not modified in respect of this matter.

The financial statements for the years ended December 31, 2022 and 2021 (not presented herein but from which the comparative information as at January 1, 2022 has been derived), excluding the adjustments that were applied to restate certain comparative information were audited in accordance with International Standards on Auditing by another auditor who expressed unmodified opinions on those financial statements on March 30, 2023 and October 19, 2022.

As part of our audit of the consolidated financial statements for the year ended December 31, 2023, we also audited the adjustments applied to restate certain comparative information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As at and for the year ended December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As at January 1, 2022.

In our opinion, such adjustments are appropriate and have been properly applied.

Other than with respect to the adjustments that were applied to restate certain comparative information, we were not engaged to audit, review, or apply any procedures to the financial statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As at December 31, 2022 and for the year ended December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the year ended December 31, 2021 (not presented herein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As at January 1, 2022.

Accordingly, we do not express an opinion or any other form of assurance on those financial statements taken as a whole.

**Other Information**

Management is responsible for the other information. The other information comprises the information included in Management's Discussion and Analysis for the year ended December 31, 2023.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We obtained the Management's Discussion and Analysis prior to the date of this auditor's report. If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact in this auditor's report. We have nothing to report in this regard.

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![](exhibit99-14x3x1.jpg)

**Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements**

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group's financial reporting process.

**Auditor's Responsibilities for the Audit of the Consolidated Financial Statements**

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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![](exhibit99-14x3x1.jpg)

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is Fraser McGlenen.

![](exhibit99-14xu002.jpg)

Chartered Professional Accountants

*Vancouver, British Columbia*

*June 3, 2024*

------

**BTQ TECHNOLOGIES CORP.**

Consolidated Statements of Financial Position<br>(Expressed in Canadian dollars)

---

| |
|:---|
| Assets |
| Current assets |
| &nbsp;&nbsp;Cash |
| &nbsp;&nbsp;Short-term investment (Note 8) |
| &nbsp;&nbsp;Other receivables (Note 14) |
| &nbsp;&nbsp;Prepaid expenses and deposits |
| &nbsp;&nbsp;Loan receivable (Note 6) |
| Total current assets |
| Non-current assets |
| &nbsp;&nbsp;&nbsp;Property and equipment (Note 4) |
| &nbsp;&nbsp;&nbsp;Right-of-use asset (Note 5) |
| &nbsp;&nbsp;&nbsp;Investments (Note 7) |
| &nbsp;&nbsp;&nbsp;Deposits |
| Total non-current assets |
| Total assets |
| Liabilities and shareholders' equity (deficit) |
| Current liabilities |
| &nbsp;&nbsp;Accounts payable and accrued liabilities (Note 14) |
| &nbsp;&nbsp;Corporate taxes payable |
| &nbsp;&nbsp;Loan payable |
| &nbsp;&nbsp;Current portion of lease obligation (Note 9) |
| &nbsp;&nbsp;Due to related parties (Note 14) |
| Total current liabilities |
| Non-current liabilities |
| &nbsp;&nbsp;Lease obligation (Note 9) |
| &nbsp;&nbsp;Lease obligation (Note 9) |
| Total liabilities |
| Shareholders' equity (deficit) |
| &nbsp;&nbsp;Share capital (Notes 3 and 10) |
| &nbsp;&nbsp;Options reserve (Notes 3 and 11) |
| &nbsp;&nbsp;Warrants reserve (Note 10) |
| &nbsp;&nbsp;RSUs reserve (Note 13) |
| &nbsp;&nbsp;Deficit) |
| Total shareholders' equity (deficit) |
| Total liabilities and shareholders' equity (deficit) |

---

Nature of operations and going concern (Note 1)

Commitment (Note 18)

Subsequent events (Note 24)

Approved and authorized for issuance on behalf of the Board on June 3, 2024:

<u>"Olivier Roussy Newton"</u> Director <u>*"Michael Resendes"*</u> Director

The accompanying notes are an integral part of these consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Consolidated Statements of Financial Position<br>(Expressed in Canadian dollars)

---

| |
|:---|
| Expenses |
| &nbsp;&nbsp;Consulting fees (Note 14) |
| &nbsp;&nbsp;Depreciation (Notes 4 and 5) |
| &nbsp;&nbsp;General and administrative (Note 23) |
| &nbsp;&nbsp;Marketing and promotion (Note 14) |
| &nbsp;&nbsp;Professional fees (Note 14) |
| &nbsp;&nbsp;Research and development (Notes 10 and 14) |
| &nbsp;&nbsp;Share-based compensation (Notes 10, 11, 13, and 14) |
| &nbsp;&nbsp;Transfer agent and regulatory fees |
| &nbsp;&nbsp;Wages and benefits (Note 14) |
| Total expenses |
| Loss before other income (expense) |
| Other income (expense) |
| &nbsp;&nbsp;Collaboration and other income (Note 20) |
| &nbsp;&nbsp;Foreign exchange income (loss) |
| &nbsp;&nbsp;Interest income |
| &nbsp;&nbsp;Interest expense (Note 9) |
| &nbsp;&nbsp;Listing costs (Note 3) |
| &nbsp;&nbsp;Transaction costs (Note 3) |
| Total other income (expense) |
| Loss before income taxes) |
| Income tax provision (Note 21) |
| Net loss and comprehensive loss for the year) |
| Loss per share, basic and diluted) |
| Weighted average number of common shares outstanding |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

 **BTQ TECHNOLOGIES CORP.**<br>Consolidated Statements of Changes in Shareholders' Equity (Deficit)<br>(Expressed in Canadian dollars)

---

| | | | |
|:---|:---|:---|:---|
|  | Share capital | Options | Warrants |
|  | Number of | reserve | reserve |
|  | shares | $| $|
| Balance, December 31, 2021 | 1000000 |  | -) |
| Shares issued for cash | 46000000 |  |  |
| Share-based compensation |  |  |  |
| Fair value of shares issued for research | 45000000 |  |  |
| Net loss for the year |  |  | -) |
| Balance, December 31, 2022 | 92000000 |  | -) |
| Shares of the Company pursuant to reverse takeover | 8747629 |  |  |
| Revaluation of stock options pursuant to reverse takeover |  | 97532 |  |
| Shares issued for cash | 18001250 |  |  |
| Shares issued to finder for the Transaction | 2500000 |  |  |
| Share issuance costs | -) |  | 14632) |
| Fair value of finders' warrants allocated to |  |  |  |
| Transaction costs |  |  | 52754 |
| Share-based compensation |  | 1921154 |  |
| Shares issued for vested RSU's | 1945000 |  | -) |
| Net loss for the year |  |  | -) |
| Balance, December 31, 2023 | 123193879 | 2018686 | 67386) |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Consolidated Statements of Cash Flows<br>(Expressed in Canadian dollars)

---

| |
|:---|
| Operating activities |
| Net loss for the year) |
| Items not involving cash: |
| &nbsp;&nbsp;Depreciation |
| &nbsp;&nbsp;Foreign exchange translation loss (gain) |
| &nbsp;&nbsp;Listing costs |
| &nbsp;&nbsp;Interest expense |
| &nbsp;&nbsp;Share-based compensation |
| &nbsp;&nbsp;Shares issued for research |
| &nbsp;&nbsp;Transaction costs |
| Changes in non-cash operating working capital: |
| &nbsp;&nbsp;&nbsp;Other receivables) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and deposits) |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities) |
| &nbsp;&nbsp;&nbsp;Corporate taxes payable |
| &nbsp;&nbsp;&nbsp;Due to related parties) |
| Net cash used in operating activities) |
| Investing activities |
| &nbsp;&nbsp;&nbsp;Purchase of short-term investment) |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment) |
| &nbsp;&nbsp;&nbsp;Purchase of investments) |
| &nbsp;&nbsp;&nbsp;Loan receivable advance) |
| &nbsp;&nbsp;&nbsp;Proceeds from loan receivable |
| &nbsp;&nbsp;&nbsp;Cash acquired in reverse takeover |
| Net cash provided by (used in) investing activities |
| Financing activities |
| &nbsp;&nbsp;Repayment of lease obligation) |
| &nbsp;&nbsp;Repayment of loan payable) |
| &nbsp;&nbsp;Repayment of related party loans) |
| &nbsp;&nbsp;Proceeds from issuance of shares |
| &nbsp;&nbsp;Share issuance costs) |
| Net cash provided by financing activities |
| Increase in cash |
| Cash, beginning of year |
| Cash, end of year |

---

Supplemental cash flow information (Note 15)

The accompanying notes are an integral part of these consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**1. NATURE OF OPERATIONS AND GOING CONCERN**

BTQ Technologies Corp. (formerly Sonora Gold & Silver Corp.) ("the Company") was incorporated on November 23, 1983 under the Business Corporations Act (British Columbia). The principal activity of the Company is the development of computer-based technology related to post-quantum cryptography, particularly as it applies to blockchain and related technologies, and their protection from the emerging security risk of quantum computing. The Company's head office is located at 16-104 555 Burrard Street, Vancouver, BC, Canada. The Company's common shares trade on Cboe Canada under the ticker symbol "BTQ".

On February 17, 2023, the Company acquired all of the issued and outstanding shares of BTQ AG in exchange for 92,000,000 common shares. This transaction constituted a reverse takeover of the Company by BTQ AG with BTQ AG being identified as the accounting acquirer. As a result, these consolidated financial statements are a continuation of BTQ AG. The Company's results of operations are included from February 17, 2023 onwards, except for share capital which has been retroactively adjusted to reflect the capital of the Company. Refer to Note 3.

These consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. During the year ended December 31, 2023, the Company has not generated any revenues from operations and has negative cash flow from operations. As at December 31, 2023, the Company has an accumulated deficit of $34,568,353. The Company's ability to continue its operations and to realize its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs. Management is of the opinion that sufficient working capital will be obtained from external financing to meet the Company's liabilities and commitments as they become due, although there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These factors indicate a material uncertainty that may cast significant doubt on the ability of the Company to continue as a going concern. These consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. Such adjustments could be material.

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICIES**

**Statement of Compliance**

The accompanying consolidated financial statements have been prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board ("IFRS") on a going concern basis.

**Basis of Presentation**

These consolidated financial statements have been prepared on a historical cost basis except for certain financial assets and liabilities, which are measured at fair value, as specified by IFRS for each type of asset, liability, income, and expense as set out in the accounting polices below.

**Basis of consolidation**

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, BTQ AG, a company incorporated in the Principality of Liechtenstein.

These consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances are eliminated on consolidation. Control exists where the parent entity has power over the investee and is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Subsidiaries are included in the financial statements from the date control commences until the date control ceases.

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICIES** (continued)

**Functional Currency and Presentation Currency**

As a result of the reverse takeover of the Company by BTQ AG on February 17, 2023, BTQ AG changed both its functional currency and the presentation currency of its financial statements from the U.S. dollar to the Canadian dollar.

BTQ AG is in the research and development stage and relies on the Company for its funding and decision making. In consideration of the indicators in IAS 21, *The Effects of changes in Foreign Exchange Rates,* the Company determined that BTQ AG is an extension of the Company. As a result, BTQ AG has the same functional currency as the Company, which is the Canadian dollar.

Under IAS 21, a change in an entity's functional currency is applied prospectively from the date of change.

Effective February 17, 2023, the accounting acquirer, BTQ AG, changed its presentation currency from U.S. dollars to Canadian dollars. In making this change in presentation currency, the Company followed the guidance in IAS 21 and has applied this change retrospectively, as if the Canadian dollar has always been its presentation currency, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Assets and liabilities have been translated into Canadian dollar at the rate of exchange prevailing at the respective reporting dates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The consolidated statements of loss and comprehensive loss were translated at the average exchange rates for the respective reporting periods, or at the exchange rates prevailing at the applicable transaction date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Equity transactions have been translated at the exchange rate prevailing at the date of the transactions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exchange differences arising on translation were recorded in the consolidated statement of operations and comprehensive loss.

Refer to Note 22 for the impact of the change in presentation currency.

**Use of Estimates and Judgments**

The preparation of these consolidated financial statements in conformity with IFRS requires the Company's management to make judgments, estimates, and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, revenues, and expenses. Estimates and underlying assumptions are reviewed on an ongoing basis, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

Significant estimates and judgments exercised by management in applying the Company's accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements are as follows:

<u>Reverse Takeover</u>

The reverse takeover transaction was measured at the fair value of the common shares and stock options that BTQ would have had to issue to the shareholders of the Company. The fair value of common shares and stock options issued were estimated based on the Company's financing event which took place concurrently with the reverse takeover transaction. The fair values of identifiable assets acquired and liabilities assumed approximated their carrying values.

<u>Research and development costs</u>

Research costs are recognized as an expense when incurred but development costs may be capitalized as intangible assets if certain conditions are met as described in IAS 38 *Intangible Assets*. Management has determined that development costs do not meet the conditions for capitalization under IAS 38 and all research and development costs have been expensed.

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICIES** (continued)

**Use of Estimates and Judgments** (continued)

<u>*Fair values of stock options*</u>

Fair values of stock options are determined using the Black-Scholes option pricing model. Estimating fair value requires determining the most appropriate valuation model for a grant of equity instruments, which is dependent on the terms and conditions of the grant. Option-pricing models require the use of highly subjective estimates and assumptions including the expected stock price volatility. Changes in the underlying assumptions can materially affect the fair value estimates and, therefore, existing models do not necessarily provide reliable measurement of the fair value of the Company's stock options and performance warrants.

<u>*Deferred income taxes*</u>

The determination of income tax expense and the composition of deferred income tax assets and liabilities involves judgment and estimates as to the future taxable earnings, expected timing of reversals of deferred income tax assets and liabilities, and interpretations of tax laws. The Company is subject to assessments by tax authorities who may interpret the tax law differently. Changes in these interpretations, judgments, and estimates may materially affect the final amount of current and deferred income tax provisions, deferred income tax assets and liabilities, and results of operations.

<u>*Going concern presentation*</u>

These consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The assessment of the Company's ability to source future operations and continue as a going concern involves judgement. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. If the going concern assumption is not appropriate for the financial statements, then adjustments would be necessary in the carrying value of the assets and liabilities, the reported revenue and the expenses and the statement of financial position classifications used.

**Cash and Cash Equivalents**

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance, are readily convertible to known amounts of cash, and which are subject to insignificant risk of changes in value to be cash equivalents.

**Property and Equipment**

The Company depreciates the cost of property and equipment over their estimated useful lives using the declining balance basis at the following rates:

---

| | |
|:---|:---|
| Computer equipment | 25% |
| Furniture and equipment | 10% |

---

Residual values and useful economic lives are reviewed at least annually, and adjusted if appropriate, at each reporting date. Subsequent expenditure relating to an item of property and equipment is capitalized when it is probable that future economic benefits from the use of the assets will be increased. All other subsequent expenditures are recognized as repairs and maintenance expenses during the period in which they are incurred. Gains and losses on disposal of equipment are determined by comparing the proceeds from disposal with the carrying amount of the asset and are recognized net within other income in the consolidated statement of operations and comprehensive loss.

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICIES** (continued)

**Leases**

Under IFRS 16 - Leases, the Company recognizes a right-of-use asset and a lease liability at the lease commencement date for leases greater than 12 months. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. Right-of-use assets are subsequently depreciated over the remaining term of the lease and are carried at cost less accumulated depreciation and impairment. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Lease liabilities are subsequently reduced by lease payments net of interest expense calculated using the effective interest method.

The Company has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease.

**Impairment of Non-Current Assets**

At each reporting date, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there are any indications of impairment. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any.

Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash generating unit ("CGU") to which the asset belongs. The recoverable amount is determined as the higher of fair value less direct costs to sell and the asset's value in use. In assessing value in use, the estimated future cash flows are discounted to their present value. Estimated future cash flows are calculated using estimated recoverable reserves, estimated future commodity prices, and the expected future operating and capital costs. The pre-tax discount rate applied to the estimated future cash flows reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted.

If the carrying amount of an asset or CGU exceeds its recoverable amount, the carrying amount of the asset or CGU is reduced to its recoverable amount through an impairment charge to the consolidated statement of operations and comprehensive loss.

Assets that have been impaired are tested for possible reversal of the impairment whenever events or changes in circumstance indicate that the impairment may have reversed. When an impairment subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but only so that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation, depletion and amortization) had no impairment loss been recognized for the asset or CGU in prior periods. A reversal of impairment is recognized as a gain in the consolidated statement of operations and comprehensive loss.

**Foreign Currency Translation**

The functional currency of the Company and its subsidiary is the currency of the primary economic environment in which the entity operates. The Company's and its subsidiary's functional currency is the Canadian dollar.

Transactions denominated in currencies other than the functional currency are translated using the exchange rate in effect on the transaction date or at the annual average rate. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange in effect at the consolidated statements of financial position date. Non-monetary items are translated using the historical rate on the date of the transaction. Foreign exchange gains and losses are included in the consolidated statement of operations and comprehensive loss.

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements Years Ended December 31, 2023 and 2022 (Expressed in Canadian dollars)

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICIES** (continued)

**Financial Instruments**

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the respective instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are included in the initial carrying value of the related instrument and are amortized using the effective interest method. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in the consolidated statement of operations and comprehensive loss.

Fair value estimates are made at the statement of financial position date based on relevant market information and information about the financial instrument. All financial instruments are classified into either: fair value through profit or loss ("FVTPL") or amortized cost.

The Company has made the following classifications:

---

| | |
|:---|:---|
| Cash | Amortized cost |
| Short-term investment | Amortized cost |
| Other receivables (excluding GST/VAT) | Amortized cost |
| Loan receivable | Amortized cost |
| Investments | FVTPL |
| Accounts payable and accrued liabilities | Amortized cost |
| Due to related parties | Amortized cost |

---

<u>*Financial assets*</u>

The classification of financial assets depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

*Financial assets at FVTPL*

Financial assets are classified as FVTPL when the financial asset is either held for trading or it is designated as FVTPL. A financial asset is classified as held for trading if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it has been acquired principally for the purpose of selling it in the near term; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on initial recognition, it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it is a derivative that is not designated and effective as a hedging instrument.

*Financial assets at amortized cost*

Financial assets at amortized cost are non-derivative financial assets which are held within a business model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A financial asset (unless it is a trade receivable without a significant financing component that is initially measured at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition. Subsequent to initial recognition, financial assets are measured at amortized cost using the effective interest method, less any impairment.

*Impairment of financial assets*

Financial assets, other than those classified as FVTPL, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been decreased.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account.

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICIES** (continued)

**Financial Instruments** (continued)

When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are offset against the allowance account. Changes in the carrying amount of the allowance account are recognized in the consolidated statement of operations and comprehensive loss. Loss allowances are based on the lifetime ECL's that result from all possible default events over the expected life of the trade receivable, using the simplified approach.

For financial assets measured at amortized cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through the consolidated statement of operations and comprehensive loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized.

<u>*Financial liabilities and equity instruments*</u>

*Classification as debt or equity*

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

*Equity instruments*

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized as the proceeds received, net of direct issue costs.

*Other financial liabilities*

Other financial liabilities (including loans and borrowings and trade payables and other liabilities) are initially measured at fair value, net of transaction costs. Subsequently, other financial liabilities are measured at amortized cost using the effective interest method.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

**Research and Development Costs**

Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in the consolidated statement of operations and comprehensive loss as incurred.

Development activities involve a plan or design for the production of new or substantially improved products or processes. Development expenditure is capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use or sell the asset. The expenditure capitalized includes the cost of materials, direct labour, overhead costs that are directly attributable to preparing the asset for its intended use, and borrowing costs on qualifying assets. Other development expenditures are recognized in the consolidated statements of operations and comprehensive loss as incurred.

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICIES (continued)**

**Revenue Recognition**

The Company's accounting policy for revenue recognition under IFRS 15, Revenue from Contracts with Customers, follows a five-step model to determine the amount and timing of revenue to be recognized:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Identifying the contract with a customer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Identifying the performance obligations within the contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Determining the transaction price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Allocating the transaction price to the performance obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Recognizing revenue when/as performance obligation(s) are satisfied.

The Company analyzes its collaboration arrangements to determine whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement. The Company assesses whether there are any elements of the collaboration that are more reflective of a vendor-customer relationship and is therefore within the scope of IFRS 15. For these elements of the arrangement that are accounted for pursuant to IFRS 15, the Company applies the five-step model above. The collaboration arrangement entered into during the year ended December 31, 2023 did not meet the scope of IFRS 15. Refer to Note 20.

**Related Party Transactions**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

**Share-based Compensation**

The grant date fair value of equity-based payment awards granted to employees is generally recognized as share-based compensation expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant date fair value is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

Where equity instruments are granted to parties other than employees, they are recorded by reference to the fair value of the services received. If the fair value of the services received cannot be reliably estimated, the Company measures the services received by reference to the fair value of the equity instruments granted, measured at the date the counterparty renders service.

Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service.

The fair value of stock options is measured at the grant date using the Black-Scholes option pricing model. The fair value is recognized as an expense over the vesting period, which is the period over which all of the specified vesting conditions are satisfied with a corresponding increase in equity. For awards with graded vesting, the fair value of each tranche is recognized over its respective vesting period. Non-market vesting conditions are considered in making assumptions about the number of awards that are expected to vest. When the options are exercised, any proceeds received are credited to share capital along with the amount reflected in share-based payment reserve.

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICIES** (continued)

**Loss Per Share**

Basic loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. The computation of diluted loss per share assumes the conversion, exercise or contingent issuance of securities only when such conversion, exercise or issuance would have a dilutive effect on the income per share. The dilutive effect of convertible securities is reflected in the diluted loss per share by application of the "if converted" method. When a loss is incurred during the period, basic and diluted loss per share are the same as the exercise of stock options, share purchase warrants, and restricted share units is considered to be anti-dilutive.

**Short-term Investments**

Short-term investments consist of highly liquid short-term interest bearing securities with maturities at the date of purchase of greater than three months, but less than one year, and of other marketable securities.

**Accounting standards issued but not yet effective**

A number of new standards, and amendments to standards and interpretations, are not yet effective for the year ended December 31, 2023, and have not been early adopted in preparing these consolidated financial statements. These new standards, and amendments to standards and interpretations are either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements.

**3. REVERSE TAKEOVER**

On December 31, 2021 (as amended on April 29, 2022, July 30, 2022, and November 29, 2022), the Company, BTQ AG, and shareholders of BTQ AG entered into an agreement pursuant to which the Company agreed to acquire all of the issued and outstanding shares of BTQ AG (the "Transaction").

The closing of the Transaction occurred on February 17, 2023, at which time the Company issued 92,000,000 common shares in exchange for the issued and outstanding common shares of BTQ AG. The Company consolidated its common shares on a 10:1 basis immediately prior to the closing of the transaction.

As a result of the completion of the Transaction, the former shareholders of BTQ AG acquired 75.88% of the outstanding common shares of the Company, and, for accounting purposes, are considered to have acquired control of the Company. Accordingly, the Transaction constitutes a reverse acquisition of the Company by BTQ AG and has been accounted for as a reverse acquisition transaction in accordance with the guidance provided in IFRS 2, *Share-based Payment* and IFRS 3, *Business Combinations*. As the Company did not qualify as a business prior to the closing of the transaction according to the definition in IFRS 3, this reverse acquisition did not constitute a business combination; rather it was treated as an issuance of shares by BTQ AG for the net assets of the Company. Accordingly, no goodwill was recorded with respect to the Transaction. The Transaction was measured at the fair value of the common shares that BTQ AG would have had to issue to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051, and the fair value of 350,000 stock options of the Company with a fair value of $97,532, to give the shareholders of the Company the same percentage of equity interest in the combined entity that results from the reverse acquisition had it taken the legal form of BTQ AG acquiring the Company. The Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction. The fair value of common shares and stock options issued were estimated based on the Company's financing event which took place concurrently to the reverse takeover transaction at the price of $0.40 per common share. Refer to Note 10. As BTQ AG was deemed to be the acquirer for accounting purposes, its assets, liabilities, and operations since its incorporation on March 26, 2021 are included in these consolidated financial statements at their historical carrying values. The assets, liabilities, and results of operations of the Company are included in these consolidated financial statements from the date acquisition on February 17, 2023.

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**3. REVERSE TAKEOVER** (continued)

The purchase price is allocated as follows:

---

| |
|:---|
| &nbsp;&nbsp;Fair value of the Company's shares (8,747,629 common shares) |
| &nbsp;&nbsp;Fair value of 350,000 stock options of the Company outstanding |
| &nbsp;&nbsp;Total consideration |
| &nbsp;&nbsp;Less: fair value of identifiable assets acquired and liabilities assumed: |
| &nbsp;&nbsp;Cash |
| &nbsp;&nbsp;Cash held in escrow |
| &nbsp;&nbsp;Receivables |
| &nbsp;&nbsp;Restricted cash |
| &nbsp;&nbsp;Accounts payable and accrued liabilities) |
| &nbsp;&nbsp;Subscription receipts liabilities) |
| &nbsp;&nbsp;Net liabilities assumed) |
| &nbsp;&nbsp;Listing costs |

---

The fair value of stock options of the Company was calculated using the Black-Scholes option pricing model with the following assumptions: volatility of 150%, expected life of 2.1 years, no dividends, no forfeitures, and a risk-free rate of 4.15%.

**4. PROPERTY AND EQUIPMENT**

---

| | | | |
|:---|:---|:---|:---|
|  |  | Furniture and |  |
|  | IT equipment | equipment | Total |
|  | $| $| $|
| &nbsp;&nbsp;Cost: |  |  |  |
| &nbsp;&nbsp;Balance, December 31, 2021 | 23092 |  | 23092 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 78511 | 43921 | 122432 |
| &nbsp;&nbsp;Balance, December 31, 2022 | 101603 | 43921 | 145524 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 13179 | 4609 | 17788 |
| &nbsp;&nbsp;Balance, December 31, 2023 | 114782 | 48530 | 163312 |
| &nbsp;&nbsp;Accumulated depreciation: |  |  |  |
| &nbsp;&nbsp;Balance, December 31, 2021 | 5773 |  | 5773 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 25690 | 4393 | 30083 |
| &nbsp;&nbsp;Balance, December 31, 2022 | 31463 | 4393 | 35856 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 20466 | 4170 | 24636 |
| &nbsp;&nbsp;Balance, December 31, 2023 | 51929 | 8563 | 60492 |
| &nbsp;&nbsp;Carrying amounts: |  |  |  |
| &nbsp;&nbsp;As at December 31, 2022 | 70140 | 39528 | 109668 |
| &nbsp;&nbsp;As at December 31, 2023 | 62853 | 39967 | 102820 |

---

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**5. RIGHT-OF-USE ASSET**

---

| |
|:---|
| &nbsp;&nbsp;Cost: |
| &nbsp;&nbsp;Balance, December 31, 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions |
| &nbsp;&nbsp;Balance, December 31, 2022 and 2023 |
| &nbsp;&nbsp;Accumulated depreciation: |
| &nbsp;&nbsp;Balance, December 31, 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange translation difference |
| &nbsp;&nbsp;Balance, December 31, 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange translation difference) |
| &nbsp;&nbsp;Balance, December 31, 2023 |
| &nbsp;&nbsp;Carrying amounts: |
| &nbsp;&nbsp;As at December 31, 2022 |
| &nbsp;&nbsp;As at December 31, 2023 |

---

**6. LOAN RECEIVABLE**

On December 1, 2022, BTQ AG entered into an agreement with MEV Trading Inc. ("MEV"), under which the BTQ AG granted a loan of $1,354,400 (US$1,000,000) which is non-interest bearing, and due on June 30, 2023. In consideration for the loan, MEV issued a warrant to BTQ AG entitling BTQ AG to purchase shares of MEV non-voting stock equal to 10% of the loan amount based on the fully-diluted pre-money valuation of the borrower as determined by the most recent qualified equity financing round before the maturity date or within one year of issuance, whichever occurs earlier (expired on June 30, 2023). The fair value of the warrants issued was determined to be nominal. On August 7, 2023, the Company received repayment of the $1,343,300 (US$1,000,000) loan receivable.

**7. INVESTMENTS**

---

| | |
|:---|:---|
|  | $|
| &nbsp;&nbsp;Balance, December 31, 2021 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 63915 |
| &nbsp;&nbsp;Balance, December 31, 2022 | 63915 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 13314 |
| &nbsp;&nbsp;Balance, December 31, 2023 | 77229 |

---

During the year ended December 31, 2022, the BTQ AG invested $63,915 (US$50,000) in the form of a Simple Agreement for Future Equity ("SAFE") in the Holonym Foundation ("Holonym"), which is a public benefit corporation. The investment is not traded in an active market.

On January 11, 2023, BTQ AG invested $13,314 (US$10,000) in the form of a SAFE into Cysic Inc. The investment is not traded in an active market.

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**8. SHORT-TERM INVESTMENT**

The Company has pledged a guaranteed investment certificate ("GIC") as collateral for the Company's credit cards. The GIC earns interest at Prime Rate less 2.7% per annum and has a maturity date of June 6, 2024.

**9. LEASE OBLIGATION**

On May 15, 2022, the Company entered into a premises lease agreement which gives the Company the right to use an underlying asset which expires on May 14, 2024. The Company's obligation to make lease payments arising from the lease is calculated by discounting the fixed lease payments over the lease term at the Company's incremental borrowing rate. The incremental borrowing rate used in the calculation was 13%.

---

| |
|:---|
| &nbsp;&nbsp;Balance, beginning of year |
| &nbsp;&nbsp;Additions |
| &nbsp;&nbsp;Payments) |
| &nbsp;&nbsp;Interest |
| &nbsp;&nbsp;Foreign exchange translation difference) |
| &nbsp;&nbsp;Balance, end of year |
| &nbsp;&nbsp;Less: current portion |
| &nbsp;&nbsp;Non-current portion |

---

**10. SHARE CAPITAL**

Authorized: Unlimited number of common shares without par value Share transactions during the year ended December 31, 2023:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 17, 2023, the Transaction closed, resulting in a reverse takeover (refer to Note 3). The Transaction was measured at the fair value of the shares that BTQ AG would have had to issued to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 17, 2023, the Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 17, 2023, the Company completed a subscription receipt financing of 18,001,250 common shares at $0.40 per share for gross proceeds of $7,200,500. In connection with the financing, the Company incurred share issuance costs of $93,174 and issued 232,936 finders' warrants exercisable at $0.40 per common share expiring on February 17, 2025. The fair value of finders' warrants was determined to be $67,386 which was calculated using the Black-Scholes option pricing model with the following assumptions: volatility of 150%, expected life of 2 years, no dividends, and a risk-free rate of 4.15%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On July 7, 2023, the Company issued 1,822,500 common shares pursuant to the conversion of vested RSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On November 6, 2023, the Company issued 22,500 common shares pursuant to the conversion of vested RSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On November 13, 2023, the Company issued 100,000 common shares pursuant to the conversion of vested RSUs.

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**10. SHARE CAPITAL** (continued)

Share transactions during the year ended December 31, 2022:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** On June 9, 2022, the BTQ AG issued 45,000,000 Class A shares with a fair value $14,224,500 to acquire in-process research from the Chief Executive Officer ("CEO") of BTQ AG.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** On June 9, 2022, the BTQ AG issued 2,500,000 Class A shares with a fair value of $790,250 for which the Company received proceeds of $158,050 (US$125,000) and recognized share-based compensation of $632,200 for services rendered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** On June 9, 2022, the BTQ AG issued 23,500,000 Class B shares at $0.013 (US$0.01) per share for proceeds of $297,134 (US$235,000) to the CEO of BTQ AG.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** On July 14, 2022, the BTQ AG issued 20,000,000 Class A shares at $0.328 (US$0.25) per share for proceeds of $6,569,000 (US$5,000,000).

<u>Escrowed shares</u>

On completion of the Transaction, certain principals of the Company entered into a NP 46-201 Escrow Agreement with the NEO Exchange and Computershare Trust Company of Canada, as escrow agent, in respect of 45,250,000 common shares. Under the terms of the Escrow Agreement, 25% of such escrowed securities were released upon closing (February 17, 2023) with subsequent 25% releases occurring 6, 12, and 18 months from closing. These escrow shares will be released as follows:

---

| | |
|:---|:---|
| Date of automatic timed release | Amount of escrow shares released |
| On the date that the Company's common shares were listed on the NEO, February 17, 2023 | 1/4 of the escrowed shares |
| 6 months after the listing date (August 17, 2023) | 1/4 of the escrowed shares |
| 12 months after the listing date (February 17, 2024) | 1/4 of the escrowed shares |
| 18 months after the listing date (August 17, 2024) | The remainder of the escrowed shares |

---

As at December 31, 2023, 22,625,000 common shares remained in escrow.

**11. STOCK OPTIONS**

The Company has a stock option plan (the "Plan") for directors, officers, employees, and consultants of the Company. Stock options are exercisable for periods of up to five years, as determined by the Board of Directors of the Company, to purchase common shares of the Company at a price not less than the discounted market price on the date of the grant. The maximum number of shares which may be issuable under the Plan cannot exceed 10% of the total number of issued and outstanding common shares on a non- diluted basis.

The following table summarizes the continuity of the Company's stock options:

---

| | | |
|:---|:---|:---|
|  |  | Weighted |
|  |  | average |
|  |  | exercise |
|  | Number of | price |
|  | stock options | $|
| Outstanding, December 31, 2021 and 2022 |  |  |
| &nbsp;&nbsp;Outstanding stock options of the Company prior to reverse takeover | 350000 | 0.50 |
| &nbsp;&nbsp;Granted | 8310000 | 0.41 |
| &nbsp;&nbsp;Expired | (890000) | 0.44 |
| Outstanding, December 31, 2023 | 7770000 | 0.41 |
| Exercisable, December 31, 2023 | 2230000 | 0.41 |

---

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**11. STOCK OPTIONS** (continued)

Additional information regarding stock options outstanding as at December 31, 2023, is as follows:

---

| | | | |
|:---|:---|:---|:---|
| Outstanding | Outstanding | Exercisable | Exercisable |
|  | Weighted |  |  |
|  | average |  | Weighted |
|  | remaining |  | average |
| Number of | contractual | Number of | exercise price |
| $stock options | life (years) | $stock options | $|
| 7230000 | 3.0 | 2050000 | 0.40 |
| 180000 | 1.2 | 180000 | 0.50 |
| 100000 | 5.7 |  |  |
| 210000 | 4.0 |  |  |
| 50000 | 4.6 |  |  |
| 7770000 | 3.0 | 2230000 | 0.41 |

---

The fair value for stock options granted have been estimated using the Black-Scholes option pricing model assuming no expected dividends or forfeitures and the following weighted average assumptions:

---

| | |
|:---|:---|
|  | 2023 |
| Risk-free interest rate | 3.59% |
| Expected life (in years) | 4.0 |
| Expected volatility | 199% |

---

During the year ended December 31, 2023, the Company recognized share-based compensation expense of $1,921,154 (2022 - $nil), with a corresponding increase to options reserve (2022 - $nil). The weighted average fair value of the stock options granted during the year ended December 31, 2023 was $0.37 (2022 - $nil) per option.

**12. SHARE PURCHASE WARRANTS**

The following table summarizes the continuity of share purchase warrants:

---

| | | |
|:---|:---|:---|
|  |  | Weighted |
|  |  | average |
|  |  | exercise |
|  | Number of | price |
|  | warrants | $|
| Balance, December 31, 2021 and 2022 |  |  |
| &nbsp;&nbsp;Issued | 232936 | 0.40 |
| Balance, December 31, 2023 | 232936 | 0.40 |

---

As at December 31, 2023, the following share purchase warrants were outstanding and exercisable:

---

| | |
|:---|:---|
| Number of |  |
| warrants |  |
| outstanding | $Expiry date |
| 232936 | February 17, 2025 |

---

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements Years Ended December 31, 2023 and 2022 (Expressed in Canadian dollars)

**13. RESTRICTED SHARE UNITS**

A summary of the changes in RSUs is presented below:

---

| | |
|:---|:---|
|  | Number of |
|  | RSUs |
| Balance, December 31, 2021 and 2022 |  |
| &nbsp;&nbsp;Issued | 3930000 |
| &nbsp;&nbsp;Converted | (1945000) |
| Balance, December 31, 2023 | 1985000 |
| Unvested | 1135000 |
| Vested, December 31, 2023 | 850000 |

---

During the year ended December 31, 2023, 3,930,000 restricted share units ("RSUs") (2022 - nil) were granted. The weighted average grant date fair value for RSUs granted during the year end December 31, 2023 was $0.44 per RSU. During the year ended December 31, 2023, the Company recognized share- based compensation expense of $1,999,502 with a corresponding increase to RSU reserve and $782,250 was transferred to share capital upon the vesting of 1,945,000 RSUs.

**14. RELATED PARTY TRANSACTIONS**

Key management personnel are persons responsible for planning, directing, and controlling the activities of an entity, and include all officers and directors of the Company. Key management personnel compensation during the years ended December 31, 2023 and 2022 was comprised of the following:

---

| | | |
|:---|:---|:---|
|  | 2023 | 2022 |
|  | $| $|
| Consulting fees | 97163 | 93694 |
| Marketing and promotion | 97163 | 63302 |
| Professional fees | 59661 |  |
| Research and development | 413158 | 495547 |
| Wages and benefits | 290543 | 196977 |
| Total short-term benefits | 957688 | 849520 |
| Share-based payments | 765827 |  |
|  | 1723515 | 849520 |

---

As at December 31, 2023, the Company owed $114,223 (2022 - $27,264) (2021 - $314,095) to the CEO of the Company, of which $89,247 (2022 - $nil) (2021 - $nil) is included in accounts payable and accrued liabilities. The amounts owed are non-interest bearing, unsecured, and due on demand.

As at December 31, 2023, the Company was owed $49,888 (2022 - $7,110) (2021 - $nil) from the Chief Operating Officer ("COO") of the Company, which is included in other receivables.

As at December 31, 2023, the Company owed $3,027 (2022 - $3,100) (2021 - $2,902) to a company controlled by the CEO and COO of the Company, which is non-interest bearing, unsecured, and due on demand.

As at December 31, 2023, the Company owed $7,350 (2022 - $nil) (2021 - $nil) to a firm where the Chief Financial Officer of the Company is a partner, which is included in accounts payable and accrued liabilities.

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**14. RELATED PARTY TRANSACTIONS** (continued)

As at December 31, 2023, the Company owed $132,260 (2022 - $135,440) (2021 - $nil) to the Chief Cryptographer of the Company, which is included in accounts payable and accrued liabilities.

As at December 31, 2023, the Company owed $7,936 (2022 - $nil) (2021 - $nil) to the Head of Corporate Development of the Company, which is included in accounts payable and accrued liabilities.

**15. SUPPLEMENTAL CASH FLOW INFORMATION**

---

| | | |
|:---|:---|:---|
|  | 2023 | 2022 |
|  | $| $|
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;Receivables acquired in reverse takeover | 25308 |  |
| &nbsp;&nbsp;Restricted cash acquired in reverse takeover | 2875 |  |
| &nbsp;&nbsp;Accounts payable and accrued liabilities assumed in reverse takeover | 455077 |  |
| &nbsp;&nbsp;Shares issued for vested RSUs | 782250 |  |
| &nbsp;&nbsp;Finders' warrants issued pursuant to private placement | 14632 | - |

---

**16. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fair Values

<u>Fair value hierarchy</u>

The following provides a description of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at December 31, 2023 and 2022 as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in | Significant |  |  |
|  | active markets | other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | December 31, |
|  | (Level 1) | (Level 2) | (Level 3) | 2023 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

---

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**16. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT** (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fair Values (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in | Significant |  |  |
|  | active markets | other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | December 31, |
|  | (Level 1) | (Level 2) | (Level 3) | 2022 |
|  | $| $| $| $|
| Investments | - | - | 63915 | 63915 |

---

The fair values of the Company's other financial instruments, which include cash, short-term investment, other receivables, loan receivable, accounts payable and accrued liabilities, lease obligation, and due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Credit Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit loss by placing its cash and cash equivalents with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Foreign Exchange Rate Risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency.

The following tables indicate the impact of foreign currency exchange risk on net working capital as at December 31, 2023 and 2022. The tables below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the tables below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as at December 31, 2023 and 2022.

---

| | | |
|:---|:---|:---|
| 2023 | TWD | US$ |
| Cash | 9201660 | 296479 |
| Accounts payable and accrued liabilities |  | (190659) |
| Lease obligation | (778794) |  |
| Total foreign currency financial assets and liabilities | 8422866 | 105820 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 842287 | 10582 |
| 2022 | TWD | US$ |
| Cash | 1230771 | 1479624 |
| Accounts payable and accrued liabilities |  | (309447) |
| Lease obligation | (2923542) |  |
| Total foreign currency financial assets and liabilities | (1692771) | 1170177 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 169277 | 117018 |

---

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**16. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT** (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner. Refer to going concern disclosure in Note 1.

The following amounts are the contractual maturities of financial liabilities as at December 31, 2023, 2022, and 2021:

---

| | | | |
|:---|:---|:---|:---|
| 2023 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 856682 | 856682 |  |
| Lease obligation | 33554 | 33554 |  |
| Due to related parties | 28003 | 28003 |  |
| Total | 918239 | 918239 | - |
| 2022 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 930462 | 930462 |  |
| Lease obligation | 129062 | 81974 | 47088 |
| Due to related parties | 30364 | 30364 |  |
| Total | 1089888 | 1042800 | 47088 |
| 2021 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 64256 | 64256 |  |
| Loan payable | 17231 | 17231 |  |
| Due to related parties | 316997 | 316997 |  |
| Total | 398484 | 398484 | - |

---

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**17. CAPITAL MANAGEMENT**

The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders. The capital structure of the Company consists of cash and equity comprised of issued share capital, share-based payment reserve, and warrant reserve.

The Company manages its capital structure and makes adjustments to it in light of economic conditions. The Company, upon approval from its Board of Directors, will balance its overall capital structure through new share issuances or by undertaking other activities as deemed appropriate under the specific circumstances.

The Company is not subject to externally imposed capital requirements and the Company's overall strategy with respect to capital risk management remains unchanged from the year ended December 31, 2022.

**18. COMMITMENT**

On September 22, 2023, the Company entered into a premises lease agreement. Effective October 1, 2023, the Company is obligated to make a monthly lease payment of $9,280 for a period of one year.

**19. SEGMENTED INFORMATION**

The Company has one operating segment, the research and development of computer-based technology related to post-quantum cryptography. The Company's head office is in Canada and operations are in Canada and Taiwan. Geographic information for non-current assets other than financial instruments is as follows:

---

| | | |
|:---|:---|:---|
| 2023 | Taiwan | Total |
|  | $| $|
| Property and equipment | 102820 | 102820 |
| Right-of-use asset | 29905 | 29905 |
| Deposits | 35872 | 35872 |
|  | 168597 | 168597 |
| 2022 | Taiwan | Total |
|  | $| $|
| Property and equipment | 109668 | 109668 |
| Right-of-use asset | 119690 | 119690 |
| Deposits | 26451 | 26451 |
|  | 255809 | 255809 |

---

**20. COLLABORATION INCOME**

On May 1, 2023, the Company entered into a research and collaboration agreement with a third party. The Company agreed to conduct a research program and was responsible for the engagement of the researchers and contractors while the other party provided funding of $257,359 which was recorded as collaboration income. The two parties jointly own the rights of the intellectual property resulting from the research program.

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**21. INCOME TAXES**

The following table reconciles the expected income tax expense (recovery) at the statutory income tax rates to the amounts recognized in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2022 and 2023:

---

| |
|:---|
| Net loss before income taxes) |
| Statutory tax rate |
| Expected income tax recovery) |
| Tax effect of: |
| &nbsp;&nbsp;Permanent differences and other |
| &nbsp;&nbsp;Difference due to tax rate of foreign jurisdiction |
| &nbsp;&nbsp;Foreign exchange rate impact on temporary differences) |
| &nbsp;&nbsp;Change in unrecognized deferred income tax assets |
| Income tax provision |

---

The significant components of deferred income tax assets and liabilities are as follows:

---

| |
|:---|
| Deferred income tax assets |
| &nbsp;&nbsp;Non-capital losses carried forward |
| &nbsp;&nbsp;Share issuance costs |
| Total gross deferred income tax assets |
| Total unrecognized deductible temporary differences) |
| Net deferred income tax asset |

---

Deferred income tax assets are only recognized to the extent that the realization of tax benefits is determined to be probable. As at December 31, 2023 and 2022, the Company has not recognized the benefit of the following deductible temporary differences:

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | 2022 |
|  | Expiry | $Expiry | $|
| Non-capital losses - Canadian | 2043 |  |  |
| Non-capital losses - foreign | No expiry | No expiry | 2383783 |
| Share issuance costs | 2024 to 2027 |  |  |
|  |  |  | 2383783 |

---

The group's current tax provision of $65,000 relates to management's assessment of the amount of tax payable on open tax positions where the liabilities remain to be agreed upon with foreign tax authorities. Uncertain tax items for which a provision of $65,000 is made, relate principally to the interpretation of tax legislation regarding arrangements entered into by the group.

**22. RESTATEMENTS AND CHANGE IN PRESENTATION CURRENCY**

BTQ AG has restated its financial statements as at December 31, 2022 and for the year then ended to correct the fair value of shares issued to a related party for research and was determined to not meet the capitalization criteria, expense cut-off errors, accounting for the premises lease under IFRS 16, classification of a loan receivable, and improperly capitalized research and website costs. The statement of cash flows has been restated to reflect the adjustments and removes non-cash transactions which were incorrectly included in investing and financing activities.

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**22. RESTATEMENTS AND CHANGE IN PRESENTATION CURRENCY** (continued)

In addition, certain of the prior year's figures were reclassified to conform to the current year's presentation.

BTQ AG also restated its financial statements for the year ended December 31, 2021 to correct improperly capitalized research costs.

Effective February 17, 2023, BTQ AG's functional currency and presentation currency was changed from the U.S. dollar to the Canadian dollar. The change in presentation currency was accounted for as a change in accounting policy and applied retrospectively, as if the new presentation currency had always been the presentation currency of the financial statements.

The impact of the restatements and change in presentation currency as at December 31, 2022 and for the year then ended is summarized below:

<u>Statement of Financial Position</u>

---

| | | | |
|:---|:---|:---|:---|
|  | As reported | Adjustments | Restated |
|  | US$ | US$ | US$ |
| Assets |  |  |  |
| Current assets |  |  |  |
| &nbsp;&nbsp;Cash | 1519650 |  | 1519650 |
| &nbsp;&nbsp;Receivables | 79402 |  | 79402 |
| &nbsp;&nbsp;Prepaid expenses and deposits | 21215 |  | 21215 |
| &nbsp;&nbsp;Loan receivable |  | 1000000 | 1000000 |
| Total current assets | 1620267 | 1000000 | 2620267 |
| Non-current assets |  |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment | 85366 |  | 85366 |
| &nbsp;&nbsp;&nbsp;Intangible asset | 3743470 | (3743470) |  |
| &nbsp;&nbsp;&nbsp;Right-of-use asset |  | 92403 | 92403 |
| &nbsp;&nbsp;&nbsp;Investments | 1050000 | (1000000) | 50000 |
| &nbsp;&nbsp;&nbsp;Deposits | 19530 |  | 19530 |
| Total non-current assets | 4898366 | (4651067) | 247299 |
| Total assets | 6518633 | (3651067) | 2867566 |
| Liabilities and shareholders' equity |  |  |  |
| Current liabilities |  |  |  |
| &nbsp;&nbsp;Accounts payable and accrued liabilities | 546918 | 140074 | 686992 |
| &nbsp;&nbsp;Current portion of lease obligation |  | 60524 | 60524 |
| &nbsp;&nbsp;Due to related parties | 2289 | 20130 | 22419 |
| Total current liabilities | 549207 | 220798 | 769935 |
| Non-current liabilities |  |  |  |
| &nbsp;&nbsp;Lease obligation |  | 34767 | 34767 |
| &nbsp;&nbsp;Due to related parties | 20130 | (20130) |  |
| Total liabilities | 569337 | 235365 | 804702 |
| Shareholders' equity |  |  |  |
| &nbsp;&nbsp;Share capital | 7675000 | 9485000 | 17160000 |
| &nbsp;&nbsp;Deficit | (1725704) | (13371432) | (15097136) |
| Total shareholders' equity | 5949296 | (3886432) | 2062864 |
| Total liabilities and shareholders' equity | 6518633 | (3651067) | 2867566 |

---

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**22. RESTATEMENTS AND CHANGE IN PRESENTATION CURRENCY** (continued)

<u>Statement of Operations and Comprehensive Loss</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Year ended December 31, 2022 | Year ended December 31, 2022 | Year ended December 31, 2022 | Year ended December 31, 2022 |
|  | As reported | Adjustments | Reclassifications | Restated |
|  | US$ | US$ | US$ | US$ |
| Expenses |  |  |  |  |
| &nbsp;&nbsp;Consulting fees |  |  | 116623 | 116623 |
| &nbsp;&nbsp;Depreciation | 419478 | (349940) |  | 69538 |
| &nbsp;&nbsp;Expenses paid for purchased services | 829759 |  | (829759) |  |
| &nbsp;&nbsp;General and administrative |  | (48579) | 340359 | 291780 |
| &nbsp;&nbsp;Marketing and promotion |  | 105450 | 90044 | 195494 |
| &nbsp;&nbsp;Other expenses | 526231 |  | (526231) |  |
| &nbsp;&nbsp;Professional fees |  | 33524 | 240236 | 273760 |
| &nbsp;&nbsp;Research and development |  | 12913450 | 57951 | 12971401 |
| &nbsp;&nbsp;Share-based compensation |  | 500000 |  | 500000 |
| &nbsp;&nbsp;Transfer agent and regulatory fees |  | 89730 |  | 89730 |
| &nbsp;&nbsp;Wages and benefits | 1447456 |  | (1137659) | 309797 |
| &nbsp;&nbsp;Other capitalized costs and services | (1650526) |  | 1650526 |  |
| Total expenses | 1572398 | 13243635 | 2090 | 14818123 |
| Loss before other income (expense) | (1572398) | (13243635) | (2090) | (14818123) |
| Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;Foreign exchange income | 55424 |  |  | 55424 |
| &nbsp;&nbsp;Income tax expense | (2090) |  | 2090 |  |
| &nbsp;&nbsp;Interest expense |  | (8875) |  | (8875) |
| Total other income (expense) | 53334 | (8875) | 2090 | 46549 |
| Net loss and comprehensive loss | (1519064) | (13252510) | - | (14771574) |
| Loss per share, basic and diluted | (0.03) | (0.26) | - | (0.29) |

---

<u>Statement of Changes in Shareholders' Equity</u>

---

| | | | |
|:---|:---|:---|:---|
|  | As at December 31, 2022 | As at December 31, 2022 | As at December 31, 2022 |
|  | As reported | Adjustments | Restated |
|  | US$ | US$ | US$ |
| Shareholders' equity |  |  |  |
| &nbsp;&nbsp;Share capital | 7675000 | 9485000 | 17160000 |
| &nbsp;&nbsp;Deficit | (1725704) | (13371432) | (15097136) |
| Total shareholders' equity | 5949296 | (3886432) | 2062864 |

---

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**22. RESTATEMENTS AND CHANGE IN PRESENTATION CURRENCY** (continued)

<u>Statement of Cash Flows</u>

---

| | | | |
|:---|:---|:---|:---|
|  | Year ended December 31, 2022 | Year ended December 31, 2022 | Year ended December 31, 2022 |
|  | As reported | Adjustments | Restated |
|  | US$ | US$ | US$ |
| Operating activities |  |  |  |
| &nbsp;&nbsp;Net loss | (1516974) | (13254600) | (14771574) |
| Items not involving cash: |  |  |  |
| &nbsp;&nbsp;Amortization of intangible asset | 396428 | (396428) |  |
| &nbsp;&nbsp;Depreciation | 23050 | 46489 | 69539 |
| &nbsp;&nbsp;Foreign exchange translation loss (gain) | 11168 | (11243) | (75) |
| &nbsp;&nbsp;Income taxes | (2090) | 2090 |  |
| &nbsp;&nbsp;Interest expense |  | 8775 | 8775 |
| &nbsp;&nbsp;Share-based compensation |  | 500000 | 500000 |
| &nbsp;&nbsp;Shares issued for research |  | 11250000 | 11250000 |
| Changes in non-cash operating working capital: |  |  |  |
| &nbsp;&nbsp;Receivables | (79402) |  | (79402) |
| &nbsp;&nbsp;Prepaid expenses and deposits | 3300 | (19155) | (15855) |
| &nbsp;&nbsp;Accounts payable and accrued liabilities | 495124 | 141184 | 636308 |
| Net cash used in operating activities | (669396) | (1732888) | (2402284) |
| Investing activities |  |  |  |
| &nbsp;&nbsp;Purchase of property and equipment | (94557) |  | (94557) |
| &nbsp;&nbsp;Purchase of investments | (1050000) | 1000000 | (50000) |
| &nbsp;&nbsp;Intangible assets | (4020976) | 4020976 |  |
| &nbsp;&nbsp;Deposit | (19611) | 19611 |  |
| &nbsp;&nbsp;Loan receivable advance |  | (1000000) | (1000000) |
| Net cash used in investing activities | (5185144) | 4040587 | (1144557) |
| Financing activities |  |  |  |
| &nbsp;&nbsp;Repayment of lease obligation |  | (52300) | (52300) |
| &nbsp;&nbsp;Repayment of loan payable |  | (13591) | (13591) |
| &nbsp;&nbsp;Repayment of related party loans | (228863) | 1245 | (227618) |
| &nbsp;&nbsp;Proceeds from issuance of shares | 7625000 | (2265000) | 5360000 |
| Net cash provided by financing activities | 7396137 | (2329646) | 5066491 |
| Effect of exchange rate changes on cash | (8356) | 8356 |  |
| Increase in cash | 1533241 | (13591) | 1519650 |
| Cash, beginning of year | (13591) | 13591 |  |
| Cash, end of year | 1519650 | - | 1519650 |

---

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**22. RESTATEMENTS AND CHANGE IN PRESENTATION CURRENCY** (continued)

The impact of the restatement and change in presentation currency as at December 31, 2021 is summarized below:

<u>Statement of Financial Position</u>

---

| | | | |
|:---|:---|:---|:---|
|  | As reported | Adjustments | Restated |
|  | US$ | US$ | US$ |
| Assets |  |  |  |
| Current assets |  |  |  |
| &nbsp;&nbsp;Prepaid expenses and deposits | 24515 |  | 24515 |
| Total current assets | 24515 |  | 24515 |
| Non-current assets |  |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment | 13860 |  | 13860 |
| &nbsp;&nbsp;&nbsp;Intangible asset | 118922 | (118922) |  |
| &nbsp;&nbsp;&nbsp;Deposits | 375 |  | 375 |
| Total non-current assets | 133157 | (118922) | 14235 |
| Total assets | 157672 | (118922) | 38750 |
| Liabilities and shareholders' deficit |  |  |  |
| Current liabilities |  |  |  |
| &nbsp;&nbsp;Accounts payable and accrued liabilities | 50684 |  | 50684 |
| &nbsp;&nbsp;Loan payable | 13591 |  | 13591 |
| &nbsp;&nbsp;Due to related parties | 2289 | 247748 | 250037 |
| Total current liabilities | 66564 | 247748 | 314312 |
| Non-current liabilities |  |  |  |
| &nbsp;&nbsp;Due to related parties | 247748 | (247748) |  |
| Total liabilities | 314312 |  | 314312 |
| Shareholders' deficit |  |  |  |
| &nbsp;&nbsp;Share capital | 50000 |  | 50000 |
| &nbsp;&nbsp;Deficit | (206640) | (118922) | (325562) |
| Total shareholders' equity | (156640) | (118922) | (275562) |
| Total liabilities and shareholders' deficit | 157672 | (118922) | 38750 |

---

**23. GENERAL AND ADMINISTRATIVE EXPENSES**

The following is a breakdown of general and administrative expenses for the years ended December 31, 2023 and 2022:

---

| | | |
|:---|:---|:---|
|  | 2023 | 2022 |
|  | $| $|
| Foreign office representation | 125886 | 64690 |
| Insurance | 63700 |  |
| IT and communications | 63317 | 5494 |
| Office and miscellaneous | 187420 | 141906 |
| Personnel and recruitment costs |  | 66331 |
| Rent | 127705 | 94746 |
| Travel | 166662 | 6526 |
| VAT | 178000 |  |
|  | 912690 | 379693 |

---

------

**BTQ TECHNOLOGIES CORP.**

Notes to the Consolidated Financial Statements<br>Years Ended December 31, 2023 and 2022<br>(Expressed in Canadian dollars)

**24. SUBSEQUENT EVENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On March 5, 2024, the Company issued 750,000 common shares pursuant to the conversion of vested RSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On March 5, 2024, the Company granted 100,000 stock options exercisable at $0.50 per common share expiring on March 5, 2029 to a consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On March 6, 2024, the Company granted 200,000 stock options exercisable at $0.485 per common share expiring on March 1, 2029 to consultants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On March 6, 2024, the Company granted 100,000 stock options exercisable at $0.485 per common share expiring on March 6, 2026 to a consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subsequent to December 31, 2023, the Company issued 260,000 common shares for proceeds of $104,000 pursuant to the exercise of stock options.

------

## Exhibit 99.15

------

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

This Management's Discussion and Analysis ("MD&A") of BTQ Technologies Corp. (formerly Sonora Gold & Silver Corp.) ("BTQ", or the "Company") is for the year ended December 31, 2023 and is dated June 3, 2024. The MD&A should be read in conjunction with the Company's audited consolidated financial statements and related notes for the year ended December 31, 2023 and the annual information form ("AIF") for the year ended December 31, 2023. The consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and all monetary amounts are expressed in Canadian dollars. The following comments may contain management estimates of anticipated future trends, activities, or results. These are not a guarantee of future performance since actual results could change based on other factors and variables beyond management control.

The management of the Company is responsible for the preparation and integrity of the consolidated financial statements, including the maintenance of appropriate information systems, procedures, and internal controls and to ensure that information used internally or disclosed externally, including the consolidated financial statements and MD&A, is complete and reliable. The Company's board of directors (the "Board") follows recommended corporate governance guidelines for public companies to ensure transparency and accountability to shareholders. The Board's audit committee meets with management quarterly to review the financial statements including the MD&A and to discuss other financial, operating, and internal control matters.

Additional information relating to the Company, including its AIF for the year ended December 31, 2023, is available under the Company's profile on SEDAR+ at www.sedarplus.ca.

**DESCRIPTION OF BUSINESS AND OVERVIEW**

BTQ is a British Columbia corporation founded by a group of experienced post-quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the Bitcoin network. Bitcoin's store of value thesis - one that supports a crypto ecosystem of over $1 trillion in market capitalization - has several potential quantum attack vectors that could compromise the network. This paradigm shift requires a new direction in cryptography and blockchain design. BTQ is building a portfolio of intellectual property to safeguard the crypto asset class with energy efficient quantum processes and currently holds several patent applications for generating quantum algorithms.

Quantum computers can take a very large integer and find out its prime factor extremely rapidly by using Shor's algorithm. Theoretically, a universal large scale quantum computer could be used to disrupt cryptocurrencies, break into digital wallets, and access and decrypt confidential communications. Ethereum and Algor, two of the most technologically advanced cryptocurrencies, announced plans to transition to post-quantum standards.

BTQ has strategically established a branch office in Taipei, Taiwan, home to the most advanced hardware and post-quantum ecosystems. The Taipei engineering office will focus on research and development related to post-quantum cryptography, eco-friendly proof of work mining, and formal verification within smart contracts platforms.

BTQ is listed on the NEO Exchange (the "NEO") under the symbol "BTQ", the OTCQB under the symbol "BTQQF" and the Frankfurt Stock Exchange under the symbol "NG3".

<u>Acquisition</u>

On December 31, 2021 (as amended on April 29, 2022, July 30, 2022, and November 29, 2022), the Company entered into a share exchange agreement with BTQ AG (the "Acquisition"). BTQ AG was incorporated in the Principality of Liechtenstein on March 26, 2021 by a group of experienced post-quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the Bitcoin network.

------

---

| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

In connection with the Acquisition, the Company completed a private placement (the "Offering") of 18,001,250 subscription receipts at a price of $0.40 per subscription receipt, for gross proceeds of $7,200,500, with each subscription receipt automatically converting with no additional consideration into one post-Consolidation Share (each as defined below) concurrent with the closing of the Acquisition.

On February 17, 2023, the Company closed the Acquisition resulting in the issuance of 92,000,000 post-Consolidation Shares to the BTQ AG shareholders. Concurrent with the closing, the Company changed its name from Sonora Gold & Silver Corp. to BTQ Technologies Corp. and completed a consolidation (the "Consolidation") of its common shares on the basis of ten pre-Consolidation shares to one post-Consolidation share (each, a "Share"). Immediately following the Consolidation, and excluding those Shares issued pursuant to the Acquisition or the Offering, the former securityholders of Sonora Gold and Silver Corp. ("SOC") held an aggregate of 8,747,629 Shares and 350,000 stock options in the Company. All Share amounts have been retroactively restated to reflect the Consolidation for all periods presented.

On closing of the Acquisition, the gross proceeds of $7,200,500 from the Offering were released from escrow and each subscription receipt was converted into one Share. In connection with the Acquisition, the Company issued 2,500,000 Shares with a fair value of $1,000,000 to a finder as a success fee. In connection with the Offering, the Company also paid $93,175 in finders' fees and issued 232,936 finders' warrants exercisable at an exercise price of $0.40 per Share for a period of two years.

As a condition of the Acquisition, the Company voluntarily delisted its Shares from the TSX-V and the Shares commenced trading on the NEO on February 21, 2023 under the symbol "BTQ".

**DISCUSSION OF OPERATIONS**

The following are operational highlights for the year ended December 31, 2023 and events subsequent up until the date of this MD&A.

<u>Product Updates</u>

On March 2, 2023, the Company announced the alpha release of Keelung, a domain-specific language designed for fast, private, and secure application development. Based on research in the field of post-quantum zero-knowledge cryptography, Keelung will empower developers to create secure and reliable post-quantum zero-knowledge proofs without the need for specialized cryptography skills. Both Keelung and its compiler have been implemented in Haskell, enabling developers to produce high-level zero-knowledge proofs protected by Haskell's type system while leveraging Haskell's extensive ecosystem and tooling. Keelung will be 100% open-source, allowing for transparency, collaboration, and community-driven development.

Keelung is now live and open-sourced. The release information can be found here: https://github.com/btq-ag/keelung/releases. The steps to complete over the coming year are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Language Extensions (v0.19.0 - v0.20.0): Added support for user-defined datatypes, unsigned integer comparisons, and optimizations to the constraint system and compiler.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Optimization and Stability (v0.21.0): Introduced a more precise method for reference counting on unsigned integers, renaming of primitive datatype conversions, and numerous bug fixes and stability improvements for the compiler.

------

---

| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Upcoming Optimizations (v0.22.0+): Planned optimizations include operators for slicing and joining unsigned integers, improved polynomial representation, faster polynomial insertion, standard library optimizations (e.g., AES, Blake2), and constraint reduction for faster proof generation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Developer Experience (Ongoing): Refinements to the DSL syntax, performance improvements for common data types, benchmarking in the CI/CD pipeline, and expanded documentation and tutorials to improve the developer experience.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Ecosystem Integration (Future): Planned integration with popular ZK toolchains like Snarkjs/Circom, support for PLONK-based proving systems, and quantitative information flow analysis for privacy leakage detection.

On June 5, 2023, the Company published a research paper on proof-of-work consensus by quantum sampling. The paper presents a novel approach that has the potential to revolutionize blockchain consensus algorithms.

On June 26, 2023, the Company announced that it had received approval from the USPTO for its patent application, "A system and method for quantum-safe authentication, encryption, and decryption of information". The patent relates to methods for generating a private cryptographic key for use in a secure cryptogram for transmission between entities, enabling quantum-safe encryption.

On July 27, 2023, the Company announced that its Quantum-Secure Signature Technology "Preon" had been selected by the National Institute of Standards and Technology (NIST) for consideration in their Post-Quantum Cryptography (PQC) standardization process. Preon is a robust and efficient post-quantum signature scheme, showcasing distinctive features including small key size, rapid key generation, minimal assumptions, and flexible functionality. These attributes make it resistant to potential threats from both classical and quantum computers. The co-authors of this submission include Hon Hai Research Institute, the research arm of global leader Hon Hai Precision Industry Co., Ltd. (Foxconn).

On October 4, 2023, BTQ announced the advancement of its collaboration with ITRI to develop a security chip that utilizes QCIM (Quantum Computation in Memory) technology. This chip will be used for the computation of Kyber, a standardized algorithm by the National Institute of Standards and Technology (NIST). In 2022, BTQ entered a multi-year collaboration agreement with ITRI to develop energy-efficient post-quantum hardware solutions for applications in blockchain, telecom, and other industries with a need for long-term data security. In the first phase of collaboration, BTQ and ITRI successfully validated the proof of concept of applying computation-in-memory in an ASIC chip. To further the collaboration, BTQ is entering into this new phase of the project with ITRI.

<u>Market-Related Activity</u>

Effective March 14, 2023, the Company began trading on the FSE under the symbol "NG3" (ISIN: CA0558691014 \| WKN: A3D4V9). The Frankfurt Stock Exchange is the largest of the seven stock exchanges in Germany.

Effective May 9, 2023, the Company began trading on the OTCQX under the symbol "BTQQF". OTC Markets Group operates markets on which 12,000 U.S. and global securities trade with the OTCQX Best Market as the highest tier. Trading on OTCQX will enhance the visibility and accessibility of the Company to U.S. investors.

On March 18, 2024, the Company announced a revised timeline for the filing of its annual consolidated financial statements for the year ended December 31, 2023 (the "Financial Statements") and the related management's discussion and analysis and certifications (collectively, with the Financial Statements, the "Annual Filings"). The default in filing within the required 90 days is primarily due to delays relating to the restatement of the comparative period in the Financial Statements, comprising BTQ AG's financial statements for the period ended December 31, 2022, which were audited by another auditor. As a result of the delays, the Company has applied for a management cease trade order (an "MCTO") under National Policy 12-203 Management Cease Trade Orders ("NP 12-203") in respect of the default, which is subject to approval by the British Columbia Securities Commission, as principal regulator of the Company.

------

---

| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

<u>Business Development Activities</u>

On March 2-3, 2023, representatives of the Company attended the Quantum Beach conference in Miami in order to meet with companies, investors, and potential partners across the quantum technologies industry. Mathieu Gauthier, Head of Corporate Development, spoke on the quantum security panel, alongside other industry executives from leading companies in the post-quantum security space, as well as senior government officials.

On April 24, 2023, Chris Tam, Head of Partnerships at the Company, spoke at ETHTaipei. The talk, titled "The Future of Zero-Knowledge: Challenges, Advancements, and Tools for Developing Post-Quantum zk-SNARKs," examined the challenges and successes of using post-quantum proving systems. The presentation also examined the strengths, weaknesses, and trends of arithmetic circuit backends such as R1CS, PLONK, and AIR, while introducing tools to transition towards developing post-quantum zk-SNARKs. This presentation reinforced the Company's commitment to advancing the blockchain and quantum technology industry.

On May 1, 2023, the Company was informed that it was the recipient of a US$10,000 grant from the Stellar Community Fund. The grant is specifically aimed at funding the Company's research in building an Efficient Scaling Mechanism for Lattice-Based Post-Quantum Signatures. The Stellar Community Fund ("SCF") is an open-application awards program that draws on community input to support developers and startups building on Stellar and Soroban. The Stellar Blockchain network is a distributed ledger used to transmit digital currencies and has a market cap of over US$2 billion.

On May 1, 2023, the Company secured office space at the Bentall II Tower located at 555 Burrard Street in Downtown Vancouver, BC. The company is leasing this office space from WeWork at a monthly rate of C$3,180 per month for a total commitment of 12 months. This additional office space will be used for meetings with investors and potential clients, and for the hiring of both technical and non-technical personnel in Canada. Starting October 1, 2023, the Company increased office space at the Bental II Tower in Vancouver. The new monthly rate per month is C$10,100 for a reset commitment of 12 month.

On May 15, 2023, BTQ Technologies Announced its Acceptance into the Quantum Industry Canada (QIC) Consortium, joining other leading quantum technology companies such as DWave and Xanadu. Quantum Industry Canada's mission is to ensure that Canadian quantum innovation and talent is translated into Canadian business success and economic prosperity. Earlier this year, the Canadian Minister of Innovation, Science, and Industry announced a $1.4 million investment in QIC as part of the National Quantum Strategy.

On May 22, 2023, BTQ was awarded a US$10,000 grant by StarkWare Industries, the developer of StarkNet, a permissionless decentralized ZK-Rollup. The grant was specifically awarded to implement BTQ's PQScale technique for digital signatures onto the StarkNet infrastructure.

------

---

| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

On May 24, 2023, the Company announced the nomination of Mr. Lonny Wong as the company's Chief Financial Officer. Lonny has been leading BTQ's finance and accounting organization and reports directly to Olivier Roussy Newton, Chief Executive Officer and Chairman. He brings over 25 years of public practice experience and specializes in providing auditing, assurance, financial reporting, and consulting services to public companies and companies looking to go public.

On June 22, 2023, BTQ announced that it had joined leading quantum technology companies and research labs like Microsoft Azure Quantum and the Centre for Quantum Technologies (CQT) in the Quantum Energy Initiative (QEI). The Quantum Energy Initiative seeks to develop energetic quantum advantage and build quantum technologies in a sustainable and responsible manner.

On July 5, 2023, the Company established a strategic research partnership with South Korea's International Research Institute for Cyber Security (IRCS). The partnership aims to enhance the development of post-quantum cryptography, specifically focusing on SOLMAE signature scheme and other lattice-based cryptosystems, thereby expanding BTQ's influence in the Asia-Pacific region.

On July 24, 2023, the Company announced the addition of Brandt Pasco, an accomplished legal and private equity professional, to its advisory board. Mr. Pasco, currently the Managing Member of Pasco & Associates, is renowned for his expertise in building high-value companies and his deep understanding of technological regulatory law.

On August 21, 2023, BTQ announced the launch of "The Quantum State" podcast led by renowned researcher Anastasia Marchenkova. The series, further bolstered by experts Professor Gavin Brennen and Peter Rohde, serves as BTQ's dedicated platform for exploring the latest insights, trends, and groundbreaking advancements in the world of quantum computing.

On September 18, 2023, the Company announced it had been selected for the 2023 Canada Quantum Technology R&D Mission to South Korea, marking a significant stride in international quantum collaborations. From October 31st to November 2nd, the Canadian delegation, which includes 11 leading companies and institutions in the realms of quantum sensing, quantum computing, and quantum communication, participated in a series of collaborative events. Various meetings are arranged with South Korean companies, research institutes, academia, and other key players in the quantum technology sector.

On October 1, 2023, the Company entered into a revised lease agreement for a larger office space in the Bentall II building located in downtown Vancouver where the Company's headquarters were already located. This additional space will accommodate the company's growing technical research team in Canada.

On October 16, 2023, BTQ announced its ecosystem partnership with Cysic for Keelung, a zero-knowledge domain-specific language for fast, private and secure applications. Keelung provides developers with the ability to create secure and reliable post-quantum zero-knowledge proofs without requiring specialized cryptography skills. BTQ's partnership with Cysic will explore the integration of Keelung with Cysic's hardware acceleration solutions, offering end-users access to faster, more efficient, and more secure zero-knowledge proof generation.

On October 19, 2023, BTQ announced the addition of Peter Rohde, an accomplished theoretical quantum computer scientist, to its world-class technical team. Dr. Rohde, currently an Honorary Senior Lecturer at Macquarie University, and Associate Investigator at the ARC Centre of Excellence for Engineered Quantum Systems, is renowned for his deep understanding of optical quantum computing, quantum networking and the economics of quantum technology. Based at the Quantum Terminal in Sydney, Mr. Rohde will help drive research, as well as expand BTQ's technical team in Australia.

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

On November 29, 2023, BTQ and Hon Hai Research Institute announced a Research and Collaboration Agreement aiming to support the academic community by promoting the standardization of post-quantum cryptography. BTQ and Hon Hai first in their submission of Preon, a post-quantum signature scheme submitted as part of the NIST "Call for Additional Digital Signature Schemes for the Post-Quantum Cryptography Standardization Process".

On December 29, 2023, the Company announced its participation and sponsorship at CfC St. Moritz, a premier digital assets and blockchain conference for investors and decision-makers in the Swiss Alps. Christopher Tam, BTQ's Head of Partnerships, led a workshop titled "Future-Proofing Digital Assets: Exploring the Sustainability of Digital Assets in the Quantum Era," focusing on the challenges and opportunities stemming from post-quantum cryptography.

On February 20, 2024, BTQ announced its participation in the Commonwealth Scientific and Industrial Research Organisation's Next Generation Emerging Technologies Graduates Program ("NGETGP"). This initiative aims to cultivate the next wave of tech talent and advance the field of emerging technologies. As part of this agreement, BTQ Technologies joined forces with the Commonwealth Scientific and Industrial Research Organisation ("CSIRO"), top Australian universities, Sydney Quantum Academy, and Diraq Pty Ltd to create the next generation of quantum technology specialists.

On March 13, 2024, BTQ announced its sponsorship with the Cybersecurity and Privacy Institute ("CPI") at the University of Waterloo and the establishment of a multi-year relationship for R&D collaboration. CPI's mission is to be internationally recognized as a leading interdisciplinary research institute making significant impacts in improving information security and human privacy. Earlier this year, CPI secured over $3.3 million in funding from the National Cybersecurity Consortium (NCC) under the Cyber Security Innovation Network (CSIN) program.

On March 21, 2024, BTQ announced that Christopher Tam, Head of Partnerships, will be a featured speaker at ETHTaipei. During his talk, Chris discussed transitioning Ethereum towards quantum resistance, addressing the impacts and challenges posed by quantum technologies on digital currencies.

<u>Media Coverage</u>

On April 17, 2023, the Company was covered by CoinDesk for its innovative approach to quantum-safe encryption technology, which has the potential to revolutionize data security in blockchain applications and adjacent industries, including finance, healthcare, and government. With over 10 million website visits and 1.6 million podcast downloads each month, CoinDesk is the leading source of news on cryptocurrency and blockchain, covering breaking news and providing in-depth analyses on the next generation of investing and the future of money.

On June 21, 2023, BTQ announced it had been featured in the New Scientist magazine for its collaborative research paper, "Proof-of-Work Consensus by Quantum Sampling". The paper, which features a collaboration with leading researchers from universities in Australia and the United States, introduces a groundbreaking Quantum Proof-of-Work scheme for blockchain consensus. The article discusses the potential of the team's approach which uses coarse-grained boson-sampling (CGBS), to reduce the energy consumption of cryptocurrencies, such as Bitcoin, by an order of magnitude.

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

<u>Corporate</u>

On August 31, 2023, BTQ announced that, at the annual general and special meeting (the "Meeting") of shareholders of the Company ("Shareholders") that was held on Wednesday, August 30, 2023, all five nominees for the board of directors of the Company were elected. At the Meeting, Shareholders also approved (i) the appointment of BDO LLP as auditors of the Company until the close of the next annual general meeting of shareholders and the directors were authorized to determine their remuneration (ii) the Company's omnibus equity incentive plan (the "Omnibus Plan"); and (iii) the ratification of certain historically granted RSUs pursuant to the Omnibus Plan.

**Trends**

<u>Quantum Computing</u>

According to McKinsey & Company, the quantum technology market will be valued at over $106 billion by 2040<sup>1</sup>, with the bulk of the value projected to come from quantum computing as opposed to quantum sensing and quantum communications. The quantum security industry sits within quantum computing and is a rapidly growing field that focuses on developing secure cryptographic solutions for the age of quantum computing. As quantum computers become more powerful, they will become increasingly capable of breaking traditional cryptographic systems, creating a need for even more robust and advanced quantum-resistant solutions. Traditional cryptographic methods are at risk of being broken, which will have serious implications for national security, financial institutions, and other industries that rely on secure communication and data storage. Estimates of when a commercial quantum computer will hit the market vary, however, last year, IBM unveiled the Osprey (433 qubits) and updated its road map to develop a 4,000+ qubit processor in 2025<sup>2</sup>, indicating that these super computers will be available in the near future. In addition to private sector funding, Government bodies around the world are also investing large sums of capital into quantum technologies. At $15.3 billion, China leads the way in publicly announced quantum funding initiatives, followed by the EU at $8.4 billion, USA at $3.7 billion, Japan at $1.8 billion, UK at $1.3 billion, Canada at $1.1 billion, and several others between $0.1 billion and $1.0 billion<sup>3</sup>.

Overall, the quantum security industry is a rapidly evolving field that will continue to see significant growth and development in the coming years. As businesses and organizations seek to protect their data from the threat of quantum computing, the need for effective and innovative quantum-resistant security solutions will only continue to increase. Investors are recognizing this with about two-thirds, or 68 percent, of all Quantum Technology startup investments since 2001 having occurred in 2021 and 2022<sup>4</sup>.

<u>Post-Quantum Cryptography</u>

One of the main trends in the quantum security industry is the development of post-quantum cryptography ("PQC") algorithms. PQC algorithms are designed to be resistant to attacks from quantum computers, making them a crucial component of quantum-resistant security systems. Many organizations, including government agencies and financial institutions, are already investing in PQC research and development to ensure the security of their sensitive data.

_________________________

<sup>1</sup> https://www.mckinsey.com/featured-insights/the-rise-of-quantum-computing

<sup>2</sup> https://newsroom.ibm.com/2022-11-09-IBM-Unveils-400-Qubit-Plus-Quantum-Processor-and-Next-Generation-IBM-Quantum-System-Two

<sup>3</sup> https://www.mckinsey.com/~/media/mckinsey/business%20functions/mckinsey%20digital/our%20insights/quantum% 20technology%20sees%20record%20investments%20progress%20on%20talent%20gap/quantum-technology-monitor-april-2023.pdf

<sup>4</sup> https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/quantum-technology-sees-record-investments-progress-on-talent-gap

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

A key driver in the development of the PQC industry is The National Institute of Standards and Technology ("NIST"), a U.S. Department of Commerce agency which sets the standards for businesses and other organizations to secure sensitive data and protect critical infrastructure<sup>5</sup>. NIST compliance standards must be met by anyone who processes, stores, or transmits sensitive information for the Department of Defense, General Services Administration, NASA, and other government agencies, and is largely seen as the de facto standard body to make cryptographic standards for the entire world.

In 2016, NIST initiated a process to solicit, evaluate, and standardize one or more quantum-resistant public-key cryptographic algorithms. These new cryptography standards will specify additional digital signature and public-key encryption algorithm(s) which are capable of protecting sensitive information well into the foreseeable future, including after the advent of quantum computers. In 2022, NIST officially announced the standardized algorithms from Round 3 of this PQC competition. This was a landmark milestone as government agencies and businesses had been waiting nearly six years for a clear direction as to which algorithms are trustworthy. PQC algorithms are much larger than their classical counterparts. For example, even the smallest NIST-approved digital signature algorithm is over 10x larger than the current Elliptic Curve Digital Signature Algorithm<sup>6</sup>. This is particularly problematic for distributed ledgers where each full node keeps an entire record of all activities on the ledger. If a blockchain like Bitcoin and Ethereum were to adopt the newly standardized PQC algorithms today, the size of both chains would have to be increased to an unmanageable extent.

<u>Competition and Market Participants</u>

Generally, BTQ differentiates itself from its competitors with its work at the intersection of post-quantum cryptography and blockchain. The Company works on developing next-generation cryptographic primitives like zero-knowledge cryptography to achieve advanced security and efficiency, which is novel in the industry.

Large publicly traded quantum companies exist in the space, including: D-Wave Systems (NYSE: QBTS),

IONQ (NYSE: IONQ), Arqit Quantum (NASDAQ: ARQQ). However, these companies are not direct competitors as their main goal is to build a commercial quantum computer with real-world useability. These companies are capital intensive and well-funded by both institutional investors and governments and their valuations range from approximately US$50 million to over US$1 billion.

With a surge in funding and general investor interest and excitement in the industry, several companies are emerging in the post-quantum security space. There are various companies that try to tackle the same global problem as BTQ: getting today's infrastructure secured for the quantum revolution, however, the approaches vary widely based on cryptographic techniques, as well as end uses served and therefore is not a winner takes all market. In fact, other companies operating directly in the space may offer potential collaboration opportunities. Below is a non-exhaustive list of indirect competitors to BTQ:

PQ Shield, for example, describes itself as a PQC company contributing to the global standards and core technologies to power the future security layer of the world's leading organizations. Its quantum-secure cryptographic solutions work with companies' legacy systems to protect sensitive data now and for years to come. The company mainly serves the defense & infrastructure, IoT and OEM markets. PQ Shield raised $20 million as part of their Series A round in January 2022<sup>7</sup>.

_________________________

5 https://www.btq.com/en/blog/blockchain-security

6 https://falcon-sign.info/

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

Additionally, Isara provides security solutions specializing in cryptographic risk management and in creating crypto-agile and quantum-safe security solutions for today's information technology ecosystems. The company broadly targets enterprises and governments. Isara raised over $10 million in 2018 to fund its R&D efforts<sup>8</sup>.

In the blockchain space, large technology companies are building their own secured blockchains. For example, IBM offers blockchain services that help secure multiple aspects of critical industries like supply chains, banking, healthcare, and government. The goal of these blockchains is usually to streamline and scale processes in a secure manner<sup>9</sup>.

SandboxAQ, an enterprise SaaS company stemming from Alphabet (previously Google), is another key player in the space. Sandbox provides solutions at the nexus of AI and Quantum technology to address some of the world's most challenging problems. The company's core team and inspiration formed at Alphabet Inc., emerging as an independent, growth-capital-backed company in 2022. The company aims to protect the public sector, life sciences & healthcare, financial services, cybersecurity, material science & manufacturing, and global navigation<sup>10</sup>.

<u>Investor Awareness</u>

During the year ended December 31, 2023, the Company incurred $764,772 in investor relations costs. Effective April 11, 2023, the Company retained Venture North Capital Inc. ("Venture North") for strategic marketing, investor relations, and capital markets communications services. Venture North arranges and attends meetings with professional investors, maintains ongoing contacts and broadens relationships with the professional investment community on the Company's behalf.

The agreement with Venture North had an initial trial term of 4 months and has been automatically renewed monthly until such time it is terminated on 30 days' notice. Pursuant to the terms of the consulting agreement, the Company pays a monthly fee of $8,500 and granted 500,000 stock options exercisable at $0.40 per common share expiring on October 1, 2024. Of the options issued to Venture North, 125,000 shall vest immediately following the 4-month trial and an additional 125,000 options quarterly.

<u>Reverse Takeover</u>

In accordance with IFRS 3, business combinations, the substance of the Acquisition is a reverse takeover as the shareholders of BTQ AG held 75.88% of the resulting issuer shares and SOC's shareholders held 24.12% of the resulting issuer shares. Accordingly, for accounting purposes, BTQ AG was treated as the accounting parent company (legal subsidiary) and the Company has been treated as the accounting subsidiary (legal parent) in these consolidated financial statements. As BTQ AG was deemed to be the acquirer for accounting purposes, its assets, liabilities and operations since incorporation are included in these consolidated financial statements at their historical carrying values. The Company's results of operations have been included from February 17, 2023.

_________________________

7 https://www.prnewswire.com/news-releases/pqshield-collaborates-with-nccoe-and-industry-to-ease-the-real-world-implementation-of-quantum-resistant-cryptography-301794688.html

8 https://www.isara.com/company/newsroom/shasta-ventures-investment.html

9 https://www.ibm.com/blockchain

10 https://www.sandboxaq.com/solutions/security-suite

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

As the Acquisition did not constitute a business combination, the reverse takeover transaction was accounted for in accordance with IFRS 2, share-based payments, whereby equity instruments issued were recognized at fair value and allocated to the net assets acquired (liabilities assumed). Any difference is the value of the listing which was expensed on completion of the Acquisition.

The Transaction was measured at the fair value of the common shares that BTQ AG would have had to issue to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051, and the fair value of 350,000 stock options of the Company with a fair value of $97,532, to give the shareholders of the Company the same percentage of equity interest in the combined entity that results from the reverse acquisition had it taken the legal form of BTQ AG acquiring the Company. The fair value of the 8,747,629 common shares was determined based on the pricing of the Offering with a value of $0.40 being allocated to each Share. The purchase price was allocated to the net assets acquired as follows:

---

| |
|:---|
| Fair value of the Company's shares (8,747,629 common shares) |
| Fair value of 350,000 stock options of the Company outstanding |
| Total consideration |
| Less: fair value of identifiable assets acquired and liabilities assumed: |
| Cash |
| Cash held in escrow |
| Prepaid expenses |
| Restricted cash |
| Accounts payable and accrued liabilities) |
| Subscription receipts liabilities) |
| Net liabilities assumed) |
| Listing costs |

---

The Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction.

**SELECTED ANNUAL INFORMATION**

The following table presents selected audited financial information for the three most recent fiscal year ends.

---

| |
|:---|
| &nbsp;&nbsp;Revenues |
| &nbsp;&nbsp;Net loss) |
| &nbsp;&nbsp;Net loss per share, basic and diluted) |
| &nbsp;&nbsp;Total assets |
| &nbsp;&nbsp;Total non-current financial liabilities |

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

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**RESULTS OF OPERATIONS**

**For the year ended December 31, 2023**

The net loss for the year ended December 31, 2023 was $15,403,295 (2022: $18,752,548). The main categories are listed below:

<u>General and administrative of $912,690 (2022: $379,693)</u>

The increase is due to the Company's growth and higher overall activity after listing during the year ended December 31, 2023 as compared to the year ended December 31, 2022. During the year ended December 31, 2023 incurred $178,000 in Taiwan VAT due to transfer pricing.

<u>Marketing and promotion of $1,341,812 (2022: $254,396)</u>

Increase is due to the Company becoming a publicly listed entity during the year ended December 31, 2023 as compared to the year ended December 31, 2022.

<u>Professional fees of $636,285 (2022: $356,244)</u>

The increase is mainly due to the increase in accounting costs incurred to the outsourced accounting consulting firm and the CFO's firm after becoming a publicly listed entity during year ended December 31, 2023.

<u>Research and development of $2,553,365 (2022: $16,464,559)</u>

During the year ended December 31, 2022, the Company issued 45,000,000 shares with a fair value of $14,224,500 for in-process research.

<u>Share-based compensation of $3,920,656 (2022: $nil)</u>

The increase in share-based compensation is due to the Company granting 8,310,000 stock options and 3,930,000 restricted stock units during the year ended December 31, 2023 compared to none being granted during the year ended December 31, 2022.

<u>Transfer agent and regulatory fees of $120,355 (2022: $nil)</u>

The increase is due to incurring various filing and transfer agent costs associated with being a publicly listed entity as compared to no such costs during the year ended December 31, 2022, when BTQ AG was private.

<u>Wages and benefits of $761,463 (2022: $403,139)</u>

The increase is due to the increase in operations after becoming a publicly listed entity during the year ended December 31, 2023 as compared to the year ended December 31, 2022.

<u>Listing and transaction costs of $5,059,669 (2022: $nil)</u>

Listing and transaction costs relate to the Transaction. See Reverse Takeover section above.

**FOURTH QUARTER**

**For the three months ended December 31, 2023**

The net loss for the three months ended December 31, 2023 was $3,015,009 (2022: $1,425,672). The increase in net loss compared to the three months ended December 31, 2022 is mostly due to increased activity as a result of the listing. The main categories are listed below:

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|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

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<u>General and administrative of $428,306 (2022: $82,536)</u>

The increase is due to the Company's growth and higher overall activity after listing during the three months ended December 31, 2023 as compared to three months ended December 31, 2022. During the three months ended December 31, 2023 incurred $178,000 in Taiwan VAT due to transfer pricing.

<u>Marketing and promotion of $443,437 (2022: $198,079)</u>

The increase is due to the Company's increase in operations after listing, during the three months ended December 31, 2023 as compared to the three months ended December 31, 2022.

<u>Research and development of $888,415 (2022: $845,019)</u>

The research and development activity was comparable for the three months ended December 31, 2023 compared to the three months ended December 31, 2022.

<u>Share-based compensation of $1,259,207 (2022: $nil)</u>

The increase in share-based compensation is due to the expense recognition during the three months ended December 31, 2023 compared to the three months ended December 31, 2022; in relation to previously granted stock options and restricted stock units.

<u>Wages and benefits of $247,442 (2022: $(32,224))</u>

The increase is due to the increase in operations after becoming a publicly listed entity during the year ended December 31, 2023 as compared to the year ended December 31, 2022.

<u>Use of Available Funds</u>

In connection with the Acquisition and the listing of the Shares on the NEO, the Company filed a listing statement dated February 17, 2023 under its SEDAR profile at www.sedar.com. Below is a reconciliation of the expected use of available funds against the actual use of such funds as at December 31, 2023:

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| | | |
|:---|:---|:---|
|  |  | Actual Use of Available |
|  |  | Proceeds as at |
| **Item** | Use of Available Funds | December 31, 2023 |
|  | $| $|
| Transaction costs related to the Acquisition | 700000 | 705078 |
| Research contracts | 750000 |  |
| Software and hardware development | 4215770 | 2553365 |
| Sales and business development | 1500000 | 1341812 |
| General and administrative costs estimated for 12-months | 1830759 | 2373290 |
| Unallocated working capital | 200000 |  |
| **Total** | **9196529** | **6973545** |

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|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

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**SUMMARY OF QUARTERLY RESULTS**

The following table sets out financial information for the past eight quarters:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) |
|  | December 31, | September 30, | June 30, | March 31, |
|  | 2023 | 2023 | 2023 | 2023 |
| Total revenues |  |  |  |  |
| Net loss | (3015009) | (2553373) | (2901977) | (6932936) |
| Net loss per share, basic and diluted | (0.02) | (0.02) | (0.02) | (0.07) |
|  | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) |
|  | December 31, | September 30, | June 30, | March 31, |
|  | 2022 | 2022 | 2022 | 2022 |
| Total revenues |  |  |  |  |
| Net loss | (1425672) | (767160) | (16332045) | (227671) |
| Net loss per share, basic and diluted | (0.02) | (0.01) | (0.94) | (0.23) |

---

The net loss for the quarter ended September 30, 2023 includes share-based compensation of $755,390 related to the issuance of stock options and restricted stock units.

The net loss for the quarter ended June 30, 2023 includes share-based compensation of $1,623,513 related to the issuance of stock options and restricted stock units.

The net loss for the quarter ended March 31, 2023 includes costs of $5,059,669 relating to the Transaction, share-based compensation of $282,545 related to the issuance of stock options and increased level of activity as BTQ became public as a subsidiary of the Company with a concurrent financing effective February 17, 2023.

The net loss for the quarter ended June 30, 2022 includes the fair value of 45,000,000 shares issued with a fair value of $14,224,500 for research and share-based compensation of $632,200.

**LIQUIDITY AND CAPITAL RESOURCES**

As at December 31, 2023, the Company had cash of $2,862,023 and working capital of $2,806,924 compared to cash of $2,058,214 and working capital of $2,506,090 as at December 31, 2022.The increase in working capital was due to the gross proceeds of $7,200,500 received from the subscription receipts financing.

The Company's operations used cash of $6,954,461 during the year ended December 31, 2023 (2022: $3,063,387). The Company's investing activities provided cash of $745,960 (2022: used cash of $1,529,647). The cash requirements during the year ended December 31, 2023 were funded from the net proceeds from share issuances of $7,107,326 and $1,335,500 from the repayment of loan receivable, partially offset by $104,016 for the repayment of the lease obligation.

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|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

The Company's aggregate operating, investing, and financing activities during the year ended December 31, 2023 resulted in an increase in its cash balance of $803,809.

The Company's accounts payable and accrued liabilities are due in the short term. While the Company has been successful in obtaining the necessary financing through the issuance of common shares and loans from related parties in the past, there is no assurance it will be able to raise funds in this manner in the future and there remain material uncertainties that may cast significant doubt as to the Company's ability to continue as a going concern.

The directors regularly review cash flow forecasts to determine whether the Company has sufficient cash reserves to meet future working capital requirements and discretionary business development opportunities.

The consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. During the year ended December 31, 2023, the Company has not generated any revenues from operations and has negative cash flow from operations. As at December 31, 2023, the Company has an accumulated deficit of $34,568,353. The Company's ability to continue its operations and to realize its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs. Management is of the opinion that sufficient working capital will be obtained from external financing to meet the Company's liabilities and commitments as they become due, although there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These factors indicate a material uncertainty that may cast significant doubt on the ability of the Company to continue as a going concern. These consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. Such adjustments could be material.

**OFF BALANCE SHEET ARRANGEMENTS**

There are no off-balance sheet arrangements to which the Company is committed.

**RELATED PARTY TRANSACTIONS**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

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|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

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Key management personnel are persons responsible for planning, directing, and controlling the activities of an entity, and include all officers and directors of the Company. Key management personnel compensation during the years ended December 31, 2023 and 2022 was comprised of the following:

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| | | |
|:---|:---|:---|
|  | 2023 | 2022 |
|  | $| $|
| Consulting fees incurred to Ming-Yang Chih, Chief Strategic Officer | 97163 | 93694 |
| Marketing and promotion incurred to Mathieu Gauthier, Head of Corporate Development | 97163 | 63302 |
| Professional fees incurred to Saturna Group Chartered Professional Accountants LLP, a firm where the CFO, Lonny Wong, is a partner | 59661 |  |
| Research and development incurred to Po-Chun Ko (Chief Technology Officer), Chen-Mou Cheng (Chief Cryptographer), and Chelpis Quantum Tech Co. (company owned by Ming-Yang Chih) | 413158 | 495547 |
| Wages and benefits incurred to Nicolas Roussy Newton (COO) and Peter Lavelle (Chief Legal Officer) | 290543 | 196977 |
| Total short-term benefits | 957688 | 849520 |
| Share-based payments | 765827 |  |
|  | 1723515 | 849520 |

---

As at December 31, 2023, the Company owed $114,223 (2022 - $27,264) to Olivier Roussy Newton, the Chief Executive Officer of the Company ("CEO"), which is non-interest bearing, unsecured, and due on demand.

As at December 31, 2023, the Company was owed $49,888 (2022 - $7,110) from Nicolas Roussy Newton, the Chief Operating Officer ("COO") of the Company, which is included in receivables.

As at December 31, 2023, the Company owed $3,027 (2022 - $3,100) to Novus Paradigm Technologies Corporation, a company controlled CEO and COO of the Company, which is non-interest bearing, unsecured, and due on demand.

As at December 31, 2023, the Company owed $7,350 (2022 - $nil) to Saturna Group Chartered Accountants LLP, a firm where the Chief Financial Officer of the Company ("CFO") is a partner. This amount is included in accounts payable and accrued liabilities.

As at December 31, 2023, the Company owed $132,260 (2022 - $135,440) to Chen-Mou Cheng, the Chief Cryptographer of the Company, which is included in accounts payable and accrued liabilities.

As at December 31, 2023, the Company owed $7,936 (2022 - $nil) to Mathieu Gauthier, the Head of Corporate Development of the Company, which is included in accounts payable and accrued liabilities.

**ACCOUNTING POLICIES**

A number of new standards, and amendments to standards and interpretations, are not yet effective for the year ended December 31, 2023, and have not been early adopted in preparing the consolidated financial statements. These new standards, and amendments to standards and interpretations are either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements.

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

**CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS**

<u>Use of estimates</u>

The preparation of consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from our company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

*Reverse Takeover*

The reverse takeover transaction was measured at the fair value of the common shares and stock options that BTQ would have had to issue to the shareholders of the Company. The fair value of common shares and stock options issued were estimated based on the Company's financing event which took place concurrently with the reverse takeover transaction. The fair values of identifiable assets acquired and liabilities assumed approximated their carrying values.

<u>Research and development costs</u>

Research costs are recognized as an expense when incurred but development costs may be capitalized as intangible assets if certain conditions are met as described in IAS 38 *Intangible Assets*. Management has determined that development costs do not meet the conditions for capitalization under IAS 38 and all research and development costs have been expensed.

<u>Fair value of stock options</u>

Fair values of stock options are determined using the Black-Scholes option pricing model. Estimating fair value requires determining the most appropriate valuation model for a grant of equity instruments, which is dependent on the terms and conditions of the grant. Option-pricing models require the use of highly subjective estimates and assumptions including the expected stock price volatility. Changes in the underlying assumptions can materially affect the fair value estimates and, therefore, existing models do not necessarily provide reliable measurement of the fair value of the Company's stock options and performance warrants.

<u>*Deferred income taxes*</u>

The determination of income tax expense and the composition of deferred income tax assets and liabilities involves judgment and estimates as to the future taxable earnings, expected timing of reversals of deferred income tax assets and liabilities, and interpretations of tax laws. The Company is subject to assessments by tax authorities who may interpret the tax law differently. Changes in these interpretations, judgments, and estimates may materially affect the final amount of current and deferred income tax provisions, deferred income tax assets and liabilities, and results of operations.

<u>*Going concern presentation*</u>

The consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The assessment of the Company's ability to source future operations and continue as a going concern involves judgement. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. If the going concern assumption is not appropriate for the financial statements, then adjustments would be necessary in the carrying value of the assets and liabilities, the reported revenue and the expenses and the statement of financial position classifications used.

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

**FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**

**Fair Values**

The following provides a description of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at December 31, 2023 and 2022 as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using | Fair value measurements using |
|  | Quoted prices in |  |  |  |
|  | active markets | Significant other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | December 31, |
|  | (Level 1) | (Level 2) | (Level 3) | 2023 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using | Fair value measurements using |
|  | Quoted prices in |  |  |  |
|  | active markets | Significant other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | December 31, |
|  | (Level 1) | (Level 2) | (Level 3) | 2022 |
|  | $| $| $| $|
| Investments | - | - | 63915 | 63915 |

---

The fair values of the Company's other financial instruments, which include cash, short-term investment, other receivables, loan receivable, and accounts payable and accrued liabilities, lease obligation, and due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

**Credit Risk**

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit loss by placing its cash and cash equivalents with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

**Foreign Exchange Rate Risk**

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency.

The following table indicates the impact of foreign currency exchange risk on net working capital as at December 31, 2023 and 2022. The table below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the table below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as at December 31, 2023 and 2022.

---

| | | |
|:---|:---|:---|
| 2023 | TWD | US$ |
| Cash | 9201660 | 296479 |
| Accounts payable and accrued liabilities |  | (190659) |
| Lease obligation | (778794) |  |
| Total foreign currency financial assets and liabilities | 8422866 | 105820 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 842287 | 10582 |
| 2022 | TWD | US$ |
| Cash | 1230771 | 1479624 |
| Accounts payable and accrued liabilities |  | (309447) |
| Lease obligation | (2923542) |  |
| Total foreign currency financial assets and liabilities | (1692771) | 1170177 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 169277 | 117018 |

---

**Interest Rate Risk**

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

**Liquidity Risk**

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner. Refer to going concern disclosure under Liquidity and Capital Resources.

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

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The following amounts are the contractual maturities of financial liabilities as at December 31, 2023 and 2022:

---

| | | | |
|:---|:---|:---|:---|
| 2023 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 856682 | 856682 |  |
| Lease obligation | 33554 | 33554 |  |
| Due to related parties | 28003 | 28003 |  |
| Total | 918239 | 918239 | - |
| 2022 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 930462 | 930462 |  |
| Lease obligation | 129062 | 81974 | 47088 |
| Due to related parties | 30364 | 30364 |  |
| Total | 1089888 | 1042800 | 47088 |

---

**DISCLOSURE OF OUTSTANDING SHARE DATA**

The authorized capital of the Company consists of an unlimited number of common shares without par value.

As of the date of this report, the Company had 124,203,879 common shares, 232,936 share purchase warrants outstanding, 7,910,000 stock options outstanding and 1,235,000 RSUs outstanding.

**DISCLOSURE CONTROLS AND PROCEDURES**

The CEO and the CFO have designed, or caused to be designed under their supervision, the Company's disclosure controls and procedures ("DCP") to provide reasonable assurance that material information relating to the Company and its consolidated subsidiaries has been recorded, processed, summarized and disclosed in a timely manner in accordance with regulatory requirements and good business practices and that the Company's DCP will enable the Company to meet its ongoing disclosure requirements.

The CEO and CFO have evaluated the effectiveness of the Company's disclosure controls and procedures and have concluded that based on this evaluation, our disclosure controls and procedures are not effective at a reasonable assurance level due to the material weakness described below in Internal Control over Financial Reporting.

**INTERNAL CONTROL OVER FINANCIAL REPORTING**

The CEO and the CFO have designed, or caused to be designed under their supervision, the Company's internal controls over financial reporting ("ICFR") in order to provide reasonable assurance regarding the reliability of the Company's financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards ("IFRS").

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

A material weakness is a control deficiency, or combination of control deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement in the annual or interim financial statements will not be prevented or detected on a timely basis.

The CEO and CFO conducted an evaluation the effectiveness of the Company's ICFR as at December 31, 2023 based on *Internal Control-Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") for the Company as a whole. Based on this evaluation, management concluded that material weaknesses existed as at December 31, 2023.

The following material weaknesses were identified in the design and operation of its internal controls:

1. Lack of cash controls - The Company does not have sufficient internal controls over financial reporting for the cash process, including having an employee and a third party professional consultant with signing authority over certain of the Company's foreign bank accounts.

2. Lack of segregation of duties - There is a lack of segregation of duties among individuals with administrative access to various systems and applications used by the Company. In addition, there is no evidence of a review process over control activities such as, but not limited to, financial statements and disclosures, purchase authorization, cut-off of transactions posted by the accounting team, cash controls over Company credit cards, and review of contracts. This increases the risk of error and fraud due to the ability to override controls.

3. Accounting for complex transactions - During the course of our audit, some auditor proposed adjustments were made to correct certain complex transactions, including, but not limited to, share-based compensation and international tax implications. In addition, a number of adjustments were made to correct and restate the prior year information which was not addressed prior to the year end audit. There still exists a lack of review and approval on the accounting treatment of these transactions in accordance with the relevant IFRS.

**LIMITATION OF CONTROLS AND PROCEDURES**

The Company's management, including its CEO and CFO, believe that any DCP and ICFR, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override to the control. The design of any control system also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any control system will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost effective, control system, misstatements due to error or fraud may occur and not be detected.

**CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING**

There have been no changes to our internal control over financial reporting for the fiscal year ended December 31, 2023, that could have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

**RISK FACTORS**

The current business of BTQ AG has been the business of the Company since February 17, 2023. The following is a summary of certain risk factors relating to the business. The risks presented below should not be considered exhaustive and may not be all of that the Company may face.

***General Risks***

*The Company has a limited operating history*

The Company has a limited history of operations and is in the early stage of development. As such, the Company will be subject to many risks common to early-stage enterprises, including undercapitalization, cash shortages, limitations with respect to personnel, financial and other resources, and lack of revenue. There is no assurance that the Company will achieve its operating goals. There is no assurance that the Company will be successful in achieving a return on shareholders' investment and the likelihood of success must be considered in light of its early stage of operations. There can be no assurance that the Company will be able to earn material revenue or that any of its activities will generate positive cash flow.

*The Company may require additional funds to finance its operations*

Additional funds raised through debt or equity offerings may be needed to finance the Company's ongoing and future activities. There can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Failure to obtain additional financing could cause the Company to reduce or terminate its operations.

If additional funds are raised through further issuances of equity or securities convertible into equity, existing shareholders could suffer significant dilution, and any new equity securities issued could have rights, preferences and privileges superior to those of holders of securities of the Company. Any debt financing secured in the future could involve restrictive covenants relating to capital raising activities and other financial and operational matters, which may make it more difficult for the Company to obtain additional capital and to pursue business opportunities.

Refer to going concern disclosure under Liquidity and Capital Resources.

*The Company is subject to competition from other post-quantum encryption companies*

The Company will compete with other post-quantum cryptography and technology businesses, including other businesses focused on applying post-quantum cryptography to blockchain.

*The Company's compliance and risk management programs may not be effective*

The Company's ability to comply with applicable laws and rules will be largely dependent on the establishment and maintenance of compliance, review, and reporting systems, as well as the ability to attract and retain qualified compliance and other risk-management personnel, as needed. The Company cannot provide any assurance that its compliance policies and procedures will be effective or that it will be successful in monitoring or evaluating its risks. If there is any alleged non-compliance with applicable laws or regulations, The Company could be subject to investigations and judicial or administrative proceedings that may result in substantial penalties or civil lawsuits for damages, restitution or other remedies, which could be significant. Any of these outcomes, individually or together, may materially and adversely affect the Company's reputation, financial condition and valuation, and the value of its shares.

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

---

*Unexpected market disruptions may cause major losses for the Company*

The Company may incur major losses in the event of disrupted markets and other extraordinary events in which market behavior diverges significantly from historically recognized patterns. The risk of loss in such events may be compounded by the fact that, in disrupted markets, many positions may become illiquid, making it difficult or impossible to close out positions against which markets are moving. Market disruptions caused by unexpected political, military and terrorist events, or other factors, may from time to time cause dramatic losses for the Company.

*The Company will be reliant on attracting and retaining skilled management and directors*

The success of the Company will, in part, be dependent upon the skill, judgment, industry relationships and expertise of the Board and management. The loss of a director or key management personnel may materially and adversely affect the business of the Company. There can be no assurance that these individuals will continue to be employed by, or remain involved with, the Company for a particular period of time.

*Market risk for securities*

There can be no assurance that an active trading market for the Company's shares will be sustained. The market price for the Company's Shares may be subject to wide fluctuations. Factors such as government regulation, price fluctuations, share price movements of peer companies and competitors, as well as overall market movements, may have a significant impact on the market price of the Company's securities. The stock market has from time to time experienced extreme price and volume fluctuations, which have often been unrelated to the operating performance of particular companies. Market forces may render it difficult or impossible for the Company to secure purchasers to purchase its securities at a price which will not lead to severe dilution to existing shareholders, or at all. In addition, shareholders may realize less than the original amount invested on dispositions of their shares during periods of such market price decline.

*Foreign exchange risk*

The Company is a Canadian company, and most of its expenses and fundraising is done in Canadian dollars, however, its operations are predominantly denominated in U.S. dollars and Taiwan dollars. As a result, the Company is subject to foreign exchange risks relating to the relative value of the U.S. dollar and Taiwan dollar as compared to the Canadian dollar. A decline in the U.S. dollar or Taiwan dollar could result in a decrease in the real value of the Company's revenues and adversely impact financial performance.

*Tax*

No assurance can be given that new taxation rules will not be enacted or existing rules will not be applied in a manner which could result in the Company being subject to additional taxation or which could otherwise have a material adverse effect on the Company's results from operations and financial condition.

*The Company may be subject to litigation*

The Company may be subject to litigation arising out of, or related to, its operations. Damages claimed under such litigation may be material, and the outcome of such litigation may materially impact the Company's operations and the value of its shares. While the Company expects to assess the merits of any lawsuits and defend such lawsuits accordingly, it may be required to incur significant expense or devote significant financial resources to such defenses. In addition, the adverse publicity surrounding such claims may have a material adverse effect on the Company's operations.

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| (FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE YEAR ENDED DECEMBER 31, 2023 |

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*Investment Risk*

There is no assurance that the Company will achieve its investment objective. An investment may not earn any positive return and may result in the loss of some or all of the capital invested.

*Ability to generate profits*

There can be no assurance that the Company will generate net profits in future periods. Further, there can be no assurance that the Company will be cash flow positive in future periods. In the event that the Company fails to achieve profitability in future periods, the value of the Company's shares may decline. In addition, if the Company is unable to achieve or maintain positive cash flows, the Company would be required to seek additional funding, which may not be available on favorable terms, if at all.

*Management of growth*

The Company has recently experienced, and may continue to experience, growth in the scope of its operations. This growth has resulted in increased responsibilities for the Company's existing personnel, the hiring of additional personnel and, in general, higher levels of operating expenses. In order to manage its current operations and any future growth effectively, the Company will need to continue to implement and improve its operational, financial and management information systems, as well as hire, manage and retain its employees and maintain its corporate culture including technical and customer service standards. There can be no assurance that the Resulting Issuer will be able to manage such growth effectively or that its management, personnel or systems will be adequate to support the Company's operations.

*Reliance on key personnel*

The Company's future growth and its ability to develop depend, to a significant extent, on its ability to attract and retain highly qualified personnel. The Company will rely on a limited number of key employees, consultants and members of senior management and there is no assurance that the Company will be able to retain such key employees, consultants and senior management. The loss of one or more of such key employees, consultants or members of senior management, if not replaced, could have a material adverse effect on the Company's business, financial condition and prospects.

*The Company has no immediate plans to pay regular dividends on the Company, so shareholders of the Company may not receive funds without selling their Company Shares.*

The Company does not currently have plans to pay regular dividends on Company Shares. Any declaration and payment of future dividends to holders of Company Shares will be at the sole discretion of the Board and will depend on many factors, including the financial condition, earnings, capital requirements, level of indebtedness, statutory and contractual restrictions applying to the payment of dividends and other considerations of the Company that the Company's Board deems relevant.

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| (FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE YEAR ENDED DECEMBER 31, 2023 |

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***Business and Industry Risks***

*Regulatory changes or actions may alter the nature of an investment in the Company or restrict the use of digital assets in a manner that adversely affects the Company's operations*

Due to their global nature, blockchain-related technologies and encryption-related technologies are subject to regulatory fragmentation due to different treatment depending on jurisdiction. Certain governments have categorized certain blockchain technologies as illegal, while others have embraced their utility and have approved them for trade. Ongoing and/or future regulatory actions may have a substantial impact on the Company's business operations.

*The Company relies upon the use of internally/externally built proprietary software, data and intellectual property that may be subject to substantial risk*

The Company's liquidity contribution strategy is dependent on internally and externally developed software, data and intellectual property. Its operations may be severely and adversely affected by the malfunction of technology.

*Banks may not provide banking services, or may cut off banking services, to businesses that provide services related to blockchain-based technologies*

A number of companies that provide blockchain-related services have been unable to find banks that are willing to provide them with bank accounts and banking services. Similarly, a number of such companies have had their existing bank accounts closed by their banks. Banks may refuse to provide bank accounts and other banking services to blockchain-related companies, or companies that accept digital assets, for a number of reasons, such as perceived compliance risks or costs.

*The Company may be unable to obtain adequate insurance to insure its operations*

The Company intends to insure its operations in accordance with technology industry practice. However, given the novelty of digital assets and associated businesses, such insurance may not be available, may be uneconomical for the Company, or the nature or level may be insufficient to provide adequate insurance cover. The occurrence of an event that is not covered or fully covered by insurance could have a material adverse effect on the Company.

*The business of the Company will be exposed to cybersecurity risks*

Cyber incidents can result from deliberate attacks or unintentional events, and may arise from internal sources (e.g., employees, contractors, service providers, suppliers and operational risks) or external sources (e.g., nation states, terrorists, hacktivists, competitors and acts of nature). Cyber incidents include unauthorized access to information systems and data (e.g., through hacking or malicious software) for purposes of misappropriating or corrupting data or causing operational disruption. Cyber incidents also may be caused in a manner that does not require unauthorized access, such as causing denial-of-service attacks on websites (e.g., efforts to make network services unavailable to intended users). A cyber incident that affects the Company might cause disruptions and adversely affect its business operations, and might also result in violations of applicable law (e.g., personal information protection laws), each of which might result in potentially significant financial losses and liabilities, regulatory fines and penalties, reputational harm, and reimbursement and other compensation costs. In addition, substantial costs might be incurred to investigate, remediate and prevent cyber incidents.

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| |
|:---|
| ![](exhibit99-15xu001.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.)** <br>**MANAGEMENT'S DISCUSSION AND ANALYSIS** <br>**FOR THE YEAR ENDED DECEMBER 31, 2023** |

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**FORWARD-LOOKING STATEMENTS**

*This MD&A includes certain statements that may be deemed "forward-looking statements" concerning the future performance of the Company's business, its operations, its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All statements in this report that do not directly and exclusively relate to historical facts, constitute forward-looking statements. These statements represent the Company's intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements. The Company disclaims any intention or obligation to update or revise such forward-looking statements, as a result of new information, future events or otherwise. Factors that may cause actual results to vary from forward looking statements include, but are not limited to, the Company's ability to access capital, competitive risks and reliance on key personnel, as described in more detail in this document under "Risk Factors". Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.*

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## Exhibit 99.16

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**Form 52-109F1**

***Certification of Annual Filings***

***Full Certificate***

I, Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies Corp., certify the following:

1. ***Review:*** I have reviewed the AIF, if any, annual financial statements and annual MD&A, including, for greater certainty, all documents and information that are incorporated by reference in the AIF (together, the "annual filings") of BTQ Technologies Corp. (the "issuer") for the financial year ended December 31, 2023.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the annual filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the annual filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the annual financial statements together with the other financial information included in the annual filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the annual filings.

4. ***Responsibility:*** The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of*

*Disclosure in Issuers' Annual and Interim Filings, for the issuer.*

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the financial year end

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) material information relating to the issuer is made known to us by others, particularly during the period in which the annual filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework.

**5.2 ICFR - material weaknesses relating to design: The issuer has disclosed in its annual MD&A for each material weakness relating to design existing at the financial year end**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A description of the material weakness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The impact of the material weakness on the issuer's financial reporting and its ICFR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The issuer's current plans, if any, or any actions already undertaken, for remediating the material weakness.

5.3 N/A

6. ***Evaluation:*** The issuer's other certifying officer and I have

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) evaluated, or caused to be evaluated under our supervision, the effectiveness of the issuer's DC&P at the financial year end and the issuer has disclosed in its annual MD&A our conclusions about the effectiveness of DC&P at the financial year end based on that evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) evaluated, or caused to be evaluated under our supervision, the effectiveness of the issuer's ICFR at the financial year end and the issuer has disclosed in its annual MD&A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) our conclusions about the effectiveness of ICFR at the financial year end based on that evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for each material weakness relating to operation existing at the financial year end

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a description of the material weakness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the impact on the material weakness on the issuer's financial reporting and its ICFR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the issuer's current plans, if any, or any actions already undertaken, for remediating the material weakness.

7. ***Reporting changes in ICFR:*** The issuer has disclosed in its annual MD&A any change in the issuer's ICFR that occurred during the period beginning on October 1, 2023 and ended on December 31, 2023 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

8. ***Reporting to the issuer's auditors and board of directors or audit committee:*** The issuer's other certifying officer and I have disclosed, based on our most recent evaluation of ICFR, to the issuer's auditors, and the board of directors or the audit committee of the board of directors any fraud that involves management or other employees who have a significant role in the issuer's

ICFR.

Date: June 3, 2024

(signed) "Olivier Roussy Newton"

______________________________

Olivier Roussy Newton

Chief Executive Officer

------

## Exhibit 99.17

------

**Form 52-109F1**

***Certification of Annual Filings***

***Full Certificate***

I, Lonny Wong, Chief Financial Officer of BTQ Technologies Corp., certify the following:

1. ***Review:*** I have reviewed the AIF, if any, annual financial statements and annual MD&A, including, for greater certainty, all documents and information that are incorporated by reference in the AIF (together, the "annual filings") of BTQ Technologies Corp. (the "issuer") for the financial year ended December 31, 2023.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the annual filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the annual filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the annual financial statements together with the other financial information included in the annual filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the annual filings.

4. ***Responsibility:*** The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of*

*Disclosure in Issuers' Annual and Interim Filings, for the issuer.*

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the financial year end

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) material information relating to the issuer is made known to us by others, particularly during the period in which the annual filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework.

**5.2 ICFR - material weaknesses relating to design: The issuer has disclosed in its annual MD&A for each material weakness relating to design existing at the financial year end**

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A description of the material weakness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The impact of the material weakness on the issuer's financial reporting and its ICFR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The issuer's current plans, if any, or any actions already undertaken, for remediating the material weakness.

5.3 N/A

6. ***Evaluation:*** The issuer's other certifying officer and I have

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) evaluated, or caused to be evaluated under our supervision, the effectiveness of the issuer's DC&P at the financial year end and the issuer has disclosed in its annual MD&A our conclusions about the effectiveness of DC&P at the financial year end based on that evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) evaluated, or caused to be evaluated under our supervision, the effectiveness of the issuer's ICFR at the financial year end and the issuer has disclosed in its annual MD&A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) our conclusions about the effectiveness of ICFR at the financial year end based on that evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for each material weakness relating to operation existing at the financial year end

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a description of the material weakness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the impact on the material weakness on the issuer's financial reporting and its ICFR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the issuer's current plans, if any, or any actions already undertaken, for remediating the material weakness.

7. ***Reporting changes in ICFR:*** The issuer has disclosed in its annual MD&A any change in the issuer's ICFR that occurred during the period beginning on October 1, 2023 and ended on December 31, 2023 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

***8. Reporting to the issuer's auditors and board of directors or audit committee: The issuer's other certifying officer and I have disclosed, based on our most recent evaluation of ICFR, to the issuer's auditors, and the board of directors or the audit committee of the board of directors any fraud that involves management or other employees who have a significant role in the issuer's***

ICFR.

Date: June 3, 2024

(signed) "Lonny Wong"

_______________________

Lonny Wong

Chief Financial Officer

------

## Exhibit 99.18

------

![](exhibit99-18xu001.jpg)

**BTQ TECHNOLOGIES CORP.<br>**

<br> **(formerly Sonora Gold & Silver Corp.)**

<u>**ANNUAL INFORMATION FORM**</u>

**FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023**

------

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [**GLOSSARY OF DEFINED TERMS**](#page_3) | [**3**](#page_3) |
| [**GENERAL**](#page_5) | [**5**](#page_5) |
| [**CURRENCY AND EXCHANGE RATE INFORMATION**](#page_5) | [**5**](#page_5) |
| [**STATEMENT REGARDING FORWARD LOOKING INFORMATION**](#page_5) | [**5**](#page_5) |
| [**CORPORATE STRUCTURE**](#page_6) | [**6**](#page_6) |
| [**GENERAL DEVELOPMENT OF THE BUSINESS**](#page_7) | [**7**](#page_7) |
| [**DESCRIPTION OF BUSINESS**](#page_10) | [**10**](#page_10) |
| [**RISK FACTORS**](#page_18) | [**18**](#page_18) |
| [**DIVIDENDS**](#page_23) | [**23**](#page_23) |
| [**DESCRIPTION OF CAPITAL STRUCTURE**](#page_24) | [**24**](#page_24) |
| [**MARKET FOR SECURITIES**](#page_25) | [**25**](#page_25) |
| [**ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL RESTRICTIONS ON TRANSFER**](#page_27) | [**27**](#page_27) |
| [**DIRECTORS AND OFFICERS**](#page_27) | [**27**](#page_27) |
| [**AUDIT COMMITTEE DISCLOSURE**](#page_31) | [**31**](#page_31) |
| [**PROMOTERS**](#page_32) | [**32**](#page_32) |
| [**INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS**](#page_32) | [**32**](#page_32) |
| [**LEGAL PROCEEDINGS AND REGULATORY ACTIONS**](#page_32) | [**32**](#page_32) |
| [**AUDITORS, TRANSFER AGENT AND REGISTRAR**](#page_33) | [**33**](#page_33) |
| [**MATERIAL CONTRACTS**](#page_33) | [**33**](#page_33) |
| [**INTEREST OF EXPERTS**](#page_34) | [**34**](#page_34) |
| [**ADDITIONAL INFORMATION**](#page_34) | [**34**](#page_34) |
| [**APPENDIX "A"**](#page_35) | [**35**](#page_35) |

---

------

**GLOSSARY OF DEFINED TERMS**

In this Annual Information Form, the following capitalized words and terms shall have the following meanings:

---

| | |
|:---|:---|
| $Unless otherwise indicated, Canadian dollars. | Unless otherwise indicated, Canadian dollars. |
| This Annual Information Form of the Company for the fiscal year ended December 31, 2023. | This Annual Information Form of the Company for the fiscal year ended December 31, 2023. |
| BTQ Technologies Corp. | BTQ Technologies Corp. |
| *Business Corporations Act* (British Columbia) including the regulations thereunder, as amended. | *Business Corporations Act* (British Columbia) including the regulations thereunder, as amended. |
| British Columbia Securities Commission. | British Columbia Securities Commission. |
| The board of directors of the Company. | The board of directors of the Company. |
| Chief Executive Officer. | Chief Executive Officer. |
| Chief Financial Officer. | Chief Financial Officer. |
| Common shares without par value in the capital of the Company. | Common shares without par value in the capital of the Company. |
| BTQ Technologies Corp. | BTQ Technologies Corp. |
| Computershare Trust Company of Canada. | Computershare Trust Company of Canada. |
| Any (i) international, multinational, national, federal, provincial, state, municipal, local or other governmental or public department, central bank, court, arbitral body, commission, board, bureau, agency or instrumentality, domestic or foreign, (ii) subdivision or authority of any of the above, (iii) quasi- governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account of any of the foregoing, or (iv) stock exchange or securities authorities. | Any (i) international, multinational, national, federal, provincial, state, municipal, local or other governmental or public department, central bank, court, arbitral body, commission, board, bureau, agency or instrumentality, domestic or foreign, (ii) subdivision or authority of any of the above, (iii) quasi- governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account of any of the foregoing, or (iv) stock exchange or securities authorities. |
| Means, in relation to the Company: | Means, in relation to the Company: |
| (a) | a director or senior officer of the Company; |
| (b) | a director or senior officer of the corporation that is an Insider or subsidiary of the Company; |
| (c) | a person that beneficially owns or controls, directly or indirectly, voting shares carrying more than 10% of the voting rights attached to all outstanding voting shares of the Company; or |

---

------

---

| | |
|:---|:---|
| (d) | the Company itself if it holds any of its own securities. |
| **Listing Statement** | Listing Statement of the Corporation dated February 17, 2023. |
| **NEO** | CBOE Canada (formerly known as the NEO Exchange Inc.) |
| **NI 51-102** | *National Instrument 51-102 - Continuous Disclosure Obligations.* |
| **person** | Any individual, firm, partnership, joint venture, venture capital fund, association, trust, trustee, executor, administrator, legal personal representative, estate group, body corporate, corporation, unincorporated association or organization, Governmental Authority, syndicate or other entity, whether or not having legal status. |
| **Promoter** | A person who: |
| (a) | acting alone or in concert with one or more other persons, directly or indirectly, takes the initiative in founding, organizing or substantially reorganizing the business of the Company; or |
| (b) | in connection with the founding, organization or substantial reorganization of the business of the Company, directly or indirectly receives, in consideration of services or property or both, 10% or more of a class of the Company's own securities or 10% or more of the proceeds from the sale of a class of the Company's own securities of a particular issue, |
|  | but does not include a person who: |
| (c) | receives securities or proceeds referred to in paragraph (b) solely |
|  | &nbsp;&nbsp;&nbsp;&nbsp;i) as underwriting commissions, or |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ii) in consideration for property, and |
| (d) | does not otherwise take part in founding, organizing or substantially reorganizing the business. |
| **Equity Incentive**<br>**Plan** | The omnibus equity incentive plan of the Company dated February 17, 2023. |

---

------

**GENERAL**

Unless otherwise noted herein, information in this AIF is presented as at December 31, 2023.

In this annual information form, a reference to the "Company", "BTQ", "we", "us", "our" and similar words refer to BTQ Technologies Corp., its subsidiaries and affiliates, or any one of them, as the context requires.

**CURRENCY AND EXCHANGE RATE INFORMATION**

In this AIF, otherwise specified or the context otherwise requires, all dollar amounts are expressed in Canadian dollars. All references to "dollars", "$" or "C$" are to Canadian dollars, all references to "US$" are to United States dollars.

On December 31, 2023, the daily exchange rate as quoted by the Bank of Canada was US$1.00 = CAD$1.3226

**STATEMENT REGARDING FORWARD LOOKING INFORMATION**

This AIF contains forward-looking information within the meaning of applicable Canadian securities legislation with respect to the Company and its subsidiaries. Forward looking information may include, but is not limited to: information with respect to amounts and use of available funds; anticipated developments in operations in future periods; planned asset acquisitions; future business operations; the adequacy of financial resources; the costs and timing of development of the Company's business; the costs, timing and receipt of approvals, consents and permits under applicable legislation; executive compensation approaches and practices; the growth of the quantum technology and security market; the future applications of Company products; the timeline for a quantum computer hitting the market; the use of Company office space; the development of and applicability of quantum technologies; the commercialization of the Company's intellectual property; the general adoption of quantum technologies; the Company's research and development plan; the results from Company research and development; future intellectual property registrations of the Company; the future availability of Company products; and the composition of directors and committees.

Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words and phrases such as "will", "may", "is expected to", "anticipates", "estimates", "intends", "plans", "projection", "could", "vision", goals", "objective" and "outlook") are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. In making these forward-looking statements, the Company has made certain assumptions, as contemplated below.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the performance of the Company's business and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the intention to grow the Company's business and operations;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the introduction and continued offering of services and product features;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the market for the Company's products and services and competitive conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the Company's pricing and revenue models;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the future liquidity and financial capacity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the treatment of the Company and its subsidiaries under government regulatory and taxation regimes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the Company's intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the Company's ability to operate in certain markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the Company's ability to meet current and future obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the Company's ability to obtain services in a timely manner or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the Company's ability to obtain financing on acceptable terms or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the Company's targeted business milestones and related timelines and costs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● expectations of the blockchain, quantum computing and cryptocurrency markets and associated regulations;

The above list is not exhaustive of factors that may affect any of the forward-looking information contained in this AIF. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Forward-looking information involves statements about the future and is inherently uncertain, and the actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in this AIF under the heading "Risk Factors" and elsewhere in this AIF. Forward-looking information contained in this AIF is based on the beliefs, expectations and opinions of management of the Company on the date the statements are made, and the Company does not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. In making the forward-looking statements in this AIF, the Company has applied several material assumptions which may prove to be inaccurate, including, but not limited to, the assumptions that any financing needed to fund the operations of the Company will be available on reasonable terms. Other assumptions are discussed throughout this AIF and, in particular in the "Risk Factors" section of this AIF. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking information.

**CORPORATE STRUCTURE**

**Name, Address and Incorporation**

------

BTQ Technologies Corp. (previously known as Sonora Gold & Silver Corp.) was incorporated on November 23, 1983 under the *Business Corporations Act* (British Columbia) as "Southern Star Resources Ltd." On February 17, 2023, the Company acquired 100% of the issued and outstanding securities of BTQ AG, a Liechtenstein entity, pursuant to a "reverse takeover transaction" whereby BTQ AG became a wholly owned subsidiary of the Company (the "Transaction") and the Company changed its name from "Sonora Gold & Silver Corp." to "BTQ Technologies Corp.".

The Company's corporate headquarters is located at 16-113 555 Burrard Street, Vancouver, British Columbia, Canada, V7X 1M8 and its registered office is located at 25th Floor, 700 W Georgia St., Vancouver, British Columbia, Canada, V7Y 1B3.

**Intercorporate Relationships**

BTQ is the sole shareholder of BTQ AG. In July 2021, BTQ AG opened a representative office in Taipei, Taiwan, which was converted into a branch office in November 2022.

The following diagram sets out the intercorporate relationships among the Company's material subsidiaries as of the date of this AIF, including the percentage ownership of voting securities and the jurisdiction of formation or existence of each subsidiary.

![](exhibit99-18xu002.jpg)

**GENERAL DEVELOPMENT OF THE BUSINESS**

**Three-Year History**

<u>Prior to the Transaction</u>

BTQ AG was incorporated in the Principality of Liechtenstein on March 26, 2021 by a group of businesspeople and experienced post-quantum cryptographers.

On December 31, 2021, the Company and BTQ entered into a share exchange agreement, which was subsequently amended on April 29, 2022, July 30, 2022, and November 29, 2022.

On September 2, 2022, the Company issued an aggregate of 12,712,500 subscription receipts at a price of $0.40 per subscription receipt for aggregate gross proceeds of $5,085,000. On November 10, 2022, the Company the issued an additional 3,163,750 subscription receipts at a price of $0.40 per subscription receipt for aggregate gross proceeds of $1,265,500. On December 5, 2022, the Company issued an additional 2,225,000 subscription receipts at a price of $0.40 per subscription receipt for aggregate gross proceeds of $890,000. Each subscription receipt automatically converted, with no additional consideration, into one Common Share (as defined below) concurrent with the closing of the Transaction.

------

On February 17, 2023, the Company closed the Transaction, which included (a) consolidating its common shares on the basis of ten pre-consolidation shares to one post-consolidation share (each post-consolidation share, a "**Common Share**"); (b) issuing 92,000,000 Common Shares to the former BTQ AG shareholders; and (c) changing its name from "Sonora Gold & Silver Corp." to "BTQ Technologies Corp.".

In connection with the closing of the Transaction, on February 21, 2023, the Company voluntarily delisted its Common Shares from the TSX Venture Exchange and listed its Common Shares on Cboe Canada (formerly known as the NEO Exchange) under the symbol "BTQ".

From Transaction to Today

On March 2, 2023, the Company announced the alpha release of Keelung, a domain-specific language designed for fast, private, and secure application development.

On May 1, 2023, the Company entered into a Research and Collaboration Agreement with Hon Hai Precision Industry Co., Ltd, to collaborate on a submission to the National Institute of Standards and Technology ("NIST") in the United States for consideration in their Post-Quantum Cryptography ("**PQC**") standardization process.

On May 1, 2023, the Company was informed that it was the recipient of a US$10,000 grant from the Stellar Community Fund.

On May 1, 2023, the Company entered into a lease with WeWork for office space located in the Bentall II Tower located at 555 Burrard Street in Downtown Vancouver, BC for $3,180 per month for 12 months. This additional office space will be used for meetings with investors and potential clients, and for the hiring of both technical and non-technical personnel in Canada. On October 1, 2023, the Company increased office space at the Bental II Tower in Vancouver. The new monthly rate per month is C$10,100 for a reset commitment of 12 months.

On May 8, 2023, BTQ announced that it had commenced to trade on the OTCQX under the symbol "BTQQF".

On May 15, 2023, BTQ announced its acceptance into the Quantum Industry Canada (the "QIC") Consortium.

On May 22, 2023, BTQ was awarded a US$10,000 grant by StarkWare Industries. The grant was specifically awarded to implement BTQ's PQScale technique for digital signatures onto the StarkNet infrastructure.

On May 24, 2023, the Company announced the appointment of Lonny Wong, CPA, CA, as the new Chief Financial Officer of BTQ. Mr. Wong succeeded Robert Dinning, CPA, CA who resigned from the Company as at the date of the announcement.

On June 22, 2023, BTQ announced that it had joined leading quantum technology companies and research labs in the Quantum Energy Initiative, which seeks to develop energetic quantum advantage and build quantum technologies in a sustainable and responsible manner.

------

On June 26, 2023, the Company announced that it had received approval from the U.S. Patent and Trademark Office for its patent application, "A system and method for quantum-safe authentication, encryption, and decryption of information".

On July 5, 2023, the Company established a strategic research partnership with South Korea's International Research Institute for Cyber Security. The partnership aims to enhance the development of post-quantum cryptography, specifically focusing on SOLMAE signature scheme and other lattice-based cryptosystems.

On July 24, 2023, the Company announced the addition of Brandt Pasco, a legal and private equity professional, to its advisory board.

On July 27, 2023, the company announced that its quantum-secure signature technology "Preon" had been selected by the National Institute of Standards and Technology for consideration in their Post- Quantum Cryptography standardization process. The co-authors of this submission include Hon Hai Research Institute, the research arm of global leader Hon Hai Precision Industry Co., Ltd. (Foxconn).

On September 13, 2023, the Company entered into a collaboration agreement with Cimtech Technology Co. Ltd., a Taiwanese hardware development company. The term of the agreement was later extended to last until May 31, 2024, with Cimtech's deliverables being test reports related to BTQ's hardware development. The total amount payable to CimTech under the extended contract is $75,000 USD.

On September 18, 2023, the Company announced it had been selected for the 2023 Canada Quantum Technology R&D Mission to South Korea, and attended as a delegate in Korea from October 31st to November 2nd 2023.

On October 4, 2023, BTQ announced the advancement of its collaboration with ITRI to develop a security chip that utilizes QCIM (Quantum Computation in Memory) technology. This chip will be used for the computation of Kyber, an algorithm standardized by NIST.

On October 16, 2023, BTQ announced its ecosystem partnership with Cysic for Keelung, a zero-knowledge domain-specific language for fast, private and secure applications.

On October 19, 2023, BTQ announced the addition of Peter Rohde, an accomplished theoretical quantum computer scientist, to its technical team.

On October 30, 2023, BTQ expanded its office space at the Quantum Terminal in Sydney to host its technical team led by Gavin Brennen and Peter Rohde.

On November 1, 2023, BTQ entered into a new R&D Collaboration Agreement with Hon Hai Precision Industry Co., Ltd., under which BTQ agrees to act as Hon Hai's Canadian partner for the purpose of securing funding for academic collaborations in Canada from Mitacs, a nonprofit national research organization.

On November 29, 2023, BTQ terminated its Mixed-Signal Crypto Accelerator Technical Service Agreement with ITRI.

On November 29, 2023, BTQ and Hon Hai Research Institute announced a Research and Collaboration Agreement aiming to support the academic community by promoting the standardization of post-quantum cryptography.

------

On February 20, 2024, BTQ announced its participation in the Commonwealth Scientific and Industrial Research Organisation's Next Generation Emerging Technologies Graduates Program.

On March 13, 2024, BTQ announced its sponsorship with the Cybersecurity and Privacy Institute ("CPI") at the University of Waterloo and the establishment of a multi-year relationship for R&D collaboration.

On March 18, 2024, the Company announced a revised timeline for the filing of its annual consolidated financial statements for the year ended December 31, 2023 (the "**Financial Statements**") and the related management's discussion and analysis and certifications and annual information form (collectively, with the Financial Statements, the "**Annual Filings**"). The default in filing within the required 90 days is primarily due to delays relating to the restatement of the comparative period in the Financial Statements, comprising BTQ AG's financial statements for the period ended December 31, 2022, which were audited by another auditor. As a result of the delays, the Company applied for and received a management cease trade order under National Policy 12-203 Management Cease Trade Orders in respect of the default.

On May 3, 2024, the Company entered into a Software Consulting Agreement with ZKP Corp., a Delaware corporation, for which the Company will receive CAD$1,000,000 for the use of its proprietary software and the provision of related services.

**Significant Acquisitions**

The Company has not completed any significant acquisition during its most recently completed financial year and for which disclosure is required under Part 8 of NI 51-102.

**DESCRIPTION OF BUSINESS**

**General**

BTQ is a British Columbia corporation founded by a group of businesspeople and experienced post- quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the blockchain network, where several potential quantum attack vectors may compromise the network. This paradigm shift requires a new direction in cryptography and blockchain design. BTQ is building a portfolio of intellectual property to safeguard the crypto asset class with energy efficient quantum processes and currently holds several patent applications for generating quantum algorithms. In addition to blockchain applications, the derived intellectual property the Company is building covers a wide range of mission-critical applications, including defense, financial services, insurance, and IoT devices.

Quantum computers can take a very large integer and find out its prime factor extremely rapidly by using Shor's algorithm. Theoretically, a universal large- scale quantum computer could be used to disrupt cryptocurrencies, break into digital wallets, and access and decrypt confidential communications. Ethereum and Algor, two of the most technologically advanced cryptocurrencies, announced plans to transition to post-quantum standards.

BTQ has strategically established a branch office in Taipei, Taiwan, home to the most advanced hardware and post-quantum ecosystems. The Taipei engineering office will focus on research and development related to post-quantum cryptography, eco-friendly proof of work proving, and formal verification within smart contracts platforms.

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BTQ is listed on the Cboe Canada Exchange (previously known as the NEO Exchange) (the "NEO") under the symbol "BTQ", the OTCQX under the symbol "BTQQF" and the Frankfurt Stock Exchange under the symbol "NG3".

As a research-based company, BTQ Technologies Corp. is building a patent portfolio based on the research undertaken in its subsidiary's Taiwan office and elsewhere.

The Company intends to commercialize this intellectual property by way of software and hardware products, licensing agreements, as well as service contracts with large entities in the finance and technology sectors who will hire the Company as a third-party service provider when transitioning from current cryptography standards to post-quantum encryption.

**Principal Products or Services**

BTQ has one reportable operating segment, research and development, which has two principal areas of focus: hardware and software. Currently, BTQ has no commercial productions and is in the early stages of developing its proprietary hardware and software. In the near term for its hardware program, BTQ is planning to continue to develop its mixed-signal computing technology hardware. In the near term for its software program, BTQ is planning to research and develop a proprietary zero-knowledge proof programming language and compiler and BTQ's signature post-quantum Blockchain compression algorithm. In the long term, BTQ is planning to research and develop a formal verification programming language for use in application development.

<u>Research and Development related to Hardware Products and Services</u>

BTQ was engaged in the first phase of research of a proof of concept integrated circuit chip application (the "**Computer Chip**") with respect to a Compute-in-Memory ("**CIM**") implementation of a quantum-resistant hash function. Such research was in collaboration with ITRI with a tapeout submitted to Taiwan Semiconductor Manufacturing Company Limited ("**TSMC**") for production with initial results expected in the near-term. Since entering into the ITRI Mixed-Signal Crypto Accelerator Agreement on March 1, 2022, ITRI and BTQ have been working with TSMC semiconductor fabrication plants in order to bring the Computer Chip into commercialization.

BTQ is also developing a security chip named QCIM, which involves both CIM technology and two post- quantum cryptographic algorithms, namely Kyber and Dilithium. BTQ's goal is to implement fast and efficient post-quantum cryptography (PQC) in hardware for blockchain and non-blockchain applications. BTQ is using a combination of in-house and subcontracted research in the development of QCIM, with the relevant outside party being CimTech (see material contracts summary below). QCIM is currently in a preliminary research and development phase, and is expected to be ready for commercialization by the end of 2025 or early 2026.

<u>Research and Development related to Software Products and Services Software</u>

*Post-quantum Digital Signature Compression Algorithm*

BTQ's proprietary post-quantum digital signature compression algorithm (the "**Post-quantum Digital Signature Compression Algorithm**"), which builds upon the foundation of BTQ's patents, aims to provide post-quantum scaling and supplemental services to existing blockchains by increasing transaction speeds and efficiency, lowering transaction costs and providing greater security. Scaling solutions relate to software deployed on existing blockchains to improve the transactional speed and lower transaction costs associated with user transactions. For example, several of Ethereum's scaling solutions improve its transactional efficiency by collecting transactions from multiple users and publishing a set of transactions to the Ethereum blockchain as a single transaction. This improves the speed and cost at which users transact over the network by increasing the number of transactions that get published in a block and distributing the cost of a single transaction across a group of users. Post-quantum signatures are digital signatures that are specifically designed to withstand attacks from quantum computers. The Post-quantum Digital Signature Compression Algorithm aims to protect users from attacks by both classical and quantum computers, thus offering two distinct advantages of scalability and security. Currently, the Post-quantum Digital Signature Compression Algorithm is in its development phase.

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On August 14, 2022, BTQ filed a patent application in Europe for the application entitled "Improved Blockchain System and Method", which protects a method of aggregating two or more digital signatures together into a blockchain block, wherein the signature scheme is the Falcon signature scheme. This additional patent application, once registered, will complement BTQ's existing patents by protecting the underlying intellectual property which increases the range of services that BTQ anticipates providing. These services now include methods for authenticating, encrypting, and decrypting information in a quantum-safe manner and reducing the space required to transmit and store quantum-resistant digital signatures. All research and development related to the Post-quantum Digital Signature Compression Algorithm is being done in-house.

*Quantum Proof-of-Work Mining*

The other branch of BTQ's software arm is currently conducting research as to the general viability of applications of quantum computing to blockchain environments. On March 9, 2022, BTQ entered into the Macquarie Research Agreement with Macquarie University to research whether quantum computers could be used to perform proof-of-work proving for blockchain-based technologies and how such proof-of-work proving would be completed in a commercialized setting. BTQ has determined that one such direction is developing a quantum-proving algorithm to replace existing proving algorithms such as SHA-256, which is the cryptographic hash function which blockchain miners must solve in order to produce a new block on the blockchain. A quantum-proving algorithm can be used in the transition from classical-computing to quantum computing, allowing both types of computers to simultaneously partake in the proving process.

The research into creating a quantum proof-of-work proving infrastructure is in its preliminary phases and therefore the principal steps required for BTQ to commercialize such research have not yet been ascertained with certainty. However, if BTQ determines through its research and research partners that quantum- computing applications can be applicable to blockchain environments, BTQ anticipates it will need to develop proof-of-work proving-specific code and undertake significant platform research and development before the product would be commercially available.

<u>Other Software Developments</u>

*Zero-Knowledge Programming Language and Compiler (Keelung)*

On March 2, 2023, the Company announced the alpha release of Keelung, a domain-specific language designed for fast, private, and secure application development. Based on research in the field of post- quantum zero-knowledge cryptography, Keelung will empower developers to create secure and reliable post-quantum zero-knowledge proofs without the need for specialized cryptography skills. Both Keelung and its compiler have been implemented in Haskell, enabling developers to produce high-level zero- knowledge proofs protected by Haskell's type system while leveraging Haskell's extensive ecosystem and tooling. Keelung will be 100% open-source, allowing for transparency, collaboration, and community- driven development.

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The Company is currently maintaining the open-source version of the product which was released to the public during Q4 2023. The Company is expanding backend integrations, which is expected to occur in Q3 2024, and working on providing support for targeting multiple proving systems (e.g. PLONK-based and STARK based). As of December 31, 2023, research efforts incurred to date on Keelung amount to $196,014, which represents the salary of two software engineers assigned to the product.

**Production and Services**

Currently, BTQ has no commercial productions and is in the research and development stages of advancing its proprietary hardware and software. Upon the successful conclusion of BTQ's research and development activities, BTQ will be relying on a hybrid model of producing, with respect to its software division, post- quantum blockchain infrastructure, zero-knowledge software tools and verifiable scripting products internally, while at the same time engaging certain preferred subcontractors to execute BTQ's proving hardware manufacturing contracts and research related to quantum proof-of-work with respect to in its hardware division.

**Specialized Skills and Knowledge**

BTQ relies on the specialized skill and knowledge of its employees and certain subcontractors for its research and development activities. In particular, team members must have expertise in quantum computing, blockchain systems, computer component manufacturing, regulatory systems, and software development.

**Competitive Conditions**

BTQ protects its brand and the intellectual property related to its hardware and software programs through a collection of trademark applications and patent applications in Canada, the United States and Europe and other registered intellectual property protections. As BTQ generates new data and further develops its proprietary intellectual property, it will expand its registrations throughout the development program and continue to take all the necessary steps to protect their intellectual property.

*Quantum Computing*

Large publicly-traded quantum companies exist in the quantum computing space, including: D-Wave Systems (NYSE: QBTS), IONQ (NYSE: IONQ) and Arqit Quantum (NASDAQ: ARQQ). However, these companies are not direct competitors of BTQ as their main goal is to build a commercial quantum computer with real-world useability. These companies are capital intensive and therefore well funded by both institutional investors and governments alike. The valuations of these companies range from US$50 million to over US$1 billion.

With this surge in funding and general investor interest and excitement in the industry, several companies are emerging in the post-quantum security space. There are various companies that try to tackle the same global problem as BTQ: getting today's infrastructure secured for the quantum revolution, however, the approaches vary widely based on cryptographic techniques, as well as end uses served and therefore is not a winner takes all market. In fact, other companies operating directly in the space may offer potential collaboration opportunities.

PQ Shield, for example, describes itself as "a post-quantum cryptography (PQC) company contributing to the global standards and core technologies to power the future security layer of the world's leading organizations. Its quantum-secure cryptographic solutions work with companies' legacy systems to protect sensitive data now and for years to come". PQ Shield mainly serves the defense and infrastructure, IoT and OEM markets.

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Additionally, ISARA Corporation provides security solutions specializing in cryptographic risk management and in creating crypto-agile and quantum-safe security solutions for today's information technology ecosystems. ISARA Corporation broadly targets enterprises and governments. ISARA Corporation raised over $10 million in 2018 to fund its R&D efforts.

To date, BTQ has engaged in key strategic partnerships, notably through the Next Generation Emerging Technologies Graduates Program (NGETGP) in collaboration with CSIRO and top Australian universities. Additionally, BTQ is involved in developing open-source quantum computing software in partnership with the Australian Quantum Software Network (AQSN), enhancing its capabilities in quantum software development to further enhance collaboration opportunities. BTQ's publication of the "Proof-of-Work Consensus by Quantum Sampling" paper also enhances its competitive position by demonstrating real- world use cases for quantum computers much sooner than previously anticipated by the quantum industry.

*Blockchain*

In the blockchain space, large technology companies are building their own secured blockchains. For example, IBM offers blockchain services that help secure multiple aspects of critical industries like supply chains, banking, healthcare, and government. The goal of these blockchains is usually to streamline and scale processes in a secure manner. For example, SandboxAQ, an enterprise SaaS company, provides solutions at the nexus of AI and Quantum technology (AQ) to address some of the world's most challenging problems.

There are additional "public blockchain" protocols implementing post-quantum cryptography in blockchain environments. Algorand, a Proof-of-Stake cryptocurrency protocol, is focusing on integrating post- quantum cryptography to fortify their cross-chain applications in an effort to withstand attacks by sufficiently large quantum computers that try to alter the state of the blockchain. Starkware is another competitor who is preparing to defend against the growing threat of quantum computers. In 2018 Starkware raised $30M to build technology to improve blockchain scalability and security. zkSync is another competitor who is trying to improve blockchain scalability but is not aligned with BTQ's post-quantum security mission.

BTQ differentiates itself from its competitors with its work at the intersection of NIST standardised post- quantum cryptographic algorithms and blockchain. The Company works on developing next-generation cryptographic primitives like zero-knowledge cryptography to achieve advanced security and efficiency, which is novel in the space.

*Post Quantum Cryptography*

The global quantum cryptography market size was valued at over US$200 million in 2022 and is expected to grow at a CAGR of 22.6%, reaching over US$2,300 million by 2033. Primary competitors and market participants in the security hardware industry are those who develop and manufacture security chips. United Kingdom-based PQShield is a company focusing on post-quantum security intellectual property. BTQ's unique products, such as PQScale, Keelung, Kenting, and QCIM address different aspects of the quantum problem. By building tightly integrated solutions from hardware to software, the company sets itself apart from competitors by offering a full-stack service for post-quantum cryptography.

BTQ has engaged in several strategic collaborations to improve its competitive position. Notably, its partnership with Hon Hai Research Institute (part of Foxconn) aims to promote the standardization of PQC, thereby leading advancements in quantum-safe cryptography. The collaboration with ITRI and the development of quantum computation in memory technology for the Kyber algorithm are also significant, as they enhance BTQ's capabilities in providing secure and efficient PQC solutions.

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**New Products**

<u>Keelung</u>

As described previously in this AIF, on March 2, 2023, the Company announced the alpha release of Keelung, a domain-specific language designed for fast, private, and secure application development. Both the Keelung language and compiler are open source under the Apache 2.0 License. Further developments have been made to the language, primarily for increasing support for efficient operations over post-quantum cryptographic primitives.

<u>PQScale</u>

We have made significant progress on PQScale, our quantum-resistant blockchain scaling solution that leverages zero-knowledge proofs to accelerate transactions and reduce costs. PQScale continues to evolve and deliver new services. We're very pleased to have been working on PQScale under several grants to integrate the technology into several platforms.

<u>Kenting</u>

Kenting remains at the forefront of specialized hardware development for post-quantum zero-knowledge proving. Our team has continued to innovate and refine our hardware solution, resulting in faster and more seamless service. The latest generation of Kenting hardware offers increased computational power, improved scalability, and enhanced reliability. We are currently looking to make the latest generation of Kenting hardware available on AWS EC2 F1 instances.

<u>QByte</u>

QByte continues to serve as a valuable resource for industry professionals, researchers, and enthusiasts, offering comprehensive coverage and analysis of the rapidly evolving quantum computing landscape. It is available to use online free of charge, and at this time no further development or commercialization of the products is being planned.

<u>Preon</u>

Preon is a post-quantum signature scheme developed by BTQ Technologies Corp. that has been selected as a candidate in the NIST Post-Quantum Cryptography Standardization Process. It is characterized by its small key size, rapid key generation, minimal assumptions, and flexible functionality, making it resistant to potential threats from both classical and quantum computers. Preon has been selected by NIST in the first round (additional signatures) for its post-quantum cryptography standardization process. BTQ anticipates further optimization of Preon in the coming months, as the current reference implementation's performance data is meant for expository purposes and not indicative of the scheme's potential in practice

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**Components**

BTQ's hardware and software programs are still in their preliminary stages of research and development. As such, it is not yet possible to determine exactly what components or raw materials will be required, or what their pricing, availability and sources will be.

**Intangible Properties**

Through its wholly owned Liechtenstein subsidiary, BTQ currently owns a granted United States patent and several patent application, as below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● EP22190335.4, a European patent application titled "Improved Blockchain System and Method" and filed on 14 August 2022;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● US 11,477,017 B2, a granted US patent titled "SYSTEM AND METHOD FOR QUANTUM -

SAFE AUTHENTICATION , ENCRYPTION , AND DECRYPTION OF INFORMATION", which was granted on 18 October 2022. This patent also has associated patent applications pending in Europe and Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● WO2019069103A1, an WIPO patent application titled "System and method for quantum-safe authentication, encryption and decryption of information", which has corresponding applications in Europe, Canada, and United States, for which it acts as the priority filing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● EP22214465.1, a European patent application titled "IMPROVED BLOCKCHAIN SYSTEM AND METHOD" and filed on 19 December 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● EP23175874.9, a European patent application titled "Improved Blockchain System and Method" and filed on 27 May 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● PCT/EP2023/072417, an international patent application titled "IMPROVED BLOCKCHAIN SYSTEM AND METHOD" was filed on 15 August 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● PCT/EP2023/086754, an international patent application titled "Delayed Proof of Validity" and filed on December 19, 2023.

Through the same subsidiary, BTQ also owns a trademark application in Canada for the BTQ mark (App. No. 2114017), a trademark application in Taiwan for the BTQ mark (App. No. 111090627), and trademark applications in the United States for the BTQ mark (App. No. 97807750), the BTQ logo (App. No. 97807763), and the QCIM mark (App. No. 97807765).

**Cycles**

BTQ does not expect the development of its proprietary hardware and software to be subject to cyclical or seasonal forces.

**Economic Dependence**

As of the current reporting period, BTQ does not possess any contracts upon which its business is substantially dependent. This absence is attributed to the Company being in the research and development stage, where the Company's primary focus lies in the exploration and advancement of innovative solutions. Consequently, there are no prevailing contracts in place for the sale of a significant portion of Company's products or services, nor for the acquisition of substantial requirements of goods, services, or raw materials. Furthermore, The Company does not currently hold any franchise, license, or other agreements pertaining to the use of patents, formulas, trade secrets, processes, or trade names that are indispensable to its operations. Given Company's developmental status, the Company's business remains centred on refining and enhancing its offerings, thereby precluding the existence of contractual dependencies at this juncture.

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**Changes to Contracts**

It is not expected that the business of the Company will be affected by the renegotiation or termination of contracts or sub-contracts in the current financial.

**Environmental Protection**

In the current financial year and for future years, the Company anticipates no significant financial or operational effects stemming from environmental protection requirements. As BTQ primarily engages in research and development, with a strong focus on the development of hardware and software solutions, the its operations are not subject to substantial environmental compliance obligations. Thus, the Company does not foresee any substantial impact on its capital expenditures, profit or loss, or competitive position as a result of environmental protection requirements. The Company's ongoing efforts center on the advancement of innovative technologies and solutions, and while it remains committed to environmental sustainability, its current business activities and strategic priorities do not expose us to substantial environmental compliance costs or obligations.

**Employees**

As of BTQs most recent financial year end, it has a total of 38 full-time employees.

**Foreign Operations**

BTQ has strategically established a branch office in Taipei, Taiwan, home to the most advanced hardware and post-quantum ecosystems. The Taipei engineering office focuses on research and development related to post-quantum cryptography, eco-friendly proof of work proving, and formal verification within smart contracts platforms.

BTQ also has a number of consultants working for the Company in Canada, Korea, Hong Kong, and Australia. The Company also maintains an office space in Sydney, Australia for use by its team of research consultants located there.

The bulk of BTQ's research and development is carried out by its personnel in Taipei and Sydney, while business development occurs primarily in Canada, Hong Kong, and Europe.

**Lending and Grants**

On December 1, 2022, BTQ's wholly owned subsidiary BTQ AG entered into a Venture Loan Agreement with MEV Trading Inc., a Delaware entity, under which BTQ AG loaned MEV Trading Inc. US$1,000,000. The loan has been repaid in full.

On August 22, 2023, BTQ executed a loan agreement with Kaori Tanaka, its head of Japan operations at the time, in the amount of 5 million Japanese Yen, the threshold capital requirement for setting up a Japanese subsidiary that would meet the Company's requirements. After a decision was later made not to proceed with establishment of a Japanese subsidiary at this time, the loan was later repaid in full on December 1, 2023.

On November 23, 2023, BTQ entered into an agreement with Abelian Foundation Ltd., which received a research grant from BTQ in the amount of US$36,520 subsequent to December 31, 2023.

The Company does not have any dedicated investment policies or investment restrictions

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**Bankruptcy and Similar Proceedings**

There have been no bankruptcy, receivership, or similar proceedings initiated against the Company or any of its subsidiaries within the three most recently completed financial years, nor during or proposed for the current financial year.

**Reorganizations**

The Company completed the Transaction in February 2023. See "General Development of Business".

**Social and Environmental Risks**

The Company does not have any social or environmental policies.

**RISK FACTORS**

Readers should carefully consider all such risks, which include but are not limited to the following:

**General Risks**

*Limited Operating History*

BTQ has a limited history of operations and is in the early stage of development. As such, BTQ will be subject to many risks common to early stage enterprises, including undercapitalization, cash shortages, limitations with respect to personnel, financial and other resources, and lack of revenue. There is no assurance that BTQ will achieve its operating goals. There is no assurance that BTQ will be successful in achieving a return on shareholders' investment and the likelihood of success must be considered in light of its early stage of operations. There can be no assurance that BTQ will be able to earn material revenue or that any of its activities will generate positive cash flow.

*Future Capital Requirements and Uncertainty of Additional Funding*

The Company may require funding through debt or equity offering for its ongoing and future activities. There can be no assurance that BTQ will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Failure to obtain additional financing could cause BTQ to reduce or terminate its operations.

If additional funds are raised through further issuances of equity or securities convertible into equity, existing shareholders could suffer significant dilution, and any new equity securities issued could have rights, preferences, and privileges superior to those of other BTQ securityholders. Any debt financing secured in the future could involve restrictive covenants relating to capital raising activities and other financial and operational matters, which may make it more difficult for BTQ to obtain additional capital and to pursue business opportunities.

*Operational Reliance on Third-Party Providers*

The Company relies upon independent third-party services providers. The Company's operations could be interrupted or impaired if these third-party service providers experience operational or other systems difficulties or failures, terminate their services, or fail to comply with regulations. Replacing vendors or addressing other issues with the Company's third-party service providers could entail significant delay, expense, and disruption of service. As a result, if the third-party service providers experience difficulties, are subject to cybersecurity breaches, or terminate their services and the Company is unable to replace them with other service providers in a timely manner, the Company's operations could be interrupted. If an interruption were to continue for a significant period, the Company's business, financial condition, and results of operations could be adversely affected.

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*Competition*

The Company will compete with other post-quantum cryptography and technology businesses, including other businesses focused on applying post-quantum cryptography to blockchain. Because its industry is evolving and characterized by technological change, it is difficult for the Company to predict whether, when and by whom new competing technologies may be introduced or when new competitors may enter the market. The Company faces increased competition from companies with strong positions in certain markets the Company intends to serve and in new markets and regions it may enter. Many of the Company's competitors have significantly greater financial and other resources than the Company currently possesses and may spend significant amounts of resources to gain market share. The Company cannot assure investors that it will be able to compete effectively against current and future competitors. In addition, increased competition or other competitive pressures may result in price reductions, reduced margins or loss of market share, any of which could have a material adverse effect on the Company's business, financial condition or results of operations. Competitors may be able to respond to new or emerging technologies and changes in customer requirements more effectively than the Company can, or devote greater resources to the development, promotion and sale of products than the Company can. Current and potential competitors may establish cooperative relationships among themselves or with third parties, including through mergers or acquisitions, to increase the ability of their products to address the needs of the Company's prospective customers. If these competitors were to acquire significantly increased market share, it could have a material adverse effect on the Company's business, financial condition or results of operations. The Company's competitors may also establish or strengthen co-operative relationships with systems integrators, third-party consulting firms or other parties with whom the Company has relationships, thereby limiting its ability to promote its products.

If the Company is not able to differentiate our business from those of our competitors, drive value for customers or effectively align its financial and operations resources with its goals and objectives, it may not be able to compete effectively against its competitors. If the Company fails to compete effectively against its competitors, its business and profitability may be adversely affected.

*Compliance and Risk Management Programs*

The Company's ability to comply with applicable laws and rules will be largely dependent on the establishment and maintenance of compliance, review, and reporting systems, as well as the ability to attract and retain qualified compliance and other risk-management personnel, as needed. The Company cannot provide any assurance that its compliance policies and procedures will be effective or that it will be successful in monitoring or evaluating its risks. If there is any alleged non-compliance with applicable laws or regulations, The Company could be subject to investigations and judicial or administrative proceedings that may result in substantial penalties or civil lawsuits for damages, restitution or other remedies, which could be significant. Any of these outcomes, individually or together, may materially and adversely affect BTQ's reputation, financial condition and valuation, and the value of its Common Shares.

*Unexpected Market Disruptions*

The Company may incur major losses in the event of disrupted markets and other extraordinary events in which market behavior diverges significantly from historically recognized patterns. The risk of loss in such events may be compounded by the fact that, in disrupted markets, many positions may become illiquid, making it difficult or impossible to close out positions against which markets are moving. Market disruptions caused by unexpected political, military and terrorist events, or other factors, may from time to time cause dramatic losses for BTQ.

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*COVID-19 Pandemic*

The ongoing global pandemic involving the novel coronavirus, COVID-19, has caused companies and various governments to take measures and impose restrictions to combat the pandemic, such as quarantines, closures, cancellations and travel restrictions. The effects of COVID-19 and such measures and restrictions have negatively affected asset values and increased volatility in the financial markets. At the time of this filing, it is impossible to predict the extent to which any worsening or continuation of the pandemic may negatively impact tBTQ's business, liquidity, capital resources and financial results.

*Dependence on Key Personnel*

The success of BTQ will, in part, be dependent upon the skill, judgment, industry relationships and expertise of the Board and management. The loss of a director or key management personnel may materially and adversely affect the business of BTQ. There can be no assurance that these individuals will continue to be employed by, or remain involved with, BTQ for a particular period of time.

*Market Risk for Securities*

There can be no assurance that an active trading market for BTQ's shares will be sustained. The market price for the Company's Common Shares may be subject to wide fluctuations. Factors such as government regulation, price fluctuations, share price movements of peer companies and competitors, as well as overall market movements, may have a significant impact on the market price of BTQ's securities. The stock market has from time to time experienced extreme price and volume fluctuations, which have often been unrelated to the operating performance of particular companies. Market forces may render it difficult or impossible for BTQ to secure purchasers to purchase its securities at a price which will not lead to severe dilution to existing shareholders, or at all. In addition, shareholders may realize less than the original amount invested on dispositions of their Common Shares during periods of such market price decline.

*Foreign Exchange Risk*

The Company is a Canadian company, and most of its expenses and fundraising is done in Canadian dollars, however, its operations are predominantly denominated in U.S. dollars. As a result, the Company is subject to foreign exchange risks relating to the relative value of the U.S. dollar as compared to the Canadian dollar. A decline in the U.S. dollar could result in a decrease in the real value of the Company's revenues and adversely impact financial performance.

*Tax*

No assurance can be given that new taxation rules will not be enacted or existing rules will not be applied in a manner which could result in BTQ being subject to additional taxation or which could otherwise have a material adverse effect on BTQ's results from operations and financial condition.

*Litigation*

BTQ may be subject to litigation arising out of, or related to, its operations. Damages claimed under such litigation may be material, and the outcome of such litigation may materially impact BTQ's operations and the value of its Common Shares. While BTQ expects to assess the merits of any lawsuits and defend such lawsuits accordingly, it may be required to incur significant expense or devote significant financial resources to such defenses. In addition, the adverse publicity surrounding such claims may have a material adverse effect on BTQ's operations and its Common Shares.

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*Investment Risk*

There is no assurance that BTQ will achieve its investment objective. An investment may not earn any positive return and may result in the loss of some or all of the capital invested.

*Ability to Generate Profits*

There can be no assurance that BTQ will generate net profits in future periods. Further, there can be no assurance that BTQ will be cash flow positive in future periods. In the event that BTQ fails to achieve profitability in future periods, the value of the Common Shares may decline. In addition, if BTQ is unable to achieve or maintain positive cash flows, BTQ would be required to seek additional funding, which may not be available on favourable terms, if at all. This risk is a factor which indicates a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.

*Management of Growth*

The Company has recently experienced, and may continue to experience, growth in the scope of its operations. This growth has resulted in increased responsibilities for BTQ's existing personnel, the hiring of additional personnel and, in general, higher levels of operating expenses. In order to manage its current operations and any future growth effectively, BTQ will need to continue to implement and improve its operational, financial and management information systems, as well as hire, manage and retain its employees and maintain its corporate culture including technical and customer service standards. There can be no assurance that BTQ will be able to manage such growth effectively or that its management, personnel or systems will be adequate to support BTQ's operations.

*Reliance on Key Personnel*

BTQ's future growth and its ability to develop depend, to a significant extent, on its ability to attract and retain highly qualified personnel. The Company will rely on a limited number of key employees, consultants and members of senior management and there is no assurance that BTQ will be able to retain such key employees, consultants and senior management. The loss of one or more of such key employees, consultants or members of senior management, if not replaced, could have a material adverse effect on BTQ's business, financial condition and prospects.

*Dividends*

BTQ does not currently have plans to pay regular dividends on its Common Shares. Any declaration and payment of future dividends to holders of Common Shares will be at the sole discretion of BTQ Board and will depend on many factors, including the financial condition, earnings, capital requirements, level of indebtedness, statutory and contractual restrictions applying to the payment of dividends and other considerations of BTQ that BTQ Board deems relevant. Shareholders of BTQ may not receive funds without selling their Common Shares.

**Business and Industry Risks**

*Regulatory Risks.*

Due to their global nature, blockchain-related technologies and encryption-related technologies are subject to regulatory fragmentation due to different treatment depending on jurisdiction. Certain governments have categorized certain blockchain technologies as illegal, while others have embraced their utility and have approved them for trade. Ongoing and/or future regulatory actions may have a substantial impact on BTQ's business operations.

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The activities of the Company may be subject to regulation by governmental authorities. Achievement of the Company's business objectives are contingent, in part, upon compliance with regulatory requirements enacted by these governmental authorities and obtaining all regulatory approvals, where necessary, for the sale of its products. The Company cannot predict the time required to secure all appropriate regulatory approvals for its products, or the extent of testing and documentation that may be required by governmental authorities. Any delays in obtaining, or failure to obtain regulatory approvals would significantly delay the development of markets and products and could have a material adverse effect on the business, results of operations and financial condition of the Company. The effect of future regulatory change could materially and adversely affect the Company.

*Reliance on Internally & Externally Built Software, Data and Intellectual Property*

BTQ's business is dependent on internally and externally developed software, data, and intellectual property. Its operations may be severely and adversely affected by the malfunction of such technology.

Failure to protect the Company's intellectual property could harm its ability to compete effectively. The Company is highly dependent on its ability to protect its proprietary technology. The Company intends to rely on a combination of copyright, trademark and trade secret laws, as well as non-disclosure agreements and other contractual provisions to establish and maintain its proprietary rights. The Company intends to protect its rights vigorously. However, there can be no assurance that these measures will, in all cases, be successful. Enforcement of the Company's intellectual property rights may be difficult, particularly in some nations outside of North America in which the Company may seek to market its products. While U.S. and Canadian copyright laws, international conventions and international treaties may provide meaningful protection against unauthorized duplication of software, the laws of some foreign jurisdictions may not protect proprietary rights to the same extent as the laws of Canada or of the United States. The absence of internationally harmonized intellectual property laws makes it more difficult to ensure consistent protection of the Company's proprietary rights. Software piracy has been, and is expected to be, a persistent problem for the software industry, and piracy of the Company's products represents a loss of revenue to the Company. Despite the precautions the Company may take, unauthorized third parties, including its competitors, may be able to: (i) copy certain portions of its products; or (ii) reverse engineer or obtain and use information that the Company regards as proprietary. Also, the Company's competitors could independently develop technologies that are perceived to be substantially equivalent or superior to the Company's technologies. The Company's competitive position may be materially adversely affected by its possible inability to effectively protect its intellectual property.

*Banks Accounts and Services*

A number of companies that provide blockchain-related services have been unable to find banks that are willing to provide them with bank accounts and banking services. Similarly, a number of such companies have had their existing bank accounts closed by their banks. Banks may refuse to provide bank accounts and other banking services to blockchain-related companies, or companies that accept digital assets, for a number of reasons, such as perceived compliance risks or costs.

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*Insurance*

BTQ intends to insure its operations in accordance with technology industry practice. However, given the novelty of digital assets and associated businesses, such insurance may not be available, may be uneconomical for BTQ, or the nature or level may be insufficient to provide adequate insurance cover. The occurrence of an event that is not covered or fully covered by insurance could have a material adverse effect on BTQ.

*Cybersecurity Risks*

Cyber incidents can result from deliberate attacks or unintentional events, and may arise from internal sources (e.g., employees, contractors, service providers, suppliers and operational risks) or external sources (e.g., nation states, terrorists, hacktivists, competitors and acts of nature). Cyber incidents include unauthorized access to information systems and data (e.g., through hacking or malicious software) for purposes of misappropriating or corrupting data or causing operational disruption. Cyber incidents also may be caused in a manner that does not require unauthorized access, such as causing denial-of-service attacks on websites (e.g., efforts to make network services unavailable to intended users). A cyber incident that affects BTQ might cause disruptions and adversely affect its business operations, and might also result in violations of applicable law (e.g., personal information protection laws), each of which might result in potentially significant financial losses and liabilities, regulatory fines and penalties, reputational harm, and reimbursement and other compensation costs. In addition, substantial costs might be incurred to investigate, remediate and prevent cyber incidents.

*Enforcement of Judgments Against Foreign Persons*

BTQ was incorporated under the Personen- and Gesellschaftsrecht in the Principality of Liechtenstein, and most of its operations are currently located in Liechtenstein and Taipei. Investors should be aware that some of the directors and officers of BTQ will be located outside of Canada and, as a result, it may be difficult to enforce a Canadian court judgment based upon the civil liability provisions of Canadian securities laws against BTQ or any of these persons in a Canadian or Liechtenstein court, or to affect service of process upon these persons in Canada. All or a substantial portion of the assets of these persons are likely to be located outside of Canada and, as a result, it may not be possible to satisfy a judgment against such persons in Canada or to enforce a judgment obtained in Canadian courts against such persons outside of Canada. Also, if Canadian law is found to be applicable to a claim which the Liechtenstein or Taipei court can and is prepared to hear, the content of applicable Canadian law must be proved as a fact by expert witnesses, which can be a time-consuming and costly process. If proceedings were to be brought in Liechtenstein or Taipei, all procedural matters may be required to be governed by Liechtenstein or Taipei law. Additionally, it may be difficult for an investor, or any other person or entity, to assert Canadian securities law claims in original actions instituted in Liechtenstein or Taipei.

**DIVIDENDS**

The Company has not declared or paid any cash dividends on its securities since the completion of the Transaction. The Company currently intends to retain any future earnings to fund the development and growth of its business and/or to pay down debt and do not currently anticipate paying dividends on the subordinate voting shares. Any determination to pay dividends in the future will be at the discretion of the Board and will depend on many factors, including, among others, the Company's financial condition, current and anticipated cash requirements, contractual restrictions and financing agreement covenants, solvency tests imposed by applicable corporate law and other factors that the Board may deem relevant.

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**DESCRIPTION OF CAPITAL STRUCTURE**

**Common Shares**

The Company is authorized to issue an unlimited number of Common Shares, of which there are 124,203,879 issued and outstanding as of the date of this AIF. Each Common Share entitles the holder thereof to one vote per Common Share at meetings of the shareholders of the Company, to receive dividends if, as and when declared by the board of directors of the Company and to receive *pro rata* the remaining property and assets of the Company upon its dissolution or winding-up. Shareholders have no pre-emptive rights, subscription or conversion rights.

All Common Shares are of the same class with equal rights and privileges. Shares are not subject to future calls or assessments. The Corporation may issue additional Shares and options therefore from time to time on terms and conditions acceptable to the directors.

**Warrants**

As at the date of this AIF, the Company has 232,936 Common Share purchase warrants outstanding, exercisable to purchase Common Shares for $0.40 per Common Share until February 17, 2025.

**Options**

The Company has a "rolling" long-term omnibus equity incentive plan ("**Omnibus Plan**"), which was recently reapproved by shareholders at the Company's 2023 annual general meeting held on August 30, 2023. The Omnibus Plan provides flexibility to the Company to grant equity-based incentive awards in the form of the Company's options ("**Options**"), restricted share units ("**RSUs**"), preferred shared units and deferred share units.

the Omnibus Plan provides that the aggregate maximum number of the outstanding common shares of the Company that may be issued upon the exercise or settlement of awards granted under the Omnibus Plan shall not exceed 10% of the issued and outstanding common shares from time to time. The aggregate number of common shares (a) issuable to insiders at any time (under all of the Company's security-based compensation arrangements) cannot exceed 10% of the issued and outstanding common shares and (b) issued to insiders within any one-year period (under all of the Company's security-based compensation arrangements) cannot exceed 10% of the issued and outstanding common shares. All directors, employees and consultants are eligible to participate in the Omnibus Plan. The extent to which any such individual is entitled to receive a grant of an award pursuant to the Omnibus Plan will be determined in the sole and absolute discretion of the Plan Administrator. Additional information can be found in the Company's Omnibus which is available on SEDAR+.

As of the date of this AIF, the Company has 7,910,000 Options outstanding under the Omnibus Plan and 4,510,888 Options remain available for grant.

An Option entitles a holder thereof to purchase a prescribed number of Common Shares at an exercise price set at the time of the grant. The Plan Administrator will have the authority to determine the vesting terms applicable to grants of Options. Once an Option becomes vested, it shall remain vested and shall be exercisable until expiration or termination of the Option, unless otherwise specified by the Plan Administrator, or as otherwise set forth in any written employment agreement, award agreement or other written agreement between the Company or a subsidiary of the Company and the participant.

The options are more fully described in the Company's Omnibus which is available on SEDAR+.

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**Restricted Share Units**

As of the date of this AIF, the Company has 1,235,000 restricted share units outstanding under the Omnibus Plan. An RSU is a unit equivalent in value to a common share credited by means of a bookkeeping entry in the books of the which entitles the holder to receive one common share (or the value thereof) for each RSU after a specified vesting period. Upon settlement, holders will redeem each vested RSU for the following at the election of such holder but subject to the approval of the Plan Administrator: (a) one fully paid and non-assessable common share in respect of each vested RSU, (b) a cash payment or (c) a combination of common shares and cash. The RSUs are more fully described in the Company's Omnibus Plan which is available on SEDAR+.

**MARKET FOR SECURITIES**

**Trading Price and Volume**

The Common Shares are listed and posted for trading on (i) the Cboe Canada exchange under the symbol "BTQ"; (ii) the OTCQB Market under the symbol "BTQQF"; and (iii) the Frankfurt Stock Exchange under the symbol "NG3".

The following table sets forth the reported closing high and low prices and the aggregate volume of trading of Common Shares on Cboe Canada from February 21, 2023 (the date of their initial trading) up to the date of this AIF:

*Share Price in C$* <br>

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| | | | |
|:---|:---|:---|:---|
| **Date** | **High** | **Low** | **Average Daily**<br>**Volume** |
| February 21 -<br>February 30, 2023 | 0.8 | 0.45 | 68853 |
| March 2023 | 0.53 | 0.35 | 33090 |
| April 2023 | 0.46 | 0.34 | 30751 |
| May 2023 | 0.65 | 0.45 | 98930 |
| June 2023 | 0.75 | 0.45 | 165264 |
| July 2023 | 0.80 | 0.55 | 67128 |
| August 2023 | 0.66 | 0.55 | 35323 |
| September 2023 | 0.57 | 0.45 | 72677 |
| October 2023 | 0.60 | 0.42 | 45043 |
| November 2023 | 0.435 | 0.38 | 29203 |
| December 2023 | 0.82 | 0.39 | 101886 |

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**Prior Sales**

The following table sets for the details regarding all issuances of the Company's securities that are outstanding but not listed or quoted on a marketplace, including issuances of all securities convertible or exchangeable into shares of the Company, during the most recently completed financial year:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Date of**<br>**Issuance** | **Type of**<br>**Security**<br>**Issued** | **Number of**<br>**Securities** | **Issue /**<br>**Exercise**<br>**Price** | **Reason for Issuance** |
| February<br>17, 2022 | Subscription<br>Receipts | 18001250 | $0.40<br>(Issue<br>Price) | Issued pursuant to subscription receipts for private placement offering in connection with Transaction. |
| February<br>17, 2022 | Stock<br>Options | 6635000 | $0.40<br>(Strike<br>Price) | Stock options issued to company employees and consultants in conjunction with the public listing |
| March 2,<br>2023 | Stock<br>Options<br>and<br>Restricted<br>Stock<br>Units | 200000 | $0.53<br>(Strike<br>Price for<br>Options) | Compensation for consultant |
| March 10,<br>2023 | Stock<br>Options | 500000 | $0.43 | Stock options issued to key employee |
| April 11,<br>2023 | Stock<br>Options | 500000 | $0.40 | Stock options issued to consultant |
| April 12,<br>2023 | Restricted<br>Stock<br>Units | 2100100 | n.a. | Restricted stock units issued for various consultant |
| May 18,<br>2023 | Stock<br>Options<br>and<br>Restricted<br>Stock<br>Units | 430000 | $0.45<br>(Strike<br>Price for<br>Options) | Part of compensation package for Chief Financial Officer |
| June 9,<br>2023 | Stock<br>Options | 60000 | $0.65 | Stock options issued to consultant |
| June 22,<br>2023 | Stock<br>Options | 150000 | $0.64 | Stock options issued to a key employee and a consultant |
| September<br>5, 2023 | Stock<br>Options | 100000 | $0.57 | Stock options issued to a key employee |
| October 6,<br>2023 | Restricted<br>Stock<br>Units | 100000 | n.a. | Restricted stock units issued to a consultant |

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**ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL**

**RESTRICTIONS ON TRANSFER**

The Common Shares that are subject to escrow or contractual restrictions and the percentage of our outstanding Common Shares represented by such Common Shares, are set out below.

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| | |
|:---|:---|
| **Designation of Class** | **Percentage of Class** |
| Common Shares11312500<sup>(1)</sup> | 9.33% |

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(1) These Common Shares may not be sold, transferred, hypothecated or otherwise traded until February 21, 2026.

**DIRECTORS AND OFFICERS**

**Name, Occupation and Security Holdings**

The following table sets out, as of the date of this AIF, the names of the directors and officers of the Company, the province or state, and country of residence of each such director and officer, their respective positions and offices held with the Company and their principal occupations during the last five years. The term of office of each of the directors expires at the next annual general meeting of shareholders or until their successor is elected or appointed.

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| | | |
|:---|:---|:---|
| **Name, Province**<br>**and Country of**<br>**Residence and**<br>**Position Held** | **Date Elected or**<br>**Appointed**<br>| **Principal Occupations During Last Five Years** |
| **Olivier Roussy**<br>**Newton**<br>*Zug, Switzerland*<br>Chief Executive<br>Officer and<br>Director | February 17, 2023 | Entrepreneur; President of EV Technology Group; Founder of Latent Capital; Co-Founder of DEFI Technologies; former director of Hive Blockchain Technologies Ltd. |
| **Lonny Wong**<br>*Vancouver,*<br>*Canada*<br>Chief Financial<br>Officer | May 18, 2023 | Partner at Saturna Group Chartered Professional Accountants LLP, a boutique firm located in Vancouver, BC |

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| | | |
|:---|:---|:---|
| **Name, Province**<br>**and Country of**<br>**Residence and**<br>**Position Held** | **Date Elected or**<br>**Appointed** | **Principal Occupations During Last Five Years** |
| **Nicolas Roussy Newton**<br>*Taipei City, Taiwan*<br>Chief Operating Officer and<br>Director | February 17, 2023 | Entrepreneur; Investor |
| **Peter Lavelle**<br>*Taipei, Taiwan*<br>Corporate Secretary and<br>Chief Legal Officer | February 17, 2023 | Legal counsel for BTQ AG; associate lawyer with Winkler Partners from November, 2017 to November, 2020 |
| **Ming-Yang Chih**<br>*Taipei, Taiwan*<br>Chief Strategy Officer | February 17, 2023 | Chief Executive Officer of Chelpis Co., Ltd. |
| **Po-Chun Kuo**<br>*Taipei, Taiwan*<br>Chief Technical<br>Officer | February 17, 2023 | Various positions with BTQ, including Chief Technical Officer, Head Cryptographer and Crypto Engineer, 2021 to Present; Consultant |
| **Michael Resendes**<br> *Toronto, Ontario*<br> Director****  | February 17, 2023 | Regional Controller at the Dilwari Group of Companies; director of Sonora Gold & Silver Corp. |
| **Johan**<br>**Wattenstrom**<br>*Zug, Switzerland*<br>Director | February 17, 2023 | Chief Executive Officer of Nortide Capital AG |
| **Kevin Mulhern**<br>*Toronto, Ontario*<br>Director | February 17, 2023 | Vice President of Business Operations of Broadridge; formerly CEO and Founder of Advisor Stream Ltd. |

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As of the date of this AIF, all directors and executive officers of BTQ, as a group, beneficially own, directly or indirectly, or exercise control or direction over, 44,678,000 Common Shares, representing 36.19% of all outstanding Common Shares.

**Biographies**

*Olivier Roussy Newton - Chief Executive Officer; Director.* Mr. Roussy Newton founded and led HIVE Blockchain Technologies, the first crypto mining company to list publicly in 2017. He is a partner at Latent Capital, an investment fund focused on quantum computing, financial technology and bioinformatics. He is also a co-founder and President of EV Technology Group Ltd. (EVT). Mr. Roussy Newton co-founded DeFi Technologies Inc, which bridges the gap between centralized and decentralized finance. Defi Technologies is listed in Canada under the ticker NEO: DEFI. He is also a founder and director of Valour Inc. He is currently the managing director of BTQ AG.

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*Lonny Wong - Chief Financial Officer.* Mr. Wong is a partner of Saturna Group Chartered Professional Accountants LLP. Saturna Group is a boutique firm located in Vancouver, BC, which specializes in providing auditing, assurance, financial reporting, and consulting services to public companies and companies looking to go public. He has over 25 years of public practice experience. Prior to co-founding Saturna Group in 2008, he worked at an independent mid-sized firm in Vancouver, BC. He holds a Bachelor of Arts from the University of British Columbia and is a Chartered Professional Accountant.

*Nicolas Roussy Newton - Chief Operating Officer and Director.* Mr. Roussy Newton is a serial entrepreneur, and is a director of Novus Paradigm, which incubates new companies working on quantum- related technologies.

*Peter Lavelle - Corporate Secretary and Chief Legal Officer.* Mr. Lavelle is a Canadian lawyer with experience working in corporate and intellectual property law in Canada, China, and Taiwan. He is currently based in Taipei, Taiwan.

*Ming-Yang Chih - Chief Strategy Officer.* Mr. Chih is also the founder and CEO of Chelpis Co., Ltd., a Taiwan-based company that is focused on post-quantum cryptography. He has worked on secure product development for over 10 years in fields including healthcare, blockchain, the internet of things, and mobile applications.

*Po-Chun Kuo - Chief Technology Officer.* Mr. Kuo holds a PhD in Computer Science from National Taiwan University. He has extensive experience working as a consultant with various tech companies in Taiwan, as well as at Academia Sinica.

*Michael Resendes - Director.* Mr. Resendes holds a designation as a Chartered Professional Accountant with CPABC and a bachelor of accounting from the British Columbia Institute of Technology. Mr. Resendes has over 20 years of experience in accounting, primarily in the automotive finance industry as a controller and assistant manager. Since September, 2017, Mr. Resendes has been the Regional Controller at the Dilwari Group of Companies.

*Johan Wattenstrom - Director.* Mr. Wattenstrom has over 25 years of experience in the financial service industry. He has founded and exited two companies within the digital asset space and also founded and built several businesses within the proprietary trading, market making, financial products and brokerage spaces. He is the current CEO and co-founder of Nortide Capital AG, an investment and proprietary trading firm that is active across all asset classes, and is the COO and co-founder of Valour Inc., a technology company focused on expanding investor access to decentralised technologies. Within the traditional equity space, he has built three proprietary trading businesses, which included trading systems and development of risk systems, as well as establishing prime brokerage setup and best practice accounting and legislative frameworks. Mr. Wattenstrom has a bachelor's degree of business administration and economics with an emphasis on corporate financing and derivatives from Stockholm University.

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*Kevin Mulhern.* Mr. Mulhern is an entrepreneur who brings a deep background in the financial service industry. He has worked for both large and boutique wealth management firms, and in new media, big data, and web-based services. After witnessing a growing need for marketing automation, Mr. Mulhern brought together a team of like-minded technology and experienced industry experts in 2013 to launch the award- winning AdvisorStream digital marketing platform, which automates millions of personalised communications each week for Advisors across the US, Canada, and the UK. Mr. Mulhern has a Bachelor's degree from the University of Western Ontario.

**Cease Trade Orders, Bankruptcies, Penalties or Sanctions**

*Cease Trade Orders*

Other than the Company's current cease trade order or as otherwise disclosed herein, to the best of the Company's knowledge, no director, executive officer or Promoter of the Company is, or during the ten years preceding the date of this AIF has been, a director, chief executive officer or chief financial officer of any company that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) was the subject of a cease trade or similar order that denied the relevant company access to any exemptions under applicable securities legislation that was in effect for a period of more than 30 consecutive days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold the assets of that person.

*Penalties or Sanctions*

None of the directors, officers, Insiders or Promoters of the Company or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company has been subject to any penalties or sanctions imposed by a court relating to securities legislation or by any securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or has been subject to any other penalties or sanctions imposed by a court or regulatory body or self-regulatory authority that would be likely to be considered important to a reasonable investor making an investment decision.

*Personal Bankruptcies*

None of the directors, officers, Insiders or Promoters of the Company or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company is, or within the 10 years before the date of this AIF, has been declared bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or has been subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold their assets.

**Conflicts of Interest**

There may from time to time be potential conflicts of interest to which some of the directors, officers, Insiders and Promoters of the Company will be subject in connection with the operations of the Company. Some of the individuals who are directors or officers of the Company are also directors and/or officers of other reporting and non-reporting issuers. Conflicts, if any, will be subject to the procedures and remedies provided under applicable laws. In particular, in the event that such a conflict of interest arises at a meeting of the Company's directors, a director who has such a conflict will abstain from voting for or against the approval of such participation or such terms, unless otherwise permitted by applicable laws. In accordance with applicable laws, the directors of the Company are required to act honestly, in good faith and in the best interests of the Company.

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To the best of the Company's knowledge, there are no known existing or potential conflicts of interest among the Company, its Promoters, directors and officers or other members of management of the Company or of any proposed Promoter, director, officer or other member of management as a result of their outside business interests except that certain of the directors and officers serve as directors and officers of other companies, and therefore it is possible that a conflict may arise between their duties to the Company and their duties as a director or officer of such other companies.

**AUDIT COMMITTEE DISCLOSURE**

**Audit Committee**

The Audit Committee consists of individuals who are "independent" and "financially literate" within the meaning of National Instrument 52-110 - *Audit Committees*. The Company's Audit Committee is comprised of Michael Resendes, Kevin Mulhern, and Johan Wattenstrom. Each member of the Audit Committee has an understanding of the accounting principles used to prepare financial statements and varied experience as to the general application of such accounting principles, as well as an understanding of the internal controls and procedures necessary for financial reporting. For additional details regarding the relevant education and experience of each member of the Audit Committee, see the relevant biographical experiences for each member under the heading "Directors and Officers - Name, Occupation and Security Holdings" in this AIF.

The Board has adopted a written charter for the Audit Committee which sets out the Audit Committee's role of providing oversight of the Company's financial management and of the design and implementation of an effective system of internal financial controls as well as to review and report to the Board on the integrity of the financial statements of the Company, its subsidiaries and associated companies. This includes helping directors meet their responsibilities, facilitating better communication between directors and the external auditor, enhancing the independence of the external auditor, increasing the credibility and objectivity of financial reports and strengthening the role of the directors by facilitating in-depth discussions among directors, management and the external auditor.

The mandate of the Audit Committee is set out in the written charter of the Audit Committee. A copy of the Audit Committee charter is included as Appendix "A" hereto.

**Audit Committee Oversight**

At no time since the commencement of the Company's most recently completed financial year was a recommendation of the Audit Committee to nominate or compensate an external auditor not adopted by the Board.

**Pre-Approval Policies and Procedures**

The Audit Committee has adopted specific policies and procedures for the engagement of non-audit services as set out in the Audit Committee charter of the Company. The full text of the Company's Audit Committee charter is disclosed in Appendix "A" to this AIF.

**External Auditor Service Fees**

*Audit Fees*

BDO Canada LLP has issued progress billings of $245,00 to date for the year ended December 31, 2023 for audit fees.

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BTQ AG's former external auditor, BDO (Liechtenstein) AG, billed BTQ AG US$21,988 for the year ended December 31, 2022 for audit fees.

*Audit-Related Fees*

BDO Canada LLP billed the Company $nil for the year ended December 31, 2023 for assurance and related services related to the performance of the audit or review of the Company's financial statements, which are not included in audit fees.

BDO (Liechtenstein) AG billed BTQ AG $nil for the year ended December 31, 2022 for assurance and related services related to the performance of the audit or review of BTQ AG's financial statements, which are not included in audit fees.

*Tax Fees*

The Company's external auditor, BDO Canada LLP, billed the Company $nil for the year ended December 31, 2023 for tax fees.

BTQ AG's former external auditor, BDO (Liechtenstein) AG, billed BTQ AG $nil for the year ended December 31, 2022 for tax fees.

*All Other Fees*

No other fees were charged by the external auditors for the years ended December 31, 2023 and 2022.

**PROMOTERS**

No person is or has been within the two financial years immediately preceding the date hereof, or during the current financial year, a Promoter of the Company.

**INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS**

Other than as disclosed elsewhere in this AIF, no director, executive officer or principal shareholder of the Company, or any associate or affiliate of the foregoing, has had any material interest, direct or indirect, in any transaction within the three most recently completed financial years or during the current financial year prior to the date of this AIF that has materially affected or will materially affect the Company.

Olivier Roussy Newton and Nicolas Roussy Newton, directors and executive officers of the Company, are shareholders of ZKP Corp., a party to the Software Consulting Agreement. For more information on the Software Consulting Agreement, see *"General Development of the Business - Three Year History of the Company - From Transaction to Today"*.

**LEGAL PROCEEDINGS AND REGULATORY ACTIONS**

There are no actual or pending legal proceedings material to the Company that the Company is or was a party to, or that any of its property is or was the subject of, since the beginning of the Company's most recently completed financial year. In addition, the Company is not currently aware of any such legal proceedings being contemplated.

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**AUDITORS, TRANSFER AGENT AND REGISTRAR**

The auditor of the Company is BDO Canada LLP.

The Company's register and transfer agent is Computershare Investor Services Inc. at its office located at 3rd Floor, 510 Burrard Street, Vancouver, British Columbia, V6C 3B9.

**MATERIAL CONTRACTS**

Except as described herein, the Company has not entered into any material contracts in the past two years from the date hereof, other than contracts entered into in the ordinary course of business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The R&D Collaboration Agreement between BTQ Technologies Corp. and Hon Hai Precision Industry Co., Ltd., entered into on November 1, 2023, according to which BTQ will secure funded research collaboration arrangements at Canadian universities on behalf of Hon Hai, and for which Hon Hai will provide funding of 4,680,000 TWD.

Except as described herein, none of the subsidiaries of the Company have entered into any material contracts within the two years before the date of this AIF, other than contracts entered into in the ordinary course of business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Mixed-Signal Crypto Accelerator Technical Service Agreement entered into on March 1, 2022 among BTQ AG and Industrial Technology Research Institute of Taiwan (ITRI), a research institute in Taiwan, which was terminated on November 29, 2023. According to the terms, BTQ AG would pay US$675,000 to ITRI in exchange for ITRI's assistance in developing BTQ's hardware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Research and Collaboration Agreement between BTQ AG and Hon Hai Precision Industry Co., Ltd, entered into on May 1, 2023, according to which Hon Hai paid BTQ 6,000,000 TWD for a collaboration on a submission to NIST's post-quantum cryptography standardization process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Research Collaboration Agreement between BTQ AG and Chelpis Co., Ltd., entered into on July 21, 2022, and which ended on December 21, 2022. This was a collaboration for the development of BTQ's Keelung programming language. According to the contract, BTQ was to pay US$130,000 to Chelpis for its services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Software Consulting Agreement entered into on May 3, 2024, with ZKP Corp., a Delaware corporation, for which the Company will receive $1,000,000 for the use of its proprietary software and the provision of related services. The agreement has a term of one year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The contract research agreement entered into on February 28, 2022 between BTQ AG and Macquarie University located in Australia, under which BTQ would pay 266,928 AUD to conduct a research program using Macquarie faculty members, with BTQ having full ownership of the output intellectual property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Venture Loan Agreement with MEV Trading Inc., a Delaware entity, under which BTQ AG loaned MEV Trading Inc. US$1,000,000. The loan has been repaid in full.

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**INTEREST OF EXPERTS**

The Company's external auditor during the year ended December 31, 2023 was BDO Canada LLP. BDO Canada LLP has advised the Company that it is independent of the Company in accordance with the Code of Professional Conduct of the Chartered Professional Accountants of British Columbia.

**ADDITIONAL INFORMATION**

Additional information relating to the Company may be found under the Company's profile on SEDAR+ at www.sedarplus.ca l

Additional information, including directors' and officers' remuneration and indebtedness, principal holders of securities of the Company and securities authorized for issuance under equity compensation plans, may be found in the Company's Management Information Circular,, which is also available on the Company's profile on SEDAR+ at www.sedarplus.ca.

Additional financial information is provided in the Company's audited annual consolidated financial statements and the management's discussion and analysis for its most recently completed financial year.

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**APPENDIX "A"**

**BTQ TECHNOLOGIES CORP. (the "Company")**

**AUDIT COMMITTEE CHARTER**

**Purpose of the Committee**

The purpose of the audit committee (the "**Audit Committee**") of the directors of the Company (the "**Board**") is to provide an open avenue of communication between management, the Company's independent auditor and the Board and to assist the Board in its oversight of:

• The integrity of the Company's financial statements;

• The Company's compliance with legal and regulatory requirements;

• The qualifications and independence of the auditors of the Company; and

• The performance of the Company's internal audit function and independent auditors.

The Audit Committee will also assist the Board by establishing appropriate procedures for receiving, reviewing and deciding on appropriate action for any and all complaints received relating to accounting, internal accounting controls or auditing matters. The Audit Committee will also accommodate confidential, anonymous submission, of concerns regarding questionable accounting or auditing matters, by submitted by employees of the Company.

**Audit Committee Responsibilities**

The Audit Committee shall:

• Ensure that this Audit Committee Charter is reviewed and kept current and relevant on an annual basis with any changes or adjustments to be adopted by the Board as needed;

• With respect to the independent auditor of the Company: o recommend to the Board, the independent auditor to be appointed for the purpose of preparing and issuing an auditor's report on the annual financial statements of the Company or performing other audit, review or attest services for the Company;

o recommend to the Board the compensation of the independent auditor for those services;

o establish a clear and unambiguous relationship with the independent auditor that establishes that the Audit Committee is responsible to oversee the work of the independent auditor and that the independent auditor while responsible to the shareholders of the Company, will report directly to the Audit Committee.

------

• With respect to the audit process: o meet with the independent auditor, or make other suitable arrangements to review the audit plan with the independent auditor and management in advance of commencement of audit work;

o establish, with management, a reporting process whereby any and all issues that may arise before, during the course of, or after completion of the independent audit process including, but not limited to, disagreements between management and the independent auditor over the accounting treatment or nature of any transaction or valuation of any transaction, asset or liability; or potential weakness or concern, raised by the independent auditor over any aspect of the Company's system of internal controls; or any potential weakness or concern, raised by the independent auditor over any aspect of the process of reporting to shareholders, are reported directly to the Audit Committee as they may arise;

o establish, with the independent auditor, a reporting process whereby any and all issues that may arise before, during the course of, or after completion of the independent audit process including, but not limited to, disagreements between management and the independent auditor over the accounting treatment or nature of any transaction or valuation of any transaction, asset or liability; or potential weakness or concern, raised by the independent auditor over any aspect of the Company's system of internal controls; or any potential weakness or concern, raised by the independent auditor over any aspect of the process of reporting to shareholders, are reported directly to the Audit Committee as they may arise;

o meet with the independent auditor and management to review all material audit findings and resolve any and all areas or issues in dispute between the independent auditor and management to the satisfaction of the Audit Committee;

o report to the Board on the completion of the audit process prior to the release of resulting financial statements to the public.

• review the Company's financial statements and MD&A both for the annual report and all interims reports and press releases prior to release of such information to the public;

• ensure adequate procedures are established over the review of any public disclosure of any financial information extracted or derived from the Company's financial statements and periodically review such procedures to ensure their continuing adequacy;

• review any and all proposed non-audit services to be supplied to the Company by the independent auditor and approve any such services and terms in advance of commencement of any such services; or establish appropriate procedures where a designate of the Audit Committee can approve such services in advance; or establish a procedure where such services would be considered to fit the definition of 'De Minimus' non-audit services and subject to pre-approval by the Audit Committee on the condition that any such services are promptly reported by both management and the independent auditor directly to the Audit Committee;

------

• establish effective procedures for the receipt, review and deciding on appropriate action for any and all complaints received relating to accounting, internal accounting controls or auditing matters; and to accommodate confidential, anonymous submission, of concerns regarding questionable accounting or auditing matters, by employees of the Company.

**Responsibilities of the Audit Committee Chair**

The fundamental responsibility of the Audit Committee Chair is to be responsible for the management and effective performance of the Audit Committee and provide leadership to the Audit Committee in fulfilling its mandate and any other matters delegated to it by the Board. To that end, the Audit Committee Chair's responsibilities shall include:

• Working with the Chairman of the Board, the Chief Executive Officer and the Secretary to establish the frequency of Audit Committee meetings and the agendas for meetings;

• Providing leadership to the Audit Committee and presiding over Audit Committee meetings;

• Ensuring that the Audit Committee is properly organized and effectively discharges its duties;

• Facilitating the flow of information to and from the Audit Committee and fostering an environment in which Audit Committee members may ask questions and express their viewpoints;

• Reporting to the Board with respect to the significant activities of the Audit Committee and any recommendations of the Audit Committee;

• Leading the Audit Committee in annually reviewing and assessing the adequacy of its mandate and evaluating its effectiveness in fulfilling its mandate;

• Taking such other steps as are reasonably required to ensure that the Audit Committee carries out its mandate; and,

• Reporting to all other members of the Board any circumstances or instances where the Audit Committee has or appears to be likely to fail in carrying out its mandate.

**Authority of the Audit Committee**

• By the adoption of this Charter, the Audit Committee is authorized to:

• Select the independent auditor to be recommended to the Board for appointment and to negotiate fees for audit services with the independent auditor;

• Engage independent counsel and/or other advisors, as considered necessary by the Audit Committee to discharge its responsibilities hereunder;

• To determine fees payable for such services and allocate funds for payment of these fees;

------

• Communicate directly with any members of staff, management and with independent auditors in relation to the activities of the Audit Committee;

• Report regularly to the Board;

• Review and assess its mandate and recommending any proposed changes to the Corporate Governance and Nominating Audit Committee of the Board; and

• Evaluate the functioning of the Audit Committee on an annual basis.

**Composition**

The Audit Committee shall consist of at least three members of the Board, each of whom shall be appointed by the Board annually, and as vacancies arise. If an appointment of the members of the Audit Committee is not made as prescribed, the members shall continue as such until their successors are appointed.

Each member of the Audit Committee shall be financially literate or shall take reasonable effort to become financially literate upon appointment to the Audit Committee.

Any member of the Audit Committee may be removed or replaced at any time by the Board and shall cease to be a member upon ceasing to be a Director.

A majority of the members of the Audit Committee shall be directors whom the Board has determined are independent, taking into account the applicable rules and regulations of securities regulatory authorities and/or stock exchanges.

The Chairman of the Audit Committee shall be appointed from time to time by the Board and shall be an independent director and shall also be financially literate at the time of the appointment.

**Meetings**

The time and place of the meetings of the Audit Committee, the calling of meetings and the procedure in all things at such meetings shall be determined by the Chair of the Audit Committee.

Meetings of the Audit Committee may be conducted in person or via telephone or teleconference call, at the discretion of the Audit Committee Chair.

The Audit Committee shall hold regular in-camera meetings.

------

## Exhibit 99.19

------

![](exhibit99-19x1x1.jpg)

**BTQ Files Audited Annual Financial Statements**

**Vancouver, British Columbia, June 4, 2024 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF) has filed its audited annual financial statements for the year ended December 31, 2023 and associated management's discussion and analysis and certifications, along with its annual information financial form for the year ended December 31, 2023 (collectively, the "Annual Filings"). The Company filed the Annual Filings on June 4, 2024, which can be found on the Company's SEDAR page

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

*Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes, but is not limited to, statements regarding the timing, review, completion and filing of the Annual Filings, and duration of the MCTO; business goals and objectives of the Company, and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.*

*Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: the Company may not complete its audit and file the Annual Filings as currently anticipated, or at all; the Company will be subject to a general cease trade order in the event that the Annual Filings are not completed and filed; and other related risks as more fully set out in the documents disclosed under the Company's filings at www.sedarplus.ca.*

------

*The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to complete and file the Annual Filings. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.*

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## Exhibit 99.20

------

![](exhibit99-20x1x1.jpg)

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Financial Statements

Three Months Ended March 31, 2024 and 2023

(Expressed in Canadian dollars)

------

**NOTICE OF NO AUDITOR REVIEW OF**

**CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the condensed interim consolidated financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited condensed interim consolidated financial statements have been prepared by and are the responsibility of management.

The Company's independent auditor has not performed a review of these financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of condensed interim consolidated financial statements by an entity's auditor.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Financial Position <br>(expressed in Canadian dollars

(unaudited)

---

| |
|:---|
| Assets |
| Current assets |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investment (Note 8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other receivables (Note 14) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and deposits |
| Total current assets |
| Non-current assets |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment (Note 4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use asset (Note 5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments (Note 7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits |
| Total non-current assets |
| Total assets |
| Liabilities and shareholders' equity |
| Current liabilities |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities (Note 14) |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate taxes payable |
| &nbsp;&nbsp;&nbsp;&nbsp;Other payable |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease obligation (Note 9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Due to related parties (Note 14) |
| Total liabilities |
| Shareholders' equity |
| &nbsp;&nbsp;&nbsp;&nbsp;Share capital (Notes 3 and 10) |
| &nbsp;&nbsp;&nbsp;&nbsp;Options reserve (Notes 3 and 11) |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrants reserve (Note 10) |
| &nbsp;&nbsp;&nbsp;&nbsp;RSUs reserve (Note 13) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deficit) |
| Total shareholders' equity |
| Total liabilities and shareholders' equity |
| Nature of operations and going concern (Note 1) |
| Commitment (Note 18) |

---

Approved and authorized for issuance on behalf of the Board on June 7, 2024:

<u> *"*Olivier Roussy Newton*"* </u> Director <u> *"Michael Resendes"* </u> Director

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss <br>(expressed in Canadian dollars)

(unaudited)

---

| |
|:---|
| Expenses |
| &nbsp;&nbsp;Consulting fees (Note 14) |
| &nbsp;&nbsp;Depreciation (Notes 4 and 5) |
| &nbsp;&nbsp;General and administrative (Note 20) |
| &nbsp;&nbsp;Marketing and promotion (Note 14) |
| &nbsp;&nbsp;Professional fees (Note 14) |
| &nbsp;&nbsp;Research and development (Notes 14) |
| &nbsp;&nbsp;Share-based compensation (Notes 11, 13, and 14) |
| &nbsp;&nbsp;Transfer agent and regulatory fees |
| &nbsp;&nbsp;Wages and benefits (Note 14) |
| Total expenses |
| Loss before other income (expense) |
| Other income (expense) |
| &nbsp;&nbsp;Foreign exchange income (loss) |
| &nbsp;&nbsp;Interest income |
| &nbsp;&nbsp;Interest expense (Note 9) |
| &nbsp;&nbsp;Listing costs (Note 3) |
| &nbsp;&nbsp;Transaction costs (Note 3) |
| Total other income (expense) |
| Net loss for the period) |
| Comprehensive loss |
| &nbsp;&nbsp;Foreign currency translation loss) |
| Net loss and comprehensive loss for the period) |
| Loss per share, basic and diluted) |
| Weighted average number of common shares outstanding |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity <br>(expressed in Canadian dollars)

(unaudited)

---

| | | | |
|:---|:---|:---|:---|
|  | Share capital | Share capital |  |
|  |  |  | Warrants |
|  | Number of | Amount | reserve |
|  | shares | $| $|
| Balance, December 31, 2023 | 123193879 | 34317779 | 67386) |
| Shares issued for options exercised | 260000 | 171808) |  |
| Share-based compensation |  |  | -) |
| Shares issued for vested RSU's | 750000 | 456000 | -) |
| Net loss for the period |  |  | -) |
| Balance, March 31, 2024 | 124203879 | 34945587 | 67386) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | Share capital |  |  |
|  | Share capital | Options | Warrants |
|  | Number of | reserve | reserve |
|  | shares | $| $|
| Balance, December 31, 2022 | 92000000 |  | -) |
| Shares of the Company pursuant to reverse takeover | 8747629 |  |  |
| Revaluation of stock options pursuant to reverse takeover |  | 97532 |  |
| Shares issued for cash | 18001250 |  |  |
| Shares issued to finder for the Transaction | 2500000 |  |  |
| Share issuance costs | -) |  | 14632) |
| Fair value of finders' warrants allocated to Transaction costs |  |  | 52754 |
| Share-based compensation |  | 282545 |  |
| Foreign currency translation loss |  |  | -) |
| Net loss for the period |  |  | -) |
| Balance, March 31, 2023 | 121248879 | 380077 | 67386) |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Cash Flows <br>(expressed in Canadian dollars)

(unaudited)

---

| |
|:---|
| Operating activities |
| Net loss for the period) |
| Items not involving cash: |
| &nbsp;&nbsp;Depreciation and amortization |
| &nbsp;&nbsp;Foreign exchange translation loss |
| &nbsp;&nbsp;Listing costs |
| &nbsp;&nbsp;Interest expense |
| &nbsp;&nbsp;Share-based compensation) |
| &nbsp;&nbsp;Transaction costs |
| Changes in non-cash operating working capital: |
| &nbsp;&nbsp;&nbsp;Other receivables) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and deposits) |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities) |
| &nbsp;&nbsp;&nbsp;Other payable |
| Net cash used in operating activities) |
| Investing activities |
| &nbsp;&nbsp;&nbsp;Redemption of short-term investment |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment) |
| &nbsp;&nbsp;&nbsp;Purchase of investments) |
| &nbsp;&nbsp;&nbsp;Cash acquired in reverse takeover |
| Net cash provided by (used in) investing activities |
| Financing activities |
| &nbsp;&nbsp;Repayment of lease obligation) |
| &nbsp;&nbsp;Proceeds from issuance of shares |
| &nbsp;&nbsp;Proceeds from stock options exercised |
| &nbsp;&nbsp;Share issuance costs) |
| Net cash provided by financing activities |
| Effect of foreign exchange rate changes on cash) |
| Change in cash) |
| Cash, beginning of period |
| Cash, end of period |
| Supplemental cash flow information (Note 15) |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three Months Ended March 31, 2024 and 2023<br> (expressed in Canadian dollars) <br>(unaudited)<br>

**1. NATURE OF OPERATIONS AND GOING CONCERN**

BTQ Technologies Corp. (formerly Sonora Gold & Silver Corp.) ("the Company") was incorporated on November 23, 1983 under the Business Corporations Act (British Columbia). The principal activity of the Company is the development of computer-based technology related to post-quantum cryptography, particularly as it applies to blockchain and related technologies, and their protection from the emerging security risk of quantum computing. The Company's head office is located at 16-104 555 Burrard Street, Vancouver, BC, Canada. The Company's common shares trade on Cboe Canada under the ticker symbol "BTQ".

On February 17, 2023, the Company acquired all of the issued and outstanding shares of BTQ AG in exchange for 92,000,000 common shares. This transaction constituted a reverse takeover of the Company by BTQ AG with BTQ AG being identified as the accounting acquirer. As a result, these consolidated financial statements are a continuation of BTQ AG. The Company's results of operations are included from February 17, 2023 onwards, except for share capital which has been retroactively adjusted to reflect the capital of the Company. Refer to Note 3.

These consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. During the three months ended March 31, 2024, the Company has not generated any revenues from operations and has negative cash flow from operations. As at March 31, 2024, the Company has an accumulated deficit of $36,402,725. The Company's ability to continue its operations and to realize its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs. Management is of the opinion that sufficient working capital will be obtained from external financing to meet the Company's liabilities and commitments as they become due, although there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These factors indicate a material uncertainty that may cast significant doubt on the ability of the Company to continue as a going concern. These consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. Such adjustments could be material.

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICIES** 

**Statement of Compliance**

These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") applicable to interim financial information, as outlined in International Accounting Standard ("IAS") 34, "Interim Financial Reporting" and using the accounting policies consistent with those in the audited financial statements as at and for the year ended December 31, 2023.

The condensed interim consolidated financial statements of the Company have been prepared on an accrual basis and are based on historical cost, except for certain financial assets and liabilities that are measured at fair value.

**Basis of Presentation**

These consolidated financial statements have been prepared on a historical cost basis except for certain financial assets and liabilities, which are measured at fair value, as specified by IFRS for each type of asset, liability, income, and expense as set out in the accounting polices below.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three Months Ended March 31, 2024 and 2023<br> (expressed in Canadian dollars) <br>(unaudited)<br>

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING** POLICIES (continued)

**Basis of consolidation**

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, BTQ AG, a company incorporated in the Principality of Liechtenstein.

These consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances are eliminated on consolidation. Control exists where the parent entity has power over the investee and is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Subsidiaries are included in the financial statements from the date control commences until the date control ceases.

**Accounting standards issued but not yet effective**

A number of new standards, and amendments to standards and interpretations, are not yet effective for the period ended March 31, 2024, and have not been early adopted in preparing these consolidated financial statements. These new standards, and amendments to standards and interpretations are either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements.

**3. REVERSE TAKEOVER**

On December 31, 2021 (as amended on April 29, 2022, July 30, 2022, and November 29, 2022), the Company, BTQ AG, and shareholders of BTQ AG entered into an agreement pursuant to which the Company agreed to acquire all of the issued and outstanding shares of BTQ AG (the "Transaction").

The closing of the Transaction occurred on February 17, 2023, at which time the Company issued 92,000,000 common shares in exchange for the issued and outstanding common shares of BTQ AG. The Company consolidated its common shares on a 10:1 basis immediately prior to the closing of the transaction.

As a result of the completion of the Transaction, the former shareholders of BTQ AG acquired 75.88% of the outstanding common shares of the Company, and, for accounting purposes, are considered to have acquired control of the Company. Accordingly, the Transaction constitutes a reverse acquisition of the Company by BTQ AG and has been accounted for as a reverse acquisition transaction in accordance with the guidance provided in IFRS 2, *Share-based Payment* and IFRS 3, *Business Combinations*. As the Company did not qualify as a business prior to the closing of the transaction according to the definition in IFRS 3, this reverse acquisition did not constitute a business combination; rather it was treated as an issuance of shares by BTQ AG for the net assets of the Company. Accordingly, no goodwill was recorded with respect to the Transaction. The Transaction was measured at the fair value of the common shares that BTQ AG would have had to issue to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051, and the fair value of 350,000 stock options of the Company with a fair value of $97,532, to give the shareholders of the Company the same percentage of equity interest in the combined entity that results from the reverse acquisition had it taken the legal form of BTQ AG acquiring the Company. The Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction. The fair value of common shares and stock options issued were estimated based on the Company's financing event which took place concurrently to the reverse takeover transaction at the price of $0.40 per common share. Refer to Note 10. As BTQ AG was deemed to be the acquirer for accounting purposes, its assets, liabilities, and operations since its incorporation on March 26, 2021 are included in these consolidated financial statements at their historical carrying values. The assets, liabilities, and results of operations of the Company are included in these consolidated financial statements from the date acquisition on February 17, 2023.

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**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three Months Ended March 31, 2024 and 2023<br> (expressed in Canadian dollars) <br>(unaudited)<br>

**3. REVERSE TAKEOVER** (continued)

The purchase price is allocated as follows:

---

| |
|:---|
| Fair value of the Company's shares (8,747,629 common shares) |
| Fair value of 350,000 stock options of the Company outstanding |
| Total consideration |
| Less: fair value of identifiable assets acquired and liabilities assumed: |
| Cash |
| Cash held in escrow |
| Receivables |
| Short-term investment |
| Accounts payable and accrued liabilities) |
| Subscription receipts liabilities) |
| Net liabilities assumed) |
| Listing costs |

---

The fair value of stock options of the Company was calculated using the Black-Scholes option pricing model with the following assumptions: volatility of 150%, expected life of 2.1 years, no dividends, no forfeitures, and a risk-free rate of 4.15%.

**4. PROPERTY AND EQUIPMENT**

---

| | | | |
|:---|:---|:---|:---|
|  | IT equipment<br>$| Furniture and<br>equipment<br>$| Total<br>$|
| Cost: |  |  |  |
| Balance, December 31, 2023 and March 31, 2024 | 114782 | 48530 | 163312 |
| Accumulated depreciation: |  |  |  |
| Balance, December 31, 2023 | 51929 | 8563 | 60492 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 4067 | 1058 | 5125 |
| Balance, March 31, 2024 | 55996 | 9621 | 65617 |
| Carrying amounts: |  |  |  |
| As at December 31, 2023 | 62853 | 39967 | 102820 |
| As at March 31, 2024 | 58786 | 38909 | 97695 |

---

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**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three Months Ended March 31, 2024 and 2023<br> (expressed in Canadian dollars) <br>(unaudited)<br>

**5. RIGHT-OF-USE ASSET**

---

| | |
|:---|:---|
|  | $|
| Cost: |  |
| Balance, December 31, 2023 and March 31, 2024 | 184426 |
| Accumulated depreciation: |  |
| Balance, December 31, 2023 | 154521 |
| &nbsp;&nbsp;&nbsp;Additions | 22846 |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation difference | 831 |
| Balance, March 31, 2024 | 178198 |
| Carrying amounts: |  |
| As at December 31, 2023 | 29905 |
| As at March 31, 2024 | 6228 |

---

**6. LOAN RECEIVABLE**

On December 1, 2022, BTQ AG entered into an agreement with MEV Trading Inc. ("MEV"), under which the BTQ AG granted a loan of $1,354,400 (US$1,000,000) which is non-interest bearing, and due on June 30, 2023. In consideration for the loan, MEV issued a warrant to BTQ AG entitling BTQ AG to purchase shares of MEV non-voting stock equal to 10% of the loan amount based on the fully-diluted pre-money valuation of the borrower as determined by the most recent qualified equity financing round before the maturity date or within one year of issuance, whichever occurs earlier (expired on June 30, 2023). The fair value of the warrants issued was determined to be nominal. On August 7, 2023, the Company received repayment of the $1,343,300 (US$1,000,000) loan receivable.

**7. INVESTMENTS**

---

| | |
|:---|:---|
|  | $|
| Balance, December 31, 2023 and March 31, 2024 | 77229 |

---

During the year ended December 31, 2022, the BTQ AG invested $63,915 (US$50,000) in the form of a Simple Agreement for Future Equity ("SAFE") in the Holonym Foundation ("Holonym"), which is a public benefit corporation. The investment is not traded in an active market.

On January 11, 2023, BTQ AG invested $13,314 (US$10,000) in the form of a SAFE into Cysic Inc. The investment is not traded in an active market.

**8. SHORT-TERM INVESTMENT**

The Company has pledged a guaranteed investment certificate ("GIC") as collateral for the Company's credit cards. The GIC earns interest at Prime Rate less 2.7% per annum and has a maturity date of June 6, 2024.

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**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three Months Ended March 31, 2024 and 2023<br> (expressed in Canadian dollars) <br>(unaudited)<br>

**9. LEASE OBLIGATION**

On May 15, 2022, the Company entered into a premises lease agreement which gives the Company the right to use an underlying asset which expires on May 14, 2024. The Company's obligation to make lease payments arising from the lease is calculated by discounting the fixed lease payments over the lease term at the Company's incremental borrowing rate. The incremental borrowing rate used in the calculation was 13%.

---

| |
|:---|
| Balance, December 31, 2023 |
| Payments) |
| Interest |
| Foreign exchange translation difference) |
| Balance, March 31, 2024 |
| Less: current portion |
| Non-current portion |

---

**10. SHARE CAPITAL**

Authorized: Unlimited number of common shares without par value Share transactions during the three months ended March 31, 2024:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the three months ended March 31, 2024, the Company issued 260,000 common shares for proceeds of $104,000 pursuant to the exercise of stock options. The fair value of stock options exercised of $67,808 was transferred from options reserve to share capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On March 5, 2024, the Company issued 750,000 common shares pursuant to the conversion of vested RSUs.

Share transactions during the three months ended March 31, 2023:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 17, 2023, the Transaction closed, resulting in a reverse takeover (refer to Note 3). The Transaction was measured at the fair value of the shares that BTQ AG would have had to issued to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 17, 2023, the Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 17, 2023, the Company completed a subscription receipt financing of 18,001,250 common shares at $0.40 per share for gross proceeds of $7,200,500. In connection with the financing, the Company incurred share issuance costs of $93,174 and issued 232,936 finders' warrants exercisable at $0.40 per common share expiring on February 17, 2025. The fair value of finders' warrants was determined to be $67,386 which was calculated using the Black-Scholes option pricing model with the following assumptions: volatility of 150%, expected life of 2 years, no dividends, and a risk-free rate of 4.15%.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three Months Ended March 31, 2024 and 2023<br> (expressed in Canadian dollars) <br>(unaudited)<br>

**10. SHARE CAPITAL (continued)** 

<u>Escrowed shares</u>

On completion of the Transaction, certain principals of the Company entered into a NP 46-201 Escrow Agreement with the NEO Exchange and Computershare Trust Company of Canada, as escrow agent, in respect of 45,250,000 common shares. Under the terms of the Escrow Agreement, 25% of such escrowed securities were released upon closing (February 17, 2023) with subsequent 25% releases occurring 6, 12, and 18 months from closing. These escrow shares will be released as follows:

---

| | |
|:---|:---|
| Date of automatic timed release | Amount of escrow shares released |
| On the date that the Company's common shares were listed on the NEO, February 17, 2023 | 1/4 of the escrowed shares |
| 6 months after the listing date (August 17, 2023) | 1/4 of the escrowed shares |
| 12 months after the listing date (February 17, 2024) | 1/4 of the escrowed shares |
| 18 months after the listing date (August 17, 2024) | The remainder of the escrowed shares |

---

As at March 31, 2024, 11,312,500 common shares remained in escrow.

**11. STOCK OPTIONS**

The Company has a stock option plan (the "Plan") for directors, officers, employees, and consultants of the Company. Stock options are exercisable for periods of up to five years, as determined by the Board of Directors of the Company, to purchase common shares of the Company at a price not less than the discounted market price on the date of the grant. The maximum number of shares which may be issuable under the Plan cannot exceed 10% of the total number of issued and outstanding common shares on a non- diluted basis.

The following table summarizes the continuity of the Company's stock options:

---

| | | |
|:---|:---|:---|
|  |  | Weighted |
|  |  | average |
|  |  | exercise |
|  | Number of | price |
|  | stock options | $|
| Outstanding, December 31, 2023 | 7770000 | 0.41 |
| &nbsp;&nbsp;Granted | 400000 | 0.49 |
| &nbsp;&nbsp;Exercised | (260000) | 0.40 |
| &nbsp;&nbsp;Expired | (240000) | 0.40 |
| Outstanding, March 31, 2024 | 7670000 | 0.42 |
| Exercisable, March 31, 2024 | 3096250 | 0.41 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three Months Ended March 31, 2024 and 2023<br> (expressed in Canadian dollars) <br>(unaudited)<br>

**11. STOCK OPTIONS (continued)**

Additional information regarding stock options outstanding as at March 31, 2024, is as follows:

---

| | | | |
|:---|:---|:---|:---|
| Outstanding | Outstanding | Exercisable | Exercisable |
|  | Weighted |  |  |
|  | average |  | Weighted |
|  | remaining |  | average |
| Number of | contractual | Number of | exercise price |
| $stock options | life (years) | $stock options | $|
| 6730000 | 2.9 | 2863750 | 0.40 |
| 580000 | 3.2 | 180000 | 0.50 |
| 100000 | 5.4 |  |  |
| 210000 | 3.8 | 52500 | 0.64 |
| 50000 | 4.4 |  |  |
| 7670000 | 3.0 | 3096250 | 0.41 |

---

The fair value for stock options granted have been estimated using the Black-Scholes option pricing model assuming no expected dividends or forfeitures and the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | Three months | Three months |
|  | ended | ended |
|  | March 31, | March 31, |
|  | 2024 | 2023 |
| Risk-free interest rate | 3.50% | 3.54% |
| Expected life (in years) | 4.3 | 4.5 |
| Expected volatility | 209% | 150% |

---

During the three months ended March 31, 2024, the Company recognized share-based compensation expense of $93,500 (2023 - $282,545), with a corresponding increase to options reserve (2023 - $282,545). The weighted average fair value of the stock options granted during the three months ended March 31, 2024 was $0.46 (2023 - $0.36) per option.

**12. SHARE PURCHASE WARRANTS**

The following table summarizes the continuity of share purchase warrants:

---

| | | |
|:---|:---|:---|
|  |  | Weighted |
|  |  | average |
|  |  | exercise |
|  | Number of | price |
|  | warrants | $|
| Balance, December 31, 2023 and March 31, 2024 | 232936 | 0.40 |

---

As at March 31, 2024, the following share purchase warrants were outstanding and exercisable:

---

| | |
|:---|:---|
| Number of |  |
| warrants |  |
| outstanding | $Expiry date |
| 232936 | February 17, 2025 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three Months Ended March 31, 2024 and 2023<br> (expressed in Canadian dollars) <br>(unaudited)<br>

**13. RESTRICTED SHARE UNITS**

A summary of the changes in RSUs is presented below:

---

| | |
|:---|:---|
|  | Number of |
|  | RSUs |
| Balance, December 31, 2023 | 1985000 |
| &nbsp;&nbsp;Converted to shares | (750000) |
| Balance, March 31, 2024 | 1235000 |
| Unvested | 612500 |
| Vested, March 31, 2024 | 622500 |

---

During the three months ended March 31, 2024, the Company recognized share-based compensation expense of ($151,770) (2023 - $nil) with a corresponding decrease to RSU reserve and $456,000 (2023 - $nil) was transferred to share capital upon the vesting of 750,000 RSUs.

**14. RELATED PARTY TRANSACTIONS**

Key management personnel are persons responsible for planning, directing, and controlling the activities of an entity, and include all officers and directors of the Company. Key management personnel compensation during the three months ended March 31, 2024 and 2023 was comprised of the following:

---

| | | |
|:---|:---|:---|
|  | Three months | Three months |
|  | ended | ended |
|  | March 31, | March 31, |
|  | 2024 | 2023 |
|  | $| $|
| Consulting fees | 24279 | 24291 |
| Marketing and promotion | 24279 | 24291 |
| Professional fees | 21000 |  |
| Research and development | 73467 | 105381 |
| Wages and benefits | 73974 | 66439 |
| Total short-term benefits | 216999 | 220402 |
| Share-based payments | 79388 | 113582 |
|  | 296387 | 333984 |

---

As at March 31, 2024, the Company owed $116,871 (December 31, 2023 - $114,223) to the CEO of the Company, of which $91,283 (December 31, 2023 - $89,247) is included in accounts payable and accrued liabilities. The amounts owed are non-interest bearing, unsecured, and due on demand.

As at March 31, 2024, the Company was owed $82,566 (December 31, 2023 - $49,888) from the Chief Operating Officer ("COO") of the Company, which is included in other receivables.

As at March 31, 2024, the Company owed $3,101 (December 31, 2023 - $3,027) to a company controlled by the CEO and COO of the Company, which is non-interest bearing, unsecured, and due on demand.

As at March 31, 2024, the Company owed $7,350 (December 31, 2023 - $7,350) to a firm where the Chief Financial Officer of the Company is a partner, which is included in accounts payable and accrued liabilities.

As at March 31, 2024, the Company owed $135,500 (December 31, 2023 - $132,260) to the Chief Cryptographer of the Company, which is included in accounts payable and accrued liabilities.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three Months Ended March 31, 2024 and 2023<br> (expressed in Canadian dollars) <br>(unaudited)<br>

**14. RELATED PARTY TRANSACTIONS** (continued)

As at March 31, 2024, the Company owed $8,130 (December 31, 2023 - $7,936) to the Head of Corporate Development of the Company, which is included in accounts payable and accrued liabilities.

As at March 31, 2024, the Company owed $2,210 (December 31, 2023 - $nil) to the Chief Legal Officer of the Company, which is included in accounts payable and accrued liabilities.

**15. SUPPLEMENTAL CASH FLOW INFORMATION**

---

| | | |
|:---|:---|:---|
|  | Three months | Three months |
|  | ended | ended |
|  | March 31, | March 31, |
|  | 2024 | 2023 |
|  | $| $|
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Receivables acquired in reverse takeover |  | 25308 |
| &nbsp;&nbsp;&nbsp;Short-term investment acquired in reverse takeover |  | 2875 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities assumed in reverse takeover |  | 455077 |
| &nbsp;&nbsp;&nbsp;Finders' warrants issued pursuant to private placement |  | 14632 |
| &nbsp;&nbsp;&nbsp;Fair value of stock options exercised transferred from options reserve to share capital | 67808 |  |
| &nbsp;&nbsp;&nbsp;Shares issued for vested RSUs | 456000 | - |

---

**16. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fair Values

<u>Fair value hierarchy</u>

The following provides a description of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at March 31, 2024 and December 31, 2023 as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in | Significant |  |  |
|  | active markets | other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | March 31, |
|  | (Level 1) | (Level 2) | (Level 3) | 2024 |
|  | $| $| $| $|
| Investments |  |  | 77229 | 77229 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three Months Ended March 31, 2024 and 2023<br> (expressed in Canadian dollars) <br>(unaudited)<br>

**16. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT** (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fair Values (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in | Significant |  |  |
|  | active markets | other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | December 31, |
|  | (Level 1) | (Level 2) | (Level 3) | 2023 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

---

The fair values of the Company's other financial instruments, which include cash, short-term investment, other receivables, loan receivable, accounts payable and accrued liabilities, other payable, lease obligation, and due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Credit Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit loss by placing its cash and cash equivalents with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Foreign Exchange Rate Risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency.

The following tables indicate the impact of foreign currency exchange risk on net working capital as at March 31, 2024 and December 31, 2023. The tables below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the tables below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as at March 31, 2024 and December 31, 2023.

---

| | | |
|:---|:---|:---|
| As at March 31, 2024 | TWD | US$ |
| Cash | 311111 | 512611 |
| Accounts payable and accrued liabilities | (870239) | (292791) |
| Lease obligation | (197857) |  |
| Total foreign currency financial assets and liabilities | (756985) | 219820 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 75699 | 21982 |
| As at December 31, 2023 | TWD | US$ |
| Cash | 9201660 | 296479 |
| Accounts payable and accrued liabilities |  | (190659) |
| Lease obligation | (778794) |  |
| Total foreign currency financial assets and liabilities | 8422866 | 105820 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 842287 | 10582 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three Months Ended March 31, 2024 and 2023<br> (expressed in Canadian dollars) <br>(unaudited)<br>

**16. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT** (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner. Refer to going concern disclosure in Note 1.

The following amounts are the contractual maturities of financial liabilities as at March 31, 2024 and December 31, 2023:

---

| | | | |
|:---|:---|:---|:---|
| As at March 31, 2024 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 965580 | 965580 |  |
| Other payable | 190937 | 190937 |  |
| Lease obligation | 8373 | 8373 |  |
| Due to related parties | 28689 | 28689 |  |
| Total | 1193579 | 1193579 | - |

---

As at December 31, 2023

---

| | | | |
|:---|:---|:---|:---|
|  |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 856682 | 856682 |  |
| Lease obligation | 33554 | 33554 |  |
| Due to related parties | 28003 | 28003 |  |
| Total | 918239 | 918239 | - |

---

**17. CAPITAL MANAGEMENT**

The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders. The capital structure of the Company consists of cash and equity comprised of issued share capital, share-based payment reserve, and warrant reserve.

The Company manages its capital structure and makes adjustments to it in light of economic conditions. The Company, upon approval from its Board of Directors, will balance its overall capital structure through new share issuances or by undertaking other activities as deemed appropriate under the specific circumstances.

The Company is not subject to externally imposed capital requirements and the Company's overall strategy with respect to capital risk management remains unchanged from the year ended December 31, 2023.

**18. COMMITMENT**

On September 22, 2023, the Company entered into a premises lease agreement. Effective October 1, 2023, the Company is obligated to make a monthly lease payment of $9,280 for a period of one year.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three Months Ended March 31, 2024 and 2023<br> (expressed in Canadian dollars) <br>(unaudited)<br>

**19. SEGMENTED INFORMATION**

The Company has one operating segment, the research and development of computer-based technology related to post-quantum cryptography. The Company's head office is in Canada and operations are in Canada and Taiwan. Geographic information for non-current assets other than financial instruments is as follows:

---

| | | |
|:---|:---|:---|
| As at March 31, 2024 | Taiwan | Total |
|  | $| $|
| Property and equipment | 97695 | 97695 |
| Right-of-use asset | 6228 | 6228 |
| Deposits | 45507 | 45507 |
|  | 149430 | 149430 |

---

---

| | | |
|:---|:---|:---|
| As at December 31, 2023 | Taiwan | Total |
|  | $| $|
| Property and equipment | 102820 | 102820 |
| Right-of-use asset | 29905 | 29905 |
| Deposits | 35872 | 35872 |
|  | 168597 | 168597 |

---

**20. GENERAL AND ADMINISTRATIVE EXPENSES**

The following is a breakdown of general and administrative expenses for the three months ended March 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | Three months | Three months |
|  | ended | ended |
|  | March 31, | March 31, |
|  | 2024 | 2023 |
|  | $| $|
| Foreign office representation |  | 41165 |
| Insurance | 16560 | 9100 |
| IT and communications | 66224 | 2249 |
| Office and miscellaneous | 33634 | 25731 |
| Rent | 46391 | 48352 |
| Travel | 93744 | 3056 |
|  | 256553 | 129653 |

---

------

## Exhibit 99.21

------

---

| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

---

This Management's Discussion and Analysis ("MD&A") of BTQ Technologies Corp. ("BTQ", or the "Company") is for the quarter ended March 31, 2024 and is dated June 7, 2024. The MD&A should be read in conjunction with the Company's unaudited condensed interim consolidated financial statements and related notes for the quarter ended March 31, 2024. The unaudited condensed interim consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and all monetary amounts are expressed in Canadian dollars. The following comments may contain management estimates of anticipated future trends, activities, or results. These are not a guarantee of future performance since actual results could change based on other factors and variables beyond management control.

The management of the Company is responsible for the preparation and integrity of the consolidated financial statements, including the maintenance of appropriate information systems, procedures, and internal controls and to ensure that information used internally or disclosed externally, including the consolidated financial statements and MD&A, is complete and reliable. The Company's board of directors (the "Board") follows recommended corporate governance guidelines for public companies to ensure transparency and accountability to shareholders. The Board's audit committee meets with management quarterly to review the financial statements including the MD&A and to discuss other financial, operating, and internal control matters.

Additional information relating to the Company, including its AIF for the year ended December 31, 2023, is available under the Company's profile on SEDAR+ at www.sedarplus.ca.

**DESCRIPTION OF BUSINESS AND OVERVIEW**

BTQ is a British Columbia corporation founded by a group of experienced post-quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the Bitcoin network. Bitcoin's store of value thesis - one that supports a crypto ecosystem of over $1 trillion in market capitalization - has several potential quantum attack vectors that could compromise the network. This paradigm shift requires a new direction in cryptography and blockchain design. BTQ is building a portfolio of intellectual property to safeguard the crypto asset class with energy efficient quantum processes and currently holds several patent applications for generating quantum algorithms.

Quantum computers can take a very large integer and find out its prime factor extremely rapidly by using Shor's algorithm. Theoretically, a universal large scale quantum computer could be used to disrupt cryptocurrencies, break into digital wallets, and access and decrypt confidential communications. Ethereum and Algor, two of the most technologically advanced cryptocurrencies, announced plans to transition to post-quantum standards.

BTQ has strategically established a branch office in Taipei, Taiwan, home to the most advanced hardware and post-quantum ecosystems. The Taipei engineering office will focus on research and development related to post-quantum cryptography, eco-friendly proof of work mining, and formal verification within smart contracts platforms.

BTQ is listed on the NEO Exchange (the "NEO") under the symbol "BTQ", the OTCQB under the symbol "BTQQF" and the Frankfurt Stock Exchange under the symbol "NG3".

<u>Acquisition</u>

On December 31, 2021 (as amended on April 29, 2022, July 30, 2022, and November 29, 2022), the Company entered into a share exchange agreement with BTQ AG (the "Acquisition"). BTQ AG was incorporated in the Principality of Liechtenstein on March 26, 2021 by a group of experienced post-quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the Bitcoin network.

------

---

| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

---

In connection with the Acquisition, the Company completed a private placement (the "Offering") of 18,001,250 subscription receipts at a price of $0.40 per subscription receipt, for gross proceeds of $7,200,500, with each subscription receipt automatically converting with no additional consideration into one post-Consolidation Share (each as defined below) concurrent with the closing of the Acquisition.

On February 17, 2023, the Company closed the Acquisition resulting in the issuance of 92,000,000 post- Consolidation Shares to the BTQ AG shareholders. Concurrent with the closing, the Company changed its name from Sonora Gold & Silver Corp. to BTQ Technologies Corp. and completed a consolidation (the "Consolidation") of its common shares on the basis of ten pre-Consolidation shares to one post- Consolidation share (each, a "Share"). Immediately following the Consolidation, and excluding those Shares issued pursuant to the Acquisition or the Offering, the former securityholders of Sonora Gold and Silver Corp. ("SOC") held an aggregate of 8,747,629 Shares and 350,000 stock options in the Company. All Share amounts have been retroactively restated to reflect the Consolidation for all periods presented.

On closing of the Acquisition, the gross proceeds of $7,200,500 from the Offering were released from escrow and each subscription receipt was converted into one Share. In connection with the Acquisition, the Company issued 2,500,000 Shares with a fair value of $1,000,000 to a finder as a success fee. In connection with the Offering, the Company also paid $93,175 in finders' fees and issued 232,936 finders' warrants exercisable at an exercise price of $0.40 per Share for a period of two years.

As a condition of the Acquisition, the Company voluntarily delisted its Shares from the TSX-V and the Shares commenced trading on the NEO on February 21, 2023 under the symbol "BTQ".

**DISCUSSION OF OPERATIONS**

The following are operational highlights for the year ended December 31, 2023 and events subsequent up until the date of this MD&A.

<u>Product Updates</u>

On March 2, 2023, the Company announced the alpha release of Keelung, a domain-specific language designed for fast, private, and secure application development. Based on research in the field of post- quantum zero-knowledge cryptography, Keelung will empower developers to create secure and reliable post-quantum zero-knowledge proofs without the need for specialized cryptography skills. Both Keelung and its compiler have been implemented in Haskell, enabling developers to produce high-level zero- knowledge proofs protected by Haskell's type system while leveraging Haskell's extensive ecosystem and tooling. Keelung will be 100% open-source, allowing for transparency, collaboration, and community-driven development.

Keelung is now live and open-sourced. The release information can be found here: https://github.com/btq- ag/keelung/releases. The steps to complete over the coming year are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Language Extensions (v0.19.0 - v0.20.0): Added support for user-defined datatypes, unsigned integer comparisons, and optimizations to the constraint system and compiler.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Optimization and Stability (v0.21.0): Introduced a more precise method for reference counting on unsigned integers, renaming of primitive datatype conversions, and numerous bug fixes and stability improvements for the compiler.

------

---

| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Upcoming Optimizations (v0.22.0+): Planned optimizations include operators for slicing and joining unsigned integers, improved polynomial representation, faster polynomial insertion, standard library optimizations (e.g., AES, Blake2), and constraint reduction for faster proof generation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Developer Experience (Ongoing): Refinements to the DSL syntax, performance improvements for common data types, benchmarking in the CI/CD pipeline, and expanded documentation and tutorials to improve the developer experience.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Ecosystem Integration (Future): Planned integration with popular ZK toolchains like Snarkjs/Circom, support for PLONK-based proving systems, and quantitative information flow analysis for privacy leakage detection.

On June 5, 2023, the Company published a research paper on proof-of-work consensus by quantum sampling. The paper presents a novel approach that has the potential to revolutionize blockchain consensus algorithms.

On June 26, 2023, the Company announced that it had received approval from the USPTO for its patent application, "A system and method for quantum-safe authentication, encryption, and decryption of information". The patent relates to methods for generating a private cryptographic key for use in a secure cryptogram for transmission between entities, enabling quantum-safe encryption.

On July 27, 2023, the Company announced that its Quantum-Secure Signature Technology "Preon" had been selected by the National Institute of Standards and Technology (NIST) for consideration in their Post- Quantum Cryptography (PQC) standardization process. Preon is a robust and efficient post-quantum signature scheme, showcasing distinctive features including small key size, rapid key generation, minimal assumptions, and flexible functionality. These attributes make it resistant to potential threats from both classical and quantum computers. The co-authors of this submission include Hon Hai Research Institute, the research arm of global leader Hon Hai Precision Industry Co., Ltd. (Foxconn).

On October 4, 2023, BTQ announced the advancement of its collaboration with ITRI to develop a security chip that utilizes QCIM (Quantum Computation in Memory) technology. This chip will be used for the computation of Kyber, a standardized algorithm by the National Institute of Standards and Technology (NIST). In 2022, BTQ entered a multi-year collaboration agreement with ITRI to develop energy-efficient post-quantum hardware solutions for applications in blockchain, telecom, and other industries with a need for long-term data security. In the first phase of collaboration, BTQ and ITRI successfully validated the proof of concept of applying computation-in-memory in an ASIC chip. To further the collaboration, BTQ is entering into this new phase of the project with ITRI.

<u>Market-Related Activity</u>

Effective March 14, 2023, the Company began trading on the FSE under the symbol "NG3" (ISIN: CA0558691014 \| WKN: A3D4V9). The Frankfurt Stock Exchange is the largest of the seven stock exchanges in Germany.

Effective May 9, 2023, the Company began trading on the OTCQX under the symbol "BTQQF". OTC Markets Group operates markets on which 12,000 U.S. and global securities trade with the OTCQX Best Market as the highest tier. Trading on OTCQX will enhance the visibility and accessibility of the Company to U.S. investors.

On March 18, 2024, the Company announced a revised timeline for the filing of its annual consolidated financial statements for the year ended December 31, 2023 (the "Financial Statements") and the related management's discussion and analysis and certifications (collectively, with the Financial Statements, the "Annual Filings"). The default in filing within the required 90 days is primarily due to delays relating to the restatement of the comparative period in the Financial Statements, comprising BTQ AG's financial statements for the period ended December 31, 2022, which were audited by another auditor. As a result of the delays, the Company has applied for a management cease trade order (an "MCTO") under National Policy 12-203 Management Cease Trade Orders ("NP 12-203") in respect of the default, which is subject to approval by the British Columbia Securities Commission, as principal regulator of the Company.

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| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

---

<u>Business Development Activities</u>

On March 2-3, 2023, representatives of the Company attended the Quantum Beach conference in Miami in order to meet with companies, investors, and potential partners across the quantum technologies industry. Mathieu Gauthier, Head of Corporate Development, spoke on the quantum security panel, alongside other industry executives from leading companies in the post-quantum security space, as well as senior government officials.

On April 24, 2023, Chris Tam, Head of Partnerships at the Company, spoke at ETHTaipei. The talk, titled "The Future of Zero-Knowledge: Challenges, Advancements, and Tools for Developing Post-Quantum zk- SNARKs," examined the challenges and successes of using post-quantum proving systems. The presentation also examined the strengths, weaknesses, and trends of arithmetic circuit backends such as R1CS, PLONK, and AIR, while introducing tools to transition towards developing post-quantum zk- SNARKs. This presentation reinforced the Company's commitment to advancing the blockchain and quantum technology industry.

On May 1, 2023, the Company was informed that it was the recipient of a US$10,000 grant from the Stellar Community Fund. The grant is specifically aimed at funding the Company's research in building an Efficient Scaling Mechanism for Lattice-Based Post-Quantum Signatures. The Stellar Community Fund ("SCF") is an open-application awards program that draws on community input to support developers and startups building on Stellar and Soroban. The Stellar Blockchain network is a distributed ledger used to transmit digital currencies and has a market cap of over US$2 billion.

On May 1, 2023, the Company secured office space at the Bentall II Tower located at 555 Burrard Street in Downtown Vancouver, BC. The company is leasing this office space from WeWork at a monthly rate of C$3,180 per month for a total commitment of 12 months. This additional office space will be used for meetings with investors and potential clients, and for the hiring of both technical and non-technical personnel in Canada. Starting October 1, 2023, the Company increased office space at the Bentall II Tower in Vancouver. The new monthly rate per month is C$10,100 for a reset commitment of 12 month.

On May 15, 2023, BTQ Technologies Announced its Acceptance into the Quantum Industry Canada (QIC) Consortium, joining other leading quantum technology companies such as DWave and Xanadu. Quantum Industry Canada's mission is to ensure that Canadian quantum innovation and talent is translated into Canadian business success and economic prosperity. Earlier this year, the Canadian Minister of Innovation, Science, and Industry announced a $1.4 million investment in QIC as part of the National Quantum Strategy.

On May 22, 2023, BTQ was awarded a US$10,000 grant by StarkWare Industries, the developer of StarkNet, a permissionless decentralized ZK-Rollup. The grant was specifically awarded to implement BTQ's PQScale technique for digital signatures onto the StarkNet infrastructure.

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| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

---

On May 24, 2023, the Company announced the nomination of Mr. Lonny Wong as the company's Chief Financial Officer. Lonny has been leading BTQ's finance and accounting organization and reports directly to Olivier Roussy Newton, Chief Executive Officer and Chairman. He brings over 25 years of public practice experience and specializes in providing auditing, assurance, financial reporting, and consulting services to public companies and companies looking to go public.

On June 22, 2023, BTQ announced that it had joined leading quantum technology companies and research labs like Microsoft Azure Quantum and the Centre for Quantum Technologies (CQT) in the Quantum Energy Initiative (QEI). The Quantum Energy Initiative seeks to develop energetic quantum advantage and build quantum technologies in a sustainable and responsible manner.

On July 5, 2023, the Company established a strategic research partnership with South Korea's International Research Institute for Cyber Security (IRCS). The partnership aims to enhance the development of post- quantum cryptography, specifically focusing on SOLMAE signature scheme and other lattice-based cryptosystems, thereby expanding BTQ's influence in the Asia-Pacific region.

On July 24, 2023, the Company announced the addition of Brandt Pasco, an accomplished legal and private equity professional, to its advisory board. Mr. Pasco, currently the Managing Member of Pasco & Associates, is renowned for his expertise in building high-value companies and his deep understanding of technological regulatory law.

On August 21, 2023, BTQ announced the launch of "The Quantum State" podcast led by renowned researcher Anastasia Marchenkova. The series, further bolstered by experts Professor Gavin Brennen and Peter Rohde, serves as BTQ's dedicated platform for exploring the latest insights, trends, and groundbreaking advancements in the world of quantum computing.

On September 18, 2023, the Company announced it had been selected for the 2023 Canada Quantum Technology R&D Mission to South Korea, marking a significant stride in international quantum collaborations. From October 31st to November 2nd, the Canadian delegation, which includes 11 leading companies and institutions in the realms of quantum sensing, quantum computing, and quantum communication, participated in a series of collaborative events. Various meetings are arranged with South Korean companies, research institutes, academia, and other key players in the quantum technology sector.

On October 1, 2023, the Company entered into a revised lease agreement for a larger office space in the Bentall II building located in downtown Vancouver where the Company's headquarters were already located. This additional space will accommodate the company's growing technical research team in Canada.

On October 16, 2023, BTQ announced its ecosystem partnership with Cysic for Keelung, a zero-knowledge domain-specific language for fast, private and secure applications. Keelung provides developers with the ability to create secure and reliable post-quantum zero-knowledge proofs without requiring specialized cryptography skills. BTQ's partnership with Cysic will explore the integration of Keelung with Cysic's hardware acceleration solutions, offering end-users access to faster, more efficient, and more secure zero- knowledge proof generation.

On October 19, 2023, BTQ announced the addition of Peter Rohde, an accomplished theoretical quantum computer scientist, to its world-class technical team. Dr. Rohde, currently an Honorary Senior Lecturer at Macquarie University, and Associate Investigator at the ARC Centre of Excellence for Engineered Quantum Systems, is renowned for his deep understanding of optical quantum computing, quantum networking and the economics of quantum technology. Based at the Quantum Terminal in Sydney, Mr. Rohde will help drive research, as well as expand BTQ's technical team in Australia.

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| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

---

On November 29, 2023, BTQ and Hon Hai Research Institute announced a Research and Collaboration Agreement aiming to support the academic community by promoting the standardization of post-quantum cryptography. BTQ and Hon Hai first in their submission of Preon, a post-quantum signature scheme submitted as part of the NIST "Call for Additional Digital Signature Schemes for the Post-Quantum Cryptography Standardization Process".

On December 29, 2023, the Company announced its participation and sponsorship at CfC St. Moritz, a premier digital assets and blockchain conference for investors and decision-makers in the Swiss Alps. Christopher Tam, BTQ's Head of Partnerships, led a workshop titled "Future-Proofing Digital Assets: Exploring the Sustainability of Digital Assets in the Quantum Era," focusing on the challenges and opportunities stemming from post-quantum cryptography.

On February 20, 2024, BTQ announced its participation in the Commonwealth Scientific and Industrial Research Organisation's Next Generation Emerging Technologies Graduates Program ("NGETGP"). This initiative aims to cultivate the next wave of tech talent and advance the field of emerging technologies. As part of this agreement, BTQ Technologies joined forces with the Commonwealth Scientific and Industrial Research Organisation ("CSIRO"), top Australian universities, Sydney Quantum Academy, and Diraq Pty Ltd to create the next generation of quantum technology specialists.

On March 13, 2024, BTQ announced its sponsorship with the Cybersecurity and Privacy Institute ("CPI") at the University of Waterloo and the establishment of a multi-year relationship for R&D collaboration. CPI's mission is to be internationally recognized as a leading interdisciplinary research institute making significant impacts in improving information security and human privacy. Earlier this year, CPI secured over $3.3 million in funding from the National Cybersecurity Consortium (NCC) under the Cyber Security Innovation Network (CSIN) program.

On March 21, 2024, BTQ announced that Christopher Tam, Head of Partnerships, will be a featured speaker at ETHTaipei. During his talk, Chris discussed transitioning Ethereum towards quantum resistance, addressing the impacts and challenges posed by quantum technologies on digital currencies.

On May 3, 2024, the Company entered into a Software Consulting Agreement with ZKP Corp., a Delaware corporation, for which the Company will receive $1,000,000 for the use of its proprietary software and the provision of related services.

<u>Media Coverage</u>

On April 17, 2023, the Company was covered by CoinDesk for its innovative approach to quantum-safe encryption technology, which has the potential to revolutionize data security in blockchain applications and adjacent industries, including finance, healthcare, and government. With over 10 million website visits and 1.6 million podcast downloads each month, CoinDesk is the leading source of news on cryptocurrency and blockchain, covering breaking news and providing in-depth analyses on the next generation of investing and the future of money.

On June 21, 2023, BTQ announced it had been featured in the New Scientist magazine for its collaborative research paper, "Proof-of-Work Consensus by Quantum Sampling". The paper, which features a collaboration with leading researchers from universities in Australia and the United States, introduces a groundbreaking Quantum Proof-of-Work scheme for blockchain consensus. The article discusses the potential of the team's approach which uses coarse-grained boson-sampling (CGBS), to reduce the energy consumption of cryptocurrencies, such as Bitcoin, by an order of magnitude.

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| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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<u>Corporate</u>

On August 31, 2023, BTQ announced that, at the annual general and special meeting (the "Meeting") of shareholders of the Company ("Shareholders") that was held on Wednesday, August 30, 2023, all five nominees for the board of directors of the Company were elected. At the Meeting, Shareholders also approved (i) the appointment of BDO LLP as auditors of the Company until the close of the next annual general meeting of shareholders and the directors were authorized to determine their remuneration (ii) the Company's omnibus equity incentive plan (the "Omnibus Plan"); and (iii) the ratification of certain historically granted RSUs pursuant to the Omnibus Plan.

**Trends**

<u>Quantum Computing</u>

According to McKinsey & Company, the quantum technology market will be valued at over $106 billion by 2040<sup>1</sup>, with the bulk of the value projected to come from quantum computing as opposed to quantum sensing and quantum communications. The quantum security industry sits within quantum computing and is a rapidly growing field that focuses on developing secure cryptographic solutions for the age of quantum computing. As quantum computers become more powerful, they will become increasingly capable of breaking traditional cryptographic systems, creating a need for even more robust and advanced quantum- resistant solutions. Traditional cryptographic methods are at risk of being broken, which will have serious implications for national security, financial institutions, and other industries that rely on secure communication and data storage. Estimates of when a commercial quantum computer will hit the market vary, however, last year, IBM unveiled the Osprey (433 qubits) and updated its road map to develop a 4,000+ qubit processor in 2025<sup>2</sup>, indicating that these super computers will be available in the near future. In addition to private sector funding, Government bodies around the world are also investing large sums of capital into quantum technologies. At $15.3 billion, China leads the way in publicly announced quantum funding initiatives, followed by the EU at $8.4 billion, USA at $3.7 billion, Japan at $1.8 billion, UK at $1.3 billion, Canada at $1.1 billion, and several others between $0.1 billion and $1.0 billion<sup>3</sup>.

Overall, the quantum security industry is a rapidly evolving field that will continue to see significant growth and development in the coming years. As businesses and organizations seek to protect their data from the threat of quantum computing, the need for effective and innovative quantum-resistant security solutions will only continue to increase. Investors are recognizing this with about two-thirds, or 68 percent, of all Quantum Technology startup investments since 2001 having occurred in 2021 and 2022<sup>4</sup>.

<u>Post-Quantum Cryptography</u>

One of the main trends in the quantum security industry is the development of post-quantum cryptography ("PQC") algorithms. PQC algorithms are designed to be resistant to attacks from quantum computers, making them a crucial component of quantum-resistant security systems. Many organizations, including government agencies and financial institutions, are already investing in PQC research and development to ensure the security of their sensitive data.

___________________________________

<sup>1</sup> https://www.mckinsey.com/featured-insights/the-rise-of-quantum-computing

<sup>2</sup> https://newsroom.ibm.com/2022-11-09-IBM-Unveils-400-Qubit-Plus-Quantum-Processor-and-Next-Generation-IBM- Quantum-System-Two

<sup>3</sup> https://www.mckinsey.com/~/media/mckinsey/business%20functions/mckinsey%20digital/our%20insights/quantum%20technology%20sees%20record%20investments%20progress%20on%20talent%20gap/quantum-technology- monitor-april-2023.pdf

<sup>4</sup> https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/quantum-technology-sees-record-investments- progress-on-talent-gap

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|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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A key driver in the development of the PQC industry is The National Institute of Standards and Technology ("NIST"), a U.S. Department of Commerce agency which sets the standards for businesses and other organizations to secure sensitive data and protect critical infrastructure<sup>5</sup>. NIST compliance standards must be met by anyone who processes, stores, or transmits sensitive information for the Department of Defense, General Services Administration, NASA, and other government agencies, and is largely seen as the de facto standard body to make cryptographic standards for the entire world.

In 2016, NIST initiated a process to solicit, evaluate, and standardize one or more quantum-resistant public- key cryptographic algorithms. These new cryptography standards will specify additional digital signature and public-key encryption algorithm(s) which are capable of protecting sensitive information well into the foreseeable future, including after the advent of quantum computers. In 2022, NIST officially announced the standardized algorithms from Round 3 of this PQC competition. This was a landmark milestone as government agencies and businesses had been waiting nearly six years for a clear direction as to which algorithms are trustworthy. PQC algorithms are much larger than their classical counterparts. For example, even the smallest NIST-approved digital signature algorithm is over 10x larger than the current Elliptic Curve Digital Signature Algorithm<sup>6</sup>. This is particularly problematic for distributed ledgers where each full node keeps an entire record of all activities on the ledger. If a blockchain like Bitcoin and Ethereum were to adopt the newly standardized PQC algorithms today, the size of both chains would have to be increased to an unmanageable extent.

<u>Competition and Market Participants</u>

Generally, BTQ differentiates itself from its competitors with its work at the intersection of post-quantum cryptography and blockchain. The Company works on developing next-generation cryptographic primitives like zero-knowledge cryptography to achieve advanced security and efficiency, which is novel in the industry.

Large publicly traded quantum companies exist in the space, including: D-Wave Systems (NYSE: QBTS), IONQ (NYSE: IONQ), Arqit Quantum (NASDAQ: ARQQ). However, these companies are not direct competitors as their main goal is to build a commercial quantum computer with real-world useability. These companies are capital intensive and well-funded by both institutional investors and governments and their valuations range from approximately US$50 million to over US$1 billion.

With a surge in funding and general investor interest and excitement in the industry, several companies are emerging in the post-quantum security space. There are various companies that try to tackle the same global problem as BTQ: getting today's infrastructure secured for the quantum revolution, however, the approaches vary widely based on cryptographic techniques, as well as end uses served and therefore is not a winner takes all market. In fact, other companies operating directly in the space may offer potential collaboration opportunities. Below is a non-exhaustive list of indirect competitors to BTQ:

PQ Shield, for example, describes itself as a PQC company contributing to the global standards and core technologies to power the future security layer of the world's leading organizations. Its quantum-secure cryptographic solutions work with companies' legacy systems to protect sensitive data now and for years to come. The company mainly serves the defense & infrastructure, IoT and OEM markets. PQ Shield raised $20 million as part of their Series A round in January 2022<sup>7</sup>.

**___________________________________**

<sup>5</sup> https://www.btq.com/en/blog/blockchain-security

<sup>6</sup> https://falcon-sign.info/

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|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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Additionally, Isara provides security solutions specializing in cryptographic risk management and in creating crypto-agile and quantum-safe security solutions for today's information technology ecosystems. The company broadly targets enterprises and governments. Isara raised over $10 million in 2018 to fund its R&D efforts<sup>8</sup>.

In the blockchain space, large technology companies are building their own secured blockchains. For example, IBM offers blockchain services that help secure multiple aspects of critical industries like supply chains, banking, healthcare, and government. The goal of these blockchains is usually to streamline and scale processes in a secure manner<sup>9</sup>.

SandboxAQ, an enterprise SaaS company stemming from Alphabet (previously Google), is another key player in the space. Sandbox provides solutions at the nexus of AI and Quantum technology to address some of the world's most challenging problems. The company's core team and inspiration formed at Alphabet Inc., emerging as an independent, growth-capital-backed company in 2022. The company aims to protect the public sector, life sciences & healthcare, financial services, cybersecurity, material science & manufacturing, and global navigation<sup>10</sup>.

<u>Investor Awareness</u>

Effective April 11, 2023, the Company retained Venture North Capital Inc. ("Venture North") for strategic marketing, investor relations, and capital markets communications services. Venture North arranges and attends meetings with professional investors, maintains ongoing contacts and broadens relationships with the professional investment community on the Company's behalf.

The agreement with Venture North had an initial trial term of 4 months and has been automatically renewed monthly until such time it is terminated on 30 days' notice. Pursuant to the terms of the consulting agreement, the Company pays a monthly fee of $8,500 and granted 500,000 stock options exercisable at $0.40 per common share expiring on October 1, 2024. Of the options issued to Venture North, 125,000 shall vest immediately following the 4-month trial and an additional 125,000 options quarterly.

<u>Reverse Takeover</u>

In accordance with IFRS 3, business combinations, the substance of the Acquisition is a reverse takeover as the shareholders of BTQ AG held 75.88% of the resulting issuer shares and SOC's shareholders held 24.12% of the resulting issuer shares. Accordingly, for accounting purposes, BTQ AG was treated as the accounting parent company (legal subsidiary) and the Company has been treated as the accounting subsidiary (legal parent) in these consolidated financial statements. As BTQ AG was deemed to be the acquirer for accounting purposes, its assets, liabilities and operations since incorporation are included in these consolidated financial statements at their historical carrying values. The Company's results of operations have been included from February 17, 2023.

**___________________________________**

<sup>7</sup> https://www.prnewswire.com/news-releases/pqshield-collaborates-with-nccoe-and-industry-to-ease-the-real-world-implementation-of-quantum-resistant-cryptography-301794688.html

<sup>8</sup> https://www.isara.com/company/newsroom/shasta-ventures-investment.html

<sup>9</sup> https://www.ibm.com/blockchain

<sup>10</sup> https://www.sandboxaq.com/solutions/security-suite

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| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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As the Acquisition did not constitute a business combination, the reverse takeover transaction was accounted for in accordance with IFRS 2, share-based payments, whereby equity instruments issued were recognized at fair value and allocated to the net assets acquired (liabilities assumed). Any difference is the value of the listing which was expensed on completion of the Acquisition.

The Transaction was measured at the fair value of the common shares that BTQ AG would have had to issue to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051, and the fair value of 350,000 stock options of the Company with a fair value of $97,532, to give the shareholders of the Company the same percentage of equity interest in the combined entity that results from the reverse acquisition had it taken the legal form of BTQ AG acquiring the Company. The fair value of the 8,747,629 common shares was determined based on the pricing of the Offering with a value of $0.40 being allocated to each Share. The purchase price was allocated to the net assets acquired as follows:

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| |
|:---|
| Fair value of the Company's shares (8,747,629 common shares) |
| Fair value of 350,000 stock options of the Company outstanding |
| Total consideration |
| Less: fair value of identifiable assets acquired and liabilities assumed: |
| Cash |
| Cash held in escrow |
| Prepaid expenses |
| Restricted cash |
| Accounts payable and accrued liabilities) |
| Subscription receipts liabilities) |
| Net liabilities assumed) |
| Listing costs |

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The Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction.

**RESULTS OF OPERATIONS**

**For the three months ended March 31, 2024**

The net loss for the three months ended March 31, 2024 was $1,834,372 (2023: $6,985,690). The main categories are listed below:

<u>General and administrative of $256,553 (2023: $129,653)</u>

The increase is due to the Company's growth and higher overall activity during the three months ended March 31, 2024 as compared to the three months ended March 31, 2023 .

<u>Marketing and promotion of $283,686 (2023: $21,656)</u>

The increase is due to the Company closing the Transaction on February 17, 2023.

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|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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<u>Professional fees of $312,943 (2023: $139,273)</u>

The increase is mainly due to the increase in the audit fees incurred to the Company's auditor for the year ended December 31, 2023, accounting costs incurred to the outsourced accounting consulting firm and the CFO's firm after becoming a publicly listed entity on February 17, 2023.

<u>Research and development of $809,486 (2023: $409,637)</u>

The Company had increased research and development activities, including research and development being conducted in Canada during the three months ended March 31, 2024 as compared to the three months ended March 31, 2023.

<u>Share-based compensation of ($58,270) (2023: $282,545)</u>

Share-based compensation for the three months ended March 31, 2024 is negative due to the revaluation consultant RSUs. The Company granted 6,610,000 stock options during the three months ended March 31, 2023.

<u>Transfer agent and regulatory fees of $4,720 (2023: $199,790)</u>

During the three months ended March 31, 2023, the Company incurred significant transfer agent, regulatory, and listing fees relating to the Transaction.

<u>Wages and benefits of $146,674 (2023: $610,314)</u>

The Company incurred various signing bonuses during the three months ended March 31, 2023 as compared to no such costs during the three months ended March 31, 2024.

<u>Listing and transaction costs of $nil (2023: $5,059,669)</u>

Listing and transaction costs relate to the Transaction. See Reverse Takeover section above.

**USE OF AVAILABLE FUNDS**

In connection with the Acquisition and the listing of the Shares on the NEO, the Company filed a listing statement dated February 17, 2023 under its SEDAR profile at www.sedar.com. Below is a reconciliation of the expected use of available funds against the actual use of such funds as at March 31, 2024:

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| | | |
|:---|:---|:---|
| **Item** | Use of Available Funds<br>$| Actual Use of Available<br>Proceeds as at<br>March 31, 2024<br>$|
| Transaction costs related to the Acquisition | 700000 | 705078 |
| Research contracts | 750000 |  |
| Software and hardware development | 4215770 | 3362851 |
| Sales and business development | 1500000 | 1625498 |
| General and administrative costs estimated for 12-months | 1830759 | 3142128 |
| Unallocated working capital | 200000 |  |
| **Total** | **9196529** | **8835555** |

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|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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**SUMMARY OF QUARTERLY RESULTS**

The following table sets out financial information for the past eight quarters:

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | Three Months Ended ($) | Three Months Ended ($) |  |
|  | March 31, | December 31, | September 30, | June 30, |
|  | 2024 | 2023 | 2023 | 2023 |
| Total revenues |  |  |  |  |
| Net loss | (1834372) | (3015009) | (2553373) | (2901977) |
| Net loss per share, basic and diluted | (0.01) | (0.02) | (0.02) | (0.02) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | Three Months Ended ($) | Three Months Ended ($) |  |
|  | March 31, | December 31, | September 30, | June 30, |
|  | 2023 | 2022 | 2022 | 2022 |
| Total revenues |  |  |  |  |
| Net loss | (6985690) | (1425672) | (767160) | (16332045) |
| Net loss per share, basic and diluted | (0.07) | (0.02) | (0.01) | (0.94) |

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The net loss for the quarter ended September 30, 2023 includes share-based compensation of $755,390 related to the issuance of stock options and restricted stock units.

The net loss for the quarter ended June 30, 2023 includes share-based compensation of $1,623,513 related to the issuance of stock options and restricted stock units.

The net loss for the quarter ended March 31, 2023 includes costs of $5,059,669 relating to the Transaction, share-based compensation of $282,545 related to the issuance of stock options and increased level of activity as BTQ became public as a subsidiary of the Company with a concurrent financing effective February 17, 2023.

The net loss for the quarter ended June 30**, 2022** includes the fair value of 45,000,000 shares issued with a fair value of $14,224,500 for research and share-based compensation of $632,200.

**LIQUIDITY AND CAPITAL RESOURCES**

As at March 31, 2024, the Company had cash of $1,251,645 and working capital of $1,037,449 compared to cash of $2,862,023 and working capital of $2,806,924 as at December 31, 2023.

The Company's operations used cash of $1,691,523 during the three months ended March 31, 2024 (2023: $1,537,760). The Company's investing activities provided net cash of $2,875 (2023: used cash of $6,578). The cash requirements during the three months ended March 31, 2024 were funded from the net proceeds from share issuances of $104,000 (2023: $7,107,326) , partially offset by $25,730 for the repayment of the lease obligation.

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|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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The Company's aggregate operating, investing, and financing activities during the three months ended March 31, 2024 resulted in an decrease in its cash balance of $1,610,378 (2023: increase of $5,558,456).

The Company's accounts payable and accrued liabilities are due in the short term. While the Company has been successful in obtaining the necessary financing through the issuance of common shares and loans from related parties in the past, there is no assurance it will be able to raise funds in this manner in the future and there remain material uncertainties that may cast significant doubt as to the Company's ability to continue as a going concern.

The directors regularly review cash flow forecasts to determine whether the Company has sufficient cash reserves to meet future working capital requirements and discretionary business development opportunities.

The consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. During the year ended March 31, 2024, the Company has not generated any revenues from operations and has negative cash flow from operations. As at March 31, 2024, the Company has an accumulated deficit of $36,402,725. The Company's ability to continue its operations and to realize its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs. Management is of the opinion that sufficient working capital will be obtained from external financing to meet the Company's liabilities and commitments as they become due, although there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These factors indicate a material uncertainty that may cast significant doubt on the ability of the Company to continue as a going concern. These consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. Such adjustments could be material.

**OFF BALANCE SHEET ARRANGEMENTS**

There are no off-balance sheet arrangements to which the Company is committed.

**RELATED PARTY TRANSACTIONS**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

Key management personnel are persons responsible for planning, directing, and controlling the activities of an entity, and include all officers and directors of the Company. Key management personnel compensation during the three months ended March 31, 2024 and 2023 was comprised of the following:

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| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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| |
|:---|
| Consulting fees incurred to Ming-Yang Chih, Chief Strategic Officer |
| Marketing and promotion incurred to Mathieu Gauthier, Head of Corporate Development |
| Professional fees incurred to Saturna Group Chartered Professional Accountants LLP, a firm where the CFO, Lonny Wong, is a partner |
| Research and development incurred to Po-Chun Ko (Chief Technology Officer) and Chen-Mou Cheng (Chief Cryptographer) |
| Wages and benefits incurred to Nicolas Roussy Newton (COO) and Peter Lavelle (Chief Legal Officer) |
| Total short-term benefits |
| Share-based payments |

---

As at March 31, 2024, the Company owed $116,871 (December 31, 2023 - $114,223) to Olivier Roussy Newton, the Chief Executive Officer of the Company ("CEO"), of which $91,283 (December 31, 2023 - $89,247) is included in accounts payable and accrued liabilities. The amounts owed are non-interest bearing, unsecured, and due on demand.

As at March 31, 2024, the Company was owed $82,566 (December 31, 2023 - $49,888) from Nicolas Roussy Newton, the Chief Operating Officer ("COO") of the Company, which is included in other receivables.

As at March 31, 2024, the Company owed $3,101 (December 31, 2023 - $3,027) to Novus Paradigm Technologies Corporation, a company controlled CEO and COO of the Company, which is non-interest bearing, unsecured, and due on demand.

As at March 31, 2024, the Company owed $7,350 (December 31, 2023 - $7,350) to Saturna Group Chartered Accountants LLP, a firm where the Chief Financial Officer of the Company ("CFO") is a partner, which is included in accounts payable and accrued liabilities.

As at March 31, 2024, the Company owed $135,500 (December 31, 2023 - $132,260) to Chen-Mou Cheng, the Chief Cryptographer of the Company, which is included in accounts payable and accrued liabilities.

As at March 31, 2024, the Company owed $8,130 (December 31, 2023 - $7,936) to Mathieu Gauthier, the Head of Corporate Development of the Company, which is included in accounts payable and accrued liabilities.

As at March 31, 2024, the Company owed $2,210 (December 31, 2023 - $nil) to Peter Lavelle, the Chief Legal Officer of the Company, which is included in accounts payable and accrued liabilities.

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| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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**ACCOUNTING POLICIES**

A number of new standards, and amendments to standards and interpretations, are not yet effective for the period ended March 31, 2024, and have not been early adopted in preparing the consolidated financial statements. These new standards, and amendments to standards and interpretations are either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements.

**CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS**

<u>Use of estimates</u>

The preparation of consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from our company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

*Reverse Takeover*

The reverse takeover transaction was measured at the fair value of the common shares and stock options that BTQ would have had to issue to the shareholders of the Company. The fair value of common shares and stock options issued were estimated based on the Company's financing event which took place concurrently with the reverse takeover transaction. The fair values of identifiable assets acquired and liabilities assumed approximated their carrying values.

<u>Research and development costs</u>

Research costs are recognized as an expense when incurred but development costs may be capitalized as intangible assets if certain conditions are met as described in IAS 38 *Intangible Assets*. Management has determined that development costs do not meet the conditions for capitalization under IAS 38 and all research and development costs have been expensed.

<u>Fair value of stock options</u>

Fair values of stock options are determined using the Black-Scholes option pricing model. Estimating fair value requires determining the most appropriate valuation model for a grant of equity instruments, which is dependent on the terms and conditions of the grant. Option-pricing models require the use of highly subjective estimates and assumptions including the expected stock price volatility. Changes in the underlying assumptions can materially affect the fair value estimates and, therefore, existing models do not necessarily provide reliable measurement of the fair value of the Company's stock options and performance warrants.

<u>*Deferred income taxes*</u>

The determination of income tax expense and the composition of deferred income tax assets and liabilities involves judgment and estimates as to the future taxable earnings, expected timing of reversals of deferred income tax assets and liabilities, and interpretations of tax laws. The Company is subject to assessments by tax authorities who may interpret the tax law differently. Changes in these interpretations, judgments, and estimates may materially affect the final amount of current and deferred income tax provisions, deferred income tax assets and liabilities, and results of operations.

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| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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<u>*Going concern presentation*</u>

The consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The assessment of the Company's ability to source future operations and continue as a going concern involves judgement. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. If the going concern assumption is not appropriate for the financial statements, then adjustments would be necessary in the carrying value of the assets and liabilities, the reported revenue and the expenses and the statement of financial position classifications used.

**FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**

**Fair Values**

The following provides a description of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at March 31, 2024 and December 31, 2023 as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in |  |  |  |
|  | active markets | Significant other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | March 31, |
|  | (Level 1) | (Level 2) | (Level 3) | 2024 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

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| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in |  |  |  |
|  | active markets | Significant other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | December 31, |
|  | (Level 1) | (Level 2) | (Level 3) | 2023 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

---

The fair values of the Company's other financial instruments, which include cash, short-term investment, other receivables, loan receivable, and accounts payable and accrued liabilities, lease obligation, and due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

**Credit Risk**

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit loss by placing its cash and cash equivalents with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

**Foreign Exchange Rate Risk**

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency.

The following table indicates the impact of foreign currency exchange risk on net working capital as at March 31, 2024 and December 31, 2023. The table below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the table below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as at March 31, 2024 and December 31, 2023.

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| | | |
|:---|:---|:---|
| March 31, 2024 | TWD | US$ |
| Cash | 311111 | 512611 |
| Accounts payable and accrued liabilities | (870239) | (292791) |
| Lease obligation | (197857) |  |
| Total foreign currency financial assets and liabilities | (756985) | 219820 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 75699 | 21982 |

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| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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| | | |
|:---|:---|:---|
| December 31, 2023 | TWD | US$ |
| Cash | 9201660 | 296479 |
| Accounts payable and accrued liabilities |  | (190659) |
| Lease obligation | (778794) |  |
| Total foreign currency financial assets and liabilities | 8422866 | 105820 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 842287 | 10582 |

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**Interest Rate Risk**

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

**Liquidity Risk**

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner. Refer to going concern disclosure under Liquidity and Capital Resources.

The following amounts are the contractual maturities of financial liabilities as at March 31, 2024 and December 31, 2023:

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| | | | |
|:---|:---|:---|:---|
| March 31, 2024 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 965580 | 965580 |  |
| Other payable | 190937 | 190937 |  |
| Lease obligation | 8373 | 8373 |  |
| Due to related parties | 28689 | 28689 |  |
| Total | 1193579 | 1193579 | - |

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| | | | |
|:---|:---|:---|:---|
| December 31, 2023 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 856682 | 856682 |  |
| Lease obligation | 33554 | 33554 |  |
| Due to related parties | 28003 | 28003 |  |
| Total | 918239 | 918239 | - |

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| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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**DISCLOSURE OF OUTSTANDING SHARE DATA**

The authorized capital of the Company consists of an unlimited number of common shares without par value.

As of the date of this report, the Company had 124,203,879 common shares, 232,936 share purchase warrants outstanding, 7,670,000 stock options outstanding and 1,235,000 RSUs outstanding.

**DISCLOSURE CONTROLS AND PROCEDURES**

The CEO and the CFO have designed, or caused to be designed under their supervision, the Company's disclosure controls and procedures ("DCP") to provide reasonable assurance that material information relating to the Company and its consolidated subsidiaries has been recorded, processed, summarized and disclosed in a timely manner in accordance with regulatory requirements and good business practices and that the Company's DCP will enable the Company to meet its ongoing disclosure requirements.

The CEO and CFO have evaluated the effectiveness of the Company's disclosure controls and procedures and have concluded that based on this evaluation, our disclosure controls and procedures are not effective at a reasonable assurance level due to the material weakness described below in Internal Control over Financial Reporting.

**INTERNAL CONTROL OVER FINANCIAL REPORTING**

The CEO and the CFO have designed, or caused to be designed under their supervision, the Company's internal controls over financial reporting ("ICFR") in order to provide reasonable assurance regarding the reliability of the Company's financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards ("IFRS").

A material weakness is a control deficiency, or combination of control deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement in the annual or interim financial statements will not be prevented or detected on a timely basis.

The CEO and CFO conducted an evaluation the effectiveness of the Company's ICFR as at March 31, 2024 based on *Internal Control-Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") for the Company as a whole. Based on this evaluation, management concluded that material weaknesses existed as at March 31, 2024.

The following material weaknesses were identified in the design and operation of its internal controls:

1. Lack of cash controls - The Company does not have sufficient internal controls over financial reporting for the cash process, including having an employee and a third party professional consultant with signing authority over certain of the Company's foreign bank accounts.

2. Lack of segregation of duties - There is a lack of segregation of duties among individuals with administrative access to various systems and applications used by the Company. In addition, there is no evidence of a review process over control activities such as, but not limited to, financial statements and disclosures, purchase authorization, cut-off of transactions posted by the accounting team, cash controls over Company credit cards, and review of contracts. This increases the risk of error and fraud due to the ability to override controls.

3. Accounting for complex transactions - During the course of our audit, some auditor proposed adjustments were made to correct certain complex transactions, including, but not limited to, share- based compensation and international tax implications. In addition, a number of adjustments were made to correct and restate the prior year information which was not addressed prior to the year end audit. There still exists a lack of review and approval on the accounting treatment of these transactions in accordance with the relevant IFRS.

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| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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**LIMITATION OF CONTROLS AND PROCEDURES**

The Company's management, including its CEO and CFO, believe that any DCP and ICFR, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override to the control. The design of any control system also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any control system will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost effective, control system, misstatements due to error or fraud may occur and not be detected.

**CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING**

There have been no changes to our internal control over financial reporting for the three months ended March 31, 2024, that could have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**RISK FACTORS**

The current business of BTQ AG has been the business of the Company since February 17, 2023. The following is a summary of certain risk factors relating to the business. The risks presented below should not be considered exhaustive and may not be all of that the Company may face.

***General Risks***

*The Company has a limited operating history*

The Company has a limited history of operations and is in the early stage of development. As such, the Company will be subject to many risks common to early-stage enterprises, including undercapitalization, cash shortages, limitations with respect to personnel, financial and other resources, and lack of revenue. There is no assurance that the Company will achieve its operating goals. There is no assurance that the Company will be successful in achieving a return on shareholders' investment and the likelihood of success must be considered in light of its early stage of operations. There can be no assurance that the Company will be able to earn material revenue or that any of its activities will generate positive cash flow.

*The Company may require additional funds to finance its operations*

Additional funds raised through debt or equity offerings may be needed to finance the Company's ongoing and future activities. There can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Failure to obtain additional financing could cause the Company to reduce or terminate its operations.

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| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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If additional funds are raised through further issuances of equity or securities convertible into equity, existing shareholders could suffer significant dilution, and any new equity securities issued could have rights, preferences and privileges superior to those of holders of securities of the Company. Any debt financing secured in the future could involve restrictive covenants relating to capital raising activities and other financial and operational matters, which may make it more difficult for the Company to obtain additional capital and to pursue business opportunities.

Refer to going concern disclosure under Liquidity and Capital Resources.

*The Company is subject to competition from other post-quantum encryption companies*

The Company will compete with other post-quantum cryptography and technology businesses, including other businesses focused on applying post-quantum cryptography to blockchain.

*The Company's compliance and risk management programs may not be effective*

The Company's ability to comply with applicable laws and rules will be largely dependent on the establishment and maintenance of compliance, review, and reporting systems, as well as the ability to attract and retain qualified compliance and other risk-management personnel, as needed. The Company cannot provide any assurance that its compliance policies and procedures will be effective or that it will be successful in monitoring or evaluating its risks. If there is any alleged non-compliance with applicable laws or regulations, The Company could be subject to investigations and judicial or administrative proceedings that may result in substantial penalties or civil lawsuits for damages, restitution or other remedies, which could be significant. Any of these outcomes, individually or together, may materially and adversely affect the Company's reputation, financial condition and valuation, and the value of its shares.

*Unexpected market disruptions may cause major losses for the Company*

The Company may incur major losses in the event of disrupted markets and other extraordinary events in which market behavior diverges significantly from historically recognized patterns. The risk of loss in such events may be compounded by the fact that, in disrupted markets, many positions may become illiquid, making it difficult or impossible to close out positions against which markets are moving. Market disruptions caused by unexpected political, military and terrorist events, or other factors, may from time to time cause dramatic losses for the Company.

*The Company will be reliant on attracting and retaining skilled management and directors*

The success of the Company will, in part, be dependent upon the skill, judgment, industry relationships and expertise of the Board and management. The loss of a director or key management personnel may materially and adversely affect the business of the Company. There can be no assurance that these individuals will continue to be employed by, or remain involved with, the Company for a particular period of time.

*Market risk for securities*

There can be no assurance that an active trading market for the Company's shares will be sustained. The market price for the Company's Shares may be subject to wide fluctuations. Factors such as government regulation, price fluctuations, share price movements of peer companies and competitors, as well as overall market movements, may have a significant impact on the market price of the Company's securities. The stock market has from time to time experienced extreme price and volume fluctuations, which have often been unrelated to the operating performance of particular companies. Market forces may render it difficult or impossible for the Company to secure purchasers to purchase its securities at a price which will not lead to severe dilution to existing shareholders, or at all. In addition, shareholders may realize less than the original amount invested on dispositions of their shares during periods of such market price decline.

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| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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*Foreign exchange risk*

The Company is a Canadian company, and most of its expenses and fundraising is done in Canadian dollars, however, its operations are predominantly denominated in U.S. dollars and Taiwan dollars. As a result, the Company is subject to foreign exchange risks relating to the relative value of the U.S. dollar and Taiwan dollar as compared to the Canadian dollar. A decline in the U.S. dollar or Taiwan dollar could result in a decrease in the real value of the Company's revenues and adversely impact financial performance.

*Tax*

No assurance can be given that new taxation rules will not be enacted or existing rules will not be applied in a manner which could result in the Company being subject to additional taxation or which could otherwise have a material adverse effect on the Company's results from operations and financial condition.

*The Company may be subject to litigation*

The Company may be subject to litigation arising out of, or related to, its operations. Damages claimed under such litigation may be material, and the outcome of such litigation may materially impact the Company's operations and the value of its shares. While the Company expects to assess the merits of any lawsuits and defend such lawsuits accordingly, it may be required to incur significant expense or devote significant financial resources to such defenses. In addition, the adverse publicity surrounding such claims may have a material adverse effect on the Company's operations.

*Investment Risk*

There is no assurance that the Company will achieve its investment objective. An investment may not earn any positive return and may result in the loss of some or all of the capital invested.

*Ability to generate profits*

There can be no assurance that the Company will generate net profits in future periods. Further, there can be no assurance that the Company will be cash flow positive in future periods. In the event that the Company fails to achieve profitability in future periods, the value of the Company's shares may decline. In addition, if the Company is unable to achieve or maintain positive cash flows, the Company would be required to seek additional funding, which may not be available on favorable terms, if at all.

*Management of growth*

The Company has recently experienced, and may continue to experience, growth in the scope of its operations. This growth has resulted in increased responsibilities for the Company's existing personnel, the hiring of additional personnel and, in general, higher levels of operating expenses. In order to manage its current operations and any future growth effectively, the Company will need to continue to implement and improve its operational, financial and management information systems, as well as hire, manage and retain its employees and maintain its corporate culture including technical and customer service standards. There can be no assurance that the Resulting Issuer will be able to manage such growth effectively or that its management, personnel or systems will be adequate to support the Company's operations.

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| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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*Reliance on key personnel*

The Company's future growth and its ability to develop depend, to a significant extent, on its ability to attract and retain highly qualified personnel. The Company will rely on a limited number of key employees, consultants and members of senior management and there is no assurance that the Company will be able to retain such key employees, consultants and senior management. The loss of one or more of such key employees, consultants or members of senior management, if not replaced, could have a material adverse effect on the Company's business, financial condition and prospects.

*The Company has no immediate plans to pay regular dividends on the Company, so shareholders of the Company may not receive funds without selling their Company Shares.*

The Company does not currently have plans to pay regular dividends on Company Shares. Any declaration and payment of future dividends to holders of Company Shares will be at the sole discretion of the Board and will depend on many factors, including the financial condition, earnings, capital requirements, level of indebtedness, statutory and contractual restrictions applying to the payment of dividends and other considerations of the Company that the Company's Board deems relevant.

***Business and Industry Risks***

*Regulatory changes or actions may alter the nature of an investment in the Company or restrict the use of digital assets in a manner that adversely affects the Company's operations*

Due to their global nature, blockchain-related technologies and encryption-related technologies are subject to regulatory fragmentation due to different treatment depending on jurisdiction. Certain governments have categorized certain blockchain technologies as illegal, while others have embraced their utility and have approved them for trade. Ongoing and/or future regulatory actions may have a substantial impact on the Company's business operations.

*The Company relies upon the use of internally/externally built proprietary software, data and intellectual property that may be subject to substantial risk*

The Company's liquidity contribution strategy is dependent on internally and externally developed software, data and intellectual property. Its operations may be severely and adversely affected by the malfunction of technology.

*Banks may not provide banking services, or may cut off banking services, to businesses that provide services related to blockchain-based technologies*

A number of companies that provide blockchain-related services have been unable to find banks that are willing to provide them with bank accounts and banking services. Similarly, a number of such companies have had their existing bank accounts closed by their banks. Banks may refuse to provide bank accounts and other banking services to blockchain-related companies, or companies that accept digital assets, for a number of reasons, such as perceived compliance risks or costs.

*The Company may be unable to obtain adequate insurance to insure its operations*

The Company intends to insure its operations in accordance with technology industry practice. However, given the novelty of digital assets and associated businesses, such insurance may not be available, may be uneconomical for the Company, or the nature or level may be insufficient to provide adequate insurance cover. The occurrence of an event that is not covered or fully covered by insurance could have a material adverse effect on the Company.

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| |
|:---|
| ![](exhibit99-21xu002.jpg) |
| **(FORMERLY SONORA GOLD & SILVER CORP.) <br>MANAGEMENT'S DISCUSSION AND ANALYSIS <br>FOR THE QUARTER ENDED MARCH 31, 2024** |

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*The business of the Company will be exposed to cybersecurity risks*

Cyber incidents can result from deliberate attacks or unintentional events, and may arise from internal sources (e.g., employees, contractors, service providers, suppliers and operational risks) or external sources (e.g., nation states, terrorists, hacktivists, competitors and acts of nature). Cyber incidents include unauthorized access to information systems and data (e.g., through hacking or malicious software) for purposes of misappropriating or corrupting data or causing operational disruption. Cyber incidents also may be caused in a manner that does not require unauthorized access, such as causing denial-of-service attacks on websites (e.g., efforts to make network services unavailable to intended users). A cyber incident that affects the Company might cause disruptions and adversely affect its business operations, and might also result in violations of applicable law (e.g., personal information protection laws), each of which might result in potentially significant financial losses and liabilities, regulatory fines and penalties, reputational harm, and reimbursement and other compensation costs. In addition, substantial costs might be incurred to investigate, remediate and prevent cyber incidents.

**FORWARD-LOOKING STATEMENTS**

*This MD&A includes certain statements that may be deemed "forward-looking statements" concerning the future performance of the Company's business, its operations, its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All statements in this report that do not directly and exclusively relate to historical facts, constitute forward- looking statements. These statements represent the Company's intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements. The Company disclaims any intention or obligation to update or revise such forward-looking statements, as a result of new information, future events or otherwise. Factors that may cause actual results to vary from forward looking statements include, but are not limited to, the Company's ability to access capital, competitive risks and reliance on key personnel, as described in more detail in this document under "Risk Factors". Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.*

------

## Exhibit 99.22

------

**Form 52-109F2**

***Certification of Interim***

***Filings Full Certificate***

I, Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies Corp., certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A, (together, the "interim filings") of BTQ Technologies Corp. (the "issuer") for the interim period ended March 31, 2024.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. ***Responsibility:*** The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the end of the period covered by the interim filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework.

------

5.2 **ICFR - material weaknesses relating to design:** The issuer has disclosed in its interim MD&A for each material weakness relating to design existing for the interim period end

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A description of the material weakness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The impact of the material weakness on the issuer's financial reporting and its ICFR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The issuer's current plans, if any, or any actions already undertaken, for remediating the material weakness.

5.3 N/A

6. ***Reporting changes in ICFR:*** The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on January 1, 2024 and ended on March 31, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: June 7, 2024

(signed) "Olivier Roussy Newton"

______________________________

Olivier Roussy Newton

Chief Executive Officer

------

## Exhibit 99.23

------

**Form 52-109F2**

***Certification of Interim***

***Filings Full Certificate***

I, Lonny Wong, Chief Financial Officer of BTQ Technologies Corp., certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A, (together, the "interim filings") of BTQ Technologies Corp. (the "issuer") for the interim period ended March 31, 2024.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. ***Responsibility:*** The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the end of the period covered by the interim filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework.

------

5.2 **ICFR - material weaknesses relating to design:** The issuer has disclosed in its interim MD&A for each material weakness relating to design existing for the interim period end

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A description of the material weakness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The impact of the material weakness on the issuer's financial reporting and its ICFR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The issuer's current plans, if any, or any actions already undertaken, for remediating the material weakness.

5.3 N/A

6. ***Reporting changes in ICFR:*** The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on January 1, 2024 and ended on March 31, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: June 7, 2024

(signed) "Lonny Wong"

______________________________

Lonny Wong

Chief Financial Officer

------

## Exhibit 99.24

------

**BTQ Files Interim Financial Statements**

**Vancouver, British Columbia, June 10, 2024 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF) has filed its unaudited interim consolidated financial statements for the quarter ended March 31, 2024 and the associated management's discussion and analysis and certifications (collectively, the "Interim Filings"). The Company filed the Interim Filings on June 7, 2024, which can be found on the Company's SEDAR+ page. As a consequence, the Company expects the management cease trade order with respect to the delayed filings to be revoked by the applicable securities regulators.

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

*Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes, but is not limited to, statements regarding the timing, review, completion and filing of the Annual Filings, and duration of the MCTO; business goals and objectives of the Company, and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.*

*Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: the Company may not complete its audit and file the Annual Filings as currently anticipated, or at all; the Company will be subject to a general cease trade order in the event that the Annual Filings are not completed and filed; and other related risks as more fully set out in the documents disclosed under the Company's filings at www.sedarplus.ca.*

------

*The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to complete and file the Annual Filings. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.*

------

## Exhibit 99.25

------

![](exhibit99-25x1x1.jpg)

**BTQ Technologies Expands Global Footprint with New Australian Entity, BTQ AU**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **BTQ Global Expansion:** BTQ Technologies Corp. has successfully incorporated and registered its Australian entity, BTQ Technologies Australia Pty Ltd (BTQ AU), with the Australian Securities and Investments Commission (ASIC) as of June 7, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Strategic Focus:** BTQ AU aims to advance research in quantum algorithms to enhance communication security and efficiency, leveraging Sydney's robust quantum ecosystem and collaborating with leading local quantum computer scientists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Educational and Collaborative Commitment:** BTQ AU is dedicated to nurturing future quantum technology specialists through partnerships with Macquarie University and the Sydney Quantum Academy, providing supervision and internships for PhD students, and participating in the Australian Quantum Software Network.

**Vancouver, British Columbia, June 17, 2024 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce the incorporation and registration of its Australian entity, BTQ Technologies Australia Pty Ltd (BTQ AU), with the Australian Securities and Investments Commission (ASIC) as of June 7, 2024.

With a strong foundation and strategic partnerships in place, BTQ AU plans to advance its research and development efforts in quantum algorithms to enhance the security and efficiency of communications. Located in The Quantum Terminal, which forms part of Australia's largest tech and innovation-focused hub, Tech Central, BTQ AU leverages Sydney's vibrant quantum ecosystem. Tech Central strives to forge history and culture with technology to create cutting-edge environments for the next generation of tech businesses. By bridging its expertise in post-quantum cryptography with Australia's leading quantum computer scientists, BTQ AU is committed to contributing to the global quantum technology landscape and ensuring quantum-safe security for future digital networks.

BTQ AU is not only focusing on technological advancements but also on nurturing the next generation of quantum technology specialists. Through its partnerships with Macquarie University and the Sydney Quantum Academy, BTQ AU is actively involved in providing supervision and internships for PhD students. This commitment to education and collaboration ensures that BTQ AU stays at the forefront of quantum research and development while fostering a robust talent pipeline for the industry.

"Sydney is the ideal location for BTQ Australia to establish itself, offering an opportunity to collaborate and integrate with Sydney's flourishing quantum ecosystem and harness the incredible local talent pool Australia has to offer," said Peter Rohde, BTQ's Senior Quantum Researcher. "Sydney's quantum community provides the perfect bridge between BTQ's existing strength in post-quantum cryptography and Australia's world-class quantum computer scientists to realize quantum-safe security."

------

"The incorporation of BTQ Australia, located in The Quantum Terminal, Sydney, solidifies the company's presence in the Australian quantum ecosystem," said Gavin Brennen, BTQ's Quantum Information Advisor. "The team, consisting of senior quantum information and classical cryptography researchers, is focused on developing quantum algorithms for secure and energy-efficient communications. BTQ Australia has a continuing research collaborative agreement with Macquarie University and is an industry partner with the Sydney Quantum Academy in the CSIRO 'Creating the Next Generation of Quantum Technology Specialists' program, providing supervision and internships for PhD students in quantum technologies. BTQ Australia is also a partner in the Australian Quantum Software Network."

**About BTQ**

BTQ was founded by a group of post-quantum cryptography with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E:<u> </u><u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

------

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.26

------

---

| | |
|:---|:---|
|  | ![](exhibit99-26x1x1.jpg) |
| July 19, 2024 | 510 Burrard St, 3rd Floor |
|  | Vancouver BC, V6C 3B9 |
|  | www.computershare.com |

---

To: All Canadian Securities Regulatory Authorities

**Subject: BTQ TECHNOLOGIES CORP.**

Dear Sir/Madam:

We advise of the following with respect to the upcoming Meeting of Security Holders for the subject Issuer:

---

| | |
|:---|:---|
| Meeting Type : | Annual General Meeting |
| Record Date for Notice of Meeting : | August 13, 2024 |
| Record Date for Voting (if applicable) : | August 13, 2024 |
| Beneficial Ownership Determination Date : | August 13, 2024 |
| Meeting Date : | September 18, 2024 |
| Meeting Location (if available) : | Vancouver, BC |
| Issuer sending proxy related materials directly to NOBO: | Yes |
| Issuer paying for delivery to OBO: | No |
| **Notice and Access (NAA) Requirements:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NAA for Beneficial Holders | No |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NAA for Registered Holders | No |

---

---

| | | |
|:---|:---|:---|
| **Voting Security Details:** |  |  |
| **Description** | **CUSIP Number** | **ISIN** |
| COMMON | 055869101 | CA0558691014 |

---

<br>Sincerely,

**Computershare**

Agent for BTQ TECHNOLOGIES CORP.

------

## Exhibit 99.27

------

![](exhibit99-27x1x1.jpg)

**BTQ Technologies Announces the Award of Academic Grants from Mitacs**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Grant Awards:** BTQ Technologies is eligible to receive up to C$435,000 in awards from the Mitacs Accelerate program. These grants will help deepen BTQ's IP portfolio and accelerate commercialization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Project Collaboration:** The Mitacs Accelerate project, supervised by Prof. Guang Gong at the University of Waterloo, focuses on efficient zero-knowledge proof-based post-quantum digital signature schemes and aims to investigate the efficiency and commercial implementation of Preon.

**Vancouver, British Columbia, August 6, 2024, 2024 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce the receipt of a major funding award that will complement the company's existing IP portfolio in the post-quantum space. BTQ plans to continue pursuing additional research and development grants and collaborations to expand its presence in Canada's vibrant quantum and cybersecurity ecosystems.

In May 2024, BTQ received approval for its Mitacs Accelerate project titled "Enabling Efficient Zero-Knowledge Proofs-Based Post-Quantum Digital Signature Schemes." The project, supervised by Prof. Guang Gong from the Department of Electrical and Computer Engineering at the University of Waterloo, is set to continue until July 2026.

With the rapid development of quantum computers, the U.S. National Institute of Standards and Technology (NIST) has issued a National Security Memorandum to ensure the timely and equitable transition of cryptographic systems to quantum-resistant cryptography by 2035. This initiative urges the direct implementation of post-quantum cryptographic (PQC) algorithms in all layers of protection mechanisms for new digital systems. The goal of this project, jointly led by BTQ and the University of Waterloo, is to investigate the efficiency and commercial implementation of<u> </u><u>Preon</u>, one of the candidates in NIST's Additional Digital Signature Schemes Round 1 for the PQC Standardization Process, submitted by BTQ in July of last year.

Guang Gong, the project lead, Professor in the Department of Electrical and Computer Engineering, University Research Chair, and IEEE Fellow, commented on the collaboration: "I am very glad to receive this Mitacs grant with our industrial partner HH-BTQ. The project aims to investigate the efficiency and implementation of Preon (submitted to NIST 2023), a post-quantum digital signature scheme based on the Aurora zero-knowledge non-interactive argument of knowledge (zkSNARK) proof system and the AES circuit for optimized signing and verification processes. This collaborative environment will provide graduate students and post-doctoral fellows with rich research experiences and in-depth exposure to cutting-edge industrial research and development."

------

![](exhibit99-27x1x1.jpg)

**About Mitacs**

Mitacs empowers Canadian innovation through effective partnerships that deliver solutions to the world's most pressing problems. By driving economic growth and productivity, Mitacs creates meaningful change to improve the quality of life for all Canadians. Founded in 1999, Mitacs has grown beyond its origins in mathematics. Today, the organization supports a range of disciplines, from STEM to social innovation. With close to 400 employees and offices in Ottawa, Montréal, Toronto, and Vancouver Mitacs is an integral part of Canada's innovation ecosystem.

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive. Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate.*

------

![](exhibit99-27x1x1.jpg)

*Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.28

------

![](exhibit99-28x1x1.jpg)

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2024 and 2023

(unaudited)

------

**NOTICE OF NO AUDITOR REVIEW OF**

**CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the condensed interim consolidated financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited condensed interim consolidated financial statements have been prepared by and are the responsibility of management.

The Company's independent auditor has not performed a review of these financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of condensed interim consolidated financial statements by an entity's auditor.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Financial Position <br>(Expressed in Canadian dollars)

---

| |
|:---|
| Assets |
| Current assets |
| &nbsp;&nbsp;Cash |
| &nbsp;&nbsp;Short-term investment (Note 8) |
| &nbsp;&nbsp;Other receivables (Note 14) |
| &nbsp;&nbsp;Prepaid expenses and deposits |
| Total current assets |
| Non-current assets |
| &nbsp;&nbsp;&nbsp;Property and equipment (Note 4) |
| &nbsp;&nbsp;&nbsp;Right-of-use asset (Note 5) |
| &nbsp;&nbsp;&nbsp;Investments (Note 7) |
| &nbsp;&nbsp;&nbsp;Deposits |
| Total non-current assets |
| Total assets |
| Liabilities and shareholders' equity (deficit) |
| Current liabilities |
| &nbsp;&nbsp;Accounts payable and accrued liabilities (Note 14) |
| &nbsp;&nbsp;Corporate taxes payable |
| &nbsp;&nbsp;Other payable |
| &nbsp;&nbsp;Current portion of lease obligation (Note 9) |
| &nbsp;&nbsp;Deferred revenue (Note 14) |
| &nbsp;&nbsp;Due to related parties (Note 14) |
| Total current liabilities |
| Non-current liabilities |
| &nbsp;&nbsp;Lease obligation (Note 9) |
| Total liabilities |
| Shareholders' equity (deficit) |
| &nbsp;&nbsp;Share capital (Notes 3 and 10) |
| &nbsp;&nbsp;Options reserve (Notes 3 and 11) |
| &nbsp;&nbsp;Warrants reserve |
| &nbsp;&nbsp;RSUs reserve (Note 13) |
| &nbsp;&nbsp;Deficit) |
| Total shareholders' equity (deficit) |
| Total liabilities and shareholders' equity (deficit) |

---

Nature of operations and going concern (Note 1)

Approved and authorized for issuance on behalf of the Board on August 13, 2024:

<u> *"*Olivier Roussy Newton*"* </u> &nbsp;&nbsp;&nbsp;&nbsp;Director <u> *"Michael Resendes"* </u> &nbsp;&nbsp;&nbsp;&nbsp;Director

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss <br>(Expressed in Canadian dollars)

(unaudited)

---

| |
|:---|
| Revenue (Note 21) |
| Expenses |
| &nbsp;&nbsp;&nbsp;Consulting fees |
| &nbsp;&nbsp;&nbsp;Depreciation (Notes 4 and 5) |
| &nbsp;&nbsp;&nbsp;General and administrative (Note 20) |
| &nbsp;&nbsp;&nbsp;Marketing and promotion (Note 14) |
| &nbsp;&nbsp;&nbsp;Professional fees (Note 14) |
| &nbsp;&nbsp;&nbsp;Research and development |
| &nbsp;&nbsp;&nbsp;Share-based compensation (Not**e**s 11, 13, and 14) |
| &nbsp;&nbsp;&nbsp;Transfer agent and regulatory fees |
| &nbsp;&nbsp;&nbsp;Wages and benefits (Note 14) |
| Total expenses |
| Loss before other income (expense) |
| Other income (expense) |
| &nbsp;&nbsp;&nbsp;Foreign exchange loss) |
| &nbsp;&nbsp;&nbsp;Interest expense (Note 9) |
| &nbsp;&nbsp;&nbsp;Interest income |
| &nbsp;&nbsp;&nbsp;Listing costs (Note 3) |
| &nbsp;&nbsp;&nbsp;Other income |
| Total other income (expense) |
| Net loss for the period) |
| Comprehensive income (loss) |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustment) |
| Net comprehensive loss for the period) |
| Loss per share, basic and diluted) |
| Weighted average number of common shares outstanding |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity <br>(Expressed in Canadian dollars)

(unaudited)

---

| | | | |
|:---|:---|:---|:---|
|  | Share capital | Share capital |  |
|  | Share capital | Share capital | Warrants |
|  | Number of | Amount | reserve |
|  | shares | $| $|
| Balance, December 31, 2023 | 123193879 | 34317779 | 67386) |
| Shares issued for options exercised | 260000 | 171808) |  |
| Share-based compensation |  |  | -) |
| Shares issued for vested RSU's | 750000 | 456000 | -) |
| Net loss for the period |  |  | -) |
| Balance, June 30, 2024 | 124203879 | 34945587 | 67386) |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity<br>(Expressed in Canadian dollars)

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Share capital |  |  |  |
|  | Share capital | Options | Warrants | RSU |
|  | Number of | reserve | reserve | reserve |
|  | shares | $| $| $|
| Balance, December 31, 2022 | 92000000 |  |  | -) |
| Shares of the Company pursuant to reverse takeover | 8747629 |  |  |  |
| Revaluation of stock options pursuant to reverse takeover |  | 97532 |  |  |
| Shares issued for cash | 18001250 |  |  |  |
| Shares issued to finder for the Transaction | 2500000 |  |  |  |
| Share issuance costs | -) |  | 67386 | -) |
| Fair value of stock options granted |  | 898823 |  |  |
| Fair value of restricted share units granted |  |  |  | 1007235 |
| Foreign currency translation loss |  |  |  | -) |
| Net loss for the period |  |  |  | -) |
| Balance, June 30, 2023 | 121248879 | 996355 | 67386 | 1007235) |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Cash Flows <br>(Expressed in Canadian dollars)

(unaudited)

---

| |
|:---|
| Operating activities |
| Net loss for the period) |
| Items not involving cash: |
| &nbsp;&nbsp;Depreciation |
| &nbsp;&nbsp;Foreign exchange translation loss) |
| &nbsp;&nbsp;Interest expense |
| &nbsp;&nbsp;Listing costs |
| &nbsp;&nbsp;Share-based compensation |
| &nbsp;&nbsp;Transaction costs |
| Changes in non-cash operating working capital: |
| &nbsp;&nbsp;&nbsp;Other receivables) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and deposits) |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities) |
| &nbsp;&nbsp;&nbsp;Other payable |
| &nbsp;&nbsp;&nbsp;Deferred revenue |
| Net cash used in operating activities) |
| Investing activities |
| &nbsp;&nbsp;&nbsp;Redemption of short-term investment |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment) |
| &nbsp;&nbsp;&nbsp;Purchase of investment) |
| &nbsp;&nbsp;&nbsp;Cash acquired in reverse takeover |
| Net cash used in investing activities) |
| Financing activities |
| &nbsp;&nbsp;Repayment of lease obligation) |
| &nbsp;&nbsp;Proceeds from issuance of shares |
| &nbsp;&nbsp;Proceeds from stock options exercised |
| &nbsp;&nbsp;Share issuance costs) |
| Net cash provided by financing activities |
| Effect of foreign exchange rate changes on cash) |
| Increase in cash) |
| Cash, beginning of period |
| Cash, end of period |

---

Supplemental cash flow information (Note 15)

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Six Months Ended June 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**1. NATURE OF OPERATIONS AND GOING CONCERN**

BTQ Technologies Corp. (formerly Sonora Gold & Silver Corp.) ("the Company") was incorporated on November 23, 1983 under the Business Corporations Act (British Columbia). The principal activity of the Company is the development of computer-based technology related to post-quantum cryptography, particularly as it applies to blockchain and related technologies, and their protection from the emerging security risk of quantum computing. The Company's head office is located at 16-104 555 Burrard Street, Vancouver, BC, Canada. The Company's common shares trade on Cboe Canada under the ticker symbol "BTQ".

On February 17, 2023, the Company acquired all of the issued and outstanding shares of BTQ AG in exchange for 92,000,000 common shares. This transaction constituted a reverse takeover of the Company by BTQ AG with BTQ AG being identified as the accounting acquirer. As a result, these consolidated financial statements are a continuation of BTQ AG. The Company's results of operations are included from February 17, 2023 onwards, except for share capital which has been retroactively adjusted to reflect the capital of the Company. Refer to Note 3.

These consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. During the six months ended June 30, 2024, the Company has not generated significant revenues from operations and has negative cash flow from operations. As at June 30, 2024, the Company has a working capital deficit of $537,300 and an accumulated deficit of $38,097,917. The Company's ability to continue its operations and to realize its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs. Management is of the opinion that sufficient working capital will be obtained from external financing to meet the Company's liabilities and commitments as they become due, although there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These factors indicate a material uncertainty that may cast significant doubt on the ability of the Company to continue as a going concern. These consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. Such adjustments could be material.

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICIES** 

**Statement of Compliance<br>**

<br> These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") applicable to interim financial information, as outlined in International Accounting Standard ("IAS") 34, "Interim Financial Reporting" and using the accounting policies consistent with those in the audited financial statements as at and for the year ended December 31, 2023.

The condensed interim consolidated financial statements of the Company have been prepared on an accrual basis and are based on historical cost, except for certain financial assets and liabilities that are measured at fair value.

**Basis of Presentation**

These consolidated financial statements have been prepared on a historical cost basis except for certain financial assets and liabilities, which are measured at fair value, as specified by IFRS for each type of asset, liability, income, and expense as set out in the accounting polices below. <br>

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Six Months Ended June 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICIES (continued)** 

**Basis of consolidation**

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, BTQ AG, a company incorporated in the Principality of Liechtenstein, and BTQ Technologies Australia Pty Ltd., a company incorporated in Australia.

These consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances are eliminated on consolidation. Control exists where the parent entity has power over the investee and is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Subsidiaries are included in the financial statements from the date control commences until the date control ceases.

**Accounting standards issued but not yet effective**

A number of new standards, and amendments to standards and interpretations, are not yet effective for the period ended June 30, 2024, and have not been early adopted in preparing these consolidated financial statements. These new standards, and amendments to standards and interpretations are either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements.

**3. REVERSE TAKEOVER**

On December 31, 2021 (as amended on April 29, 2022, July 30, 2022, and November 29, 2022), the Company, BTQ AG, and shareholders of BTQ AG entered into an agreement pursuant to which the Company agreed to acquire all of the issued and outstanding shares of BTQ AG (the "Transaction").

The closing of the Transaction occurred on February 17, 2023, at which time the Company issued 92,000,000 common shares in exchange for the issued and outstanding common shares of BTQ AG. The Company consolidated its common shares on a 10:1 basis immediately prior to the closing of the transaction.

As a result of the completion of the Transaction, the former shareholders of BTQ AG acquired 75.88% of the outstanding common shares of the Company, and, for accounting purposes, are considered to have acquired control of the Company. Accordingly, the Transaction constitutes a reverse acquisition of the Company by BTQ AG and has been accounted for as a reverse acquisition transaction in accordance with the guidance provided in IFRS 2, *Share-based Payment* and IFRS 3, *Business Combinations*. As the Company did not qualify as a business prior to the closing of the transaction according to the definition in IFRS 3, this reverse acquisition did not constitute a business combination; rather it was treated as an issuance of shares by BTQ AG for the net assets of the Company. Accordingly, no goodwill was recorded with respect to the Transaction. The Transaction was measured at the fair value of the common shares that BTQ AG would have had to issue to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051, and the fair value of 350,000 stock options of the Company with a fair value of $97,532, to give the shareholders of the Company the same percentage of equity interest in the combined entity that results from the reverse acquisition had it taken the legal form of BTQ AG acquiring the Company. The Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction. The fair value of common shares and stock options issued were estimated based on the Company's financing event which took place concurrently to the reverse takeover transaction at the price of $0.40 per common share. Refer to Note 10. As BTQ AG was deemed to be the acquirer for accounting purposes, its assets, liabilities, and operations since its incorporation on March 26, 2021 are included in these consolidated financial statements at their historical carrying values. The assets, liabilities, and results of operations of the Company are included in these consolidated financial statements from the date acquisition on February 17, 2023.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Six Months Ended June 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**3. REVERSE TAKEOVER**

The purchase price is allocated as follows:

---

| |
|:---|
| Fair value of the Company's shares (8,747,629 common shares) |
| Fair value of 350,000 stock options of the Company outstanding |
| Total consideration |
| Less: fair value of identifiable assets acquired and liabilities assumed: |
| Cash |
| Cash held in escrow |
| Receivables |
| Short-term investment |
| Accounts payable and accrued liabilities) |
| Subscription receipts liabilities) |
| Net liabilities assumed) |
| Listing costs |

---

The fair value of stock options of the Company was calculated using the Black-Scholes option pricing model with the following assumptions: volatility of 150%, expected life of 2.1 years, no dividends, no forfeitures, and a risk-free rate of 4.15%.

**4. PROPERTY AND EQUIPMENT**

---

| | | | |
|:---|:---|:---|:---|
|  |  | Furniture and |  |
|  | IT equipment | equipment | Total |
|  | $| $| $|
| Cost: |  |  |  |
| Balance, December 31, 2023 and June 30, 2024 | 114782 | 48530 | 163312 |
| Accumulated depreciation: |  |  |  |
| Balance, December 31, 2023 | 51929 | 8563 | 60492 |
| &nbsp;&nbsp;&nbsp;Additions | 8192 | 2132 | 10324 |
| Balance, June 30, 2024 | 60121 | 10695 | 70816 |
| Carrying amounts: |  |  |  |
| As at December 31, 2023 | 62853 | 39967 | 102820 |
| As at June 30, 2024 | 54661 | 30346 | 92496 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Six Months Ended June 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**5. RIGHT-OF-USE ASSET**

---

| |
|:---|
| Cost: |
| Balance, December 31, 2023 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal) |
| Balance, June 30, 2024 |
| Accumulated depreciation: |
| Balance, December 31, 2023 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange translation difference) |
| Balance, June 30, 2024 |
| Carrying amounts: |
| As at December 31, 2023 |
| As at June 30, 2024 |

---

**6. LOAN RECEIVABLE**

On December 1, 2022, BTQ AG entered into an agreement with MEV Trading Inc. ("MEV"), under which the BTQ AG granted a loan of $1,354,400 (US$1,000,000) which is non-interest bearing, and due on June 30, 2023. In consideration for the loan, MEV issued a warrant to BTQ AG entitling BTQ AG to purchase shares of MEV non-voting stock equal to 10% of the loan amount based on the fully-diluted pre-money valuation of the borrower as determined by the most recent qualified equity financing round before the maturity date or within one year of issuance, whichever occurs earlier (expired on June 30, 2023). The fair value of the warrants issued was determined to be nominal. On August 7, 2023, the Company received repayment of the $1,343,300 (US$1,000,000) loan receivable.

**7. INVESTMENTS**

---

| | |
|:---|:---|
|  | $|
| Balance, December 31, 2023 and June 30, 2024 | 77229 |

---

During the year ended December 31, 2022, the BTQ AG invested $63,915 (US$50,000) in the form of a Simple Agreement for Future Equity ("SAFE") in the Holonym Foundation ("Holonym"), which is a public benefit corporation. The investment is not traded in an active market.

On January 11, 2023, BTQ AG invested $13,314 (US$10,000) in the form of a SAFE into Cysic Inc. The investment is not traded in an active market.

**8. SHORT-TERM INVESTMENT**

The Company has pledged a guaranteed investment certificate ("GIC") as collateral for the Company's credit cards. The GIC earns interest at Prime Rate less 2.7% per annum and has a maturity date of June 6, 2026.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Six Months Ended June 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**9. LEASE OBLIGATION**

On May 15, 2022, the Company entered into a premises lease agreement which gives the Company the right to use an underlying asset which expires on May 14, 2024. The Company's obligation to make lease payments arising from the lease is calculated by discounting the fixed lease payments over the lease term at the Company's incremental borrowing rate. The incremental borrowing rate used in the calculation was 13%.

On May 15, 2024, the Company entered into a premises lease agreement which gives the Company the right to use an underlying asset which expires on May 14, 2026. The Company's obligation to make lease payments arising from the lease is calculated by discounting the fixed lease payments over the lease term at the Company's incremental borrowing rate. The incremental borrowing rate used in the calculation was 13%.

---

| |
|:---|
| Balance, December 31, 2023 |
| Addition |
| Payments) |
| Interest |
| Foreign exchange translation difference) |
| Balance, June 30, 2024 |
| Less: current portion |
| Non-current portion |

---

**10. SHARE CAPITAL**

Authorized: Unlimited number of common shares without par value Share transactions during the three months ended June 30, 2024:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the six months ended June 30, 2024, the Company issued 260,000 common shares for proceeds of $104,000 pursuant to the exercise of stock options. The fair value of stock options exercised of $67,808 was transferred from options reserve to share capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On March 5, 2024, the Company issued 750,000 common shares pursuant to the conversion of vested RSUs.

Share transactions during the three months ended June 30, 2023:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 17, 2023, the Transaction closed, resulting in a reverse takeover (refer to Note 3). The Transaction was measured at the fair value of the shares that BTQ AG would have had to issued to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 17, 2023, the Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 17, 2023, the Company completed a subscription receipt financing of 18,001,250 common shares at $0.40 per share for gross proceeds of $7,200,500. In connection with the financing, the Company incurred share issuance costs of $93,174 and issued 232,936 finders' warrants exercisable at $0.40 per common share expiring on February 17, 2025. The fair value of finders' warrants was determined to be $67,386 which was calculated using the Black-Scholes option pricing model with the following assumptions: volatility of 150%, expected life of 2 years, no dividends, and a risk-free rate of 4.15%.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Six Months Ended June 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**10. SHARE CAPITAL (continued)** 

<u>Escrowed shares</u>

On completion of the Transaction, certain principals of the Company entered into a NP 46-201 Escrow Agreement with the NEO Exchange and Computershare Trust Company of Canada, as escrow agent, in respect of 45,250,000 common shares. Under the terms of the Escrow Agreement, 25% of such escrowed securities were released upon closing (February 17, 2023) with subsequent 25% releases occurring 6, 12, and 18 months from closing. These escrow shares will be released as follows:

---

| | |
|:---|:---|
| Date of automatic timed release | Amount of escrow shares released |
| On the date that the Company's common shares were listed on the NEO, February 17, 2023 | 1/4 of the escrowed shares |
| 6 months after the listing date (August 17, 2023) | 1/4 of the escrowed shares |
| 12 months after the listing date (February 17, 2024) | 1/4 of the escrowed shares |
| 18 months after the listing date (August 17, 2024) | The remainder of the escrowed shares |

---

As at June 30, 2024, 11,312,500 common shares remained in escrow.

**11. STOCK OPTIONS**

The Company has a stock option plan (the "Plan") for directors, officers, employees, and consultants of the Company. Stock options are exercisable for periods of up to five years, as determined by the Board of Directors of the Company, to purchase common shares of the Company at a price not less than the discounted market price on the date of the grant. The maximum number of shares which may be issuable under the Plan cannot exceed 10% of the total number of issued and outstanding common shares on a non- diluted basis.

The following table summarizes the continuity of the Company's stock options:

---

| | | |
|:---|:---|:---|
|  |  | Weighted |
|  |  | average |
|  |  | exercise |
|  | Number of | price |
|  | stock options | $|
| Outstanding, December 31, 2023 | 7770000 | 0.41 |
| &nbsp;&nbsp;Granted | 800000 | 0.46 |
| &nbsp;&nbsp;Exercised | (260000) | 0.40 |
| &nbsp;&nbsp;Expired | (240000) | 0.40 |
| Outstanding, June 30, 2024 | 8070000 | 0.42 |
| Exercisable, June 30, 2024 | 3221250 | 0.41 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Six Months Ended June 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**11. STOCK OPTIONS (continued)**

Additional information regarding stock options outstanding as at June 30, 2024, is as follows:

---

| | | | |
|:---|:---|:---|:---|
| Outstanding | Outstanding | Exercisable | Exercisable |
|  | Weighted |  |  |
|  | average |  | Weighted |
|  | remaining |  | average |
| Number of | contractual | Number of | exercise price |
| $stock options | life (years) | $stock options | $|
| 7130000 | 2.8 | 2988750 | 0.40 |
| 580000 | 2.9 | 180000 | 0.50 |
| 100000 | 5.2 |  |  |
| 210000 | 3.5 | 52500 | 0.64 |
| 50000 | 4.1 |  |  |
| 8070000 | 2.9 | 3221250 | 0.41 |

---

The fair value for stock options granted have been estimated using the Black-Scholes option pricing model assuming no expected dividends or forfeitures and the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | Six months | Six months |
|  | ended | ended |
|  | June 30, | June 30, |
|  | 2024 | 2023 |
| Risk-free interest rate | 3.38% | 3.51% |
| Expected life (in years) | 4.6 | 4.3 |
| Expected volatility | 215% | 150% |

---

During the six months ended June 30, 2024, the Company recognized share-based compensation expense of $271,422 (2023 - $898,823), with a corresponding increase to options reserve. The weighted average fair value of the stock options granted during the six months ended June 30, 2024 was $0.45 (2023 - $0.36) per option.

**12. SHARE PURCHASE WARRANTS**

The following table summarizes the continuity of share purchase warrants:

---

| | | |
|:---|:---|:---|
|  |  | Weighted |
|  |  | average |
|  |  | exercise |
|  | Number of | price |
|  | warrants | $|
| Balance, December 31, 2023 and June 30, 2024 | 232936 | 0.40 |

---

As at June 30, 2024, the following share purchase warrants were outstanding and exercisable:

---

| | |
|:---|:---|
| Number of |  |
| warrants |  |
| outstanding | $Expiry date |
| 232936 | February 17, 2025 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Six Months Ended June 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**13. RESTRICTED SHARE UNITS**

A summary of the changes in RSUs is presented below:

---

| | |
|:---|:---|
|  | Number of |
|  | RSUs |
| Balance, December 31, 2023 | 1985000 |
| &nbsp;&nbsp;Converted to shares | (750000) |
| Balance, June 30, 2024 | 1235000 |
| Unvested | 90000 |
| Vested, June 30, 2024 | 1145000 |

---

During the six months ended June 30, 2024, the Company recognized share-based compensation expense of ($137,872) (2023 - $1,007,235) with a corresponding decrease to RSU reserve and $456,000 (2023 - $nil) was transferred to share capital upon the vesting of 750,000 RSUs.

**14. RELATED PARTY TRANSACTIONS**

Key management personnel are persons responsible for planning, directing, and controlling the activities of an entity, and include all officers and directors of the Company. Key management personnel compensation during the six months ended June 30, 2024 and 2023 was comprised of the following:

---

| | | |
|:---|:---|:---|
|  | Six months | Six months |
|  | ended | ended |
|  | June 30, | June 30, |
|  | 2024 | 2023 |
|  | $| $|
| Consulting fees | 40758 | 48517 |
| Marketing and promotion | 48910 | 48517 |
| Professional fees | 42000 | 10161 |
| Research and development | 140257 | 180397 |
| Wages and benefits | 146901 | 142165 |
| Total short-term benefits | 418826 | 429757 |
| Share-based payments | 155101 | 396221 |
|  | 573927 | 825978 |

---

As at June 30, 2024, the Company owed $118,106 (December 31, 2023 - $114,223) to the CEO of the Company, of which $92,259 (December 31, 2023 - $89,247) is included in accounts payable and accrued liabilities. The amounts owed are non-interest bearing, unsecured, and due on demand.

As at June 30, 2024, the Company was owed $123,944 (December 31, 2023 - $49,888) from the Chief Operating Officer ("COO") of the Company, which is included in other receivables.

As at June 30, 2024, the Company owed $3,133 (December 31, 2023 - $3,027) to a company controlled by the CEO and COO of the Company, which is non-interest bearing, unsecured, and due on demand.

As at June 30, 2024, the Company owed $22,050 (December 31, 2023 - $7,350) to a firm where the Chief Financial Officer of the Company is a partner, which is included in accounts payable and accrued liabilities.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Six Months Ended June 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**14. RELATED PARTY TRANSACTIONS (continued)**

As at June 30, 2024, the Company owed $136,870 (December 31, 2023 - $132,260) to the Chief Cryptographer of the Company, which is included in accounts payable and accrued liabilities.

As at June 30, 2024, the Company owed $8,220 (December 31, 2023 - $7,936) to the Head of Corporate Development of the Company, which is included in accounts payable and accrued liabilities.

**15. SUPPLEMENTAL CASH FLOW INFORMATION**

---

| | | |
|:---|:---|:---|
|  | Six months | Six months |
|  | ended | ended |
|  | June 30, | June 30, |
|  | 2024 | 2023 |
|  | $| $|
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Receivables acquired in reverse takeover |  | 25308 |
| &nbsp;&nbsp;&nbsp;Short-term investment acquired in reverse takeover |  | 2875 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities assumed in reverse takeover |  | 455077 |
| &nbsp;&nbsp;&nbsp;Finders' warrants issued pursuant to private placement |  | 14632 |
| &nbsp;&nbsp;&nbsp;Fair value of stock options exercised transferred from options reserve to share capital | 67808 |  |
| &nbsp;&nbsp;&nbsp;Shares issued for vested RSUs | 456000 | - |

---

**16. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fair Values

<u>Fair value hierarchy</u>

The following provides a description of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at June 30, 2024 and December 31, 2023 as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in | Significant |  |  |
|  | active markets | other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | June 30, |
|  | (Level 1) | (Level 2) | (Level 3) | 2024 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Six Months Ended June 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**16. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fair Values (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in | Significant |  |  |
|  | active markets | other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | December 31, |
|  | (Level 1) | (Level 2) | (Level 3) | 2023 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

---

The fair values of the Company's other financial instruments, which include cash, short-term investment, other receivables, accounts payable and accrued liabilities, other payable, lease obligation, and due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Credit Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit loss by placing its cash and cash equivalents with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Foreign Exchange Rate Risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency.

The following tables indicate the impact of foreign currency exchange risk on net working capital as at June 30, 2024 and December 31, 2023. The tables below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the tables below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as at June 30, 2024 and December 31, 2023.

---

| | | |
|:---|:---|:---|
| As at June 30, 2024 | TWD | US$ |
| Cash | 50541 | 414263 |
| Accounts payable and accrued liabilities | (53103) | (272461) |
| Lease obligation | (3896297) |  |
| Total foreign currency financial assets and liabilities | (3898859) | 141802 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 38989 | 14180 |
| As at December 31, 2023 | TWD | US$ |
| Cash | 9201660 | 296479 |
| Accounts payable and accrued liabilities |  | (190659) |
| Lease obligation | (778794) |  |
| Total foreign currency financial assets and liabilities | 8422866 | 105820 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 842287 | 10582 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Six Months Ended June 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**16. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner. Refer to going concern disclosure in Note 1.

The following amounts are the contractual maturities of financial liabilities as at June 30, 2024 and December 31, 2023:

---

| | | | |
|:---|:---|:---|:---|
| As at June 30, 2024 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 1144700 | 1144700 |  |
| Other payable | 373401 | 373401 |  |
| Lease obligation | 163977 | 84561 | 79416 |
| Due to related parties | 23720 | 23720 |  |
| Total | 1705798 | 1626382 | 79416 |

---

---

| | | | |
|:---|:---|:---|:---|
| As at December 31, 2023 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 856682 | 856682 |  |
| Lease obligation | 33554 | 33554 |  |
| Due to related parties | 28003 | 28003 |  |
| Total | 918239 | 918239 | - |

---

**17. CAPITAL MANAGEMENT**

The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders. The capital structure of the Company consists of cash and equity comprised of issued share capital, share-based payment reserve, and warrant reserve.

The Company manages its capital structure and makes adjustments to it in light of economic conditions. The Company, upon approval from its Board of Directors, will balance its overall capital structure through new share issuances or by undertaking other activities as deemed appropriate under the specific circumstances.

The Company is not subject to externally imposed capital requirements and the Company's overall strategy with respect to capital risk management remains unchanged from the year ended December 31, 2023.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Six Months Ended June 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**18. COMMITMENT**

On September 22, 2023, the Company entered into a premises lease agreement. Effective October 1, 2023, the Company is obligated to make a monthly lease payment of $9,280 for a period of one year.

**19. SEGMENTED INFORMATION**

The Company has one operating segment, the research and development of computer-based technology related to post-quantum cryptography. The Company's head office is in Canada and operations are in Canada and Taiwan. Geographic information for non-current assets other than financial instruments is as follows:

---

| | | |
|:---|:---|:---|
| As at June 30, 2024 | Taiwan | Total |
|  | $| $|
| Property and equipment | 92496 | 92496 |
| Right-of-use asset | 161760 | 161760 |
| Deposits | 45967 | 45967 |
|  | 300223 | 300223 |

---

---

| | | |
|:---|:---|:---|
| As at December 31, 2023 | Taiwan | Total |
|  | $| $|
| Property and equipment | 102820 | 102820 |
| Right-of-use asset | 29905 | 29905 |
| Deposits | 35872 | 35872 |
|  | 168597 | 168597 |

---

**20. GENERAL AND ADMINISTRATIVE EXPENSES**

The following is a breakdown of general and administrative expenses for the six months ended June 30, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | Six months | Six months |
|  | ended | ended |
|  | June 30, | June 30, |
|  | 2024 | 2023 |
|  | $| $|
| Foreign office representation |  | 65821 |
| Insurance | 32029 | 27300 |
| IT and communications | 103427 | 4366 |
| Office and miscellaneous | 63957 | 133843 |
| Rent | 92655 | 93774 |
| Travel | 168366 | 47222 |
|  | 460434 | 372326 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Six Months Ended June 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**21. REVENUE**

During the six months ended June 30, 2024, the Company earned license revenue of $90,573 (2023 - $nil) from a company controlled by the COO. As at June 30, 2024, the Company has deferred revenue of $456,233 (December 31, 2023 - $nil) for this company.

A breakdown of the revenue is presented below:

---

| | | |
|:---|:---|:---|
|  | Six months | Six months |
|  | ended | ended |
|  | June 30, | June 30, |
|  | 2024 | 2023 |
|  | $| $|
| <u>Major goods/service lines</u> |  |  |
| Software license and related consulting services | 90573 |  |
| <u>Timing of revenue recognition</u> |  |  |
| Software license and services transferred over time | 90573 |  |

---

------

## Exhibit 99.29

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| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

---

This Management's Discussion and Analysis ("MD&A") of BTQ Technologies Corp. ("BTQ", or the "Company") is for the quarter ended June 30, 2024 and is dated August 13, 2024. The MD&A should be read in conjunction with the Company's unaudited condensed interim consolidated financial statements and related notes for the quarter ended June 30, 2024. The unaudited condensed interim consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and all monetary amounts are expressed in Canadian dollars. The following comments may contain management estimates of anticipated future trends, activities, or results. These are not a guarantee of future performance since actual results could change based on other factors and variables beyond management control.

The management of the Company is responsible for the preparation and integrity of the consolidated financial statements, including the maintenance of appropriate information systems, procedures, and internal controls and to ensure that information used internally or disclosed externally, including the consolidated financial statements and MD&A, is complete and reliable. The Company's board of directors (the "Board") follows recommended corporate governance guidelines for public companies to ensure transparency and accountability to shareholders. The Board's audit committee meets with management quarterly to review the financial statements including the MD&A and to discuss other financial, operating, and internal control matters.

Additional information relating to the Company, including its AIF for the year ended December 31, 2023, is available under the Company's profile on SEDAR+ at www.sedarplus.ca.

**DESCRIPTION OF BUSINESS AND OVERVIEW**

BTQ is a British Columbia corporation founded by a group of experienced post-quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the Bitcoin network. Bitcoin's store of value thesis - one that supports a crypto ecosystem of over $1 trillion in market capitalization - has several potential quantum attack vectors that could compromise the network. This paradigm shift requires a new direction in cryptography and blockchain design. BTQ is building a portfolio of intellectual property to safeguard the crypto asset class with energy efficient quantum processes and currently holds several patent applications for generating quantum algorithms.

Quantum computers can take a very large integer and find out its prime factor extremely rapidly by using Shor's algorithm. Theoretically, a universal large scale quantum computer could be used to disrupt cryptocurrencies, break into digital wallets, and access and decrypt confidential communications. Ethereum and Algor, two of the most technologically advanced cryptocurrencies, announced plans to transition to post-quantum standards.

BTQ has strategically established a branch office in Taipei, Taiwan, home to the most advanced hardware and post-quantum ecosystems. The Taipei engineering office will focus on research and development related to post-quantum cryptography, eco-friendly proof of work mining, and formal verification within smart contracts platforms.

BTQ is listed on the NEO Exchange (the "NEO") under the symbol "BTQ", the OTCQB under the symbol "BTQQF" and the Frankfurt Stock Exchange under the symbol "NG3".

<u>Acquisition</u>

On December 31, 2021 (as amended on April 29, 2022, July 30, 2022, and November 29, 2022), the Company entered into a share exchange agreement with BTQ AG (the "Acquisition"). BTQ AG was incorporated in the Principality of Liechtenstein on March 26, 2021 by a group of experienced post-quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the Bitcoin network.

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| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

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In connection with the Acquisition, the Company completed a private placement (the "Offering") of 18,001,250 subscription receipts at a price of $0.40 per subscription receipt, for gross proceeds of $7,200,500, with each subscription receipt automatically converting with no additional consideration into one post-Consolidation Share (each as defined below) concurrent with the closing of the Acquisition.

On February 17, 2023, the Company closed the Acquisition resulting in the issuance of 92,000,000 post- Consolidation Shares to the BTQ AG shareholders. Concurrent with the closing, the Company changed its name from Sonora Gold & Silver Corp. to BTQ Technologies Corp. and completed a consolidation (the "Consolidation") of its common shares on the basis of ten pre-Consolidation shares to one post- Consolidation share (each, a "Share"). Immediately following the Consolidation, and excluding those Shares issued pursuant to the Acquisition or the Offering, the former securityholders of Sonora Gold and Silver Corp. ("SOC") held an aggregate of 8,747,629 Shares and 350,000 stock options in the Company. All Share amounts have been retroactively restated to reflect the Consolidation for all periods presented.

On closing of the Acquisition, the gross proceeds of $7,200,500 from the Offering were released from escrow and each subscription receipt was converted into one Share. In connection with the Acquisition, the Company issued 2,500,000 Shares with a fair value of $1,000,000 to a finder as a success fee. In connection with the Offering, the Company also paid $93,175 in finders' fees and issued 232,936 finders' warrants exercisable at an exercise price of $0.40 per Share for a period of two years.

As a condition of the Acquisition, the Company voluntarily delisted its Shares from the TSX-V and the Shares commenced trading on the NEO on February 21, 2023 under the symbol "BTQ".

**DISCUSSION OF OPERATIONS**

The following are operational highlights for the year ended December 31, 2023 and events subsequent up until the date of this MD&A.

<u>Product Updates</u>

On March 2, 2023, the Company announced the alpha release of Keelung, a domain-specific language designed for fast, private, and secure application development. Based on research in the field of post- quantum zero-knowledge cryptography, Keelung will empower developers to create secure and reliable post-quantum zero-knowledge proofs without the need for specialized cryptography skills. Both Keelung and its compiler have been implemented in Haskell, enabling developers to produce high-level zero- knowledge proofs protected by Haskell's type system while leveraging Haskell's extensive ecosystem and tooling. Keelung will be 100% open-source, allowing for transparency, collaboration, and community-driven development.

Keelung is now live and open-sourced. The release information can be found here: https://github.com/btq- ag/keelung/releases. The steps to complete over the coming year are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Language Extensions (v0.19.0 - v0.20.0): Added support for user-defined datatypes, unsigned integer comparisons, and optimizations to the constraint system and compiler.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Optimization and Stability (v0.21.0): Introduced a more precise method for reference counting on unsigned integers, renaming of primitive datatype conversions, and numerous bug fixes and stability improvements for the compiler.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Upcoming Optimizations (v0.22.0+): Planned optimizations include operators for slicing and joining unsigned integers, improved polynomial representation, faster polynomial insertion, standard library optimizations (e.g., AES, Blake2), and constraint reduction for faster proof generation.

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| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Developer Experience (Ongoing): Refinements to the DSL syntax, performance improvements for common data types, benchmarking in the CI/CD pipeline, and expanded documentation and tutorials to improve the developer experience.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Ecosystem Integration (Future): Planned integration with popular ZK toolchains like Snarkjs/Circom, support for PLONK-based proving systems, and quantitative information flow analysis for privacy leakage detection.

On June 5, 2023, the Company published a research paper on proof-of-work consensus by quantum sampling. The paper presents a novel approach that has the potential to revolutionize blockchain consensus algorithms.

On June 26, 2023, the Company announced that it had received approval from the USPTO for its patent application, "A system and method for quantum-safe authentication, encryption, and decryption of information". The patent relates to methods for generating a private cryptographic key for use in a secure cryptogram for transmission between entities, enabling quantum-safe encryption.

On July 27, 2023, the Company announced that its Quantum-Secure Signature Technology "Preon" had been selected by the National Institute of Standards and Technology (NIST) for consideration in their Post- Quantum Cryptography (PQC) standardization process. Preon is a robust and efficient post-quantum signature scheme, showcasing distinctive features including small key size, rapid key generation, minimal assumptions, and flexible functionality. These attributes make it resistant to potential threats from both classical and quantum computers. The co-authors of this submission include Hon Hai Research Institute, the research arm of global leader Hon Hai Precision Industry Co., Ltd. (Foxconn).

On October 4, 2023, BTQ announced the advancement of its collaboration with ITRI to develop a security chip that utilizes QCIM (Quantum Computation in Memory) technology. This chip will be used for the computation of Kyber, a standardized algorithm by the National Institute of Standards and Technology (NIST). In 2022, BTQ entered a multi-year collaboration agreement with ITRI to develop energy-efficient post-quantum hardware solutions for applications in blockchain, telecom, and other industries with a need for long-term data security. In the first phase of collaboration, BTQ and ITRI successfully validated the proof of concept of applying computation-in-memory in an ASIC chip. To further the collaboration, BTQ is entering into this new phase of the project with ITRI.

<u>Market-Related Activity</u>

Effective March 14, 2023, the Company began trading on the FSE under the symbol "NG3" (ISIN: CA0558691014 \| WKN: A3D4V9). The Frankfurt Stock Exchange is the largest of the seven stock exchanges in Germany.

Effective May 9, 2023, the Company began trading on the OTCQX under the symbol "BTQQF". OTC Markets Group operates markets on which 12,000 U.S. and global securities trade with the OTCQX Best Market as the highest tier. Trading on OTCQX will enhance the visibility and accessibility of the Company to U.S. investors.

On March 18, 2024, the Company announced a revised timeline for the filing of its annual consolidated financial statements for the year ended December 31, 2023 (the "Financial Statements") and the related management's discussion and analysis and certifications (collectively, with the Financial Statements, the "Annual Filings"). The default in filing within the required 90 days is primarily due to delays relating to the restatement of the comparative period in the Financial Statements, comprising BTQ AG's financial statements for the period ended December 31, 2022, which were audited by another auditor. As a result of the delays, the Company has applied for a management cease trade order (an "MCTO") under National Policy 12-203 Management Cease Trade Orders ("NP 12-203") in respect of the default, which is subject to approval by the British Columbia Securities Commission, as principal regulator of the Company.

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| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

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<u>Business Development Activities</u>

On March 2-3, 2023, representatives of the Company attended the Quantum Beach conference in Miami in order to meet with companies, investors, and potential partners across the quantum technologies industry. Mathieu Gauthier, Head of Corporate Development, spoke on the quantum security panel, alongside other industry executives from leading companies in the post-quantum security space, as well as senior government officials.

On April 24, 2023, Chris Tam, Head of Partnerships at the Company, spoke at ETHTaipei. The talk, titled "The Future of Zero-Knowledge: Challenges, Advancements, and Tools for Developing Post-Quantum zk- SNARKs," examined the challenges and successes of using post-quantum proving systems. The presentation also examined the strengths, weaknesses, and trends of arithmetic circuit backends such as R1CS, PLONK, and AIR, while introducing tools to transition towards developing post-quantum zk- SNARKs. This presentation reinforced the Company's commitment to advancing the blockchain and quantum technology industry.

On May 1, 2023, the Company was informed that it was the recipient of a US$10,000 grant from the Stellar Community Fund. The grant is specifically aimed at funding the Company's research in building an Efficient Scaling Mechanism for Lattice-Based Post-Quantum Signatures. The Stellar Community Fund ("SCF") is an open-application awards program that draws on community input to support developers and startups building on Stellar and Soroban. The Stellar Blockchain network is a distributed ledger used to transmit digital currencies and has a market cap of over US$2 billion.

On May 1, 2023, the Company secured office space at the Bentall II Tower located at 555 Burrard Street in Downtown Vancouver, BC. The company is leasing this office space from WeWork at a monthly rate of C$3,180 per month for a total commitment of 12 months. This additional office space will be used for meetings with investors and potential clients, and for the hiring of both technical and non-technical personnel in Canada. Starting October 1, 2023, the Company increased office space at the Bentall II Tower in Vancouver. The new monthly rate per month is C$10,100 for a reset commitment of 12 month.

On May 15, 2023, BTQ Technologies Announced its Acceptance into the Quantum Industry Canada (QIC) Consortium, joining other leading quantum technology companies such as DWave and Xanadu. Quantum Industry Canada's mission is to ensure that Canadian quantum innovation and talent is translated into Canadian business success and economic prosperity. Earlier this year, the Canadian Minister of Innovation, Science, and Industry announced a $1.4 million investment in QIC as part of the National Quantum Strategy.

On May 22, 2023, BTQ was awarded a US$10,000 grant by StarkWare Industries, the developer of StarkNet, a permissionless decentralized ZK-Rollup. The grant was specifically awarded to implement BTQ's PQScale technique for digital signatures onto the StarkNet infrastructure.

On May 24, 2023, the Company announced the nomination of Mr. Lonny Wong as the company's Chief Financial Officer. Lonny has been leading BTQ's finance and accounting organization and reports directly to Olivier Roussy Newton, Chief Executive Officer and Chairman. He brings over 25 years of public practice experience and specializes in providing auditing, assurance, financial reporting, and consulting services to public companies and companies looking to go public.

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|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

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On June 22, 2023, BTQ announced that it had joined leading quantum technology companies and research labs like Microsoft Azure Quantum and the Centre for Quantum Technologies (CQT) in the Quantum Energy Initiative (QEI). The Quantum Energy Initiative seeks to develop energetic quantum advantage and build quantum technologies in a sustainable and responsible manner.

On July 5, 2023, the Company established a strategic research partnership with South Korea's International Research Institute for Cyber Security (IRCS). The partnership aims to enhance the development of post- quantum cryptography, specifically focusing on SOLMAE signature scheme and other lattice-based cryptosystems, thereby expanding BTQ's influence in the Asia-Pacific region.

On July 24, 2023, the Company announced the addition of Brandt Pasco, an accomplished legal and private equity professional, to its advisory board. Mr. Pasco, currently the Managing Member of Pasco & Associates, is renowned for his expertise in building high-value companies and his deep understanding of technological regulatory law.

On August 21, 2023, BTQ announced the launch of "The Quantum State" podcast led by renowned researcher Anastasia Marchenkova. The series, further bolstered by experts Professor Gavin Brennen and Peter Rohde, serves as BTQ's dedicated platform for exploring the latest insights, trends, and groundbreaking advancements in the world of quantum computing.

On September 18, 2023, the Company announced it had been selected for the 2023 Canada Quantum Technology R&D Mission to South Korea, marking a significant stride in international quantum collaborations. From October 31st to November 2nd, the Canadian delegation, which includes 11 leading companies and institutions in the realms of quantum sensing, quantum computing, and quantum communication, participated in a series of collaborative events. Various meetings are arranged with South Korean companies, research institutes, academia, and other key players in the quantum technology sector.

On October 1, 2023, the Company entered into a revised lease agreement for a larger office space in the Bentall II building located in downtown Vancouver where the Company's headquarters were already located. This additional space will accommodate the company's growing technical research team in Canada.

On October 16, 2023, BTQ announced its ecosystem partnership with Cysic for Keelung, a zero-knowledge domain-specific language for fast, private and secure applications. Keelung provides developers with the ability to create secure and reliable post-quantum zero-knowledge proofs without requiring specialized cryptography skills. BTQ's partnership with Cysic will explore the integration of Keelung with Cysic's hardware acceleration solutions, offering end-users access to faster, more efficient, and more secure zero- knowledge proof generation.

On October 19, 2023, BTQ announced the addition of Peter Rohde, an accomplished theoretical quantum computer scientist, to its world-class technical team. Dr. Rohde, currently an Honorary Senior Lecturer at Macquarie University, and Associate Investigator at the ARC Centre of Excellence for Engineered Quantum Systems, is renowned for his deep understanding of optical quantum computing, quantum networking and the economics of quantum technology. Based at the Quantum Terminal in Sydney, Mr. Rohde will help drive research, as well as expand BTQ's technical team in Australia.

On November 29, 2023, BTQ and Hon Hai Research Institute announced a Research and Collaboration Agreement aiming to support the academic community by promoting the standardization of post-quantum cryptography. BTQ and Hon Hai first in their submission of Preon, a post-quantum signature scheme submitted as part of the NIST "Call for Additional Digital Signature Schemes for the Post-Quantum Cryptography Standardization Process".

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|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

---

On December 29, 2023, the Company announced its participation and sponsorship at CfC St. Moritz, a premier digital assets and blockchain conference for investors and decision-makers in the Swiss Alps. Christopher Tam, BTQ's Head of Partnerships, led a workshop titled "Future-Proofing Digital Assets: Exploring the Sustainability of Digital Assets in the Quantum Era," focusing on the challenges and opportunities stemming from post-quantum cryptography.

On February 20, 2024, BTQ announced its participation in the Commonwealth Scientific and Industrial Research Organisation's Next Generation Emerging Technologies Graduates Program ("NGETGP"). This initiative aims to cultivate the next wave of tech talent and advance the field of emerging technologies. As part of this agreement, BTQ Technologies joined forces with the Commonwealth Scientific and Industrial Research Organisation ("CSIRO"), top Australian universities, Sydney Quantum Academy, and Diraq Pty Ltd to create the next generation of quantum technology specialists.

On March 13, 2024, BTQ announced its sponsorship with the Cybersecurity and Privacy Institute ("CPI") at the University of Waterloo and the establishment of a multi-year relationship for R&D collaboration. CPI's mission is to be internationally recognized as a leading interdisciplinary research institute making significant impacts in improving information security and human privacy. Earlier this year, CPI secured over $3.3 million in funding from the National Cybersecurity Consortium (NCC) under the Cyber Security Innovation Network (CSIN) program.

On March 21, 2024, BTQ announced that Christopher Tam, Head of Partnerships, will be a featured speaker at ETHTaipei. During his talk, Chris discussed transitioning Ethereum towards quantum resistance, addressing the impacts and challenges posed by quantum technologies on digital currencies.

On May 3, 2024, the Company entered into a Software Consulting Agreement with ZKP Corp., a Delaware corporation, for which the Company will receive $1,000,000 for the use of its proprietary software and the provision of related services.

<u>Media Coverag</u>e

On April 17, 2023, the Company was covered by CoinDesk for its innovative approach to quantum-safe encryption technology, which has the potential to revolutionize data security in blockchain applications and adjacent industries, including finance, healthcare, and government. With over 10 million website visits and 1.6 million podcast downloads each month, CoinDesk is the leading source of news on cryptocurrency and blockchain, covering breaking news and providing in-depth analyses on the next generation of investing and the future of money.

On June 21, 2023, BTQ announced it had been featured in the New Scientist magazine for its collaborative research paper, "Proof-of-Work Consensus by Quantum Sampling". The paper, which features a collaboration with leading researchers from universities in Australia and the United States, introduces a groundbreaking Quantum Proof-of-Work scheme for blockchain consensus. The article discusses the potential of the team's approach which uses coarse-grained boson-sampling (CGBS), to reduce the energy consumption of cryptocurrencies, such as Bitcoin, by an order of magnitude.

<u>Corporate</u>

On August 31, 2023, BTQ announced that, at the annual general and special meeting (the "Meeting") of shareholders of the Company ("Shareholders") that was held on Wednesday, August 30, 2023, all five nominees for the board of directors of the Company were elected. At the Meeting, Shareholders also approved (i) the appointment of BDO LLP as auditors of the Company until the close of the next annual general meeting of shareholders and the directors were authorized to determine their remuneration (ii) the Company's omnibus equity incentive plan (the "Omnibus Plan"); and (iii) the ratification of certain historically granted RSUs pursuant to the Omnibus Plan.

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| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

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**Trends**

<u>Quantum Computing</u>

According to McKinsey & Company, the quantum technology market will be valued at over $106 billion by 2040<sup>1</sup>, with the bulk of the value projected to come from quantum computing as opposed to quantum sensing and quantum communications. The quantum security industry sits within quantum computing and is a rapidly growing field that focuses on developing secure cryptographic solutions for the age of quantum computing. As quantum computers become more powerful, they will become increasingly capable of breaking traditional cryptographic systems, creating a need for even more robust and advanced quantum- resistant solutions. Traditional cryptographic methods are at risk of being broken, which will have serious implications for national security, financial institutions, and other industries that rely on secure communication and data storage. Estimates of when a commercial quantum computer will hit the market vary, however, last year, IBM unveiled the Osprey (433 qubits) and updated its road map to develop a 4,000+ qubit processor in 2025<sup>2</sup>, indicating that these super computers will be available in the near future. In addition to private sector funding, Government bodies around the world are also investing large sums of capital into quantum technologies. At $15.3 billion, China leads the way in publicly announced quantum funding initiatives, followed by the EU at $8.4 billion, USA at $3.7 billion, Japan at $1.8 billion, UK at $1.3 billion, Canada at $1.1 billion, and several others between $0.1 billion and $1.0 billion<sup>3</sup>.

Overall, the quantum security industry is a rapidly evolving field that will continue to see significant growth and development in the coming years. As businesses and organizations seek to protect their data from the threat of quantum computing, the need for effective and innovative quantum-resistant security solutions will only continue to increase. Investors are recognizing this with about two-thirds, or 68 percent, of all Quantum Technology startup investments since 2001 having occurred in 2021 and 2022<sup>4</sup>.

<u>Post-Quantum Cryptography</u>

One of the main trends in the quantum security industry is the development of post-quantum cryptography ("PQC") algorithms. PQC algorithms are designed to be resistant to attacks from quantum computers, making them a crucial component of quantum-resistant security systems. Many organizations, including government agencies and financial institutions, are already investing in PQC research and development to ensure the security of their sensitive data.

A key driver in the development of the PQC industry is The National Institute of Standards and Technology ("NIST"), a U.S. Department of Commerce agency which sets the standards for businesses and other organizations to secure sensitive data and protect critical infrastructure<sup>5</sup>. NIST compliance standards must be met by anyone who processes, stores, or transmits sensitive information for the Department of Defense, General Services Administration, NASA, and other government agencies, and is largely seen as the de facto standard body to make cryptographic standards for the entire world.

_________________________________

<sup>1</sup> https://www.mckinsey.com/featured-insights/the-rise-of-quantum-computing

<sup>2</sup> https://newsroom.ibm.com/2022-11-09-IBM-Unveils-400-Qubit-Plus-Quantum-Processor-and-Next-Generation-IBM- Quantum-System-Two

<sup>3</sup> https://www.mckinsey.com/~/media/mckinsey/business%20functions/mckinsey%20digital/our%20insights/quantum%20technology%20sees%20record%20investments%20progress%20on%20talent%20gap/quantum-technology- monitor-april-2023.pdf

<sup>4</sup> https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/quantum-technology-sees-record-investments- progress-on-talent-gap

<sup>5</sup> https://www.btq.com/en/blog/blockchain-security

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|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

---

In 2016, NIST initiated a process to solicit, evaluate, and standardize one or more quantum-resistant public- key cryptographic algorithms. These new cryptography standards will specify additional digital signature and public-key encryption algorithm(s) which are capable of protecting sensitive information well into the foreseeable future, including after the advent of quantum computers. In 2022, NIST officially announced the standardized algorithms from Round 3 of this PQC competition. This was a landmark milestone as government agencies and businesses had been waiting nearly six years for a clear direction as to which algorithms are trustworthy. PQC algorithms are much larger than their classical counterparts. For example, even the smallest NIST-approved digital signature algorithm is over 10x larger than the current Elliptic Curve Digital Signature Algorithm<sup>6</sup>. This is particularly problematic for distributed ledgers where each full node keeps an entire record of all activities on the ledger. If a blockchain like Bitcoin and Ethereum were to adopt the newly standardized PQC algorithms today, the size of both chains would have to be increased to an unmanageable extent.

<u>Competition and Market Participants</u>

Generally, BTQ differentiates itself from its competitors with its work at the intersection of post-quantum cryptography and blockchain. The Company works on developing next-generation cryptographic primitives like zero-knowledge cryptography to achieve advanced security and efficiency, which is novel in the industry.

Large publicly traded quantum companies exist in the space, including: D-Wave Systems (NYSE: QBTS), IONQ (NYSE: IONQ), Arqit Quantum (NASDAQ: ARQQ). However, these companies are not direct competitors as their main goal is to build a commercial quantum computer with real-world useability. These companies are capital intensive and well-funded by both institutional investors and governments and their valuations range from approximately US$50 million to over US$1 billion.

With a surge in funding and general investor interest and excitement in the industry, several companies are emerging in the post-quantum security space. There are various companies that try to tackle the same global problem as BTQ: getting today's infrastructure secured for the quantum revolution, however, the approaches vary widely based on cryptographic techniques, as well as end uses served and therefore is not a winner takes all market. In fact, other companies operating directly in the space may offer potential collaboration opportunities. Below is a non-exhaustive list of indirect competitors to BTQ:

PQ Shield, for example, describes itself as a PQC company contributing to the global standards and core technologies to power the future security layer of the world's leading organizations. Its quantum-secure cryptographic solutions work with companies' legacy systems to protect sensitive data now and for years to come. The company mainly serves the defense & infrastructure, IoT and OEM markets. PQ Shield raised $20 million as part of their Series A round in January 2022<sup>7</sup>.

Additionally, Isara provides security solutions specializing in cryptographic risk management and in creating crypto-agile and quantum-safe security solutions for today's information technology ecosystems. The company broadly targets enterprises and governments. Isara raised over $10 million in 2018 to fund its R&D efforts<sup>8</sup>.

_________________________________

<sup>6</sup> https://falcon-sign.info/

<sup>7</sup> https://www.prnewswire.com/news-releases/pqshield-collaborates-with-nccoe-and-industry-to-ease-the-real-world-implementation-of-quantum-resistant-cryptography-301794688.html

<sup>8</sup> https://www.isara.com/company/newsroom/shasta-ventures-investment.html

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| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

---

In the blockchain space, large technology companies are building their own secured blockchains. For example, IBM offers blockchain services that help secure multiple aspects of critical industries like supply chains, banking, healthcare, and government. The goal of these blockchains is usually to streamline and scale processes in a secure manner<sup>9</sup>.

SandboxAQ, an enterprise SaaS company stemming from Alphabet (previously Google), is another key player in the space. Sandbox provides solutions at the nexus of AI and Quantum technology to address some of the world's most challenging problems. The company's core team and inspiration formed at Alphabet Inc., emerging as an independent, growth-capital-backed company in 2022. The company aims to protect the public sector, life sciences & healthcare, financial services, cybersecurity, material science & manufacturing, and global navigation<sup>10</sup>.

<u>Investor Awareness</u>

Effective April 11, 2023, the Company retained Venture North Capital Inc. ("Venture North") for strategic marketing, investor relations, and capital markets communications services. Venture North arranges and attends meetings with professional investors, maintains ongoing contacts and broadens relationships with the professional investment community on the Company's behalf.

The agreement with Venture North had an initial trial term of 4 months and has been automatically renewed monthly until such time it is terminated on 30 days' notice. Pursuant to the terms of the consulting agreement, the Company pays a monthly fee of $8,500 and granted 500,000 stock options exercisable at $0.40 per common share expiring on October 1, 2024. Of the options issued to Venture North, 125,000 shall vest immediately following the 4-month trial and an additional 125,000 options quarterly.

<u>Reverse Takeover</u>

In accordance with IFRS 3, business combinations, the substance of the Acquisition is a reverse takeover as the shareholders of BTQ AG held 75.88% of the resulting issuer shares and SOC's shareholders held 24.12% of the resulting issuer shares. Accordingly, for accounting purposes, BTQ AG was treated as the accounting parent company (legal subsidiary) and the Company has been treated as the accounting subsidiary (legal parent) in these consolidated financial statements. As BTQ AG was deemed to be the acquirer for accounting purposes, its assets, liabilities and operations since incorporation are included in these consolidated financial statements at their historical carrying values. The Company's results of operations have been included from February 17, 2023.

As the Acquisition did not constitute a business combination, the reverse takeover transaction was accounted for in accordance with IFRS 2, share-based payments, whereby equity instruments issued were recognized at fair value and allocated to the net assets acquired (liabilities assumed). Any difference is the value of the listing which was expensed on completion of the Acquisition.

The Transaction was measured at the fair value of the common shares that BTQ AG would have had to issue to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051, and the fair value of 350,000 stock options of the Company with a fair value of $97,532, to give the shareholders of the Company the same percentage of equity interest in the combined entity that results from the reverse acquisition had it taken the legal form of BTQ AG acquiring the Company. The fair value of the 8,747,629 common shares was determined based on the pricing of the Offering with a value of $0.40 being allocated to each Share. The purchase price was allocated to the net assets acquired as follows:

**_________________________________**

<sup>9</sup> https://www.ibm.com/blockchain

<sup>10</sup> https://www.sandboxaq.com/solutions/security-suite

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| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

---

---

| |
|:---|
| Fair value of the Company's shares (8,747,629 common shares) |
| Fair value of 350,000 stock options of the Company outstanding |
| Total consideration |
| Less: fair value of identifiable assets acquired and liabilities assumed: |
| Cash |
| Cash held in escrow |
| Prepaid expenses |
| Restricted cash |
| Accounts payable and accrued liabilities) |
| Subscription receipts liabilities) |
| Net liabilities assumed) |
| Listing costs |

---

The Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction.

**RESULTS OF OPERATIONS**

**For the six months ended June 30, 2024**

The net loss for the six months ended June 30, 2024 was $3,529,564 (2023: $10,005,970). The main categories are listed below:

<u>General and administrative of $460,434 (2023: $372,326)</u>

The increase is due to the Company's growth and higher overall activity during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023.

<u>Marketing and promotion of $462,355 (2023: $388,121)</u>

The increase is due to the Company closing the Transaction on February 17, 2023.

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| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

---

<u>Professional fees of $615,259 (2023: $238,088)</u>

The increase is mainly due to the increase in the audit fees incurred to the Company's auditor for the year ended December 31, 2023, accounting costs incurred to the outsourced accounting consulting firm and the CFO's firm after becoming a publicly listed entity on February 17, 2023.

<u>Research and development of $1,435,628 (2023: $1,092,004)</u>

The Company had increased research and development activities, including research and development being conducted in Canada during the six months ended June 30, 2024 as compared to the three months ended June 30, 2023.

<u>Share-based compensation of $133,550 (2023: $1,906,058)</u>

For the six months ended June 30, 2024, the Company granted 800,000 (2023: 6,610,000) stock options.

<u>Transfer agent and regulatory fees of $46,112 (2023: $202,646)</u>

During the three months ended March 31, 2023, the Company incurred significant transfer agent, regulatory, and listing fees relating to the Transaction.

<u>Wages and benefits of $325,023 (2023: $365,812)</u>

The Company incurred various signing bonuses during the six months ended June 30, 2023 as compared to no such costs during the six months ended June 30, 2024.

<u>Listing and transaction costs of $nil (2023: $5,059,669)</u>

Listing and transaction costs relate to the Transaction. See Reverse Takeover section above.

**USE OF AVAILABLE FUNDS**

In connection with the Acquisition and the listing of the Shares on the NEO, the Company filed a listing statement dated February 17, 2023 under its SEDAR profile at www.sedar.com. Below is a reconciliation of the expected use of available funds against the actual use of such funds as at June 30, 2024:

---

| | | |
|:---|:---|:---|
| **Item** | Use of Available Funds<br>$| Actual Use of Available<br>Proceeds as at<br>June 30, 2024<br>$|
| Transaction costs related to the Acquisition | 700000 | 705078 |
| Research contracts | 750000 |  |
| Software and hardware development | 4215770 | 3988993 |
| Sales and business development | 1500000 | 1804167 |
| General and administrative costs estimated for 12-months | 1830759 | 2698291 |
| Unallocated working capital | 200000 |  |
| **Total** | **9196529** | **9196529** |

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| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

---

**SUMMARY OF QUARTERLY RESULTS**

The following table sets out financial information for the past eight quarters:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) |
|  | June 30, | March 31, | December 31, | September 30, |
|  | 2024 | 2024 | 2023 | 2023 |
| Total revenues | 90573 |  |  |  |
| Net loss | (1695192) | (1834372) | (3015009) | (2553373) |
| Net loss per share, basic and diluted | (0.01) | (0.01) | (0.02) | (0.02) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) |
|  | June 30, | March 31, | December 31, | September 30, |
|  | 2023 | 2023 | 2022 | 2022 |
| Total revenues |  |  |  |  |
| Net loss | (2901977) | (6985690) | (1425672) | (767160) |
| Net loss per share, basic and diluted | (0.02) | (0.07) | (0.02) | (0.01) |

---

The net loss for the quarter ended December 31, 2023 includes share-based compensation of $1,259,207 related to the issuance of stock options and restricted stock units.

The net loss for the quarter ended September 30, 2023 includes share-based compensation of $755,390 related to the issuance of stock options and restricted stock units.

The net loss for the quarter ended June 30, 2023 includes share-based compensation of $1,623,513 related to the issuance of stock options and restricted stock units.

The net loss for the quarter ended March 31, 2023 includes costs of $5,059,669 relating to the Transaction, share-based compensation of $282,545 related to the issuance of stock options and increased level of activity as BTQ became public as a subsidiary of the Company with a concurrent financing effective February 17, 2023.

**LIQUIDITY AND CAPITAL RESOURCES**

As at June 30, 2024, the Company had cash of $591,979 and a working capital deficit of $537,300 compared to cash of $2,862,023 and working capital of $2,806,924 as at December 31, 2023.

The Company's operations used cash of $2,319,813 during the six months ended June 30, 2024 (2023: $3,630,387). The Company's investing activities provided net cash of $2,875 (2023: used cash of $6,578). The cash requirements during the six months ended June 30, 2024 were funded from the net proceeds from share issuances of $104,000 (2023: $7,107,326), partially offset by $51,106 for the repayment of the lease obligation.

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| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

---

The Company's aggregate operating, investing, and financing activities during the six months ended June 30, 2024 resulted in an decrease in its cash balance of $2,264,044 (2023: increase of $3,440,019).

The Company's accounts payable and accrued liabilities are due in the short term. While the Company has been successful in obtaining the necessary financing through the issuance of common shares and loans from related parties in the past, there is no assurance it will be able to raise funds in this manner in the future and there remain material uncertainties that may cast significant doubt as to the Company's ability to continue as a going concern.

The directors regularly review cash flow forecasts to determine whether the Company has sufficient cash reserves to meet future working capital requirements and discretionary business development opportunities.

The consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. During the six months ended June 30, 2024, the Company has not generated significant revenues from operations and has negative cash flow from operations. As at June 30, 2024, the Company has a working capital deficit of $537,300 and an accumulated deficit of $38,097,917. The Company's ability to continue its operations and to realize its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs. Management is of the opinion that sufficient working capital will be obtained from external financing to meet the Company's liabilities and commitments as they become due, although there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These factors indicate a material uncertainty that may cast significant doubt on the ability of the Company to continue as a going concern. These consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. Such adjustments could be material.

**OFF BALANCE SHEET ARRANGEMENTS**

There are no off-balance sheet arrangements to which the Company is committed.

**RELATED PARTY TRANSACTIONS**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

Key management personnel are persons responsible for planning, directing, and controlling the activities of an entity, and include all officers and directors of the Company. Key management personnel compensation during the six months ended June 30, 2024 and 2023 was comprised of the following:

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| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

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| | | |
|:---|:---|:---|
|  | Six months | Six months |
|  | ended | ended |
|  | June 30, | June 30, |
|  | 2024 | 2023 |
|  | $| $|
| Consulting fees incurred to Ming-Yang Chih, former Chief Strategic Officer | 40758 | 48517 |
| Marketing and promotion incurred to Mathieu Gauthier, Head of Corporate Development | 58910 | 48517 |
| Professional fees incurred to Saturna Group Chartered Professional Accountants LLP, a firm where the CFO, Lonny Wong, is a partner | 42000 | 10161 |
| Research and development incurred to Po-Chun Ko (former Chief Technology Officer) and Chen-Mou Cheng (Chief Cryptographer) | 140257 | 180397 |
| Wages and benefits incurred to Nicolas Roussy Newton (COO) and Peter Lavelle (Chief Legal Officer) | 146901 | 142165 |
| Total short-term benefits | 418826 | 429757 |
| Share-based payments | 155101 | 396221 |
|  | 573927 | 825978 |

---

During the year ended June 30, 2024, the Company earned license and consulting services revenue of $90,573 (2023 - $nil) from ZKP Corp., a company controlled by Nicolas Roussy Newton, the Chief Operating Officer ("COO") of the Company. As at June 30, 2024, the Company has deferred revenue of $456,233 (December 31, 2023 - $nil) for this company.

As at June 30, 2024, the Company owed $118,106 (December 31, 2023 - $114,223) to Olivier Roussy Newton, the Chief Executive Officer of the Company ("CEO"), of which $92,259 (December 31, 2023 - $89,247) is included in accounts payable and accrued liabilities. The amounts owed are non-interest bearing, unsecured, and due on demand.

As at June 30, 2024, the Company was owed $123,944 (December 31, 2023 - $49,888) from Nicolas Roussy Newton, the COO of the Company, which is included in other receivables.

As at June 30, 2024, the Company owed $3,133 (December 31, 2023 - $3,027) to Novus Paradigm Technologies Corporation, a company controlled CEO and COO of the Company, which is non-interest bearing, unsecured, and due on demand.

As at June 30, 2024, the Company owed $22,050 (December 31, 2023 - $7,350) to Saturna Group Chartered Accountants LLP, a firm where the Chief Financial Officer of the Company ("CFO") is a partner, which is included in accounts payable and accrued liabilities.

As at June 30, 2024, the Company owed $136,870 (December 31, 2023 - $132,260) to Chen-Mou Cheng, the Chief Cryptographer of the Company, which is included in accounts payable and accrued liabilities.

As at June 30, 2024, the Company owed $8,220 (December 31, 2023 - $7,936) to Mathieu Gauthier, the Head of Corporate Development of the Company, which is included in accounts payable and accrued liabilities.

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|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

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**ACCOUNTING POLICIES**

A number of new standards, and amendments to standards and interpretations, are not yet effective for the period ended June 30, 2024, and have not been early adopted in preparing the consolidated financial statements. These new standards, and amendments to standards and interpretations are either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements.

**CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS**

<u>Use of estimates</u>

The preparation of consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from our company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

*Reverse Takeover*

The reverse takeover transaction was measured at the fair value of the common shares and stock options that BTQ would have had to issue to the shareholders of the Company. The fair value of common shares and stock options issued were estimated based on the Company's financing event which took place concurrently with the reverse takeover transaction. The fair values of identifiable assets acquired and liabilities assumed approximated their carrying values.

<u>Research and development costs</u>

Research costs are recognized as an expense when incurred but development costs may be capitalized as intangible assets if certain conditions are met as described in IAS 38 *Intangible Assets*. Management has determined that development costs do not meet the conditions for capitalization under IAS 38 and all research and development costs have been expensed.

<u>Fair value of stock options</u>

Fair values of stock options are determined using the Black-Scholes option pricing model. Estimating fair value requires determining the most appropriate valuation model for a grant of equity instruments, which is dependent on the terms and conditions of the grant. Option-pricing models require the use of highly subjective estimates and assumptions including the expected stock price volatility. Changes in the underlying assumptions can materially affect the fair value estimates and, therefore, existing models do not necessarily provide reliable measurement of the fair value of the Company's stock options and performance warrants.

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|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

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<u>*Deferred income taxes*</u>

The determination of income tax expense and the composition of deferred income tax assets and liabilities involves judgment and estimates as to the future taxable earnings, expected timing of reversals of deferred income tax assets and liabilities, and interpretations of tax laws. The Company is subject to assessments by tax authorities who may interpret the tax law differently. Changes in these interpretations, judgments, and estimates may materially affect the final amount of current and deferred income tax provisions, deferred income tax assets and liabilities, and results of operations.

<u>*Going concern presentation*</u>

The consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The assessment of the Company's ability to source future operations and continue as a going concern involves judgement. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. If the going concern assumption is not appropriate for the financial statements, then adjustments would be necessary in the carrying value of the assets and liabilities, the reported revenue and the expenses and the statement of financial position classifications used.

**FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**

**Fair Values**

The following provides a description of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at June 30, 2024 and December 31, 2023 as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in |  |  |  |
|  | active markets | Significant other | Significant |  |
|  | for identical | observable | unobservable | Balan**ce,** |
|  | instruments | inputs | inputs | June 30, |
|  | (Level 1) | (Level 2) | (Level 3) | 2024 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

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| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in |  |  |  |
|  | active markets | Significant other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | December 31, |
|  | (Level 1) | (Level 2) | (Level 3) | 2023 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

---

The fair values of the Company's other financial instruments, which include cash, short-term investment, other receivables, and accounts payable and accrued liabilities, lease obligation, and due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

**Credit Risk**

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit loss by placing its cash and cash equivalents with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

**Foreign Exchange Rate Risk**

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency.

The following table indicates the impact of foreign currency exchange risk on net working capital as at June 30, 2024 and December 31, 2023. The table below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the table below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as at June 30, 2024 and December 31, 2023.

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| | | |
|:---|:---|:---|
| June 30, 2024 | TWD | US$ |
| Cash | 50541 | 414263 |
| Accounts payable and accrued liabilities | (53103) | (272461) |
| Lease obligation | (3896297) |  |
| Total foreign currency financial assets and liabilities | (3898859) | 141802 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 38989 | 14180 |

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|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

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| | | |
|:---|:---|:---|
| December 31, 2023 | TWD | US$ |
| Cash | 9201660 | 296479 |
| Accounts payable and accrued liabilities |  | (190659) |
| Lease obligation | (778794) |  |
| Total foreign currency financial assets and liabilities | 8422866 | 105820 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 842287 | 10582 |

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**Interest Rate Risk**

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

**Liquidity Risk**

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner. Refer to going concern disclosure under Liquidity and Capital Resources.

The following amounts are the contractual maturities of financial liabilities as at June 30, 2024 and December 31, 2023:

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| | | | |
|:---|:---|:---|:---|
| June 30, 2024 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 1144700 | 1144700 |  |
| Other payable | 373401 | 373401 |  |
| Lease obligation | 163977 | 84561 | 79416 |
| Due to related parties | 23720 | 23720 |  |
| Total | 1705798 | 1626382 | 79416 |

---

---

| | | | |
|:---|:---|:---|:---|
| December 31, 2023 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 856682 | 856682 |  |
| Lease obligation | 33554 | 33554 |  |
| Due to related parties | 28003 | 28003 |  |
| Total | 918239 | 918239 | - |

---

------

---

| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

---

**DISCLOSURE OF OUTSTANDING SHARE DATA**

The authorized capital of the Company consists of an unlimited number of common shares without par value.

As of the date of this report, the Company had 124,203,879 common shares, 232,936 share purchase warrants outstanding, 8,070,000 stock options outstanding and 1,235,000 RSUs outstanding.

**DISCLOSURE CONTROLS AND PROCEDURES**

The CEO and the CFO have designed, or caused to be designed under their supervision, the Company's disclosure controls and procedures ("DCP") to provide reasonable assurance that material information relating to the Company and its consolidated subsidiaries has been recorded, processed, summarized and disclosed in a timely manner in accordance with regulatory requirements and good business practices and that the Company's DCP will enable the Company to meet its ongoing disclosure requirements.

The CEO and CFO have evaluated the effectiveness of the Company's disclosure controls and procedures and have concluded that based on this evaluation, our disclosure controls and procedures are not effective at a reasonable assurance level due to the material weakness described below in Internal Control over Financial Reporting.

**INTERNAL CONTROL OVER FINANCIAL REPORTING**

The CEO and the CFO have designed, or caused to be designed under their supervision, the Company's internal controls over financial reporting ("ICFR") in order to provide reasonable assurance regarding the reliability of the Company's financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards ("IFRS").

A material weakness is a control deficiency, or combination of control deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement in the annual or interim financial statements will not be prevented or detected on a timely basis.

The CEO and CFO conducted an evaluation the effectiveness of the Company's ICFR as at March 31, 2024 based on *Internal Control-Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") for the Company as a whole. Based on this evaluation, management concluded that material weaknesses existed as at June 30, 2024.

The following material weaknesses were identified in the design and operation of its internal controls:

1. Lack of cash controls - The Company does not have sufficient internal controls over financial reporting for the cash process, including having an employee and a third party professional consultant with signing authority over certain of the Company's foreign bank accounts.

2. Lack of segregation of duties - There is a lack of segregation of duties among individuals with administrative access to various systems and applications used by the Company. In addition, there is no evidence of a review process over control activities such as, but not limited to, financial statements and disclosures, purchase authorization, cut-off of transactions posted by the accounting team, cash controls over Company credit cards, and review of contracts. This increases the risk of error and fraud due to the ability to override controls.

3. Accounting for complex transactions - During the course of our audit, some auditor proposed adjustments were made to correct certain complex transactions, including, but not limited to, share- based compensation and international tax implications. In addition, a number of adjustments were made to correct and restate the prior year information which was not addressed prior to the year end audit. There still exists a lack of review and approval on the accounting treatment of these transactions in accordance with the relevant IFRS.

------

---

| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

---

**LIMITATION OF CONTROLS AND PROCEDURES**

The Company's management, including its CEO and CFO, believe that any DCP and ICFR, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override to the control. The design of any control system also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any control system will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost effective, control system, misstatements due to error or fraud may occur and not be detected.

**CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING**

There have been no changes to our internal control over financial reporting for the three months ended June 30, 2024, that could have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**RISK FACTORS**

The current business of BTQ AG has been the business of the Company since February 17, 2023. The following is a summary of certain risk factors relating to the business. The risks presented below should not be considered exhaustive and may not be all of that the Company may face.

***General Risks***

*The Company has a limited operating history*

The Company has a limited history of operations and is in the early stage of development. As such, the Company will be subject to many risks common to early-stage enterprises, including undercapitalization, cash shortages, limitations with respect to personnel, financial and other resources, and lack of revenue. There is no assurance that the Company will achieve its operating goals. There is no assurance that the Company will be successful in achieving a return on shareholders' investment and the likelihood of success must be considered in light of its early stage of operations. There can be no assurance that the Company will be able to earn material revenue or that any of its activities will generate positive cash flow.

*The Company may require additional funds to finance its operations*

Additional funds raised through debt or equity offerings may be needed to finance the Company's ongoing and future activities. There can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Failure to obtain additional financing could cause the Company to reduce or terminate its operations.

If additional funds are raised through further issuances of equity or securities convertible into equity, existing shareholders could suffer significant dilution, and any new equity securities issued could have rights, preferences and privileges superior to those of holders of securities of the Company. Any debt financing secured in the future could involve restrictive covenants relating to capital raising activities and other financial and operational matters, which may make it more difficult for the Company to obtain additional capital and to pursue business opportunities.

------

---

| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

---

Refer to going concern disclosure under Liquidity and Capital Resources.

*The Company is subject to competition from other post-quantum encryption companies*

The Company will compete with other post-quantum cryptography and technology businesses, including other businesses focused on applying post-quantum cryptography to blockchain.

*The Company's compliance and risk management programs may not be effective*

The Company's ability to comply with applicable laws and rules will be largely dependent on the establishment and maintenance of compliance, review, and reporting systems, as well as the ability to attract and retain qualified compliance and other risk-management personnel, as needed. The Company cannot provide any assurance that its compliance policies and procedures will be effective or that it will be successful in monitoring or evaluating its risks. If there is any alleged non-compliance with applicable laws or regulations, The Company could be subject to investigations and judicial or administrative proceedings that may result in substantial penalties or civil lawsuits for damages, restitution or other remedies, which could be significant. Any of these outcomes, individually or together, may materially and adversely affect the Company's reputation, financial condition and valuation, and the value of its shares.

*Unexpected market disruptions may cause major losses for the Company*

The Company may incur major losses in the event of disrupted markets and other extraordinary events in which market behavior diverges significantly from historically recognized patterns. The risk of loss in such events may be compounded by the fact that, in disrupted markets, many positions may become illiquid, making it difficult or impossible to close out positions against which markets are moving. Market disruptions caused by unexpected political, military and terrorist events, or other factors, may from time to time cause dramatic losses for the Company.

*The Company will be reliant on attracting and retaining skilled management and directors*

The success of the Company will, in part, be dependent upon the skill, judgment, industry relationships and expertise of the Board and management. The loss of a director or key management personnel may materially and adversely affect the business of the Company. There can be no assurance that these individuals will continue to be employed by, or remain involved with, the Company for a particular period of time.

*Market risk for securities*

There can be no assurance that an active trading market for the Company's shares will be sustained. The market price for the Company's Shares may be subject to wide fluctuations. Factors such as government regulation, price fluctuations, share price movements of peer companies and competitors, as well as overall market movements, may have a significant impact on the market price of the Company's securities. The stock market has from time to time experienced extreme price and volume fluctuations, which have often been unrelated to the operating performance of particular companies. Market forces may render it difficult or impossible for the Company to secure purchasers to purchase its securities at a price which will not lead to severe dilution to existing shareholders, or at all. In addition, shareholders may realize less than the original amount invested on dispositions of their shares during periods of such market price decline.

------

---

| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

---

*Foreign exchange risk*

The Company is a Canadian company, and most of its expenses and fundraising is done in Canadian dollars, however, its operations are predominantly denominated in U.S. dollars and Taiwan dollars. As a result, the Company is subject to foreign exchange risks relating to the relative value of the U.S. dollar and Taiwan dollar as compared to the Canadian dollar. A decline in the U.S. dollar or Taiwan dollar could result in a decrease in the real value of the Company's revenues and adversely impact financial performance.

*Tax*

No assurance can be given that new taxation rules will not be enacted or existing rules will not be applied in a manner which could result in the Company being subject to additional taxation or which could otherwise have a material adverse effect on the Company's results from operations and financial condition.

*The Company may be subject to litigation*

The Company may be subject to litigation arising out of, or related to, its operations. Damages claimed under such litigation may be material, and the outcome of such litigation may materially impact the Company's operations and the value of its shares. While the Company expects to assess the merits of any lawsuits and defend such lawsuits accordingly, it may be required to incur significant expense or devote significant financial resources to such defenses. In addition, the adverse publicity surrounding such claims may have a material adverse effect on the Company's operations.

*Investment Risk*

There is no assurance that the Company will achieve its investment objective. An investment may not earn any positive return and may result in the loss of some or all of the capital invested.

*Ability to generate profits*

There can be no assurance that the Company will generate net profits in future periods. Further, there can be no assurance that the Company will be cash flow positive in future periods. In the event that the Company fails to achieve profitability in future periods, the value of the Company's shares may decline. In addition, if the Company is unable to achieve or maintain positive cash flows, the Company would be required to seek additional funding, which may not be available on favorable terms, if at all.

*Management of growth*

The Company has recently experienced, and may continue to experience, growth in the scope of its operations. This growth has resulted in increased responsibilities for the Company's existing personnel, the hiring of additional personnel and, in general, higher levels of operating expenses. In order to manage its current operations and any future growth effectively, the Company will need to continue to implement and improve its operational, financial and management information systems, as well as hire, manage and retain its employees and maintain its corporate culture including technical and customer service standards. There can be no assurance that the Resulting Issuer will be able to manage such growth effectively or that its management, personnel or systems will be adequate to support the Company's operations.

------

---

| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

---

*Reliance on key personnel*

The Company's future growth and its ability to develop depend, to a significant extent, on its ability to attract and retain highly qualified personnel. The Company will rely on a limited number of key employees, consultants and members of senior management and there is no assurance that the Company will be able to retain such key employees, consultants and senior management. The loss of one or more of such key employees, consultants or members of senior management, if not replaced, could have a material adverse effect on the Company's business, financial condition and prospects.

*The Company has no immediate plans to pay regular dividends on the Company, so shareholders of the Company may not receive funds without selling their Company Shares.*

The Company does not currently have plans to pay regular dividends on Company Shares. Any declaration and payment of future dividends to holders of Company Shares will be at the sole discretion of the Board and will depend on many factors, including the financial condition, earnings, capital requirements, level of indebtedness, statutory and contractual restrictions applying to the payment of dividends and other considerations of the Company that the Company's Board deems relevant.

***Business and Industry Risks***

*Regulatory changes or actions may alter the nature of an investment in the Company or restrict the use of digital assets in a manner that adversely affects the Company's operations*

Due to their global nature, blockchain-related technologies and encryption-related technologies are subject to regulatory fragmentation due to different treatment depending on jurisdiction. Certain governments have categorized certain blockchain technologies as illegal, while others have embraced their utility and have approved them for trade. Ongoing and/or future regulatory actions may have a substantial impact on the Company's business operations.

*The Company relies upon the use of internally/externally built proprietary software, data and intellectual property that may be subject to substantial risk*

The Company's liquidity contribution strategy is dependent on internally and externally developed software, data and intellectual property. Its operations may be severely and adversely affected by the malfunction of technology.

*Banks may not provide banking services, or may cut off banking services, to businesses that provide services related to blockchain-based technologies*

A number of companies that provide blockchain-related services have been unable to find banks that are willing to provide them with bank accounts and banking services. Similarly, a number of such companies have had their existing bank accounts closed by their banks. Banks may refuse to provide bank accounts and other banking services to blockchain-related companies, or companies that accept digital assets, for a number of reasons, such as perceived compliance risks or costs.

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| |
|:---|
| ![](exhibit99-29xu002.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED JUNE 30, 2024** |

---

*The Company may be unable to obtain adequate insurance to insure its operations*

The Company intends to insure its operations in accordance with technology industry practice. However, given the novelty of digital assets and associated businesses, such insurance may not be available, may be uneconomical for the Company, or the nature or level may be insufficient to provide adequate insurance cover. The occurrence of an event that is not covered or fully covered by insurance could have a material adverse effect on the Company.

*The business of the Company will be exposed to cybersecurity risks*

Cyber incidents can result from deliberate attacks or unintentional events, and may arise from internal sources (e.g., employees, contractors, service providers, suppliers and operational risks) or external sources (e.g., nation states, terrorists, hacktivists, competitors and acts of nature). Cyber incidents include unauthorized access to information systems and data (e.g., through hacking or malicious software) for purposes of misappropriating or corrupting data or causing operational disruption. Cyber incidents also may be caused in a manner that does not require unauthorized access, such as causing denial-of-service attacks on websites (e.g., efforts to make network services unavailable to intended users). A cyber incident that affects the Company might cause disruptions and adversely affect its business operations, and might also result in violations of applicable law (e.g., personal information protection laws), each of which might result in potentially significant financial losses and liabilities, regulatory fines and penalties, reputational harm, and reimbursement and other compensation costs. In addition, substantial costs might be incurred to investigate, remediate and prevent cyber incidents.

**FORWARD-LOOKING STATEMENTS**

*This MD&A includes certain statements that may be deemed "forward-looking statements" concerning the future performance of the Company's business, its operations, its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All statements in this report that do not directly and exclusively relate to historical facts, constitute forward- looking statements. These statements represent the Company's intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements. The Company disclaims any intention or obligation to update or revise such forward-looking statements, as a result of new information, future events or otherwise. Factors that may cause actual results to vary from forward looking statements include, but are not limited to, the Company's ability to access capital, competitive risks and reliance on key personnel, as described in more detail in this document under "Risk Factors". Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.*

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## Exhibit 99.30

------

**Form 52-109F2**

***Certification of Interim Filings***

***Full Certificate***

I, Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies Corp., certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A, (together, the "interim filings") of BTQ Technologies Corp. (the "issuer") for the interim period ended June 30, 2024.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. ***Responsibility:*** The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the end of the period covered by the interim filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework.

------

5.2 **ICFR - material weaknesses relating to design:** The issuer has disclosed in its interim MD&A for each material weakness relating to design existing for the interim period end

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A description of the material weakness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The impact of the material weakness on the issuer's financial reporting and its ICFR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The issuer's current plans, if any, or any actions already undertaken, for remediating the material weakness.

5.3 N/A

6. ***Reporting changes in ICFR:*** The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on April 1, 2024 and ended on June 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: August 13, 2024

(signed) "Olivier Roussy Newton"

______________________________

Olivier Roussy Newton

Chief Executive Officer

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## Exhibit 99.31

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**Form 52-109F2**

***Certification of Interim Filings***

***Full Certificate***

I, Lonny Wong, Chief Financial Officer of BTQ Technologies Corp., certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A, (together, the "interim filings") of BTQ Technologies Corp. (the "issuer") for the interim period ended June 30, 2024.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. ***Responsibility:*** The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the end of the period covered by the interim filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework.

------

5.2 **ICFR - material weaknesses relating to design:** The issuer has disclosed in its interim MD&A for each material weakness relating to design existing for the interim period end

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A description of the material weakness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The impact of the material weakness on the issuer's financial reporting and its ICFR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The issuer's current plans, if any, or any actions already undertaken, for remediating the material weakness.

5.3 N/A

6. ***Reporting changes in ICFR:*** The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on April 1, 2024 and ended on June 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: August 13, 2024

(signed) "Lonny Wong"

______________________________

Lonny Wong

Chief Financial Officer

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## Exhibit 99.32

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![](exhibit99-32x1x1.jpg)

**BTQ Technologies Joins QuINSA as a Founding Member to<br>Propel International Quantum Information Standardization**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Founding Membership:** BTQ joins QuINSA as a founding member, collaborating with other international quantum technology leaders, including SKT, KT, LGU+, LG Electronics, POSCO, LIG NexOne, IDQ, Jin Infra, SDT, IBM, Qusecure, IQM , SemiQon, Quantum Machines, and AWS, to develop global standards for quantum communication, computing, and sensing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **International Collaboration:** QuINSA facilitates cooperation between experts, analyzes standardization trends, and collaborates with international bodies to promote industrialization and innovation in quantum technologies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Strategic Presentations:** At the launch event, industry leaders, including BTQ, shared insights into global trends and technological advancements in quantum communication, sensing, and computing.

**Vancouver, British Columbia, August 14, 2024, 2024 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce its participation as a founding member of the newly launched Quantum Industrial Standard Association (QuINSA), a Korean-led international information standardization organization dedicated to advancing the quantum information technology industry. The launch ceremony, organized by the Ministry of Science and ICT (MSIT), took place at the Yangjae El Tower in Seoul.

**QuINSA's Mission and Objectives**

QuINSA has been established to spearhead the development of international standards for emerging quantum technologies, including quantum communication, quantum computing, and quantum sensing. As an industry-led initiative, QuINSA will facilitate collaboration among experts, analyze global standardization trends, identify use cases, and promote the industrialization of quantum technologies. The organization aims to work closely with international standardization bodies to ensure global alignment and foster innovation within the quantum sector.

**Global Collaboration and Participation**

QuINSA's founding members comprise a diverse group of leading institutions actively involved in the development and commercialization of quantum technologies. Among the notable members are SKT, KT, LGU+, LG Electronics, POSCO, LIG NexOne, IDQ, Jin Infra, and SDT. The organization also welcomes international giants such as IBM, Qusecure, IQM, SemiQon, Quantum Machines, BTQ Technologies, and AWS, with AWS considering joining the initiative.

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![](exhibit99-32x2x1.jpg)

**Insights and Presentations at the Launch Event**

The launch event featured insightful presentations by industry leaders and experts. Suvi Sundquist, Head of Asia at Business Finland, shared trends in the European quantum information technology ecosystem, while Seung-Wook Baek, Director of the Quantum National Technology Strategy Centre at KRISS, outlined Korea's policy direction in quantum information technology.

Following the launch ceremony, BTQ Technologies, IBM, and IQM presented global quantum computing technology trends, focusing on quantum communication, sensing, and computing. KT highlighted domestic and international quantum communication technology trends, KRISS presented insights into quantum sensing, and SKT showcased industrialization cases and trends within the quantum information technology sector.

"Industry-oriented information standardization activities are crucial to rapidly revitalizing the quantum industry's ecosystem, which is still in its early stages of industrialization," said Director General, Sunhak Cho of MSIT. "We expect QuINSA, launched under Korea's leadership, to become an internationally recognized information standardization body and play a pivotal role in developing global quantum information technology and creating an ecosystem."

Olivier Roussy Newton, CEO of BTQ Technologies, commented, "Joining QuINSA as a founding member is a testament to BTQ's commitment to pioneering advancements in quantum technology. We are excited to collaborate with global leaders to establish standards that will shape the future of quantum innovation and ensure its secure and sustainable development."

**About QuINSA**

QuINSA is an industry-led international information-based standardization organization for the quantum information technology industry. It will play a crucial role in:

- Developing international standard proposals for various quantum technologies

- Analyzing global standardization trends in quantum information technology

- Identifying use cases and promoting industrialization

- Cooperating with international standardization organizations

For more information please visit <u>http://www.qs.or.kr/niabbs5/index.php</u>

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

------

![](exhibit99-32x3x1.jpg)

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

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## Exhibit 99.33

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![](exhibit99-33x1x1.jpg)

**NOTICE OF ANNUAL GENERAL MEETING OF SHAREHOLDERS**

**NOTICE IS HEREBY GIVEN** that an annual general meeting (the **"Meeting"**) of the holders of common shares of BTQ Technologies Corp. (the **"Company"**) will be held at Farris LLP, 25th Floor, 700 West Georgia Street, British Columbia V7Y 1B3 on September 18, 2024 at 10:00 a.m. (Vancouver Time) for the following purposes:

1. To receive the audited financial statements of the Company for the financial year ended December 31, 2023, the auditor's report thereon and the management's discussion and analysis for the financial year ended December 31, 2023;

2. To fix the number of directors for the ensuing year at five (5);

3. To elect directors of the Company for the ensuing year;

4. To appoint BDO Canada LLP, Chartered Professional Accountants, as the auditor of the Company for the ensuing year and to authorize the directors to fix the auditor's remuneration; and

5. To transact any other business that may properly come before the meeting and any adjournment thereof.

Accompanying this notice is the Management Information Circular. The Management Information Circular contains details of matters to be considered at the Meeting.

The Board of Directors has set August 13, 2024 as the record date for determining the shareholders entitled to receive notice of and vote at the Meeting.

These Meeting materials are being sent to both registered and beneficial/non-registered owners of common shares. If you are a beneficial or non-registered owner, and the Company or its agent has sent these materials directly to you, your name and address and information about your holdings of common shares have been obtained in accordance with applicable securities regulatory requirements from the intermediary holding securities on your behalf. By choosing to send these materials to you directly, the Company (and not the intermediary holding securities on your behalf) has assumed responsibility for (i) delivering these materials to you, and (ii) executing your proper voting instructions. Please return your voting instructions as specified in the request for voting instructions.

**Whether or not you expect to attend the Meeting, please complete, date, sign and return the Proxy or voting instruction form at your earliest convenience. The Management Information Circular provides further information respecting proxies and the matters to be considered at the Meeting and is deemed to form part of this Notice of Meeting.**

If you are a registered shareholder and wish to have your vote counted, you will be required to complete, date, sign and return, in the envelope provided for that purpose, the accompanying Proxy for use at the Meeting or any adjournment thereof. **To be effective, the Proxy must be received by our transfer agent, Computershare Trust Company of Canada, 100 University Avenue, 8th Floor, Toronto, Ontario, M5J 2Y1 (Attn: Proxy Department) by no later than 10:00 a.m. (Vancouver time) on September 16, 2024 or no later than 48 hours (excluding Saturdays, Sundays and holidays) prior to the time to which the Meeting may be adjourned or postponed.** Alternatively, you may vote by telephone or via the internet following the instructions provided on the Proxy and the Management Information Circular.

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If you are a beneficial holder and have received this Notice of Meeting and accompanying materials through an intermediary, such as an investment dealer, broker, custodian, administrator or other nominee, or a clearing agency in which the intermediary participates, please complete and return the voting instruction form provided to you in accordance with the instructions provided therein.

Dated at Vancouver, British Columbia, this 15<sup>th</sup> day of August, 2024.

**BTQ TECHNOLOGIES CORP.**

*"Olivier Roussy Newton"*

Olivier Roussy Newton

Director and CEO

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## Exhibit 99.34

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![](exhibit99-34x1x1.jpg)

**MANAGEMENT INFORMATION CIRCULAR**

(Containing information as at August 15, 2024 unless indicated otherwise)

This Management Information Circular (the "**Circular**") is furnished in connection with the solicitation of proxies by the management of BTQ Technologies Corp. (the "**Company**") for use at the annual general meeting (the "**Meeting**") of its shareholders to be held at the offices of Farris LLP, 25th floor, 700 West Georgia Street, British Columbia, V7Y 1B3 on September 18, 2024 at the time and place and for the purposes set forth in the accompanying notice of the Meeting.

In this Circular, references to "the Company", "we" and "our" refer to BTQ Technologies Corp., "common shares" means common shares without par value in the capital of the Company. "Beneficial Shareholders" means shareholders who do not hold common shares in their own name and "intermediaries" refers to brokers, investment firms, clearing houses and similar entities that own securities on behalf of Beneficial Shareholders.

**GENERAL PROXY INFORMATION**

**Solicitation of Proxies**

The solicitation of proxies will be primarily by mail, but proxies may be solicited personally or by telephone by directors, officers and regular employees of the Company. The Company will bear all costs of this solicitation. We have arranged for intermediaries to forward the meeting materials to beneficial owners of common shares held as of record by those intermediaries and we may reimburse the intermediaries for their reasonable fees and disbursements in that regard.

**Appointment of Proxyholders**

The individuals named in the accompanying form of proxy (the "**Proxy**") are officers and directors of the Company. **If you are a shareholder entitled to vote at the Meeting, you have the right to appoint a person or company other than either of the persons designated in the Proxy, who need not be a shareholder, to attend and act for you on your behalf at the Meeting. You may do so either by inserting the name of that other person in the blank space provided in the Proxy or by completing and delivering another suitable form of proxy.**

The only methods by which you may appoint a person as proxy are submitting a Proxy by mail, hand delivery or fax.

**Voting by Proxyholder**

The persons named in the Proxy will vote or withhold from voting the common shares represented thereby in accordance with your instructions on any ballot that may be called for. If you specify a choice with respect to any matter to be acted upon, your common shares will be voted accordingly. The Proxy confers discretionary authority on persons named therein with respect to:

(a) each matter or group of matters identified therein for which a choice is not specified, other than the appointment of an auditor and the election of directors,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any amendment to or variation of any matter identified therein, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other matter that properly comes before the Meeting.

**In respect of a matter for which a choice is not specified in the Proxy, or where both choices have been specified, in favour or all matters described herein, the persons named in the Proxy will vote the common shares represented by the Proxy for the approval of such matter.**

**Notice and Access**

The Company is not sending this Circular to registered or beneficial shareholders using "notice-and-access" as defined under National Instrument 54-101 ("**NI 54-101**").

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**Registered Shareholders**

If you are a Registered Shareholder and wish to have your common shares voted at the Meeting, you will be required to submit your vote by proxy. Registered Shareholders electing to submit a proxy may do so by completing, dating and signing the Proxy and returning it to the Company's transfer agent, Computershare Trust Company of Canada ("**Computershare**"), in accordance with the instructions on the Proxy. Alternatively, Registered Shareholders may vote their common shares via the internet or by telephone as per the instructions provided on the Proxy.

**In all cases you should ensure that the Proxy is received at least 48 hours (excluding Saturdays, Sundays and holidays) before the Meeting or the adjournment thereof at which the Proxy is to be used.**

Registered Shareholders electing to submit a Proxy may do so by:

(a) **Internet.** Vote online at <u>www.investorvote.com</u> using the Proxy control number found in the enclosed Proxy.

(b) **Telephone.** Using a touch-tone phone to transmit voting choices to the toll-free number given in the Proxy. Registered Shareholders who choose this option must follow the instructions of the voice response system and refer to the enclosed Proxy for the toll-free number, the holder's account number and the Proxy Control Number.

(c) **Mail**. Completing, dating and signing the enclosed Proxy and returning it to Computershare, by fax within North America at 1-866-249-7775, or by mail or hand delivery at 8th Floor, 100 University Avenue, Toronto, Ontario, M5J 2Y1, Canada.

In all cases ensuring that the Proxy is received at least 48 hours (excluding Saturdays, Sundays and holidays) before the Meeting or the adjournment thereof at which the Proxy is to be used.

Should you wish to contact Computershare, please refer to the following:

**General Shareholder Inquiries:**

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| | |
|:---|:---|
| By phone: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1-800-564-6253 |
| By fax: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1-888-453-0330 |
| By email: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>service@computershare.com</u> |
| By regular mail: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Computershare Trust Company of Canada |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100 University Avenue, 8<sup>th</sup> Floor |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Toronto, Ontario, M5J 2Y1 |

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**Beneficial Shareholders**

The following information is of significant importance to shareholders who do not hold common shares in their own name. Beneficial Shareholders should note that the only proxies that can be recognized and acted upon at the Meeting are those deposited by Registered Shareholders (those whose names appear on the records of the Company as the registered holders of common shares).

These securityholder materials are being sent to both registered and non-registered owners of the securities of the Company. If you are a non-registered owner, and the Company or its agent has sent these materials directly to you, your name and address and information about your holdings of securities, have been obtained in accordance with applicable securities regulatory requirements from the intermediary holding on your behalf. By choosing to send these materials to you directly, the Company (and not the intermediary holding on your behalf) has assumed responsibility for (i) delivering these materials to you, and (ii) executing your proper voting instructions. Please return your voting instructions as specified in your request for voting instructions.

If common shares are listed in an account statement provided to a shareholder by a broker, then in almost all cases those common shares will not be registered in the shareholder's name on the records of the Company. Such common shares will more likely be registered under the names of the shareholder's broker or an agent of that broker. In the United States, the vast majority of such common shares are registered under the name of Cede & Co. as nominee for The Depository Trust Company (which acts as depositary for many U.S. brokerage firms and custodian banks), and in Canada, under the name of CDS & Co. (the registration name for The Canadian Depository for Securities Limited, which acts as nominee for many Canadian brokerage firms).

There are two kinds of beneficial owners - those who object to their name being made known to the issuers of securities which they own (called "**OBOs**" for "**Objecting Beneficial Owners**") and those who do not object to the issuers of the securities they own knowing who they are (called "**NOBOs**" for "**Non-Objecting Beneficial Owners**").

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Pursuant to National Instrument 54-101 of the Canadian Securities Administrators, the Company is sending proxy- related materials directly to NOBOs, which materials will include a scannable Voting Instruction Form (a "VIF"). These VIFs are to be completed and returned to Computershare in the envelope provided or by facsimile. In addition, Computershare provides both telephone voting and Internet voting as described on the VIF itself which contain complete instructions. Computershare will tabulate the results of the VIFs received from NOBOs and will provide appropriate instructions at the Meeting with respect to the common shares represented by the VIFs they receive.

Management of the Company does not intend to pay for intermediaries to forward to OBOs under National Instrument 54-101 the proxy-related materials and Form 54-101F7 Request for Voting Instructions Made by Intermediary, and, in the case of an OBO, the OBO will not receive the materials unless the OBO's intermediary assumes the cost of delivery.

Every intermediary that mails proxy-related materials to Beneficial Shareholders has its own mailing procedures and provides its own return instructions to clients. Beneficial Shareholders should follow the instructions of their intermediary carefully to ensure that their common shares are voted at the Meeting.

Most brokers now delegate responsibility for obtaining instructions from clients to Broadridge Financial Solutions, Inc. ("**Broadridge**") in the United States and in Canada. Broadridge mails a voting instruction form (the "**Broadridge VIF**") which will be similar to the Proxy provided to Registered Shareholders by the Company. However, its purpose is limited to instructing the intermediary on how to vote on your behalf. The Broadridge VIF will appoint the same persons as the Company's Proxy to represent you at the Meeting. You have the right to appoint a person (who need not be a shareholder of the Company), other than the persons designated in the Broadridge VIF, to represent you at the Meeting. To exercise this right, you should insert the name of the desired representative in the blank space provided in the Broadridge VIF. The completed Broadridge VIF must then be returned to Broadridge by mail or facsimile or given to Broadridge by phone or over the internet, in accordance with Broadridge's instructions. Broadridge then tabulates the results of all instructions received and provides appropriate instructions respecting the voting of common shares to be represented at the Meeting. **If you receive a Broadridge VIF, you cannot use it to vote common shares directly at the Meeting - the Broadridge VIF must be completed and returned to Broadridge, in accordance with its instructions, well in advance of the Meeting in order to have the common shares voted.**

Although as a Beneficial Shareholder you may not be recognized directly at the Meeting for the purposes of voting common shares registered in the name of your broker, you, or a person designated by you, may attend at the Meeting as proxyholder for your broker and vote your common shares in that capacity. **If you wish to attend the Meeting and indirectly vote your common shares as proxyholder for your broker, or have a person designated by you do so, you should enter your own name, or the name of the person you wish to designate, in the blank space on the voting instruction form provided to you and return the same to your broker in accordance with the instructions provided by such broker, well in advance of the Meeting.**

Alternatively, you can request in writing that your broker send you a legal Proxy which would enable you, or a person designated by you, to attend at the Meeting and vote your common shares.

**Revocation of Proxies**

In addition to revocation in any other manner permitted by law, a Registered Shareholder who has given a Proxy may revoke it by:

(a) executing a Proxy bearing a later date or by executing a valid notice of revocation, either of the foregoing to be executed by the Registered Shareholder or the Registered Shareholder's authorized attorney in writing, or, if the shareholder is a corporation, under its corporate seal by an officer or attorney duly authorized, and by delivering the Proxy bearing a later date to Computershare at any time up to 10:00 a.m. (Vancouver time) on September 16, 2024 or, if the Meeting is adjourned, 10:00 a.m. (Vancouver time) on the second business day that precedes any reconvening thereof, or to the chairman of the Meeting on the day of the Meeting or any reconvening thereof, or in any other manner provided by law; or

(b) personally attending the Meeting and voting the Registered Shareholder's common shares.

A revocation of a Proxy will not affect a matter on which a vote is taken before the revocation.

**INTEREST OF CERTAIN PERSONS OR COMPANIES IN MATTERS TO BE ACTED UPON**

No director or executive officer of the Company, nor any person who has held such a position since the beginning of the last completed financial year end of the Company, nor any proposed nominee for election as a director of the Company, nor any associate or affiliate of the foregoing persons, has any substantial or material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted on at the Meeting other than the election of directors, the appointment of the auditor and as set out herein.

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**VOTING SECURITIES AND PRINCIPAL HOLDERS OF VOTING SECURITIES**

The board of directors (the "**Board**") of the Company has fixed August 13, 2024 as the record date (the "**Record Date**") for determination of persons entitled to receive notice of the Meeting. Only shareholders of record at the close of business on the Record Date who either attend the Meeting personally or complete, sign and deliver a form of Proxy in the manner and subject to the provisions described above will be entitled to vote or to have their common shares voted at the Meeting.

As at the Record Date, there were 124,203,879 common shares issued and outstanding, each carrying the right to one vote.

On a show of hands, every individual who is present and is entitled to vote as a shareholder or as a representative of one or more corporate shareholders will have one vote, and on a poll every shareholder present in person or represented by a Proxy and every person who is a representative of one or more corporate shareholders, will have one vote for each common share registered in that shareholder's name on the list of shareholders as at the Record Date, which is available for inspection during normal business hours at Computershare and will be available at the Meeting.

To the knowledge of the directors and executive officers of the Company, the only person that beneficially owns, directly or indirectly, or exercised control or direction over, common shares carrying 10% or more of the voting rights attached to all outstanding common shares of the Company as at the Record Date as follows:

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| | | |
|:---|:---|:---|
| **Name of Shareholder** | **Number of Shares Held** | **Percentage** |
| Olivier Roussy Newton | 41,843,000 Shares | 33.69% |

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**VOTES NECESSARY TO PASS RESOLUTIONS**

A simple majority of affirmative votes cast at the Meeting is required to pass the resolutions described herein. If there are more nominees for election as directors or appointment of the Company's auditor than there are vacancies to fill, those nominees receiving the greatest number of votes will be elected or appointed, as the case may be, until all such vacancies have been filled. If the number of nominees for election or appointment is equal to the number of vacancies to be filled, all such nominees will be declared elected or appointed by acclamation.

**SETTING NUMBER OF DIRECTORS**

The persons named in the enclosed Proxy intend to vote in favour of fixing the number of directors at five (5). The Board proposes that the number of directors be fixed at five (5). Shareholders will therefore be asked to approve an ordinary resolution that the number of directors elected be fixed at five (5).

**ELECTION OF DIRECTORS**

The term of office of each of the current directors expires at the conclusion of the Meeting. Unless the director's office is earlier vacated in accordance with the provisions of the Business Corporations Act (British Columbia), each director elected will hold office until the conclusion of the next annual general meeting of the Company, or if no director is then elected, until a successor is elected.

The following table sets out the names of management's nominees for election as a director (a "proposed director"), the province and country in which he is ordinarily resident, all major offices and positions with the Company and any of its significant affiliates each now holds, each nominee's principal occupation, business or employment for the five preceding years for new director nominees, the period of time during which each has been a director of the Company and the number of common shares of the Company beneficially owned by each, directly or indirectly, or over which each exercised control or direction, as at the Record Date.

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5 <br>

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| | | | |
|:---|:---|:---|:---|
| **Name of Nominee, Province and**<br>**Country of Ordinary Residence**<br>**and Positions Held with the**<br>**Company** | **Occupation, Business or**<br>**Employment<sup>(1)</sup>** | **Director of the**<br>**Company Since** | **Common Shares**<br>**Beneficially Owned**<br>**or Controlled, or**<br>**Directed, Directly or**<br>**Indirectly<sup>(1)</sup>** |
| **Olivier Roussy Newton**<br> Zug, Switzerland<br> *Director and CEO* | Entrepreneur; President of EV Technology Group; Founder of Latent Capital; Co- Founder of DEFI Technologies; former director of Hive Blockchain Technologies Ltd. | February 17, 2023 | 41,843,000 Shares |
| **Nicolas Roussy Newton**<br> Taipei City, Taiwan<br> *Director and COO* | Entrepreneur; Investor. | February 17, 2023 | Nil |
| **Michael Resendes<sup>(2) (3)</sup>**<br> British Columbia, Canada<br> *Director* | Accountant. | September 13, 2005 | 225000 |
| **Johan Wattenstrom<sup>(2) (3)</sup>**<br> Zug, Switzerland<br> *Director* | Chief Executive Officer of Nortide Capital AG | February 17, 2023 | 400000 |
| **Kevin Mulhern<sup>(2) (3)</sup>**Ontario, Canada<br>*Director* | Vice President of Business Operations of Broadridge; formerly CEO and Founder of AdvisorStream Ltd. | February 17, 2023 | 400000 |

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Notes:

(1) The information as to principal occupation, business or employment and common shares beneficially owned or controlled is not within the knowledge of the management of the Company and has been furnished by the respective nominees. Each nominee has held the same or a similar principal occupation with the organization indicated or a predecessor thereof for the last five years.

(2) Denotes a member of the audit committee of the Company.

None of the proposed directors of the Company is to be elected under any arrangement or understanding between the proposed director and any other person or company, except the directors and officers of the Company acting solely in such capacity.

**CORPORATE CEASE TRADE ORDERS OR BANKRUPTCIES**

The Company applied for a management cease trade order (an "MCTO") under National Policy 12-203 Management Cease Trade Orders ("NP 12-203") on March 18, 2024, due to the delayed filing of its consolidated financial statements for the year ended December 31, 2023. The MCTO was lifted after the filing of the Company's annual consolidated financial statements on June 4, 2024.

With the exception of the MCTO, as at the date of this Circular, and within the last 10 years before the date of this Circular, no proposed director (or any of their personal holding companies) of the Company was a director, CEO or CFO of any company (including the Company) that:

(a) was subject to a cease trade or similar order or an order denying the relevant company access to any exemptions under securities legislation, for more than 30 consecutive days while that person was acting in the capacity as director, CEO or CFO; or

(b) was the subject of a cease trade or similar order or an order that denied the issuer access to any exemption under securities legislation in each case for a period of 30 consecutive days, that was issued after the person ceased to be a director, CEO or CFO in the company and which resulted from an event that occurred while that person was acting in the capacity as director, CEO or CFO; or

(c) is as at the date of this Circular or has been within 10 years before the date of this Circular, a director or executive officer of any company, including the Company, that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or

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(d) has within the 10 years before the date of this Circular, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangements or compromise with creditors, or had a receiver, receiver manager as trustee appointed to hold the assets of that individual.

None of the proposed directors (or any of their personal holding companies) has been subject to:

(1) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or

(2) any other penalties or sanctions imposed by a court or a regulatory body that would likely be considered important to a reasonable securityholder in deciding whether to vote for a proposed director

**AUDIT COMMITTEE AND RELATIONSHIP WITH AUDITOR**

The Audit Committee of the Board is responsible for monitoring the Company's systems and procedures for financial reporting and internal control, reviewing certain public disclosure documents and monitoring the performance and independence of the Company's external auditors. The committee is also responsible for reviewing the Company's annual audited financial statements, unaudited quarterly financial statements and management's discussion and analysis of financial results of operations for both annual and interim financial statements and review of related operations prior to their approval by the full Board.

The Company has filed an Annual Information Form (the "AIF") for the fiscal year ended December 31, 2023, on SEDAR+ at www.sedarplus.ca, which contains, among other things, all of the financial disclosure and also the Charter of the Company's Audit Committee as required under NI 52-110. In particular, the information that is required to be disclosed in Form 52-110F1 of NI 52-110 may be found under the heading "Audit Committee Disclosure" in the AIF.

The members of the Audit Committee are Michael Resendes, Kevin Mulhern, and Johan Wattenstrom. All members are not executive officers of the Company and, therefore, are independent members of the Audit Committee. All members are considered to be financially literate. A member of the audit committee is independent if the member has no direct or indirect material relationship with the Company. A material relationship means a relationship which could, in the view of the Company's Board, reasonably interfere with the exercise of a member's independent judgment. A member of the audit committee is considered financially literate if he or she has the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by the Company.

**CORPORATE GOVERNANCE**

**General**

Corporate governance refers to the policies and structure of the Board of a company whose members are elected by and are accountable to the shareholders of the company. Corporate governance encourages establishing a reasonable degree of independence of the Board from executive management and the adoption of policies to ensure the Board recognizes the principles of good management. The Board is committed to sound corporate governance practices as such practices are both in the interests of shareholders and help to contribute to effective and efficient decision-making.

Effective June 30, 2005, National Instrument 58-101 Disclosure of Corporate Governance Practices ("NI 58-101") and National Policy 58-201 Corporate Governance Guidelines ("NP 58-201") were adopted in each of the provinces and territories of Canada. NI 58-101 requires issuers to disclose the corporate governance practices that they have adopted. NP 58-201 provides guidance on corporate governance practices. This section sets out the Company's approach to corporate governance and addresses the Company's compliance with NI 58-101.

**Board of Directors**

Directors are considered to be independent if they have no direct or indirect material relationship with the Company. A "material relationship" is a relationship which could, in the view of the Company's Board, be reasonably expected to interfere with the exercise of a director's independent judgment.

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The Company's Board facilitates its exercise of independent judgement in carrying out its responsibilities by carefully examining issues and consulting with outside counsel and other advisors in appropriate circumstances. The Company's Board requires management to provide complete and accurate information with respect to the Company's activities and to provide relevant information concerning the industry in which the Company operates in order to identify and manage risks. The Company's Board is responsible for monitoring the Company's officers, who in turn are responsible for the maintenance of internal controls and management information systems.

The current independent members of the Board are Michael Resendes, Johan Wattenstrom, and Kevin Mulhern. The non-independent members of the Board are Olivier Roussy Newton, CEO of the Company, and Nicolas Roussy Newton, COO of the Company.

**Mandate**

The Board of Directors is responsible for the stewardship and the general supervision of the management of the business of the Company and is to act in the best interests of the Company and its stakeholders. The Board will discharge its responsibilities directly and through its committees. In addition, the Board may from time to time, appoint such additional committees as it deems necessary and appropriate in order to discharge its duties.

**Position Description**

The Chairman of the Board is responsible for presiding at meetings of the Board and for annually proposing the leadership and membership of the Company's committees.

The Chairman of the Audit Committee is responsible for presiding at meetings of the Audit Committee and for investigating any complaints made against the Company through the whistleblower policy. Any responsibility which is not delegated to senior management or a Board committee remains with the full Board.

The CEO is responsible for the management of the resources and operations of a Company, making major corporate decisions, and acting as the main point of contact between the Board, employees, and the public. The CEO is also responsible for leading and developing key management personnel. There is no explicit written position description for the CEO at the point of this filings.

The COO oversees operations in the company's various offices in Canada, Taiwan, and Australia. The COO is also responsible for establishing general research direction and sourcing partnerships with potential customers and other research companies.

**Directorships**

In addition to his role at BTQ, Olivier Roussy Newton is serving as the executive chairman of Defi Technologies (CBOE CA: DEFI) (GR: R9B) (OTC: DEFTF), a financial technology company that converges traditional capital markets with the world of decentralized finance.

**Orientation and Continuing Education**

When new directors are appointed, they receive an orientation, commensurate with their previous experience, on the Company's properties, business, technology and industry and on the responsibilities of directors.

Board meetings may also include presentations by the Company's management and employees to give the directors additional insight into the Company's business.

**Ethical Business Conduct**

The Board has found that the fiduciary duties placed on individual directors by the Company's governing corporate legislation and the common law and the restrictions placed by applicable corporate legislation on an individual directors' participation in decisions of the Board in which the director has an interest have been sufficient to ensure that the Board operates independently of management and in the best interests of the Company. Further, the Company's auditor has full and unrestricted access to the Audit Committee at all times to discuss the audit of the Company's financial statements and any related findings as to the integrity of the financial reporting process.

**Nomination of Directors**

The Board considers its size each year when it considers the number of directors to recommend to the shareholders for election at the annual meeting of shareholders, taking into account the number required to carry out the Board's duties effectively and to maintain a diversity of views and experience.

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The Board does not have a nominating committee, and these functions are currently performed by the Board as a whole. However, if there is a change in the number of directors required by the Company, this policy will be reviewed.

**Compensation**

The Board as a whole determines compensation for the directors and the CEO.

**Other Board Committees**

The Board has no other committees other than the Audit Committee.

**Majority Voting Policy**

The Company has adopted a majority voting policy in director elections, which applies to any meeting of shareholders where an uncontested election of directors is held. Pursuant to this policy, any nominee who receives a greater number of votes "withheld" from his or her election than votes "for" such election will immediately tender his or her resignation to the Board. The independent directors of the Company (the "Committee") shall evaluate the best interests of the Company and its shareholders and shall recommend to the Board the action to be taken with respect to such tendered resignation, following which the Board shall consider the Committee's recommendation and make a determination. The Board shall accept the resignation absent exceptional circumstances. The above procedures shall be completed within ninety (90) days following the shareholder meeting.

In reaching its recommendation, the Committee shall consider all factors it deems relevant, including, without limitation, the effect of the exercise of cumulative voting in the election, if applicable, any stated reasons why shareholders "withheld" votes for the election from such director, the length of service and qualifications of the director whose resignation has been tendered, the director's contributions to the Company, the Company's corporate governance guidelines and whether any special interest groups conducted a campaign involving the election of directors to further the interests of such group, as opposed to the best interests of all shareholders.

In considering the Committee's recommendation, the Board will consider all of the factors considered by the Committee and such additional factors as it deems relevant.

**Assessments**

The Board monitors the adequacy of information given to directors, communication between the Board and management and the strategic direction and processes of the Board and committees.

**STATEMENT OF EXECUTIVE COMPENSATION**

**Compensation Discussion and Analysis**

*Compensation, Philosophy and Objectives*

The Company does not have a formal compensation program. The Board meets to discuss and determine management compensation, without reference to formal objectives, criteria or analysis. The general objectives of the Company's compensation strategy are to (a) compensate management in a manner that encourages and rewards a high level of performance and outstanding results with a view to increasing long-term shareholder value; (b) align management's interests with the long-term interests of shareholders; (c) provide a compensation package that is commensurate with other junior mineral exploration companies to enable the Company to attract and retain talent; and (d) ensure that the total compensation package is designed in a manner that takes into account the constraints that the Company is under by virtue of the fact that it is a junior mineral exploration company without a history of earnings.

The Board, as a whole, ensures that total compensation paid to all NEOs, as hereinafter defined, is fair and reasonable. The Board relies on the experience of its members as officers and directors with other junior mining companies in assessing compensation levels.

The Board has not conducted a formal evaluation of the implications of the risks associated with the Company's compensation policies. Risk management is a consideration of the Board when implementing its compensation policies and the Board do not believe that the Company's compensation policies result in unnecessary or inappropriate risk taking including risks that are likely to have a material adverse effect on the Company.

------

*Analysis of Elements*

Base salary is used to provide the NEOs a set amount of money during the year with the expectation that each NEO will perform his responsibilities to the best of his ability and in the best interests of the Company.

The Company considers the granting of incentive stock options to be a significant component of executive compensation as it allows the Company to reward each NEO's efforts to increase value for shareholders without requiring the Company to use cash from its treasury. Stock options are generally awarded to executive officers at the commencement of employment and periodically thereafter. The terms and conditions of the Company's stock option grants, including vesting provisions and exercise prices, are governed by the terms of the Company's stock option plan (the "**Stock Option Plan**").

*Long Term Compensation and Option-Based Awards*

The Company has no long-term incentive plans other than its Stock Option Plan. The Company's directors and officers and certain consultants are entitled to participate in the Stock Option Plan. The Stock Option Plan is designed to encourage share ownership and entrepreneurship on the part of the senior management and other employees. The Board believes that the Stock Option Plan aligns the interests of the NEO and the Board with shareholders by linking a component of executive compensation to the longer term performance of the Company's common shares.

Options are granted by the Board. In monitoring or adjusting the option allotments, the Board takes into account its own observations on individual performance (where possible) and its assessment of individual contribution to shareholder value, previous option grants and the objectives set for the NEOs and the Board. The scale of options is generally commensurate to the appropriate level of base compensation for each level of responsibility.

In addition to determining the number of options to be granted pursuant to the methodology outlined above, the Board also makes the following determinations:

(a) parties who are entitled to participate in the Stock Option Plan;

(b) the exercise price for each stock option granted, subject to the provision that the exercise price cannot be lower than the prescribed discount permitted by the TSX Venture Exchange from the market price on the date of grant;

(c) the date on which each option is granted;

(d) the vesting period, if any, for each stock option;

(e) the other material terms and conditions of each stock option grant; and

(f) any re-pricing or amendment to a stock option grant.

The Board makes these determinations subject to and in accordance with the provisions of the Stock Option Plan. The Board reviews and approves grants of options on an annual basis and periodically during a financial year.

*Use of Financial Instruments*

The Company does not have a policy that would prohibit a NEO or director from purchasing financial instruments, including prepaid variable forward contracts, equity swaps, collars or units of exchange funds, that are designed to hedge or offset a decrease in market value of equity securities granted as compensation or held, directly or indirectly, by the NEO or director. However, management is not aware of any NEO or director purchasing such an instrument.

**Performance Graph**

This chart represents the illustrative value of a $100 investment in BTQ Technologies Corp. at the time of the company completing its RTO transaction vs. an investment in the S&P/TSX Venture Composite Index ("SPTSXVEN") for the same time period. The return on investment benchmark SPTSXVEN was chosen due to companies in said index having similar characteristics as BTQ (market capitalization, trading history, growth potential, etc.) but does not constitute a perfect comparable.

------

![](exhibit99-34x10x1.jpg)

**Summary Compensation Table**

In this section, a "Named Executive Officer" ("NEO") includes (i) the CEO, (ii) the CFO, (iii) each of the three most highly compensated executive officers, other than the CEO and CFO, who were serving as executive officers as at the end of the most recently completed financial year of December 31, 2023, and whose total compensation was more than $150,000; and (iv) any additional individuals for whom disclosure would have been required except that the individual was not serving as an officer of the Company at the end of the most recently completed financial year.

The following table sets forth compensation paid to the Company's NEOs for the Company's three most recently completed financial years is as set out below:

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11 <br>

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and**<br>**principal position** | **Year<sup>(1)</sup>** | **Salary**<br>**($)**<br>**(a)** | **Option-**<br>**based**<br>**awards**<br>**($)<sup>(2)</sup>**<br>**(c)** | **Total**<br>**compensation**<br>**($)<sup>(2)</sup>** |
| **Name and**<br>**principal position** | **Year<sup>(1)</sup>** | **Salary**<br>**($)**<br>**(a)** | **Option-**<br>**based**<br>**awards**<br>**($)<sup>(2)</sup>**<br>**(c)** | **Total**<br>**compensation**<br>**($)<sup>(2)</sup>** |
| **Olivier Roussy**<br>**Newton**<br>CEO | 2023<br>2022<br>2021 | Nil<br>Nil<br>Nil | Nil<br>Nil<br>Nil | Nil<br>Nil<br>Nil |
| **Lonny Wong**<br>CFO | 2023<br>2022<br>2021 | 59,661<sup>(4)</sup><br>Nil<br>Nil 81,000<sup>(4)</sup><br>Nil<br>Nil | 110,575<sup>(4)</sup><br>Nil<br>Nil Nil<br>Nil<br>Nil | 251,236<sup>(4)</sup><br>Nil<br>Nil |
| **Nicolas Roussy**<br>**Newton**<br>COO | 2023<br>2022<br>2021 | 162,183<br>Nil<br>Nil Nil<br>Nil<br>Nil | 196,843<br>Nil<br>Nil Nil<br>Nil<br>Nil | 359,026<br>Nil<br>Nil |
| **Peter Lavelle**<br>Chief Legal<br>Officer | 2023<br>2022<br>2021 | 128,360<br>Nil<br>Nil Nil<br>Nil<br>Nil | 157,474<br>Nil<br>Nil Nil<br>Nil<br>Nil | 285,834<br>Nil<br>Nil |
| **Po-Chun Kuo**<br>Chief Technology<br>Officer | 2023<br>2022<br>2021 | 128,360<br>Nil<br>Nil Nil<br>Nil<br>Nil | 157,474<br>Nil<br>Nil Nil<br>Nil<br>Nil | 285,834<br>Nil<br>Nil |
| **Ming-Yang Chih**<br>Chief Strategic<br>Officer | 2023<br>2022<br>2021 | 97,163<br>Nil<br>Nil Nil<br>Nil<br>Nil | 157,474<br>Nil<br>Nil Nil<br>Nil<br>Nil 86,275<sup>(5)</sup><br>Nil<br>Nil | 340,912<br>Nil<br>Nil |

---

Notes:

(1) 2023 and 2022 financial years ended January 31.

(2) Share-based awards comprise RSUs. Value represents the fair value of the entire award on the grant date which differs from the value reported in the Company's financial statements. For financial statement purposes, the accounting fair value amount is amortized over the service period to obtain the accounting compensation expense.

(3) The value ascribed to option grants represents non-cash consideration and has been estimated using the Black-Scholes option pricing model as at the date of grant as follows: February 17, 2023 - expected volatility - 216%, expected option life - 4.9 years, risk free-rate - 3.33%, dividend rate - 0%, May 18, 2023 - expected volatility - 219%, expected option life - 4.6 years, risk-free rate - 3.28%, dividen rate - 0%. The Company chose the Black-Scholes option pricing model given its prevalence of use in North America. The value represents the fair value of the entire award on the grant date which differs from the value reported in the Company's financial statements. For financial statement purposes, the accounting fair value amount is amortized over the service period to obtain the accounting compensation expense.

(4) Amount paid/awarded to Saturna Group Chartered Professional Accountants LLP where Lonny Wong is a partner.

(5) Amount paid to Chelpis Quantum Tech Co., a company owed by Ming-Yang Chih.

**INCENTIVE PLAN AWARDS**

**Outstanding Share and Option-based Awards**

The Company has a formal Stock Option Plan, previously approved by the shareholders of the Company. As of the December 31, 2023, the following share-based and option-based awards were outstanding for each of the NEOs:

------

12 <br>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Option-based Awards | Option-based Awards | Option-based Awards | Option-based Awards | Share-based Awards | Share-based Awards | Share-based Awards |
| **Name** | **Number of**<br>**securities**<br>**underlying**<br>**unexercised**<br>**options<br>(#)** | **Option**<br>**exercise price<br>($)** | **Option**<br>**expiration<br>date<br>(c)** | **Value of**<br>**unexercised**<br>**in-the-money**<br>**options**<br>**($)**<br>**(1)(2)** | **Number of**<br>**shares or units**<br>**of shares that**<br>**have not**<br>**vested**<br>**(#)** | **Market or**<br>**payout value**<br>**of share-based**<br>**awards that**<br>**have not**<br>**vested**<br>**($)**<br>**(3)** | **Market or**<br>**payout value**<br>**of vested**<br>**share-based**<br>**awards not**<br>**paid out or**<br>**distributed**<br>**($)** |
| **Olivier Roussy**<br>**Newton**<br>CEO | Nil | Nil | Nil | Nil | Nil | Nil | Nil |
| **Lonny Wong**<br>CFO | 250000 | 0.45 | January 1, 2028 | 92500 | 135000 | 60750 | Nil |
| **Nicolas Roussy**<br>**Newton**<br>COO | 500000 | 0.40 | January 1, 2028 | 210000 | Nil | Nil | Nil |
| **Peter Lavelle**<br>Chief Legal<br>Officer | 400000 | 0.40 | January 1, 2028 | 168000 | Nil | Nil | Nil |
| **Po-Chun Kuo**<br>Chief<br>Technology<br>Officer | 400000 | 0.40 | January 1, 2028 | 168000 | Nil | Nil | Nil |
| **Ming-Yang**<br>**Chih**<br> Chief Strategic<br>Officer | 400000 | 0.40 | January 1, 2028 | 168000 | Nil | Nil | Nil |

---

Notes:

(1) Based on the closing market price of $0.82 on December 29, 2023 and subtracting the exercise price of the options.

(2) These options have not been, and may never be, exercised, and actual gains, if any, on exercise will depend on the value of the common shares on the date of exercise.

(3) Share-based awards comprise of RSUs. Value is based on the fair value of the award on the grant date.

**Incentive Plan Awards - Value Vested or Earned during the Most Recently Completed Financial Year**

The following table sets forth details of the value of incentive plan awards that vested or were earned during the most recently completed financial year ended December 31, 2023:

---

| | |
|:---|:---|
| **Name** | **Share-based awards -**<br>**Value vested during**<br>**the year**<br>**($)**<br>**(b)** |
| **Olivier Roussy Newton**<br>CEO Nil | Nil |
| **Lonny Wong**<br>CFO Nil | 20250 Nil |
| **Nicolas Roussy Newton**<br>COO Nil | Nil |
| **Peter Lavelle**<br>Chief Legal Officer Nil | Nil |
| **Po-Chun Kuo**<br>Chief Technology Officer Nil | Nil |
| **Ming-Yang Chih**<br>Chief Strategic Officer Nil | Nil |

---

**Pension Plans**

The Company does not provide retirement benefits for directors or executive officers.

**Termination of Employment, Changes in Responsibility and Employment Contracts**

There are no employment contracts between the Company and the NEOs, except as referred to under the heading "Management Contracts" below.

------

The Company has no plans or arrangements in respect to compensation to its executive officers which would result from the resignation, retirement or any other termination of the executive officers' employment with the Company or from a change of control of the Company or a change in the executive officers' responsibilities following a change in control, where in respect of an executive officer the value of such compensation exceeds $100,000.

**Compensation of Directors**

The Company does not pay cash fees to any of its directors. The Company compensates its directors through option grants. NEOs do not receive additional compensation for serving as directors.

**Director Compensation Table**

The following table provides information regarding compensation paid to the non-NEO directors of the Company for the most recently completed financial year.

---

| | | |
|:---|:---|:---|
| **Name** | **Option based**<br>**awards**<br>**($)**<br>**(1)** | **Total**<br>**($)** |
| Kevin Mulhern Nil | 90589 Nil | 90.589 |
| Johan<br>Wattenstrom Nil | 90589 Nil | 90.589 |
| Michael<br>Resendes Nil | Nil | **Nil** |

---

(1) The value ascribed to option grants represents non-cash consideration and has been estimated using the Black-Scholes option pricing model as at the date of grant as follows: February 17, 2023 - expected volatility - 166%, expected option life - 1.9 years, risk free-rate - 4.15%, dividend rate - 0%, The Company chose the Black-Scholes option pricing model given its prevalence of use in North America. The value represents the fair value of the entire award on the grant date which differs from the value reported in the Company's financial statements. For financial statement purposes, the accounting fair value amount is amortized over the service period to obtain the accounting compensation expense.

**INCENTIVE PLAN AWARDS**

**Outstanding Share and Option-based Awards**

The Company has a formal Stock Option Plan, previously approved by the shareholders of the Company. As of the December 31, 2023, the following share-based and option-based awards were outstanding stock options for each of the non-NEO directors of the Company:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Option-based Awards | Option-based Awards | Option-based Awards | Option-based Awards | Share-based Awards | Share-based Awards | Share-based Awards |
| **Name** | **Number of**<br>**securities**<br>**underlying**<br>**unexercised**<br>**options**<br>**(#)** | **Option**<br>**exercise price**<br>**($)** | **Option**<br>**expiration**<br>**date**<br>**(c)** | **Value of**<br>**unexercised**<br>**in-the-money**<br>**options**<br>**($)**<br>**(1)(2)** | **Number of**<br>**shares or units**<br>**of shares that**<br>**have not**<br>**vested**<br>**(#)** | **Market or**<br>**payout value**<br>**of share-based**<br>**awards that**<br>**have not**<br>**vested**<br>**($)** | **Market or**<br>**payout value**<br>**of vested**<br>**share-based**<br>**awards not**<br>**paid out or**<br>**distributed**<br>**($)** |
| Kevin Mulhern | 300000 | 0.40 | January 1, 2025 | 126000 | Nil | Nil | Nil |
| Johan<br>Wattenstrom | 300000 | 0.40 | January 1, 2025 | 126000 | Nil | Nil | Nil |
| Michael<br>Resendes | 20000 | 0.50 | March 5, 2025 | 6400 | Nil | Nil | Nil |

---

Notes:

(1) Based on the closing market price of $0.82 on December 29, 2023 and subtracting the exercise price of the options.

------

**(**2) These options have not been, and may never be, exercised, and actual gains, if any, on exercise will depend on the value of the common shares on the date of exercise.

**Incentive Plan Awards Options - Value Vested or Earned during the Most Recently Completed Financial Year**

The following table sets forth details of the value of incentive plan awards that vested or were earned during the most recently completed financial year ended December 31, 2023 for each of the non-NEO directors of the Company::

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Option-based awards-**<br>**Value vested during**<br>**the year**<br>**($)**<br>**(a)** | **Share-based awards -**<br>**Value vested during**<br>**the year**<br>**($)**<br>**(b)** | **Non-equity incentive**<br>**plan compensation -**<br>**Value earned during**<br>**the year**<br>**($)** |
| Kevin Mulhern | Nil | Nil | Nil |
| Johan Wattenstrom | Nil | Nil | Nil |
| Michael Resendes | Nil | Nil | Nil |

---

**SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS**

For the financial year ended December 31, 2023, the only equity compensation plan which the Company had in place was the Stock Option Plan which was previously approved by the Board and the shareholders of the Company. The Stock Option Plan was established to provide incentive to qualified parties to increase their proprietary interest in the Company and thereby encourage their continuing association with the Company. The Stock Option Plan is administered by the Board. The Stock Option Plan provides that options will be issued to directors, officers, employees or consultants of the Company or a subsidiary of the Company. The Stock Option Plan provides that the number of common shares issuable under the Stock Option Plan, together with all of the Company's other previously established or proposed share compensation arrangements, may not exceed 10% of the total number of issued and outstanding common shares. All options expire on a date not later than five years after the date of grant of such option.

The following table sets out equity compensation plan information as at the end of the year ended.

---

| | | | |
|:---|:---|:---|:---|
| **Plan Category** | **Number of securities to**<br>**be issued upon exercise**<br>**of outstanding options,**<br>**warrants and rights** | **Weighted-average**<br>**exercise price of**<br>**outstanding options,**<br>**warrants and rights** | **Number of securities remaining**<br>**available for future issuance under**<br>**equity compensation plans (excluding**<br>**securities reflected in column (a))** |
| Equity compensation plans<br>approved by securityholders - | 7770000 | $0.41 | 4650388 |
| Equity compensation plans not<br>approved by securityholders | Nil | Nil | Nil |
| TOTAL: | 7770000 | $0.41 | 4650388 |

---

**INDEBTEDNESS OF DIRECTORS AND EXECUTIVE OFFICERS**

At no time during the Company's last completed financial year or as of the Record Date, was any director, executive officer, employee, proposed management nominee for election as a director of the Company nor any associate of any such director, executive officer, or proposed management nominee of the Company or any former director, executive officer or employee of the Company or any of its subsidiaries indebted to the Company or any of its subsidiaries or indebted to another entity where such indebtedness was the subject of a guarantee, support agreement, letter of credit or other similar arrangement or understanding provided by the Company or any of its subsidiaries.

**INTEREST OF INFORMED PERSONS IN MATERIAL TRANSACTIONS**

To the knowledge of management of the Company, no informed person (a director, officer or holder of 10% or more of the common shares) or nominee for election as a director of the Company or any associate or affiliate of any informed person or proposed director had any interest in any transaction which has materially affected or would materially affect the Company or any of its subsidiaries since January 1, 2025 (being the commencement of the Company's last completed financial year), or has any interest in any material transaction in the current year other than as set out herein.

------

**MANAGEMENT CONTRACTS**

There are no management functions of the Company, which are to any substantial degree performed by a person or company other than the directors or executive officers of the Company.

**APPOINTMENT OF AUDITOR**

The Board proposes to appoint BDO Canada LLP, Chartered Professional Accountants, of Vancouver, British Columbia as the auditor of the Company. Unless otherwise instructed, the proxies given pursuant to this solicitation will be voted for the appointment of BDO Canada LLP, Chartered Professional Accountants, as the auditor of the Company to hold office until the close of the next annual general meeting of the Company. BDO Canada LLP, Chartered Professional Accountants has been the auditor of the Company since May 17, 2023. It is proposed that the remuneration to be paid to the auditor of the Company be fixed by the Board.

**Management recommends and, unless otherwise directed, the persons named in the enclosed Proxy intend to vote FOR such resolution:**

**"UPON MOTION DULY MADE, IT WAS RESOLVED AS AN ORDINARY RESOLUTION THAT:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. BDO Canada LLP, Chartered Professional Accountants, is hereby appointed as the auditor of the Company until the next annual general meeting of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Any one or more of the directors and officers of the Company be authorized to perform all such acts, deeds and things and execute, under seal of the Company or otherwise, all such documents as may be required to give effect to these resolutions."

**ADDITIONAL INFORMATION**

The audited consolidated financial statements of the Company for the year ended December 31, 2023, and the related management's discussion and analysis (the "Financial Materials") are available on SEDAR+ at www.sedarplus.ca and will be placed before the Meeting.

Shareholders may request copies of the Financial Materials without charge from the Company by telephone: (778) 373-5499.

**OTHER MATTERS**

The Board is not aware of any other matters which it anticipates will come before the Meeting as of the date of this Circular.

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## Exhibit 99.35

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![](exhibit99-35xu001.jpg)

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![](exhibit99-35xu002.jpg)

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## Exhibit 99.36

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![](exhibit99-36x1x1.jpg)

**BTQ Technologies Appoints World-Class Quantum and**

**Cryptography Experts to Leadership and Scientific Advisory**

**Board**

**Vancouver, September 18, 2024 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce the expansion of its leadership team with the addition of several globally recognized experts in quantum computing, cryptography, and cybersecurity.

These appointments align with BTQ's commitment to addressing the urgent security challenges posed by large-scale universal quantum computers through cutting-edge post-quantum technologies.

**Jeffrey Morais**, a recent graduate from McGill University and MSc candidate at the University of Victoria, takes on the role of Head of Quantum Software at BTQ. With seven years of research experience spanning string theory, quantum cryptography, and quantum neural networks, Morais is well-versed in the theoretical underpinnings of quantum technologies. His work on the holographic entanglement structure of topological wormholes and persistent homology will contribute to BTQ's exploration of advanced quantum cryptography techniques.

**Kohei Suenaga** joins BTQ as a Zero-Knowledge Cryptography Advisor bringing a wealth of experience in formal verification methods for various systems. Suenaga is an Associate Professor at the Graduate School of Informatics, Kyoto University, with a Ph.D. in Information Science and Technology from The University of Tokyo. His extensive background includes research roles at IBM Tokyo Research Laboratory and the University of Lisbon, where he contributed significantly to advancements in computer science.

**Eylon Yogev** has been appointed as Post-Quantum Cryptography Advisor at BTQ Technologies. A faculty member in the Department of Computer Science at Bar-Ilan University and a prominent member of the Bar-Ilan Center for Research in Applied Cryptography and Cyber Security, Yogev completed his PhD at the Weizmann Institute under the mentorship of Prof. Moni Naor. His research interests focus on theoretical computer science, with a special emphasis on cryptography and interactive proof systems.

**Deepesh Singh** joins BTQ as Quantum Photonics Advisor. Currently a PhD candidate at the University of Queensland, Singh's research in Photonic quantum computation and computational complexity theory has positioned him at the forefront of quantum information processing. His interdisciplinary approach and work under renowned quantum computing experts make him an invaluable addition to BTQ.

"We are excited to welcome such distinguished professionals to BTQ," said Olivier Roussy Newton, CEO of BTQ Technologies. "Their combined expertise in quantum computing, cryptography, and cybersecurity will significantly bolster our efforts to safeguard critical networks against emerging quantum threats. With their leadership, we are well-positioned to push the boundaries of innovation in post-quantum solutions."

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![](exhibit99-36x2x1.jpg)

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

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![](exhibit99-36x3x1.jpg)

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

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## Exhibit 99.37

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![](exhibit99-37x1x1.jpg)

**BTQ TECHNOLOGIES CORP.**

**(THE "COMPANY")**

**ANNUAL GENERAL MEETING**

**OF THE SHAREHOLDERS OF THE COMPANY ("SHAREHOLDERS")<br>HELD ON WEDNESDAY SEPTEMBER 18, 2024 (THE "MEETING")**

**REPORT OF VOTING RESULTS**

In accordance with Section 11.3 of National Instrument 51-102 - *Continuous Disclosure Obligations*, the matters voted upon and the outcome of voting at the Meeting are as follows:

**<u>Number of Directors</u>**

At the Meeting, the shareholders approved by a show of hands the number of directors to be fixed at five. Proxies were received as follows:

For the motion: 57,442,673 (100%)

Against the motion: 0 (0%)

**<u>Election of Directors</u>**

At the Meeting, shareholders voted by way of ballot to elect the list of five nominees set out in the management information circular of the Company dated August 15, 2024 (the "**Information Circular**"). The voting results of which are as follows:

---

| | | |
|:---|:---|:---|
| Director | Number and percentage of shares represented in person or by proxy and entitled to vote at the Meeting that were voted FOR | Number and percentage of shares represented in person or by proxy and entitled to vote at the Meeting that were WITHHELD from voting |
| Olivier Roussy Newton | 56,813,466 (100%) | 0 (0%) |
| Nicolas Roussy Newton | 56,806,329 (99.99%) | 7,137 (0.01%) |
| Michael Resendes | 56,813,255 (100%) | 0 (0%) |
| Johan Wattenstrom | 56,813,466 (100%) | 0 (0%) |
| Kevin Mulhern | 56,813,255 (100%) | 0 (0%) |

---

------

**<u>Appointment of Auditors</u>**

At the Meeting, shareholders approved by a show of hands the re-appointment of BDO LLP as auditors of the Company until the close of the next annual general meeting of shareholders and the directors were authorized to determine their remuneration. Proxies were received as follows:

For the motion: 57,442,345 (100%)

Against the motion: 0 (0%)

Dated this 18<sup>th</sup> day of September, 2024

**BTQ TECHNOLOGIES CORP.**

By: <u> *"Nicolas Roussy Newton"* </u>

Name: Nicolas Roussy Newton

Position: Chief Operating Officer

------

## Exhibit 99.38

------

![](exhibit99-38x1x1.jpg)

**BTQ Technologies Completes Acquisition of Radical**

**Semiconductor's Processing-in-Memory Technology**

**Portfolio, Advancing Post-Quantum Cryptography**

**Capabilities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Radical Semiconductor Acquisition:** BTQ Technologies has successfully acquired the assets of Radical Semiconductor Inc., a hardware security innovator specializing in cryptographic accelerators, including their revolutionary CASH architecture. Radical's innovative approach, which leverages processing-in-memory technology, offers secure, agile, and reconfigurable cryptographic solutions supporting post-quantum algorithms and

emerging cipher suites. This acquisition solidifies BTQ's leadership in post-quantum cryptography and bolsters its portfolio of next-generation security technologies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Advancing Quantum-Secure Solutions:** The integration of Radical's cutting-edge technology will enhance BTQ's quantum-secure communications infrastructure and provide substantial growth opportunities in emerging markets such as IoT, financial services, blockchain and government sectors. Radical's CASH architecture, which supports a wide range of cryptographic primitives, will strengthen BTQ's offerings and expand its capabilities in delivering scalable and efficient quantum-secure solutions.

**Vancouver, September 24, 2024 - BTQ Technologies Corp.** (the "**Company**") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce the successful acquisition of Radical Semiconductor Inc.'s ("**Radical**") entire portfolio of technology assets. The acquisition includes all of Radical's intellectual property and extensive patent portfolio, hardware design assets, and software associated with its cutting-edge CASH cryptographic accelerator architecture. This strengthens BTQ's cryptographic capabilities, positioning the company as a global leader in post- quantum cryptography (**PQC**) and secure communications technologies.

**Executive Comments**

"This acquisition marks a significant milestone for BTQ in our pursuit of developing quantum- secure communications and cryptographic solutions," said Nicolas Roussy Newton, COO of BTQ Technologies. "Radical's revolutionary CASH architecture will accelerate our roadmap and enhance our ability to serve industries preparing for the quantum era. By integrating Radical's expertise, we are now equipped to offer unparalleled cryptographic solutions that will safeguard critical infrastructure in the post-quantum world. We are thrilled to welcome Radical's technology and expertise into the BTQ fold."

"We are excited to work with one of the most innovative companies in quantum-secure cryptography," says Sean Hackett, CEO of Radical Semiconductor. "We designed the CASH architecture to make billions of chips secure against quantum computers, and BTQ has the reach to provide these foundational protections at scale."

------

![](exhibit99-38x2x1.jpg)

**Radical Semiconductor's Innovation in Post-Quantum Cryptography**

Radical was founded by Stanford graduates Sean Hackett, Zach Belateche, and Katie Watson. Radical's CASH architecture is one the industry's most compact, efficient accelerators for post- quantum algorithms, such as Kyber and Dilithium, with a small enough footprint to bring these innovative cryptographic solutions to smart cards, IoT devices, mobile and other applications. The architecture's processing-in-memory technology supports massive parallel computations while maintaining strong side-channel security at minimal cost. This solution comes at a time where the increased computational demands of PQC algorithms, compared with those of current public-key cryptography algorithms, make the PQC migration very complex and costly. This challenge is especially difficult in industries in which industrial control system networks are geographically dispersed and networks require secure, real-time, low-latency monitoring and control of devices. Radical's CASH architecture is uniquely positioned to address these challenges.

**Advancing Quantum-Secure Solutions**

The integration of Radical's cutting-edge technology will enhance BTQ's quantum-secure communications infrastructure and provide substantial growth opportunities in emerging markets such as IoT, financial services, blockchain, and government sectors. Radical's CASH architecture, which supports a wide range of cryptographic primitives, will strengthen BTQ's offerings and expand its capabilities in delivering scalable and efficient quantum-secure solutions. By leveraging Radical's technology, BTQ is poised to address the increasing demand for robust security solutions across these sectors.

**Global Cryptography Standards Moving to Post-Quantum**

BTQ is committed to leading advancements in cryptography and is prepared to leverage Radical's technology alongside its own quantum signature algorithm, <u>Preon</u> to meet the evolving global standards for post-quantum cryptography. Preon, a quantum-secure signature algorithm developed by BTQ, was selected in the most recent round of the PQC standardization process by the U.S. National Institute of Standards and Technology (NIST).

In August, NIST finalized its first set of encryption algorithms designed to withstand cyberattacks from quantum computers. These algorithms, now part of the initial standards from NIST's post- quantum cryptography project, are ready for immediate implementation. With quantum computing technology advancing rapidly, some experts predict that a device capable of breaking current encryption methods could emerge within a decade, posing serious threats to the security and privacy of individuals, organizations, and even entire nations.

**About Radical Semiconductor**

Radical Semiconductor is a hardware security company developing the CASH architecture: a secure, agile, and reconfigurable cryptographic accelerator architecture using processing-in- memory technology. Radical's cryptographic cores offer the widest support for emerging cryptographic primitives, including post-quantum algorithms, emerging cipher suites, and privacy enhancing technologies, while still maintaining backwards compatibility with existing algorithms.

**About BTQ**

BTQ was founded by a group of post-quantum security experts with an interest in addressing the urgent security threat posed by large-scale quantum computers. With the support of leading research institutes and universities, BTQ's extensive technology portfolio and commercialization platform is focused on accelerating quantum advantage.

------

![](exhibit99-38x3x1.jpg)

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward- looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.39

------

![](exhibit99-39x1x1.jpg)

**BTQ Technologies Provides Corporate Update: Appoints**

**Hunter Scharfe as Senior Advisor, Among Other Strategic**

**Developments**

**Vancouver, October 16, 2024 - BTQ Technologies Corp. (the "Company") (CBOE CA: BTQ)** (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce the appointment of Mr. Hunter Scharfe as Senior Advisor, effective October 1, 2024.

In this role, Mr. Scharfe will advise the Company on strategic initiatives aimed at strengthening BTQ's market position and driving long-term growth. He will also provide guidance on partnerships and mergers and acquisitions as BTQ continues to expand its global presence in the quantum technology sector.

Mr. Scharfe is an entrepreneur and financier with nearly a decade of experience as a strategic capital partner and merchant banker. He is currently a Partner at a Toronto-based venture capital merchant bank, where he has overseen strategic investments and served as a board member and advisor to companies in emerging sectors such as artificial intelligence and blockchain. Mr. Scharfe holds a Bachelor of Commerce from the University of Toronto's Rotman School of Management.

The Company is also pleased to announce that it has closed a $1,000,000 non-interest bearing, unsecured convertible loan (the "Loan"), with a two-year term. The Loan is convertible at the option of the holder at a price of C$0.40 per share. The Company expects to use the proceeds from the loan for general corporate and working capital purposes.

**Other Recent Strategic Developments include:**

*BTQ Technologies Completes Acquisition of Radical Semiconductor's Processing-in-Memory Technology Portfolio, Advancing Post-Quantum Cryptography Capabilities*

BTQ Technologies acquired the assets of Radical Semiconductor Inc., a leader in cryptographic accelerators, including its innovative CASH architecture that uses processing-in-memory technology for secure, agile, and reconfigurable cryptographic solutions. This acquisition enhances BTQ's leadership in post-quantum cryptography and strengthens its quantum-secure communications infrastructure. Radical's technology will support BTQ's growth in sectors like IoT, financial services, blockchain, and government, offering scalable and efficient quantum-secure solutions across various emerging markets.

*BTQ Technologies Appoints World-Class Quantum and Cryptography Experts to Leadership and Scientific Advisory Board*

BTQ Technologies Corp. strengthened its leadership team with globally recognized experts in quantum computing, cryptography, and cybersecurity, underscoring its commitment to addressing security challenges posed by large-scale quantum computers. New appointees include Jeffrey Morais as Head of Quantum Software, Kohei Suenaga as Zero-Knowledge Cryptography Advisor, Eylon Yogev as Post-Quantum Cryptography Advisor, and Deepesh Singh as Quantum Photonics Advisor. Each brings specialized expertise in areas such as quantum cryptography, formal verification, interactive proof systems, and quantum photonics, bolstering BTQ's capacity to innovate in post-quantum security.

------

![](exhibit99-39x2x1.jpg)

*BTQ Technologies Joins QuINSA as a Founding Member to Propel International Quantum Information Standardization*

BTQ has joined QuINSA as a founding member, collaborating with global quantum technology leaders like SKT, LG Electronics, IBM, and AWS to develop standards for quantum communication, computing, and sensing. QuINSA promotes international collaboration, analyzes standardization trends, and partners with global bodies to advance quantum industrialization and innovation. During the launch event, BTQ and other industry leaders presented insights on trends and advancements in quantum technologies.

*BTQ Technologies Announces the Award of Academic Grants from Mitacs*

BTQ Technologies is eligible for up to C$435,000 in grants from the Mitacs Accelerate program, which will support IP development and commercialization efforts. Under the supervision of Prof. Guang Gong at the University of Waterloo, the project will explore efficient zero-knowledge proof-based post-quantum digital signatures, specifically focusing on the efficiency and commercialization of BTQ's Preon algorithm.

*BTQ and ID Quantique Sign MOU: Collaboration for Developing Next-Generation Authentication Systems*

BTQ Technologies Corp. and ID Quantique signed an MOU to co-develop an authentication system combining Quantum Random Number Generators (QRNG) and Post-Quantum Cryptography (PQC). ID Quantique is a leader in quantum cryptography, while BTQ's PQC signature algorithm, Preon, has received recognition from NIST. This partnership aims to create a cutting-edge solution to address security challenges posed by both classical and quantum computing threats.

Olivier Roussy Newton, CEO of BTQ Technologies, commented, "BTQ Technologies is at an exciting juncture, with our recent strategic developments solidifying our position as a leader in quantum-secure technology. The acquisition of Radical Semiconductor's groundbreaking cryptographic solutions, coupled with our collaboration with ID Quantique on pioneering authentication systems, demonstrates our commitment to delivering robust security in an era of quantum threats. Additionally, the expansion of our leadership team with renowned experts in quantum computing, cryptography, and cybersecurity, along with our involvement in QuINSA, strengthens our capabilities and influence within the global quantum community. These initiatives not only enhance our technology portfolio but also position us to meet the evolving security needs of sectors from IoT to financial services. We are more confident than ever in our mission to drive innovation and set the standard in quantum-secure communications."

------

![](exhibit99-39x3x1.jpg)

**About BTQ**<br> BTQ was founded by a group of post-quantum security experts with an interest in addressing the urgent security threat posed by large-scale quantum computers. With the support of leading research institutes and universities, BTQ's extensive technology portfolio and commercialization platform is focused on accelerating quantum advantage.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

------

![](exhibit99-39x4x1.jpg)

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.40

------

---

| | |
|:---|:---|
| ![](exhibit99-40xu001.jpg) | ![](exhibit99-40xu002.jpg) |

---

**BTQ Technologies and Macquarie University Announce Strategic Research<br>Collaboration to Advance Quantum Computing and Secure Communications**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Strategic Collaboration:** BTQ Technologies and Macquarie University have launched a research partnership to advance quantum algorithms and secure communications, building on their successful 2022 Quantum Proof-of-Work project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Key Objectives:** The collaboration aims to integrate quantum processing into communication protocols to improve speed, security, and energy efficiency, with support from Sydney Quantum Academy PhD students funded by CSIRO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Industry-Academic Synergy:** This partnership represents an opportunity for BTQ's industry leaders to collaborate with Macquarie's quantum experts, pushing the boundaries of quantum computing and mission critical networks.

**VANCOUVER, British Columbia - November 5, 2024 - BTQ Technologies Corp. ("BTQ" or the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF),** a global quantum technology company focused on securing mission-critical networks, is pleased to announce a new research collaboration with Macquarie University, marking a significant step forward in the company's efforts to expand research and development in quantum algorithms and quantum computing. This partnership leverages the combined strengths and expertise of both parties in the areas of quantum information theory and post-quantum secure communications, with the aim of integrating quantum processing into a range of communication protocols to enhance speed, security, and energy efficiency.

The collaboration builds on the success of an earlier contract initiated in 2022, which resulted in the development of Quantum Proof-of-Work (QPoW). This novel approach to distributed consensus dramatically reduces the energy footprint of blockchain technologies by integrating quantum samplers into the consensus mechanism.

The new research contract commenced on June 1, 2024, with Dr Gopikrishnan Muraleedharan and Professor Gavin Brennen from Macquarie University at the helm. The Macquarie team will also oversee Sydney Quantum Academy PhD students funded through the CSIRO's Creating the Next Generation of Quantum Technology Specialists program. This initiative includes internships at BTQ, presenting an exciting opportunity for BTQ's industry leaders to work alongside Macquarie's quantum experts and push the boundaries of the field.

"Collaborating with BTQ Technologies offers a unique opportunity to address the pressing security challenges posed by the advent of large-scale quantum computers," said Professor Brennen who is also Director of BTQ AU. "BTQ's foundation by post-quantum security experts and its dedication to tackling quantum security threats aligns perfectly with our mission at Macquarie. With the support of leading research institutes, we aim to leverage BTQ's comprehensive technology portfolio to accelerate quantum advantage."

------

"The partnership with BTQ Technologies represents a significant advancement in translating quantum research into real-world applications," says Professor Dan Johnson, Pro Vice-Chancellor (Research, Innovation and Enterprise) at Macquarie.

"This collaboration not only strengthens our quantum computing capabilities but also provides valuable industry experience for our PhD students."

"We are thrilled to collaborate with Macquarie University, which has a renowned reputation in quantum research," said Nicolas Roussy Newton, COO of BTQ Technologies. "Together, we are poised to unlock new frontiers in secure communications and sustainable blockchain technologies through quantum computing innovations. This partnership exemplifies BTQ's commitment to advancing quantum technology and fostering the next generation of quantum specialists."

This partnership underscores BTQ's dedication to quantum research and development, marking a major milestone in the company's ongoing journey to revolutionize secure communications and blockchain technologies.

**About BTQ Technologies Corp.**

BTQ was founded by a group of post-quantum security experts with an interest in addressing the urgent security threat posed by large-scale quantum computers. With the support of leading research institutes and universities, BTQ's extensive technology portfolio and commercialization platform is focused on accelerating quantum advantage.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Disclaimer for Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

------

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

For further information:

E: desk@btq.com; Bill Mitoulas, Investor Relations, T: +1.416.479.9547, E: bill@btq.com

------

## Exhibit 99.41

------

![](exhibit99-41x1x1.jpg)

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Financial Statements

Three and Nine Months Ended September 30, 2024 and 2023

(unaudited)

------

**NOTICE OF NO AUDITOR REVIEW OF**

**CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the condensed interim consolidated financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited condensed interim consolidated financial statements have been prepared by and are the responsibility of management.

The Company's independent auditor has not performed a review of these financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of condensed interim consolidated financial statements by an entity's auditor.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Financial Position <br>(Expressed in Canadian dollars)

---

| |
|:---|
| Assets |
| Current assets |
| &nbsp;&nbsp;Cash |
| &nbsp;&nbsp;Short-term investments (Note 8) |
| &nbsp;&nbsp;Other receivables (Note 15) |
| &nbsp;&nbsp;Prepaid expenses and deposits |
| Total current assets |
| Non-current assets |
| &nbsp;&nbsp;&nbsp;Property and equipment (Note 4) |
| &nbsp;&nbsp;&nbsp;Right-of-use asset (Note 5) |
| &nbsp;&nbsp;&nbsp;Investments (Note 7) |
| &nbsp;&nbsp;&nbsp;Intangible asset (Note 19) |
| &nbsp;&nbsp;&nbsp;Deposits |
| Total non-current assets |
| Total assets |
| Liabilities and shareholders' equity (deficit) |
| Current liabilities |
| &nbsp;&nbsp;Accounts payable and accrued liabilities (Note 15) |
| &nbsp;&nbsp;Corporate taxes payable |
| &nbsp;&nbsp;Other payable |
| &nbsp;&nbsp;Current portion of lease obligation (Note 9) |
| &nbsp;&nbsp;Deferred revenue (Note 22) |
| &nbsp;&nbsp;Due to related parties (Note 15) |
| Total current liabilities |
| Non-current liabilities |
| &nbsp;&nbsp;Convertible debt (Note 10) |
| &nbsp;&nbsp;Lease obligation (Note 9) |
| Total liabilities |
| Shareholders' equity (deficit) |
| &nbsp;&nbsp;Share capital (Notes 3 and 11) |
| &nbsp;&nbsp;Equity portion of convertible debt reserve (Note 10) |
| &nbsp;&nbsp;Options reserve (Notes 3 and 12) |
| &nbsp;&nbsp;Warrants reserve |
| &nbsp;&nbsp;RSUs reserve (Note 14) |
| &nbsp;&nbsp;Deficit) |
| Total shareholders' equity (deficit) |
| Total liabilities and shareholders' equity (deficit) |

---

Nature of operations and going concern (Note 1)

Subsequent events (Note 23)

Approved and authorized for issuance on behalf of the Board of Directors on November 14, 2024:

<u> *"*Olivier Roussy Newton*"* </u> Director <u> *"Michael Resendes"* </u> Director

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss <br>(Expressed in Canadian dollars)

(unaudited)

---

| |
|:---|
| Revenue (Note 22) |
| Expenses |
| &nbsp;&nbsp;Consulting fees (Note 15) |
| &nbsp;&nbsp;Depreciation (Notes 4 and 5) |
| &nbsp;&nbsp;General and administrative (Note 21) |
| &nbsp;&nbsp;Marketing and promotion (Note 15) |
| &nbsp;&nbsp;Professional fees (Note 15) |
| &nbsp;&nbsp;Research and development (Note 15) |
| &nbsp;&nbsp;Share-based compensation (Notes 12, 14, and 15) |
| &nbsp;&nbsp;Transfer agent and regulatory fees |
| &nbsp;&nbsp;Wages and benefits (Note 15) |
| Total expenses |
| Loss before other income (expense) |
| Other income (expense) |
| &nbsp;&nbsp;Collaboration and grant income |
| &nbsp;&nbsp;Foreign exchange loss) |
| &nbsp;&nbsp;Interest expense (Notes 9 and 10) |
| &nbsp;&nbsp;Interest income |
| &nbsp;&nbsp;Listing costs (Note 3) |
| &nbsp;&nbsp;Loss on sale of property and equipment) |
| &nbsp;&nbsp;Transaction costs (Note 3) |
| Total other income (expense) |
| Net loss for the period) |
| Comprehensive income (loss) |
| &nbsp;&nbsp;Foreign currency translation adjustment) |
| Net comprehensive loss for the period) |
| Loss per share, basic and diluted) |
| Weighted average number of common shares outstanding |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Deficit) <br>(Expressed in Canadian dollars)

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | Equity portion |  |
|  | Share capital | Share capital | of convertible |  |
|  | Share capital | Share capital | debt | Warrants |
|  | Number of | Amount | reserve | reserve |
|  | shares | $| $| $|
| Balance, December 31, 2023 | 123193879 | 34317779 |  | 67386) |
| Shares issued for options exercised | 260000 | 171808 | -) |  |
| Share-based compensation |  |  | -) | -) |
| Shares issued for vested RSU's | 750000 | 456000 |  | -) |
| Equity portion of convertible debt |  |  | 305555 |  |
| Net loss for the period |  |  |  | -) |
| Balance, September 30, 2024 | 124203879 | 34945587 | 305555 | 67386) |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Deficit) <br>(Expressed in Canadian dollars)

(unaudited)

---

| | | | |
|:---|:---|:---|:---|
| | **Share capital**<br>**Number of**<br>**shares** | <br>**Options**<br>**reserve**<br>**$** | <br>**Warrants**<br>**reserve**<br>**$** |
| Balance, December 31, 2022 | 92000000 | **-** | **-**) |
| Shares of the Company pursuant to reverse takeover | 8747629 | **-** | **-** |
| Revaluation of stock options pursuant to reverse takeover | **-** | 97532 | **-** |
| Shares issued for cash | 18001250 | **-** | **-** |
| Shares issued to finder for the Transaction | 2500000 | **-** | **-** |
| Share issuance costs | -) | **-** | 67386) |
| Shares issued from vested RSU's | 1822500 | **-** | **-**) |
| Fair value of stock options granted | **-** | 1271628 | **-** |
| Fair value of restricted share units granted | **-** | **-** | **-** |
| Foreign currency translation loss | **-** | **-** | **-**) |
| Net loss for the period | **-** | **-** | **-**) |
| Balance, September 30, 2023 | 123071379 | 1369160 | 67386) |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Cash Flows <br>(Expressed in Canadian dollars)

(unaudited)

---

| |
|:---|
| Operating activities |
| Net loss for the period) |
| Items not involving cash: |
| &nbsp;&nbsp;Depreciation |
| &nbsp;&nbsp;Foreign exchange translation gain) |
| &nbsp;&nbsp;Interest expense |
| &nbsp;&nbsp;Listing costs |
| &nbsp;&nbsp;Loss on disposal of property and equipment |
| &nbsp;&nbsp;Share-based compensation) |
| &nbsp;&nbsp;Transaction costs |
| Changes in non-cash operating working capital: |
| &nbsp;&nbsp;&nbsp;Other receivables) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and deposits) |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities) |
| &nbsp;&nbsp;&nbsp;Other payable |
| &nbsp;&nbsp;&nbsp;Deferred revenue |
| Net cash used in operating activities) |
| Investing activities |
| &nbsp;&nbsp;&nbsp;Redemption of short-term investment |
| &nbsp;&nbsp;&nbsp;Proceeds from repayment of loan receivable |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment) |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of property and equipment |
| &nbsp;&nbsp;&nbsp;Purchase of intangible asset) |
| &nbsp;&nbsp;&nbsp;Purchase of investment) |
| &nbsp;&nbsp;&nbsp;Cash acquired in reverse takeover |
| Net cash provided by investing activities |
| Financing activities |
| &nbsp;&nbsp;Repayment of lease obligation) |
| &nbsp;&nbsp;Proceeds from convertible debt |
| &nbsp;&nbsp;Proceeds from issuance of shares |
| &nbsp;&nbsp;Share issuance costs) |
| Net cash provided by financing activities |
| Effect of foreign exchange rate changes on cash) |
| Change in cash) |
| Cash, beginning of period |
| Cash, end of period |
| Supplemental cash flow information (Note 16) |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**1. NATURE OF OPERATIONS AND GOING CONCERN**

BTQ Technologies Corp. (formerly Sonora Gold & Silver Corp.) ("the Company") was incorporated on November 23, 1983 under the Business Corporations Act (British Columbia). The principal activity of the Company is the development of computer-based technology related to post-quantum cryptography, particularly as it applies to blockchain and related technologies, and their protection from the emerging security risk of quantum computing. The Company's head office is located at 16-104 555 Burrard Street, Vancouver, BC, Canada. The Company's common shares trade on Cboe Canada under the ticker symbol "BTQ".

On February 17, 2023, the Company acquired all of the issued and outstanding shares of BTQ AG in exchange for 92,000,000 common shares. This transaction constituted a reverse takeover of the Company by BTQ AG with BTQ AG being identified as the accounting acquirer. As a result, these consolidated financial statements are a continuation of BTQ AG. The Company's results of operations are included from February 17, 2023 onwards, except for share capital which has been retroactively adjusted to reflect the capital of the Company. Refer to Note 3.

These consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. During the nine months ended September 30, 2024, the Company has a net loss and has negative cash flow from operations. As at September 30, 2024, the Company has a working capital deficit of $1,127,391 and an accumulated deficit of $39,127,263. The Company's ability to continue its operations and to realize its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs. Management is of the opinion that sufficient working capital will be obtained from external financing to meet the Company's liabilities and commitments as they become due, although there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These factors indicate a material uncertainty that may cast significant doubt on the ability of the Company to continue as a going concern. These consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. Such adjustments could be material.

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICY INFORMATION** 

**Statement of Compliance**

These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") applicable to interim financial information, as outlined in International Accounting Standard ("IAS") 34, "Interim Financial Reporting" and using the accounting policies consistent with those in the audited financial statements as at and for the year ended December 31, 2023.

The condensed interim consolidated financial statements of the Company have been prepared on an accrual basis and are based on historical cost, except for certain financial assets and liabilities that are measured at fair value.

**Basis of Presentation**

These consolidated financial statements have been prepared on a historical cost basis except for certain financial assets and liabilities, which are measured at fair value, as specified by IFRS for each type of asset, liability, income, and expense as set out in the accounting policies below.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICY INFORMATION (continued)** 

**Basis of consolidation**

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, BTQ AG, a company incorporated in the Principality of Liechtenstein, and BTQ Technologies Australia Pty Ltd., a company incorporated in Australia.

These consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances are eliminated on consolidation. Control exists where the parent entity has power over the investee and is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Subsidiaries are included in the financial statements from the date control commences until the date control ceases.

**Accounting standards issued but not yet effective**

A number of new standards, and amendments to standards and interpretations, are not yet effective for the period ended September 30, 2024, and have not been early adopted in preparing these consolidated financial statements. These new standards, and amendments to standards and interpretations are either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements.

**3. REVERSE TAKEOVER**

On December 31, 2021 (as amended on April 29, 2022, July 30, 2022, and November 29, 2022), the Company, BTQ AG, and shareholders of BTQ AG entered into an agreement pursuant to which the Company agreed to acquire all of the issued and outstanding shares of BTQ AG (the "Transaction").

The closing of the Transaction occurred on February 17, 2023, at which time the Company issued 92,000,000 common shares in exchange for the issued and outstanding common shares of BTQ AG. The Company consolidated its common shares on a 10:1 basis immediately prior to the closing of the transaction.

As a result of the completion of the Transaction, the former shareholders of BTQ AG acquired 75.88% of the outstanding common shares of the Company, and, for accounting purposes, are considered to have acquired control of the Company. Accordingly, the Transaction constitutes a reverse acquisition of the Company by BTQ AG and has been accounted for as a reverse acquisition transaction in accordance with the guidance provided in IFRS 2, *Share-based Payment* and IFRS 3, *Business Combinations*. As the Company did not qualify as a business prior to the closing of the transaction according to the definition in IFRS 3, this reverse acquisition did not constitute a business combination; rather it was treated as an issuance of shares by BTQ AG for the net assets of the Company. Accordingly, no goodwill was recorded with respect to the Transaction. The Transaction was measured at the fair value of the common shares that BTQ AG would have had to issue to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051, and the fair value of 350,000 stock options of the Company with a fair value of $97,532, to give the shareholders of the Company the same percentage of equity interest in the combined entity that results from the reverse acquisition had it taken the legal form of BTQ AG acquiring the Company. The Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction. The fair value of common shares and stock options issued were estimated based on the Company's financing event which took place concurrently to the reverse takeover transaction at the price of $0.40 per common share. Refer to Note 10. As BTQ AG was deemed to be the acquirer for accounting purposes, its assets, liabilities, and operations since its incorporation on March 26, 2021 are included in these consolidated financial statements at their historical carrying values. The assets, liabilities, and results of operations of the Company are included in these consolidated financial statements from the date acquisition on February 17, 2023.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**3. REVERSE TAKEOVER (continued)**

The purchase price was allocated as follows:

---

| |
|:---|
| Fair value of the Company's shares (8,747,629 common shares) |
| Fair value of 350,000 stock options of the Company outstanding |
| Total consideration |
| Less: fair value of identifiable assets acquired and liabilities assumed: |
| Cash |
| Cash held in escrow |
| Receivables |
| Short-term investment |
| Accounts payable and accrued liabilities) |
| Subscription receipts liabilities) |
| Net liabilities assumed) |
| Listing costs |

---

The fair value of stock options of the Company was calculated using the Black-Scholes option pricing model with the following assumptions: volatility of 150%, expected life of 2.1 years, no dividends, no forfeitures, and a risk-free rate of 4.15%.

The Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction.

**4. PROPERTY AND EQUIPMENT**

---

| |
|:---|
| Cost: |
| Balance, December 31, 2023 |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposals) |
| Balance, September 30, 2024 |
| Accumulated depreciation: |
| Balance, December 31, 2023 |
| &nbsp;&nbsp;&nbsp;&nbsp;Addition |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposals) |
| Balance, September 30, 2024 |
| Carrying amounts: |
| As at December 31, 2023 |
| As at September 30, 2024 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

 **5. RIGHT OF USE ASSET**

---

| |
|:---|
| Cost: |
| Balance, December 31, 2023 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal) |
| Balance, September 30, 2024 |
| Accumulated depreciation: |
| Balance, December 31, 2023 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange translation difference) |
| Balance, September 30, 2024 |
| Carrying amounts: |
| As at December 31, 2023 |
| As at September 30, 2024 |

---

**6. LOAN RECEIVABLE**

On December 1, 2022, BTQ AG entered into an agreement with MEV Trading Inc. ("MEV"), under which the BTQ AG granted a loan of $1,354,400 (US$1,000,000) which is non-interest bearing, and due on June 30, 2023. In consideration for the loan, MEV issued a warrant to BTQ AG entitling BTQ AG to purchase shares of MEV non-voting stock equal to 10% of the loan amount based on the fully-diluted pre-money valuation of the borrower as determined by the most recent qualified equity financing round before the maturity date or within one year of issuance, whichever occurs earlier (expired on June 30, 2023). The fair value of the warrants issued was determined to be nominal. On August 7, 2023, the Company received repayment of the $1,343,300 (US$1,000,000) loan receivable.

**7. INVESTMENTS**

---

| | |
|:---|:---|
|  | $|
| Balance, December 31, 2023 and September 30, 2024 | 77229 |

---

During the year ended December 31, 2022, the BTQ AG invested $63,915 (US$50,000) in the form of a Simple Agreement for Future Equity ("SAFE") in the Holonym Foundation, which is a public benefit corporation. The investment is not traded in an active market.

On January 11, 2023, BTQ AG invested $13,314 (US$10,000) in the form of a SAFE into Cysic Inc. The investment is not traded in an active market.

**8. SHORT-TERM INVESTMENT**

The Company has pledged a guaranteed investment certificate ("GIC") as collateral for the Company's credit cards. The GIC earns interest at Prime Rate less 2.7% per annum and has a maturity date of June 6, 2026. The GIC was redeemed during the nine months ended September 30, 2024.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**9. LEASE OBLIGATION**

On May 15, 2022, the Company entered into a premises lease agreement which gives the Company the right to use an underlying asset which expires on May 14, 2024. The Company's obligation to make lease payments arising from the lease is calculated by discounting the fixed lease payments over the lease term at the Company's incremental borrowing rate. The incremental borrowing rate used in the calculation was 13%.

On May 15, 2024, the Company entered into a premises lease agreement which gives the Company the right to use an underlying asset which expires on May 14, 2026. The Company's obligation to make lease payments arising from the lease is calculated by discounting the fixed lease payments over the lease term at the Company's incremental borrowing rate. The incremental borrowing rate used in the calculation was 13%.

---

| |
|:---|
| Balance, December 31, 2023 |
| Addition |
| Payments) |
| Interest |
| Foreign exchange translation difference |
| Balance, September 30, 2024 |
| Less: current portion |
| Non-current portion |

---

**10. CONVERTIBLE DEBT**

On September 9, 2024, the Company issued convertible debt for proceeds of $1,000,000. The convertible debt is non-interest bearing and due on September 9, 2026. At the election of the lender, the principal amount of the debt is convertible into common shares at $0.40 per share.

The present value of the liability component of the convertible debt at issuance was $694,445, using a discount rate of 20%, which is the estimated interest rate the Company would pay on a similar debt instrument without a conversion option. The residual value of $305,555 was allocated to the equity component. The discount on the convertible debt totaling $305,555 will be amortized over the term of the convertible loans using the effective interest rate method. During the period ended September 30, 2024, the Company recorded accretion of $7,445 which is included in interest expense. As at September 30, 2024, the carrying value of the convertible debt is $701,890.

**11. SHARE CAPITAL**

Authorized: Unlimited number of common shares without par value

Share transactions during the three months ended September 30, 2024:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the nine months ended September 30, 2024, the Company issued 260,000 common shares for proceeds of $104,000 pursuant to the exercise of stock options. The fair value of stock options exercised of $67,808 was transferred from options reserve to share capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On March 5, 2024, the Company issued 750,000 common shares pursuant to the conversion of vested RSUs. Upon conversion, the fair value of $456,000 for the vested RSUs was transferred from RSUs reserve to share capital.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**11. SHARE CAPITAL (continued)**

Share transactions during the three months ended September 30, 2023:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 17, 2023, the Transaction closed, resulting in a reverse takeover (refer to Note 3). The Transaction was measured at the fair value of the shares that BTQ AG would have had to issued to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 17, 2023, the Company issued 2,500,000 common shares with a fair value of $1,000,000 as finder's fee for the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 17, 2023, the Company completed a subscription receipt financing of 18,001,250 common shares at $0.40 per share for gross proceeds of $7,200,500. In connection with the financing, the Company incurred share issuance costs of $93,174 and issued 232,936 finders' warrants with fair value of $67,386. The fair value of the finders' warrants was calculated using the Black-Scholes option pricing model.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On July 7, 2023, the Company issued 1,822,500 common shares pursuant to the conversion of vested RSUs. Upon conversion, the fair value of $712,125 for the vested RSUs was transferred from RSUs reserve to share capital.

<u>Escrowed shares</u>

On completion of the Transaction, certain principals of the Company entered into a NP 46-201 Escrow Agreement with the NEO Exchange and Computershare Trust Company of Canada, as escrow agent, in respect of 45,250,000 common shares. Under the terms of the Escrow Agreement, 25% of such escrowed securities were released upon closing (February 17, 2023) with subsequent 25% releases occurring 6, 12, and 18 months from closing. These escrow shares will be released as follows:

---

| | |
|:---|:---|
| Date of automatic timed release | Amount of escrow shares released |
| On the date that the Company's common shares were listed on the NEO, February 17, 2023 | 1/4 of the escrowed shares |
| 6 months after the listing date (August 17, 2023) | 1/4 of the escrowed shares |
| 12 months after the listing date (February 17, 2024) | 1/4 of the escrowed shares |
| 18 months after the listing date (August 17, 2024) | The remainder of the escrowed shares |

---

As at September 30, 2024, there are no common shares remaining in escrow.

**12. STOCK OPTIONS**

The Company has a stock option plan (the "Plan") for directors, officers, employees, and consultants of the Company. Stock options are exercisable for periods of up to five years, as determined by the Board of Directors of the Company, to purchase common shares of the Company at a price not less than the discounted market price on the date of the grant. The maximum number of shares which may be issuable under the Plan cannot exceed 10% of the total number of issued and outstanding common shares on a non- diluted basis.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**12. STOCK OPTIONS (continued)**

The following table summarizes the continuity of the Company's stock options:

---

| | | |
|:---|:---|:---|
|  |  | Weighted |
|  |  | average |
|  |  | exercise |
|  | Number of | price |
|  | stock options | $|
| Outstanding, December 31, 2023 | 7770000 | 0.41 |
| &nbsp;&nbsp;Granted | 800000 | 0.46 |
| &nbsp;&nbsp;Exercised | (260000) | 0.40 |
| &nbsp;&nbsp;Expired | (3120000) | 0.41 |
| Outstanding, September 30, 2024 | 5190000 | 0.43 |
| Exercisable, September 30, 2024 | 2770000 | 0.42 |

---

Additional information regarding stock options outstanding as at September 30, 2024, is as follows:

---

| | | | |
|:---|:---|:---|:---|
| Outstanding | Outstanding | Exercisable | Exercisable |
|  | Weighted |  |  |
|  | average |  | Weighted |
|  | remaining |  | average |
| Number of | contractual | Number of | exercise price |
| $stock options | life (years) | $stock options | $|
| 4400000 | 2.1 | 2487500 | 0.40 |
| 580000 | 2.7 | 230000 | 0.56 |
| 160000 | 3.3 | 40000 | 0.64 |
| 50000 | 3.9 | 12500 | 0.68 |
| 5190000 | 2.2 | 2770000 | 0.42 |

---

The fair value for stock options granted have been estimated using the Black-Scholes option pricing model assuming no expected dividends or forfeitures and the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | Nine months | Nine months |
|  | ended | ended |
|  | September 30, | September 30, |
|  | 2024 | 2023 |
| Risk-free interest rate | 3.38% | 3.40% |
| Expected life (in years) | 4.6 | 4.37 |
| Expected volatility | 215% | 150% |

---

During the nine months ended September 30, 2024, the Company recognized share-based compensation expense of $(50,615) (2023 - $1,271,628), with a corresponding increase to options reserve. The weighted average fair value of the stock options granted during the nine months ended September 30, 2024 was $0.45 (2023 - $0.34) per option.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**13. SHARE PURCHASE WARRANTS**

The following table summarizes the continuity of share purchase warrants:

---

| | | |
|:---|:---|:---|
|  |  | Weighted |
|  |  | average |
|  |  | exercise |
|  | Number of | price |
|  | warrants | $|
| Balance, December 31, 2023 and September 30, 2024 | 232936 | 0.40 |

---

As at September 30, 2024, the following share purchase warrants were outstanding and exercisable:

---

| | |
|:---|:---|
| Number of |  |
| warrants |  |
| outstanding | $Expiry date |
| 232936 | February 17, 2025 |

---

**14. RESTRICTED SHARE UNITS**

A summary of the changes in RSUs is presented below:

---

| | |
|:---|:---|
|  | Number of |
|  | RSUs |
| Balance, December 31, 2023 | 1985000 |
| &nbsp;&nbsp;Converted to shares | (750000) |
| &nbsp;&nbsp;Cancelled | (1100000) |
| Balance, September 30, 2024 | 135000 |
| Unvested | 67500 |
| Vested, September 30, 2024 | 67500 |

---

During the nine months ended September 30, 2024, the Company recognized share-based compensation expense of $(140,316) (2023 - $1,389,821) with a corresponding decrease to RSU reserve and $456,000 (2023 - $712,125) was transferred to share capital upon the vesting of 750,000 RSUs.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**15. RELATED PARTY TRANSACTIONS**

Key management personnel are persons responsible for planning, directing, and controlling the activities of an entity, and include all officers and directors of the Company. Key management personnel compensation during the nine months ended September 30, 2024 and 2023 was comprised of the following:

---

| | |
|:---|:---|
|  | Nine months |
|  | ended |
|  | September 30, |
|  | 2023 |
|  | $|
| Consulting fees | 72668 |
| Marketing and promotion | 72668 |
| Professional fees | 38661 |
| Research and development | 339660 |
| Wages and benefits | 216812 |
| Total short-term benefits | 740469 |
| Share-based payments) | 577281 |
|  | 1317750 |

---

As at September 30, 2024, the Company owed $116,580 (December 31, 2023 - $114,223) to the CEO of the Company, of which $91,089 (December 31, 2023 - $89,247) is included in accounts payable and accrued liabilities. The amounts owed are non-interest bearing, unsecured, and due on demand.

As at September 30, 2024, the Company was owed $149,924 (December 31, 2023 - $49,888) from the Chief Operating Officer ("COO") of the Company, which is included in other receivables.

As at September 30, 2024, the Company owed $7,350 (December 31, 2023 - $7,350) to a firm where the Chief Financial Officer of the Company is a partner, which is included in accounts payable and accrued liabilities.

As at September 30, 2024, the Company owed $134,990 (December 31, 2023 - $132,260) to the former Chief Cryptographer of the Company, which is included in accounts payable and accrued liabilities.

As at September 30, 2024, the Company owed $8,099 (December 31, 2023 - $7,936) to the Head of Corporate Development of the Company, which is included in accounts payable and accrued liabilities.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

 **16. SUPPLEMENTAL CASH FLOW INFORMATION**

---

| | | |
|:---|:---|:---|
|  | Nine months | Nine months |
|  | ended | ended |
|  | September 30, | September 30, |
|  | 2024 | 2023 |
|  | $| $|
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;Discount on convertible debt recorded in equity portion of convertible debt reserve | 305555 |  |
| &nbsp;&nbsp;Receivables acquired in reverse takeover |  | 25308 |
| &nbsp;&nbsp;Short-term investment acquired in reverse takeover |  | 2875 |
| &nbsp;&nbsp;Accounts payable and accrued liabilities assumed in reverse takeover |  | 455077 |
| &nbsp;&nbsp;Shares issued as a finder's fee for the Transaction |  | 1000000 |
| &nbsp;&nbsp;Finders' warrants issued pursuant to private placement |  | 67386 |
| &nbsp;&nbsp;Fair value of stock options exercised transferred from options reserve to share capital | 67808 |  |
| &nbsp;&nbsp;Shares issued for vested RSUs | 456000 | 712125 |

---

**17. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fair Values

Fair value hierarchy

The following provides a description of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at September 30, 2024 and December 31, 2023 as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in | Significant |  |  |
|  | active markets | other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | September 30, |
|  | (Level 1) | (Level 2) | (Level 3) | 2024 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**17. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fair Values (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in | Significant |  |  |
|  | active markets | other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | December 31, |
|  | (Level 1) | (Level 2) | (Level 3) | 2023 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

---

The fair values of the Company's other financial instruments, which include cash, short-term investment, other receivables, accounts payable and accrued liabilities, other payable, lease obligation, and due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Credit Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Foreign Exchange Rate Risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency.

The following tables indicate the impact of foreign currency exchange risk on net working capital as at September 30, 2024 and December 31, 2023. The tables below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the tables below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as at September 30, 2024 and December 31, 2023.

---

| | | | |
|:---|:---|:---|:---|
| As at September 30, 2024 | AUD | TWD | US$ |
| Cash |  | 1091534 | 49450 |
| Accounts payable and accrued liabilities | (348500) | (1216211) | (170056) |
| Lease obligation |  | (3417780) |  |
| Total foreign currency financial assets and liabilities | (348500) | (3542457) | (120606) |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 34850 | 354246 | 12061 |

---

---

| | | |
|:---|:---|:---|
| As at December 31, 2023 | TWD | US$ |
| Cash | 9201660 | 296479 |
| Accounts payable and accrued liabilities |  | (190659) |
| Lease obligation | (778794) |  |
| Total foreign currency financial assets and liabilities | 8422866 | 105820 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 842287 | 10582 |

---

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**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**17. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner. Refer to going concern disclosure in Note 1.

The following amounts are the contractual maturities of financial liabilities as at September 30, 2024 and December 31, 2023:

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| | | | |
|:---|:---|:---|:---|
| As at September 30, 2024 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 1179221 | 1179221 |  |
| Other payable | 368272 | 368272 |  |
| Lease obligation | 146117 | 88776 | 57341 |
| Convertible debt | 701890 |  | 701890 |
| Due to related parties | 25491 | 25491 |  |
| Total | 2420991 | 1661760 | 759231 |

---

---

| | | | |
|:---|:---|:---|:---|
| As at December 31, 2023 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 856682 | 856682 |  |
| Lease obligation | 33554 | 33554 |  |
| Due to related parties | 28003 | 28003 |  |
| Total | 918239 | 918239 | - |

---

**18. CAPITAL MANAGEMENT**

The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders. The capital structure of the Company consists of cash and equity comprised of issued share capital, share-based payment reserve, and warrant reserve.

The Company manages its capital structure and makes adjustments to it in light of economic conditions. The Company, upon approval from its Board of Directors, will balance its overall capital structure through new share issuances or by undertaking other activities as deemed appropriate under the specific circumstances.

The Company is not subject to externally imposed capital requirements and the Company's overall strategy with respect to capital risk management remains unchanged from the year ended December 31, 2023.

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**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**19. INTANGIBLE ASSETS**

On July 23, 2024, the Company entered into an agreement to purchase the intellectual property relating to four US patent applications for $275,782.

**20. SEGMENTED INFORMATION**

The Company has one operating segment, the research and development of computer-based technology related to post-quantum cryptography. The Company's head office is in Canada and operations are in Canada and Taiwan. Geographic information for non-current assets other than financial instruments is as follows:

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| | | | |
|:---|:---|:---|:---|
| As at September 30, 2024 | Canada | Taiwan | Total |
|  | $| $| $|
| Property and equipment |  | 57053 | 57053 |
| Right-of-use asset |  | 143686 | 143686 |
| Intangible asset | 275782 |  | 275782 |
| Deposits |  | 45336 | 45336 |
|  | 275782 | 246075 | 521857 |

---

---

| | | | |
|:---|:---|:---|:---|
| As at December 31, 2023 | Canada | Taiwan | Total |
|  | $| $| $|
| Property and equipment |  | 102820 | 102820 |
| Right-of-use asset |  | 29905 | 29905 |
| Deposits |  | 35872 | 35872 |
|  | - | 168597 | 168597 |

---

**21. GENERAL AND ADMINISTRATIVE EXPENSES**

The following is a breakdown of general and administrative expenses for the nine months ended September 30, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | Nine months<br>ended<br>September 30,<br>2024<br>$| Nine months<br>ended<br>September 30,<br>2023<br>$|
| Foreign office representation |  | 93971 |
| Insurance | 47500 | 45500 |
| IT and communications | 118079 | 4995 |
| Office and miscellaneous | 97185 | 253137 |
| Rent | 143862 | 5878 |
| Travel | 192453 | 80903 |
|  | 599079 | 484384 |

---

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**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**22. REVENUE**

During the nine months ended September 30, 2024, the Company earned license revenue of $416,667 (2023 - $nil) from a company controlled by the COO. As at September 30, 2024, the Company has deferred revenue of $565,497 (December 31, 2023 - $nil) for this company.

A breakdown of the revenue is presented below:

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| | | |
|:---|:---|:---|
|  | Nine months<br>ended<br>September 30,<br>2024<br>$| Nine months<br>ended<br>September 30,<br>2023<br>$|
| <u>Major goods/service lines</u> |  |  |
| Software license and related consulting services | 416667 | - |
| <u>Timing of revenue recognition</u> |  |  |
| Software license and services transferred over time | 416667 | - |

---

**23. SUBSEQUENT EVENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On October 1, 2024, the Company granted 1,000,000 stock options exercisable at $0.35 per common share expiring on October 1, 2027 to a consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On October 22, 2024, the Company granted 50,000 stock options exercisable at $0.42 per common share expiring on October 22, 2026 to a director of the Company.

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## Exhibit 99.42

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|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

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This Management's Discussion and Analysis ("MD&A") of BTQ Technologies Corp. ("BTQ", or the "Company") is for the quarter ended September 30, 2024 and is dated November 14, 2024. The MD&A should be read in conjunction with the Company's unaudited condensed interim consolidated financial statements and related notes for the quarter ended September 30, 2024. The unaudited condensed interim consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and all monetary amounts are expressed in Canadian dollars. The following comments may contain management estimates of anticipated future trends, activities, or results. These are not a guarantee of future performance since actual results could change based on other factors and variables beyond management control.

The management of the Company is responsible for the preparation and integrity of the consolidated financial statements, including the maintenance of appropriate information systems, procedures, and internal controls and to ensure that information used internally or disclosed externally, including the consolidated financial statements and MD&A, is complete and reliable. The Company's board of directors (the "Board") follows recommended corporate governance guidelines for public companies to ensure transparency and accountability to shareholders. The Board's audit committee meets with management quarterly to review the financial statements including the MD&A and to discuss other financial, operating, and internal control matters.

Additional information relating to the Company, including its Annual Information Form for the year ended December 31, 2023, is available under the Company's profile on SEDAR+ at www.sedarplus.ca.

**DESCRIPTION OF BUSINESS AND OVERVIEW**

BTQ is a British Columbia corporation founded by a group of experienced post-quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the Bitcoin network. Bitcoin's store of value thesis - one that supports a crypto ecosystem of over $1 trillion in market capitalization - has several potential quantum attack vectors that could compromise the network. This paradigm shift requires a new direction in cryptography and blockchain design. BTQ is building a portfolio of intellectual property to safeguard the crypto asset class with energy efficient quantum processes and currently holds several patent applications for generating quantum algorithms.

Quantum computers can take a very large integer and find out its prime factor extremely rapidly by using Shor's algorithm. Theoretically, a universal large scale quantum computer could be used to disrupt cryptocurrencies, break into digital wallets, and access and decrypt confidential communications. Ethereum and Algor, two of the most technologically advanced cryptocurrencies, announced plans to transition to post-quantum standards.

BTQ has strategically established an office in Taipei, Taiwan, home to the most advanced hardware and post-quantum ecosystems. The Taipei engineering office was focused on research and development related to post-quantum cryptography, eco-friendly proof of work mining, and formal verification within smart contracts platforms.

BTQ is listed on the NEO Exchange (the "NEO") under the symbol "BTQ", the OTCQB under the symbol "BTQQF" and the Frankfurt Stock Exchange under the symbol "NG3".

<u>Acquisition</u>

On December 31, 2021 (as amended on April 29, 2022, July 30, 2022, and November 29, 2022), the Company entered into a share exchange agreement with BTQ AG (the "Acquisition"). BTQ AG was incorporated in the Principality of Liechtenstein on March 26, 2021 by a group of experienced post-quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the Bitcoin network.

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|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

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In connection with the Acquisition, the Company completed a private placement (the "Offering") of 18,001,250 subscription receipts at a price of $0.40 per subscription receipt, for gross proceeds of $7,200,500, with each subscription receipt automatically converting with no additional consideration into one post-Consolidation Share (each as defined below) concurrent with the closing of the Acquisition.

On February 17, 2023, the Company closed the Acquisition resulting in the issuance of 92,000,000 post- Consolidation Shares to the BTQ AG shareholders. Concurrent with the closing, the Company changed its name from Sonora Gold & Silver Corp. to BTQ Technologies Corp. and completed a consolidation (the "Consolidation") of its common shares on the basis of ten pre-Consolidation shares to one post- Consolidation share (each, a "Share"). Immediately following the Consolidation, and excluding those Shares issued pursuant to the Acquisition or the Offering, the former securityholders of Sonora Gold and Silver Corp. ("SOC") held an aggregate of 8,747,629 Shares and 350,000 stock options in the Company. All Share amounts have been retroactively restated to reflect the Consolidation for all periods presented.

On closing of the Acquisition, the gross proceeds of $7,200,500 from the Offering were released from escrow and each subscription receipt was converted into one Share. In connection with the Acquisition, the Company issued 2,500,000 Shares with a fair value of $1,000,000 to a finder as a success fee. In connection with the Offering, the Company also paid $93,175 in finders' fees and issued 232,936 finders' warrants exercisable at an exercise price of $0.40 per Share for a period of two years.

As a condition of the Acquisition, the Company voluntarily delisted its Shares from the TSX-V and the Shares commenced trading on the NEO on February 21, 2023 under the symbol "BTQ".

**DISCUSSION OF OPERATIONS**

The following are operational highlights for the year ended December 31, 2023 and events subsequent up until the date of this MD&A.

<u>Product Updates</u>

On March 2, 2023, the Company announced the alpha release of Keelung, a domain-specific language designed for fast, private, and secure application development. Based on research in the field of post- quantum zero-knowledge cryptography, Keelung will empower developers to create secure and reliable post-quantum zero-knowledge proofs without the need for specialized cryptography skills. Both Keelung and its compiler have been implemented in Haskell, enabling developers to produce high-level zero- knowledge proofs protected by Haskell's type system while leveraging Haskell's extensive ecosystem and tooling. Keelung will be 100% open-source, allowing for transparency, collaboration, and community-driven development.

Keelung is now live and open-sourced. The release information can be found here: https://github.com/btq- ag/keelung/releases. The steps to complete over the coming year are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Language Extensions (v0.19.0 - v0.20.0): Added support for user-defined datatypes, unsigned integer comparisons, and optimizations to the constraint system and compiler.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Optimization and Stability (v0.21.0): Introduced a more precise method for reference counting on unsigned integers, renaming of primitive datatype conversions, and numerous bug fixes and stability improvements for the compiler.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Upcoming Optimizations (v0.22.0+): Planned optimizations include operators for slicing and joining unsigned integers, improved polynomial representation, faster polynomial insertion, standard library optimizations (e.g., AES, Blake2), and constraint reduction for faster proof generation.

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| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Developer Experience (Ongoing): Refinements to the DSL syntax, performance improvements for common data types, benchmarking in the CI/CD pipeline, and expanded documentation and tutorials to improve the developer experience.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Ecosystem Integration (Future): Planned integration with popular ZK toolchains like Snarkjs/Circom, support for PLONK-based proving systems, and quantitative information flow analysis for privacy leakage detection.

On June 5, 2023, the Company published a research paper on proof-of-work consensus by quantum sampling. The paper presents a novel approach that has the potential to revolutionize blockchain consensus algorithms.

On June 26, 2023, the Company announced that it had received approval from the USPTO for its patent application, "A system and method for quantum-safe authentication, encryption, and decryption of information". The patent relates to methods for generating a private cryptographic key for use in a secure cryptogram for transmission between entities, enabling quantum-safe encryption.

On July 27, 2023, the Company announced that its Quantum-Secure Signature Technology "Preon" had been selected by the National Institute of Standards and Technology (NIST) for consideration in their Post- Quantum Cryptography (PQC) standardization process. Preon is a robust and efficient post-quantum signature scheme, showcasing distinctive features including small key size, rapid key generation, minimal assumptions, and flexible functionality. These attributes make it resistant to potential threats from both classical and quantum computers. The co-authors of this submission include Hon Hai Research Institute, the research arm of global leader Hon Hai Precision Industry Co., Ltd. (Foxconn).

On October 4, 2023, BTQ announced the advancement of its collaboration with ITRI to develop a security chip that utilizes QCIM (Quantum Computation in Memory) technology. This chip will be used for the computation of Kyber, a standardized algorithm by the National Institute of Standards and Technology (NIST). In 2022, BTQ entered a multi-year collaboration agreement with ITRI to develop energy-efficient post-quantum hardware solutions for applications in blockchain, telecom, and other industries with a need for long-term data security. In the first phase of collaboration, BTQ and ITRI successfully validated the proof of concept of applying computation-in-memory in an ASIC chip. To further the collaboration, BTQ is entering into this new phase of the project with ITRI.

<u>Market-Related Activity</u>

Effective March 14, 2023, the Company began trading on the FSE under the symbol "NG3" (ISIN: CA0558691014 \| WKN: A3D4V9). The Frankfurt Stock Exchange is the largest of the seven stock exchanges in Germany.

Effective May 9, 2023, the Company began trading on the OTCQX under the symbol "BTQQF". OTC Markets Group operates markets on which 12,000 U.S. and global securities trade with the OTCQX Best Market as the highest tier. Trading on OTCQX will enhance the visibility and accessibility of the Company to U.S. investors.

On March 18, 2024, the Company announced a revised timeline for the filing of its annual consolidated financial statements for the year ended December 31, 2023 (the "Financial Statements") and the related management's discussion and analysis and certifications (collectively, with the Financial Statements, the "Annual Filings"). The default in filing within the required 90 days is primarily due to delays relating to the restatement of the comparative period in the Financial Statements, comprising BTQ AG's financial statements for the period ended December 31, 2022, which were audited by another auditor. As a result of the delays, the Company had applied for a management cease trade order (an "MCTO") under National Policy 12-203 Management Cease Trade Orders ("NP 12-203") in respect of the default. The MCTO was lifted after the Company completed its December 31, 2023 filings.

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| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

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<u>Business Development Activities</u>

On March 2-3, 2023, representatives of the Company attended the Quantum Beach conference in Miami in order to meet with companies, investors, and potential partners across the quantum technologies industry. Mathieu Gauthier, Head of Corporate Development, spoke on the quantum security panel, alongside other industry executives from leading companies in the post-quantum security space, as well as senior government officials.

On April 24, 2023, Chris Tam, Head of Partnerships at the Company, spoke at ETHTaipei. The talk, titled "The Future of Zero-Knowledge: Challenges, Advancements, and Tools for Developing Post-Quantum zk- SNARKs," examined the challenges and successes of using post-quantum proving systems. The presentation also examined the strengths, weaknesses, and trends of arithmetic circuit backends such as R1CS, PLONK, and AIR, while introducing tools to transition towards developing post-quantum zk- SNARKs. This presentation reinforced the Company's commitment to advancing the blockchain and quantum technology industry.

On May 1, 2023, the Company was informed that it was the recipient of a US$10,000 grant from the Stellar Community Fund. The grant is specifically aimed at funding the Company's research in building an Efficient Scaling Mechanism for Lattice-Based Post-Quantum Signatures. The Stellar Community Fund ("SCF") is an open-application awards program that draws on community input to support developers and startups building on Stellar and Soroban. The Stellar Blockchain network is a distributed ledger used to transmit digital currencies and has a market cap of over US$2 billion.

On May 1, 2023, the Company secured office space at the Bentall II Tower located at 555 Burrard Street in Vancouver, BC. The Company is leasing this office space from WeWork at a monthly rate of $3,180 per month for a total commitment of 12 months. This additional office space will be used for meetings with investors and potential clients, and for the hiring of both technical and non-technical personnel in Canada. Starting October 1, 2023, the Company increased office space at the Bentall II Tower in Vancouver. The new monthly rate per month is $10,100 for a reset commitment of 12 months.

On May 15, 2023, BTQ Technologies Announced its Acceptance into the Quantum Industry Canada (QIC) Consortium, joining other leading quantum technology companies such as DWave and Xanadu. Quantum Industry Canada's mission is to ensure that Canadian quantum innovation and talent is translated into Canadian business success and economic prosperity. Earlier this year, the Canadian Minister of Innovation, Science, and Industry announced a $1.4 million investment in QIC as part of the National Quantum Strategy.

On May 22, 2023, BTQ was awarded a US$10,000 grant by StarkWare Industries, the developer of StarkNet, a permissionless decentralized ZK-Rollup. The grant was specifically awarded to implement BTQ's PQScale technique for digital signatures onto the StarkNet infrastructure.

On May 24, 2023, the Company announced the nomination of Mr. Lonny Wong as the company's Chief Financial Officer. Lonny has been leading BTQ's finance and accounting organization and reports directly to Olivier Roussy Newton, Chief Executive Officer and Chairman. He brings close to 30 years of public practice experience and specializes in providing auditing, assurance, financial reporting, and consulting services to public companies and companies looking to go public.

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| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

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On June 22, 2023, BTQ announced that it had joined leading quantum technology companies and research labs like Microsoft Azure Quantum and the Centre for Quantum Technologies (CQT) in the Quantum Energy Initiative (QEI). The Quantum Energy Initiative seeks to develop energetic quantum advantage and build quantum technologies in a sustainable and responsible manner.

On July 5, 2023, the Company established a strategic research partnership with South Korea's International Research Institute for Cyber Security (IRCS). The partnership aims to enhance the development of post- quantum cryptography, specifically focusing on SOLMAE signature scheme and other lattice-based cryptosystems, thereby expanding BTQ's influence in the Asia-Pacific region.

On July 24, 2023, the Company announced the addition of Brandt Pasco, an accomplished legal and private equity professional, to its advisory board. Mr. Pasco, currently the Managing Member of Pasco & Associates, is renowned for his expertise in building high-value companies and his deep understanding of technological regulatory law.

On August 21, 2023, BTQ announced the launch of "The Quantum State" podcast led by renowned researcher Anastasia Marchenkova. The series, further bolstered by experts Professor Gavin Brennen and Peter Rohde, serves as BTQ's dedicated platform for exploring the latest insights, trends, and groundbreaking advancements in the world of quantum computing.

On September 18, 2023, the Company announced it had been selected for the 2023 Canada Quantum Technology R&D Mission to South Korea, marking a significant stride in international quantum collaborations. From October 31st to November 2nd, the Canadian delegation, which includes 11 leading companies and institutions in the realms of quantum sensing, quantum computing, and quantum communication, participated in a series of collaborative events. Various meetings are arranged with South Korean companies, research institutes, academia, and other key players in the quantum technology sector.

On October 1, 2023, the Company entered into a revised lease agreement for a larger office space in the Bentall II building located in downtown Vancouver where the Company's headquarters were already located. This additional space will accommodate the company's growing technical research team in Canada.

On October 16, 2023, BTQ announced its ecosystem partnership with Cysic for Keelung, a zero-knowledge domain-specific language for fast, private and secure applications. Keelung provides developers with the ability to create secure and reliable post-quantum zero-knowledge proofs without requiring specialized cryptography skills. BTQ's partnership with Cysic will explore the integration of Keelung with Cysic's hardware acceleration solutions, offering end-users access to faster, more efficient, and more secure zero- knowledge proof generation.

On October 19, 2023, BTQ announced the addition of Peter Rohde, an accomplished theoretical quantum computer scientist, to its world-class technical team. Dr. Rohde, currently an Honorary Senior Lecturer at Macquarie University, and Associate Investigator at the ARC Centre of Excellence for Engineered Quantum Systems, is renowned for his deep understanding of optical quantum computing, quantum networking and the economics of quantum technology. Based at the Quantum Terminal in Sydney, Mr. Rohde will help drive research, as well as expand BTQ's technical team in Australia.

On November 29, 2023, BTQ and Hon Hai Research Institute announced a Research and Collaboration Agreement aiming to support the academic community by promoting the standardization of post-quantum cryptography. BTQ and Hon Hai first in their submission of Preon, a post-quantum signature scheme submitted as part of the NIST "Call for Additional Digital Signature Schemes for the Post-Quantum Cryptography Standardization Process".

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| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

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On December 29, 2023, the Company announced its participation and sponsorship at CfC St. Moritz, a premier digital assets and blockchain conference for investors and decision-makers in the Swiss Alps. Christopher Tam, BTQ's Head of Partnerships, led a workshop titled "Future-Proofing Digital Assets: Exploring the Sustainability of Digital Assets in the Quantum Era," focusing on the challenges and opportunities stemming from post-quantum cryptography.

On February 20, 2024, BTQ announced its participation in the Commonwealth Scientific and Industrial Research Organisation's Next Generation Emerging Technologies Graduates Program ("NGETGP"). This initiative aims to cultivate the next wave of tech talent and advance the field of emerging technologies. As part of this agreement, BTQ Technologies joined forces with the Commonwealth Scientific and Industrial Research Organisation ("CSIRO"), top Australian universities, Sydney Quantum Academy, and Diraq Pty Ltd to create the next generation of quantum technology specialists.

On March 13, 2024, BTQ announced its sponsorship with the Cybersecurity and Privacy Institute ("CPI") at the University of Waterloo and the establishment of a multi-year relationship for R&D collaboration. CPI's mission is to be internationally recognized as a leading interdisciplinary research institute making significant impacts in improving information security and human privacy. Earlier this year, CPI secured over $3.3 million in funding from the National Cybersecurity Consortium (NCC) under the Cyber Security Innovation Network (CSIN) program.

On March 21, 2024, BTQ announced that Christopher Tam, Head of Partnerships, will be a featured speaker at ETHTaipei. During his talk, Chris discussed transitioning Ethereum towards quantum resistance, addressing the impacts and challenges posed by quantum technologies on digital currencies.

On May 3, 2024, the Company entered into a Software Consulting Agreement with ZKP Corp., a Delaware corporation, for which the Company will receive $1,000,000 for the use of its proprietary software and the provision of related services.

On April 1, 2024, BTQ announced its partnership with the newly incorporated Australian Quantum Software Network (AQSN), a not-for-profit organization dedicated to pioneering advancements in quantum software development in Australia.

On October 3, 2024, BTQ announced it was to present at the 2024 Cantech Letter Conference in Toronto where Nicolas Roussy Newton, the COO of BTQ, delivered an investor presentation and participated in scheduled 1-on-1 meetings with investors at the conference that took place on October 9<sup>th</sup> following the announcement.

On November 5, 2024, BTQ and Macquarie University announced a strategic research collaboration to advance quantum computing and secure communications. The partnership is focused in the areas of quantum information theory and post-quantum secure communications, with the aim of integrating quantum processing into a range of communication protocols to enhance speed, security, and energy efficiency.

<u>Media Coverage</u>

On April 17, 2023, the Company was covered by CoinDesk for its innovative approach to quantum-safe encryption technology, which has the potential to revolutionize data security in blockchain applications and adjacent industries, including finance, healthcare, and government. With over 10 million website visits and 1.6 million podcast downloads each month, CoinDesk is the leading source of news on cryptocurrency and blockchain, covering breaking news and providing in-depth analyses on the next generation of investing and the future of money.

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| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

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On June 21, 2023, BTQ announced it had been featured in the New Scientist magazine for its collaborative research paper, "Proof-of-Work Consensus by Quantum Sampling". The paper, which features a collaboration with leading researchers from universities in Australia and the United States, introduces a groundbreaking Quantum Proof-of-Work scheme for blockchain consensus. The article discusses the potential of the team's approach which uses coarse-grained boson-sampling (CGBS), to reduce the energy consumption of cryptocurrencies, such as Bitcoin, by an order of magnitude.

<u>Corporate</u>

On August 31, 2023, BTQ announced that, at the annual general and special meeting (the "Meeting") of shareholders of the Company ("Shareholders") that was held on August 30, 2023, all five nominees for the board of directors of the Company were elected. At the Meeting, Shareholders also approved (i) the appointment of BDO LLP as auditors of the Company until the close of the next annual general meeting of shareholders and the directors were authorized to determine their remuneration (ii) the Company's omnibus equity incentive plan (the "Omnibus Plan"); and (iii) the ratification of certain historically granted RSUs pursuant to the Omnibus Plan.

On September 18, 2024, BTQ announced the appointment of Jeffrey Morais, Kohei Suenaga, Eylon Yogev, and Deepesh Singh to its leadership and scientific advisory board.

On September 24, 2024, BTQ announced the completion of the acquisition of Radical Semiconductor's Processing-in-Memory Technology Portfolio, advancing its Post-Quantum Cryptography capabilities. The integration of Radical's cutting-edge technology is set to enhance BTQ's quantum-secure communications infrastructure and provide substantial growth opportunities in emerging markets such as IoT, financial services, blockchain, and government sectors.

On October 16, 2024, BTQ provided a corporate update and shared other strategic developments. The Company announced the appointment of Hunter Scharfe as a Senior Advisor. Additionally, the Company shared the closing of a $1,000,000 non-interest bearing, unsecured convertible loan (the "Loan"), with a two-year term. The Loan is convertible at the option of the holder at a price of $0.40 per share. The Company is using the proceeds from the loan for general corporate and working capital purposes.

**Trends**

<u>Quantum Computing</u>

According to McKinsey & Company, the quantum technology market will be valued at over $106 billion by 2040<sup>1</sup>, with the bulk of the value projected to come from quantum computing as opposed to quantum sensing and quantum communications. The quantum security industry sits within quantum computing and is a rapidly growing field that focuses on developing secure cryptographic solutions for the age of quantum computing. As quantum computers become more powerful, they will become increasingly capable of breaking traditional cryptographic systems, creating a need for even more robust and advanced quantum- resistant solutions. Traditional cryptographic methods are at risk of being broken, which will have serious implications for national security, financial institutions, and other industries that rely on secure communication and data storage. Estimates of when a commercial quantum computer will hit the market vary, however, last year, IBM unveiled the Osprey (433 qubits) and updated its road map to develop a 4,000+ qubit processor in 2025<sup>2</sup>, indicating that these super computers will be available in the near future.

__________________________________________

1 https://www.mckinsey.com/featured-insights/the-rise-of-quantum-computing

2 https://newsroom.ibm.com/2022-11-09-IBM-Unveils-400-Qubit-Plus-Quantum-Processor-and-Next-Generation-IBM- Quantum-System-Two

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|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

In addition to private sector funding, Government bodies around the world are also investing large sums of capital into quantum technologies. At $15.3 billion, China leads the way in publicly announced quantum funding initiatives, followed by the EU at $8.4 billion, USA at $3.7 billion, Japan at $1.8 billion, UK at $1.3 billion, Canada at $1.1 billion, and several others between $0.1 billion and $1.0 billion<sup>3</sup>.

Overall, the quantum security industry is a rapidly evolving field that will continue to see significant growth and development in the coming years. As businesses and organizations seek to protect their data from the threat of quantum computing, the need for effective and innovative quantum-resistant security solutions will only continue to increase. Investors are recognizing this with about two-thirds, or 68 percent, of all Quantum Technology startup investments since 2001 having occurred in 2021 and 2022<sup>4</sup>.

<u>Post-Quantum Cryptography</u>

One of the main trends in the quantum security industry is the development of post-quantum cryptography ("PQC") algorithms. PQC algorithms are designed to be resistant to attacks from quantum computers, making them a crucial component of quantum-resistant security systems. Many organizations, including government agencies and financial institutions, are already investing in PQC research and development to ensure the security of their sensitive data.

A key driver in the development of the PQC industry is The National Institute of Standards and Technology ("NIST"), a U.S. Department of Commerce agency which sets the standards for businesses and other organizations to secure sensitive data and protect critical infrastructure<sup>5</sup>. NIST compliance standards must be met by anyone who processes, stores, or transmits sensitive information for the Department of Defense, General Services Administration, NASA, and other government agencies, and is largely seen as the de facto standard body to make cryptographic standards for the entire world.

In 2016, NIST initiated a process to solicit, evaluate, and standardize one or more quantum-resistant public- key cryptographic algorithms. These new cryptography standards will specify additional digital signature and public-key encryption algorithm(s) which are capable of protecting sensitive information well into the foreseeable future, including after the advent of quantum computers. In 2022, NIST officially announced the standardized algorithms from Round 3 of this PQC competition. This was a landmark milestone as government agencies and businesses had been waiting nearly six years for a clear direction as to which algorithms are trustworthy. PQC algorithms are much larger than their classical counterparts. For example, even the smallest NIST-approved digital signature algorithm is over 10x larger than the current Elliptic Curve Digital Signature Algorithm<sup>6</sup>. This is particularly problematic for distributed ledgers where each full node keeps an entire record of all activities on the ledger. If a blockchain like Bitcoin and Ethereum were to adopt the newly standardized PQC algorithms today, the size of both chains would have to be increased to an unmanageable extent.

__________________________________________

<sup>3</sup> https://www.mckinsey.com/~/media/mckinsey/business%20functions/mckinsey%20digital/our%20insights/quantum% 20technology%20sees%20record%20investments%20progress%20on%20talent%20gap/quantum-technology- monitor-april-2023.pdf

4 https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/quantum-technology-sees-record-investments- progress-on-talent-gap

5 https://www.btq.com/en/blog/blockchain-security

6 https://falcon-sign.info/

------

---

| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

<u>Competition and Market Participants</u>

Generally, BTQ differentiates itself from its competitors with its work at the intersection of post-quantum cryptography and blockchain. The Company works on developing next-generation cryptographic primitives like zero-knowledge cryptography to achieve advanced security and efficiency, which is novel in the industry.

Large publicly traded quantum companies exist in the space, including: D-Wave Systems (NYSE: QBTS),

IONQ (NYSE: IONQ), Arqit Quantum (NASDAQ: ARQQ). However, these companies are not direct competitors as their main goal is to build a commercial quantum computer with real-world useability. These companies are capital intensive and well-funded by both institutional investors and governments and their valuations range from approximately US$50 million to over US$1 billion.

With a surge in funding and general investor interest and excitement in the industry, several companies are emerging in the post-quantum security space. There are various companies that try to tackle the same global problem as BTQ: getting today's infrastructure secured for the quantum revolution, however, the approaches vary widely based on cryptographic techniques, as well as end uses served and therefore is not a winner takes all market. In fact, other companies operating directly in the space may offer potential collaboration opportunities. Below is a non-exhaustive list of indirect competitors to BTQ:

PQ Shield, for example, describes itself as a PQC company contributing to the global standards and core technologies to power the future security layer of the world's leading organizations. Its quantum-secure cryptographic solutions work with companies' legacy systems to protect sensitive data now and for years to come. The company mainly serves the defense & infrastructure, IoT and OEM markets. PQ Shield raised $20 million as part of their Series A round in January 2022<sup>7</sup>.

Additionally, Isara provides security solutions specializing in cryptographic risk management and in creating crypto-agile and quantum-safe security solutions for today's information technology ecosystems. The company broadly targets enterprises and governments. Isara raised over $10 million in 2018 to fund its R&D efforts<sup>8</sup>.

In the blockchain space, large technology companies are building their own secured blockchains. For example, IBM offers blockchain services that help secure multiple aspects of critical industries like supply chains, banking, healthcare, and government. The goal of these blockchains is usually to streamline and scale processes in a secure manner<sup>9</sup>.

SandboxAQ, an enterprise SaaS company stemming from Alphabet (previously Google), is another key player in the space. Sandbox provides solutions at the nexus of AI and Quantum technology to address some of the world's most challenging problems. The company's core team and inspiration formed at Alphabet Inc., emerging as an independent, growth-capital-backed company in 2022. The company aims to protect the public sector, life sciences & healthcare, financial services, cybersecurity, material science & manufacturing, and global navigation<sup>10</sup>.

__________________________________________

7 https://www.prnewswire.com/news-releases/pqshield-collaborates-with-nccoe-and-industry-to-ease-the-real-world-implementation-of-quantum-resistant-cryptography-301794688.html

8 https://www.isara.com/company/newsroom/shasta-ventures-investment.html

9 https://www.ibm.com/blockchain

10 https://www.sandboxaq.com/solutions/security-suite

------

---

| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

<u>Investor Awareness</u>

Effective April 11, 2023, the Company retained Venture North Capital Inc. ("Venture North") for strategic marketing, investor relations, and capital markets communications services. Venture North arranges and attends meetings with professional investors, maintains ongoing contacts and broadens relationships with the professional investment community on the Company's behalf.

The agreement with Venture North had an initial trial term of 4 months and has been automatically renewed monthly until such time it is terminated on 30 days' notice. Pursuant to the terms of the consulting agreement, the Company pays a monthly fee of $8,500 and granted 500,000 stock options exercisable at $0.40 per common share expiring on October 1, 2024. Of the options issued to Venture North, 125,000 shall vest immediately following the 4-month trial and an additional 125,000 options quarterly.

<u>Reverse Takeover</u>

In accordance with IFRS 3, business combinations, the substance of the Acquisition is a reverse takeover as the shareholders of BTQ AG held 75.88% of the resulting issuer shares and SOC's shareholders held 24.12% of the resulting issuer shares. Accordingly, for accounting purposes, BTQ AG was treated as the accounting parent company (legal subsidiary) and the Company has been treated as the accounting subsidiary (legal parent) in these consolidated financial statements. As BTQ AG was deemed to be the acquirer for accounting purposes, its assets, liabilities and operations since incorporation are included in these consolidated financial statements at their historical carrying values. The Company's results of operations have been included from February 17, 2023.

As the Acquisition did not constitute a business combination, the reverse takeover transaction was accounted for in accordance with IFRS 2, share-based payments, whereby equity instruments issued were recognized at fair value and allocated to the net assets acquired (liabilities assumed). Any difference is the value of the listing which was expensed on completion of the Acquisition.

The Transaction was measured at the fair value of the common shares that BTQ AG would have had to issue to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051, and the fair value of 350,000 stock options of the Company with a fair value of $97,532, to give the shareholders of the Company the same percentage of equity interest in the combined entity that results from the reverse acquisition had it taken the legal form of BTQ AG acquiring the Company. The fair value of the 8,747,629 common shares was determined based on the pricing of the Offering with a value of $0.40 being allocated to each Share. The purchase price was allocated to the net assets acquired as follows:

---

| |
|:---|
| Fair value of the Company's shares (8,747,629 common shares) |
| Fair value of 350,000 stock options of the Company outstanding |
| Total consideration |
| Less: fair value of identifiable assets acquired and liabilities assumed: |
| Cash |
| Cash held in escrow |
| Prepaid expenses |
| Restricted cash |
| Accounts payable and accrued liabilities) |
| Subscription receipts liabilities) |
| Net liabilities assumed) |
| Listing costs |

---

------

---

| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

The Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction.

**RESULTS OF OPERATIONS**

**For the nine months ended September 30, 2024**

The net loss for the nine months ended September 30, 2024 was $4,558,910 (2023: $12,388,286). The main categories are listed below:

<u>Revenue of $416,667 (2023: $nil)</u>

The Company earned license revenue from a company controlled by the COO.

<u>General and administrative of $599,079 (2023: $484,384)</u>

The increase is due to the Company's growth and higher overall activity during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.

<u>Marketing and promotion of $573,278 (2023: $898,375)</u>

The decrease is due to the Company spending more money on marketing and promotion after closing the Transaction on February 17, 2023. Marketing and promotion activities are lower this year as the Company reigned in spending on this area to conserve cash.

<u>Professional fees of $836,106 (2023: $483,816)</u>

The increase is mainly due to the increase in the audit fees incurred to the Company's auditor for the year ended December 31, 2023, accounting costs incurred to the outsourced accounting consulting firm and the CFO's firm after becoming a publicly listed entity on February 17, 2023.

<u>Research and development of $2,036,282 (2023: $1,664,950)</u>

The Company had increased research and development activities, including research and development being conducted in Canada during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.

<u>Share-based compensation of $(190,931) (2023: $2,661,449)</u>

For the nine months ended September 30, 2024, the Company granted 800,000 (2023: 8, 0950,000) stock options and nil (2023: 3,740,000) restricted stock units.

<u>Transfer agent and regulatory fees of $72,780 (2023: $216,701)</u>

During the three months ended March 31, 2023, the Company incurred significant transfer agent, regulatory, and listing fees relating to the Transaction.

<u>Wages and benefits of $501,945 (2023: $514,021)</u>

Both periods are comparable.

<u>Listing and transaction costs of $nil (2023: $5,006,915)</u>

Listing and transaction costs relate to the Transaction. See Reverse Takeover section above.

------

---

| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

**USE OF AVAILABLE FUNDS**

In connection with the Acquisition and the listing of the Shares on the NEO, the Company filed a listing statement dated February 17, 2023 under its SEDAR profile at www.sedar.com. Below is a reconciliation of the expected use of available funds against the actual use of such funds as at September 30, 2024:

---

| | | |
|:---|:---|:---|
| **Item** | Use of Available Funds<br>$| Actual Use of Available<br>Proceeds as at<br>September 30, 2024<br>$|
| Transaction costs related to the Acquisition | 700000 | 705078 |
| Research contracts | 750000 |  |
| Software and hardware development | 4215770 | 3988993 |
| Sales and business development | 1500000 | 1804167 |
| General and administrative costs estimated for 12-months | 1830759 | 2698291 |
| Unallocated working capital | 200000 |  |
| **Total** | **9196529** | **9196529** |

---

**SUMMARY OF QUARTERLY RESULTS**

The following table sets out financial information for the past eight quarters:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) |
|  | September 30, | June 30, | March 31, | December 31, |
|  | 2024 | 2024 | 2024 | 2023 |
| Total revenues | 326094 | 90573 |  |  |
| Net loss | (1029346) | (1695192) | (1834372) | (3015009) |
| Net loss per share, basic and diluted | (0.01) | (0.01) | (0.01) | (0.02) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) |
|  | September 30, | June 30, | March 31, | December 31, |
|  | 2023 | 2023 | 2023 | 2022 |
| Total revenues |  |  |  |  |
| Net loss | (2553373) | (2901977) | (6932936) | (1425672) |
| Net loss per share, basic and diluted | (0.02) | (0.02) | (0.07) | (0.02) |

---

The net loss for the quarter ended December 31, 2023 includes share-based compensation of $1,259,207 related to the issuance of stock options and restricted stock units.

------

---

| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

The net loss for the quarter ended September 30, 2023 includes share-based compensation of $755,390 related to the issuance of stock options and restricted stock units.

The net loss for the quarter ended June 30, 2023 includes share-based compensation of $1,623,513 related to the issuance of stock options and restricted stock units.

The net loss for the quarter ended March 31, 2023 includes costs of $5,006,915 relating to the Transaction, share-based compensation of $282,545 related to the issuance of stock options and increased level of activity as BTQ became public as a subsidiary of the Company with a concurrent financing effective February 17, 2023.

**LIQUIDITY AND CAPITAL RESOURCES**

As at September 30, 2024, the Company had cash of $822,679 and a working capital deficit of $1,127,391 compared to cash of $2,862,023 and working capital of $2,806,924 as at December 31, 2023.

The Company's operations used cash of $3,371,749 during the nine months ended September 30, 2024 (2023: $5,362,803). The Company's investing activities provided net cash of $304,851 (2023: $1,339,874). The cash requirements during the nine months ended September 30, 2024 were funded from the net proceeds from share issuances of $104,000 (2023: $7,107,326) and proceeds from issuance of convertible debt of $1,000,000 (2023: $nil), offset by $76,446 (2023: $149,004) for the repayment of the lease obligation.

The Company's aggregate operating, investing, and financing activities during the nine months ended September 30, 2024 resulted in an decrease in its cash balance of $2,039,344 (2023: increase of $2,897,251).

The Company's accounts payable and accrued liabilities are due in the short term. While the Company has been successful in obtaining the necessary financing through the issuance of common shares and loans in the past, there is no assurance it will be able to raise funds in this manner in the future and there remain material uncertainties that may cast significant doubt as to the Company's ability to continue as a going concern.

The directors regularly review cash flow forecasts to determine whether the Company has sufficient cash reserves to meet future working capital requirements and discretionary business development opportunities.

The consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. During the nine months ended September 30, 2024, the Company has a net loss and negative cash flow from operations. As at September 30, 2024, the Company has a working capital deficit of $1,127,391 and an accumulated deficit of $39,127,263. The Company's ability to continue its operations and to realize its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs. Management is of the opinion that sufficient working capital will be obtained from external financing to meet the Company's liabilities and commitments as they become due, although there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These factors indicate a material uncertainty that may cast significant doubt on the ability of the Company to continue as a going concern. These consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. Such adjustments could be material.

------

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| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

**OFF BALANCE SHEET ARRANGEMENTS**

There are no off-balance sheet arrangements to which the Company is committed.

**RELATED PARTY TRANSACTIONS**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

Key management personnel are persons responsible for planning, directing, and controlling the activities of an entity, and include all officers and directors of the Company. Key management personnel compensation during the nine months ended September 30, 2024 and 2023 was comprised of the following:

---

| | |
|:---|:---|
|  | Nine months |
|  | ended |
|  | September 30, |
|  | 2023 |
|  | $|
| &nbsp;&nbsp;Consulting fees incurred to Ming-Yang Chih, former Chief Strategic Officer | 72668 |
| &nbsp;&nbsp;Marketing and promotion incurred to Mathieu Gauthier, Head of Corporate Development | 72668 |
| &nbsp;&nbsp;Professional fees incurred to Saturna Group Chartered Professional Accountants LLP, a firm where the CFO, Lonny Wong, is a partner | 38661 |
| &nbsp;&nbsp;Research and development incurred to Po-Chun Ko (former Chief Technology Officer) and Chen-Mou Cheng (former Chief Cryptographer) | 339660 |
| &nbsp;&nbsp;Wages and benefits incurred to Nicolas Roussy Newton (COO) and Peter Lavelle (former Chief Legal Officer) | 216812 |
| &nbsp;&nbsp;Total short-term benefits | 740469 |
| &nbsp;&nbsp;Share-based payments) | 577281 |
|  | 1317750 |

---

During the nine months ended September 30, 2024, the Company earned license and consulting services revenue of $416,667 (2023 - $nil) from ZKP Corp., a company controlled by Nicolas Roussy Newton, the Chief Operating Officer ("COO") of the Company. As at September 30, 2024, the Company has deferred revenue of $565,497 (December 31, 2023 - $nil) for this company.

As at September 30, 2024, the Company owed $116,580 (December 31, 2023 - $114,223) to Olivier Roussy Newton, the Chief Executive Officer of the Company ("CEO"), of which $91,089 (December 31, 2023 - $89,247) is included in accounts payable and accrued liabilities. The amounts owed are non-interest bearing, unsecured, and due on demand.

As at September 30, 2024, the Company was owed $149,924 (December 31, 2023 - $49,888) from Nicolas Roussy Newton, the COO of the Company, which is included in other receivables.

As at September 30, 2024, the Company owed $7,350 (December 31, 2023 - $7,350) to Saturna Group Chartered Professional Accountants LLP, a firm where the Chief Financial Officer of the Company ("CFO") is a partner, which is included in accounts payable and accrued liabilities.

------

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| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

As at September 30, 2024, the Company owed $134,990 (December 31, 2023 - $132,260) to Chen-Mou Cheng, the former Chief Cryptographer of the Company, which is included in accounts payable and accrued liabilities.

As at September 30, 2024, the Company owed $8,099 (December 31, 2023 - $7,936) to Mathieu Gauthier, the Head of Corporate Development of the Company, which is included in accounts payable and accrued liabilities.

**ACCOUNTING POLICIES**

A number of new standards, and amendments to standards and interpretations, are not yet effective for the period ended September 30, 2024, and have not been early adopted in preparing the consolidated financial statements. These new standards, and amendments to standards and interpretations are either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements.

**CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS**

<u>Use of estimates</u>

The preparation of consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from our company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

*Reverse Takeover*

The reverse takeover transaction was measured at the fair value of the common shares and stock options that BTQ would have had to issue to the shareholders of the Company. The fair value of common shares and stock options issued were estimated based on the Company's financing event which took place concurrently with the reverse takeover transaction. The fair values of identifiable assets acquired and liabilities assumed approximated their carrying values.

<u>Research and development costs</u>

Research costs are recognized as an expense when incurred but development costs may be capitalized as intangible assets if certain conditions are met as described in IAS 38 *Intangible Assets*. Management has determined that development costs do not meet the conditions for capitalization under IAS 38 and all research and development costs have been expensed.

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| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

*<u>Fair value of stock options</u>*

Fair values of stock options are determined using the Black-Scholes option pricing model. Estimating fair value requires determining the most appropriate valuation model for a grant of equity instruments, which is dependent on the terms and conditions of the grant. Option-pricing models require the use of highly subjective estimates and assumptions including the expected stock price volatility. Changes in the underlying assumptions can materially affect the fair value estimates and, therefore, existing models do not necessarily provide reliable measurement of the fair value of the Company's stock options and performance warrants.

<u>*Deferred income taxes*</u>

The determination of income tax expense and the composition of deferred income tax assets and liabilities involves judgment and estimates as to the future taxable earnings, expected timing of reversals of deferred income tax assets and liabilities, and interpretations of tax laws. The Company is subject to assessments by tax authorities who may interpret the tax law differently. Changes in these interpretations, judgments, and estimates may materially affect the final amount of current and deferred income tax provisions, deferred income tax assets and liabilities, and results of operations.

<u>*Going concern presentation*</u>

The consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The assessment of the Company's ability to source future operations and continue as a going concern involves judgement. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. If the going concern assumption is not appropriate for the financial statements, then adjustments would be necessary in the carrying value of the assets and liabilities, the reported revenue and the expenses and the statement of financial position classifications used.

**FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**

**Fair Values**

The following provides a description of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

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| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at September 30, 2024 and December 31, 2023 as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using | Fair value measurements using |
|  | Quoted prices in |  |  |  |
|  | active markets | Significant other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | September 30, |
|  | (Level 1) | (Level 2) | (Level 3) | 2024 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using | Fair value measurements using |
|  | Quoted prices in |  |  |  |
|  | active markets | Significant other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | December 31, |
|  | (Level 1) | (Level 2) | (Level 3) | 2023 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

---

The fair values of the Company's other financial instruments, which include cash, short-term investment, other receivables, and accounts payable and accrued liabilities, lease obligation, and due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

**Credit Risk**

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash. Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

**Foreign Exchange Rate Risk**

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency.

The following tables indicate the impact of foreign currency exchange risk on net working capital as at September 30, 2024 and December 31, 2023. The table below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the table below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as at September 30, 2024 and December 31, 2023.

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| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

---

| | | | |
|:---|:---|:---|:---|
| As at September 30, 2024 | AUD | TWD | US$ |
| Cash |  | 1091534 | 49450 |
| Accounts payable and accrued liabilities | (348500) | (1216211) | (170056) |
| Lease obligation |  | (3417780) |  |
| Total foreign currency financial assets and liabilities | (348500) | (3542457) | (120606) |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 34850 | 354246 | 12061 |

---

---

| | | |
|:---|:---|:---|
| December 31, 2023 | TWD | US$ |
| Cash | 9201660 | 296479 |
| Accounts payable and accrued liabilities |  | (190659) |
| Lease obligation | (778794) |  |
| Total foreign currency financial assets and liabilities | 8422866 | 105820 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 842287 | 10582 |

---

**Interest Rate Risk**

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

**Liquidity Risk**

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner. Refer to going concern disclosure under Liquidity and Capital Resources.

The following amounts are the contractual maturities of financial liabilities as at September 30, 2024 and December 31, 2023:

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| | | | |
|:---|:---|:---|:---|
| September 30, 2024 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 1179221 | 1179221 |  |
| Other payable | 368272 | 368272 |  |
| Lease obligation | 146117 | 88776 | 57341 |
| Convertible debt | 701890 |  | 701890 |
| Due to related parties | 25491 | 25491 |  |
| Total | 2420991 | 1661760 | 759231 |

---

------

---

| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

---

| | | | |
|:---|:---|:---|:---|
| December 31, 2023 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 856682 | 856682 |  |
| Lease obligation | 33554 | 33554 |  |
| Due to related parties | 28003 | 28003 |  |
| Total | 918239 | 918239 | - |

---

**DISCLOSURE OF OUTSTANDING SHARE DATA**

The authorized capital of the Company consists of an unlimited number of common shares without par value.

As of the date of this report, the Company had 124,203,879 common shares outstanding, 232,936 share purchase warrants outstanding, 6,240,000 stock options outstanding, 135,000 RSUs outstanding, and debt convertible into 2,500,000 common shares.

**DISCLOSURE CONTROLS AND PROCEDURES**

The CEO and the CFO have designed, or caused to be designed under their supervision, the Company's disclosure controls and procedures ("DCP") to provide reasonable assurance that material information relating to the Company and its consolidated subsidiaries has been recorded, processed, summarized and disclosed in a timely manner in accordance with regulatory requirements and good business practices and that the Company's DCP will enable the Company to meet its ongoing disclosure requirements.

The CEO and CFO have evaluated the effectiveness of the Company's disclosure controls and procedures and have concluded that based on this evaluation, our disclosure controls and procedures are not effective at a reasonable assurance level due to the material weakness described below in Internal Control over Financial Reporting.

**INTERNAL CONTROL OVER FINANCIAL REPORTING**

The CEO and the CFO have designed, or caused to be designed under their supervision, the Company's internal controls over financial reporting ("ICFR") in order to provide reasonable assurance regarding the reliability of the Company's financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards ("IFRS").

A material weakness is a control deficiency, or combination of control deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement in the annual or interim financial statements will not be prevented or detected on a timely basis.

The CEO and CFO conducted an evaluation the effectiveness of the Company's ICFR as at September 30, 2024 based on *Internal Control-Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") for the Company as a whole. Based on this evaluation, management concluded that material weaknesses existed as at September 30, 2024.

The following material weaknesses were identified in the design and operation of its internal controls:

1. Lack of cash controls - The Company does not have sufficient internal controls over financial reporting for the cash process, including having an employee and a third party professional consultant with signing authority over certain of the Company's foreign bank accounts.

------

---

| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

2. Lack of segregation of duties - There is a lack of segregation of duties among individuals with administrative access to various systems and applications used by the Company. In addition, there is no evidence of a review process over control activities such as, but not limited to, financial statements and disclosures, purchase authorization, cut-off of transactions posted by the accounting team, cash controls over Company credit cards, and review of contracts. This increases the risk of error and fraud due to the ability to override controls.

3. Accounting for complex transactions - During the course of our audit, some auditor proposed adjustments were made to correct certain complex transactions, including, but not limited to, share- based compensation and international tax implications. In addition, a number of adjustments were made to correct and restate the prior year information which was not addressed prior to the year end audit. There still exists a lack of review and approval on the accounting treatment of these transactions in accordance with the relevant IFRS.

**LIMITATION OF CONTROLS AND PROCEDURES**

The Company's management, including its CEO and CFO, believe that any DCP and ICFR, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override to the control. The design of any control system also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any control system will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost effective, control system, misstatements due to error or fraud may occur and not be detected.

**CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING**

There have been no changes to our internal control over financial reporting for the three months ended September 30, 2024, that could have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**RISK FACTORS**

The current business of BTQ AG has been the business of the Company since February 17, 2023. The following is a summary of certain risk factors relating to the business. The risks presented below should not be considered exhaustive and may not be all of that the Company may face.

***General Risks***

*The Company has a limited operating history*

The Company has a limited history of operations and is in the early stage of development. As such, the Company will be subject to many risks common to early-stage enterprises, including undercapitalization, cash shortages, limitations with respect to personnel, financial and other resources, and lack of revenue. There is no assurance that the Company will achieve its operating goals. There is no assurance that the Company will be successful in achieving a return on shareholders' investment and the likelihood of success must be considered in light of its early stage of operations. There can be no assurance that the Company will be able to earn material revenue or that any of its activities will generate positive cash flow.

------

---

| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

*The Company may require additional funds to finance its operations*

Additional funds raised through debt or equity offerings may be needed to finance the Company's ongoing and future activities. There can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Failure to obtain additional financing could cause the Company to reduce or terminate its operations.

If additional funds are raised through further issuances of equity or securities convertible into equity, existing shareholders could suffer significant dilution, and any new equity securities issued could have rights, preferences and privileges superior to those of holders of securities of the Company. Any debt financing secured in the future could involve restrictive covenants relating to capital raising activities and other financial and operational matters, which may make it more difficult for the Company to obtain additional capital and to pursue business opportunities.

Refer to going concern disclosure under Liquidity and Capital Resources.

*The Company is subject to competition from other post-quantum encryption companies*

The Company will compete with other post-quantum cryptography and technology businesses, including other businesses focused on applying post-quantum cryptography to blockchain.

*The Company's compliance and risk management programs may not be effective*

The Company's ability to comply with applicable laws and rules will be largely dependent on the establishment and maintenance of compliance, review, and reporting systems, as well as the ability to attract and retain qualified compliance and other risk-management personnel, as needed. The Company cannot provide any assurance that its compliance policies and procedures will be effective or that it will be successful in monitoring or evaluating its risks. If there is any alleged non-compliance with applicable laws or regulations, The Company could be subject to investigations and judicial or administrative proceedings that may result in substantial penalties or civil lawsuits for damages, restitution or other remedies, which could be significant. Any of these outcomes, individually or together, may materially and adversely affect the Company's reputation, financial condition and valuation, and the value of its shares.

*Unexpected market disruptions may cause major losses for the Company*

The Company may incur major losses in the event of disrupted markets and other extraordinary events in which market behavior diverges significantly from historically recognized patterns. The risk of loss in such events may be compounded by the fact that, in disrupted markets, many positions may become illiquid, making it difficult or impossible to close out positions against which markets are moving. Market disruptions caused by unexpected political, military and terrorist events, or other factors, may from time to time cause dramatic losses for the Company.

*The Company will be reliant on attracting and retaining skilled management and directors*

The success of the Company will, in part, be dependent upon the skill, judgment, industry relationships and expertise of the Board and management. The loss of a director or key management personnel may materially and adversely affect the business of the Company. There can be no assurance that these individuals will continue to be employed by, or remain involved with, the Company for a particular period of time.

------

---

| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

*Market risk for securities*

There can be no assurance that an active trading market for the Company's shares will be sustained. The market price for the Company's Shares may be subject to wide fluctuations. Factors such as government regulation, price fluctuations, share price movements of peer companies and competitors, as well as overall market movements, may have a significant impact on the market price of the Company's securities. The stock market has from time to time experienced extreme price and volume fluctuations, which have often been unrelated to the operating performance of particular companies. Market forces may render it difficult or impossible for the Company to secure purchasers to purchase its securities at a price which will not lead to severe dilution to existing shareholders, or at all. In addition, shareholders may realize less than the original amount invested on dispositions of their shares during periods of such market price decline.

*Foreign exchange risk*

The Company is a Canadian company, and most of its expenses and fundraising is done in Canadian dollars, however, its operations are predominantly denominated in U.S. dollars and Taiwan dollars. As a result, the Company is subject to foreign exchange risks relating to the relative value of the U.S. dollar and Taiwan dollar as compared to the Canadian dollar. A decline in the U.S. dollar or Taiwan dollar could result in a decrease in the real value of the Company's revenues and adversely impact financial performance.

*Tax*

No assurance can be given that new taxation rules will not be enacted or existing rules will not be applied in a manner which could result in the Company being subject to additional taxation or which could otherwise have a material adverse effect on the Company's results from operations and financial condition.

*The Company may be subject to litigation*

The Company may be subject to litigation arising out of, or related to, its operations. Damages claimed under such litigation may be material, and the outcome of such litigation may materially impact the Company's operations and the value of its shares. While the Company expects to assess the merits of any lawsuits and defend such lawsuits accordingly, it may be required to incur significant expense or devote significant financial resources to such defenses. In addition, the adverse publicity surrounding such claims may have a material adverse effect on the Company's operations.

*Investment Risk*

There is no assurance that the Company will achieve its investment objective. An investment may not earn any positive return and may result in the loss of some or all of the capital invested.

*Ability to generate profits*

There can be no assurance that the Company will generate net profits in future periods. Further, there can be no assurance that the Company will be cash flow positive in future periods. In the event that the Company fails to achieve profitability in future periods, the value of the Company's shares may decline. In addition, if the Company is unable to achieve or maintain positive cash flows, the Company would be required to seek additional funding, which may not be available on favorable terms, if at all.

*Management of growth*

The Company has recently experienced, and may continue to experience, growth in the scope of its operations. This growth has resulted in increased responsibilities for the Company's existing personnel, the hiring of additional personnel and, in general, higher levels of operating expenses. In order to manage its current operations and any future growth effectively, the Company will need to continue to implement and improve its operational, financial and management information systems, as well as hire, manage and retain its employees and maintain its corporate culture including technical and customer service standards. There can be no assurance that the Resulting Issuer will be able to manage such growth effectively or that its management, personnel or systems will be adequate to support the Company's operations.

------

---

| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

*Reliance on key personnel*

The Company's future growth and its ability to develop depend, to a significant extent, on its ability to attract and retain highly qualified personnel. The Company will rely on a limited number of key employees, consultants and members of senior management and there is no assurance that the Company will be able to retain such key employees, consultants and senior management. The loss of one or more of such key employees, consultants or members of senior management, if not replaced, could have a material adverse effect on the Company's business, financial condition and prospects.

*The Company has no immediate plans to pay regular dividends on the Company, so shareholders of the Company may not receive funds without selling their Company Shares.*

The Company does not currently have plans to pay regular dividends on Company Shares. Any declaration and payment of future dividends to holders of Company Shares will be at the sole discretion of the Board and will depend on many factors, including the financial condition, earnings, capital requirements, level of indebtedness, statutory and contractual restrictions applying to the payment of dividends and other considerations of the Company that the Company's Board deems relevant.

***Business and Industry Risks***

*Regulatory changes or actions may alter the nature of an investment in the Company or restrict the use of digital assets in a manner that adversely affects the Company's operations*

Due to their global nature, blockchain-related technologies and encryption-related technologies are subject to regulatory fragmentation due to different treatment depending on jurisdiction. Certain governments have categorized certain blockchain technologies as illegal, while others have embraced their utility and have approved them for trade. Ongoing and/or future regulatory actions may have a substantial impact on the Company's business operations.

*The Company relies upon the use of internally/externally built proprietary software, data and intellectual property that may be subject to substantial risk*

The Company's liquidity contribution strategy is dependent on internally and externally developed software, data and intellectual property. Its operations may be severely and adversely affected by the malfunction of technology.

*Banks may not provide banking services, or may cut off banking services, to businesses that provide services related to blockchain-based technologies*

A number of companies that provide blockchain-related services have been unable to find banks that are willing to provide them with bank accounts and banking services. Similarly, a number of such companies have had their existing bank accounts closed by their banks. Banks may refuse to provide bank accounts and other banking services to blockchain-related companies, or companies that accept digital assets, for a number of reasons, such as perceived compliance risks or costs.

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| |
|:---|
| ![](exhibit99-42xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE QUARTER ENDED SEPTEMBER 30, 2024** |

---

*The Company may be unable to obtain adequate insurance to insure its operations*

The Company intends to insure its operations in accordance with technology industry practice. However, given the novelty of digital assets and associated businesses, such insurance may not be available, may be uneconomical for the Company, or the nature or level may be insufficient to provide adequate insurance cover. The occurrence of an event that is not covered or fully covered by insurance could have a material adverse effect on the Company.

*The business of the Company will be exposed to cybersecurity risks*

Cyber incidents can result from deliberate attacks or unintentional events, and may arise from internal sources (e.g., employees, contractors, service providers, suppliers and operational risks) or external sources (e.g., nation states, terrorists, hacktivists, competitors and acts of nature). Cyber incidents include unauthorized access to information systems and data (e.g., through hacking or malicious software) for purposes of misappropriating or corrupting data or causing operational disruption. Cyber incidents also may be caused in a manner that does not require unauthorized access, such as causing denial-of-service attacks on websites (e.g., efforts to make network services unavailable to intended users). A cyber incident that affects the Company might cause disruptions and adversely affect its business operations, and might also result in violations of applicable law (e.g., personal information protection laws), each of which might result in potentially significant financial losses and liabilities, regulatory fines and penalties, reputational harm, and reimbursement and other compensation costs. In addition, substantial costs might be incurred to investigate, remediate and prevent cyber incidents.

**FORWARD-LOOKING STATEMENTS**

*This MD&A includes certain statements that may be deemed "forward-looking statements" concerning the future performance of the Company's business, its operations, its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All statements in this report that do not directly and exclusively relate to historical facts, constitute forward- looking statements. These statements represent the Company's intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements. The Company disclaims any intention or obligation to update or revise such forward-looking statements, as a result of new information, future events or otherwise. Factors that may cause actual results to vary from forward looking statements include, but are not limited to, the Company's ability to access capital, competitive risks and reliance on key personnel, as described in more detail in this document under "Risk Factors". Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.*

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## Exhibit 99.43

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**Form 52-109F2**

***Certification of Interim Filings***

***Full Certificate***

I, Lonny Wong, Chief Financial Officer of BTQ Technologies Corp., certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A, (together, the "interim filings") of BTQ Technologies Corp. (the "issuer") for the interim period ended September 30, 2024.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. ***Responsibility:*** The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the end of the period covered by the interim filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework.

------

5.2 **ICFR - material weaknesses relating to design:** The issuer has disclosed in its interim MD&A for each material weakness relating to design existing for the interim period end

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A description of the material weakness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The impact of the material weakness on the issuer's financial reporting and its ICFR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The issuer's current plans, if any, or any actions already undertaken, for remediating the material weakness.

5.3 N/A

6. ***Reporting changes in ICFR:*** The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on July 1, 2024 and ended on September 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: November 14, 2024

(signed) "Lonny Wong"

______________________________

Lonny Wong

Chief Financial Officer

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## Exhibit 99.44

------

**Form 52-109F2**

***Certification of Interim Filings***

***Full Certificate***

I, Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies Corp., certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A, (together, the "interim filings") of BTQ Technologies Corp. (the "issuer") for the interim period ended September 30, 2024.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. ***Responsibility:*** The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the end of the period covered by the interim filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework.

------

5.2 **ICFR - material weaknesses relating to design:** The issuer has disclosed in its interim MD&A for each material weakness relating to design existing for the interim period end

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A description of the material weakness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The impact of the material weakness on the issuer's financial reporting and its ICFR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The issuer's current plans, if any, or any actions already undertaken, for remediating the material weakness.

5.3 N/A

6. ***Reporting changes in ICFR:*** The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on July 1, 2024 and ended on September 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: November 14, 2024

(signed) "Olivier Roussy Newton

______________________________

Olivier Roussy Newton

Chief Executive Officer

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## Exhibit 99.45

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**NOTICE OF CHANGE OF AUDITOR**

**TO:** British Columbia Securities Commission

Alberta Securities Commission

Ontario Securities Commission

**AND TO:** BDO Canada LLP ("BDO")

MNP LLP ("MNP")

**RE:**Notice Regarding Change of Auditor Pursuant to Section 4.11 of National Instrument 51- 102 - *Continuous Disclosure Obligations* ("NI 51-102")

Notice is hereby given of a change of the auditor of BTQ Technologies Corp. (the "Company") pursuant to section 4.11 of NI 51-102 as follows:

1. The Company has accepted the resignation of its auditor, BDO, effective October 21, 2024.

2. MNP has been appointed as auditor of the Company effective November 12, 2024, to hold office until the next annual general meeting of the Company.

3. The determination to accept the resignation of BDO and the determination to appoint MNP, in each case as the Company's auditor, were considered and approved by both the Company's board of directors and its Audit Committee.

4. BDO did not express a modified opinion for its report on the financial statements of the Company for: (a) the most recently completed fiscal year preceding the date of this Notice; or (b) any period subsequent to the most recently completed fiscal year end ending on December 31, 2023.

4. No "reportable events" (as defined in section 4.11(1) of NI 51 - 102) have occurred.

**DATED** the 12th day of November, 2024.

**BTQ Technologies Corp.**

*/s/ Olivier Roussy Newton*

Per: Olivier Roussy Newton, CEO

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## Exhibit 99.46

------

![](exhibit99-46xu001.jpg)

November 12, 2024

British Columbia Securities Commission

Alberta Securities Commission

Ontario Securities Commission

Dear Sirs/ Madams:

**Re: BTQ Technologies Corp. (the "Company")**

Pursuant to National Instrument 51-102 Continuous Disclosure Obligations, we have reviewed the information contained in the Notice of Change of Auditor of the Company dated November 12, 2024 ("the Notice") and, based on our knowledge of such information at this time, we agree with the statements made in the Notice pertaining to our firm. We advise that we have no basis to agree or disagree with the comments in the Notice relating to BDO Canada LLP.

Yours truly,

![](exhibit99-46xu002.jpg)

**Chartered Professional Accountants**

**Licensed Public Accountants**

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## Exhibit 99.47

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| | | |
|:---|:---|:---|
| ![](exhibit99-47x1x1.jpg) | Tel: (604) 688-5421<br>Fax: (604) 688-5132<br>www.bdo.ca | BDO Canada LLP<br>1100 Royal Centre<br>1055 West Georgia Street, P.O. Box 11101<br>Vancouver, British Columbia<br>V6E 3P3 |

---

November 12, 2024

British Columbia Securities Commission

Alberta Securities Commission

Ontario Securities Commission

Dear Sirs/Mesdames:

**Re: BTQ Technologies Corp. (the "Company")**

As required under section 4.11 of National Instrument 51-102, we have read the Company's Change of Auditor Notice dated November 12, 2024 ("the Notice").

We confirm our agreement with the information contained in the Notice pertaining to our firm.

Yours very truly,

/s/ "BDO CANADA LLP"

Chartered Professional Accountants

BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

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## Exhibit 99.48

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**BTQ Technologies Corp. Announces Brokered LIFE Financing up to C$10 Million**

***NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES***

VANCOUVER, BC, Dec. 16, 2024 BTQ Technologies Corp. (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks is pleased to announce that it has entered into an agreement with A.G.P. Canada Investments ULC ("A.G.P. Canada"), who have agreed to sell, on a commercially reasonable efforts private placement basis, up to a maximum of 3,355,704 common shares of the Company ("Common Shares") at a price of C$2.98 per Common Share, for aggregate gross proceeds of up to C$10,000,000 (the "Offering").

The Common Shares to be issued under the Offering will be offered to purchasers pursuant to the listed issuer financing exemption ("LIFE Exemption") under Part 5A of National Instrument 45-106 - *Prospectus Exemptions* ("NI 45-106"), in al the provinces of British Columbia, Alberta and Ontario. The Common Shares offered under the LIFE Exemption will not be subject to resale restrictions pursuant to applicable Canadian securities laws. The Common Shares may also be offered to persons in the United States pursuant to exemptions from the registration requirements under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and all applicable U.S. state securities laws, as well as outside Canada and the United States on a basis which does not require the qualification or registration of any of the Company's securities or require the Company to be subject to any ongoing disclosure requirements under any domestic securities laws.

There is an offering document related to the LIFE Exemption portion of the Offering that can be accessed under the Company's profile on SEDAR+ at www.sedarplus.ca and on the Company's website at https://www.btq.com. Prospective investors should read this offering document before making an investment decision.

The Company plans to use the net proceeds for general corporate purposes, working capital and in relation to its quantum computation memory product. The Offering is scheduled to close on or about December 19, 2024, the ("Closing Date"), and is subject to certain conditions customary for transactions of this nature, including, but not limited to, the receipt of all necessary approvals, including of Cboe Canada. The Company has agreed to pay A.G.P. Canada a cash fee equal to 7% of the gross proceeds from the Offering. In addition, upon closing of the Offering, the Company has agreed to issue A.G.P. Canada non-transferable broker warrants (each, a "Broker Warrant") equal to 5% of the total number of Common Shares sold pursuant to the Offering. Each Broker Warrant will be exercisable for one Common Share at a price of C$4.09 per Broker Warrant and is exercisable for a period of 60 months following the completion of the Offering.

The securities to be offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act or under any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S under the U.S. Securities Act) absent registration or any applicable exemption from the registration requirements under the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

------

News Release \| Page 2

**About BTQ**

BTQ was founded by a group of post-quantum security experts with an interest in addressing the urgent security threat posed by large-scale quantum computers. With the support of leading research institutes and universities, BTQ's extensive technology portfolio and commercialization platform is focused on accelerating quantum advantage.

**Forward-Looking Statements:**

Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares and its use of proceeds from the Offering. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.

The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.

Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward- looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

*The Cboe Canada does not accept responsibility for the adequacy or accuracy of the content of this Press Release.*

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## Exhibit 99.49

------

**BTQ Technologies Corp. Announces Closing of Brokered LIFE Financing of C$10 Million**

***NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES***

VANCOUVER, BC, December 19, 2024 BTQ Technologies Corp. (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission- critical networks is pleased to announce the closing of its previously announced commercially reasonable efforts private placement (the "Offering"). Under the Offering, the Company sold 3,355,704 common shares of the Company ("Common Shares") at a price of C$2.98 per Common Share, for aggregate gross proceeds of approximately C$10,000,000. A.G.P. Canada Investments ULC ("A.G.P. Canada") acted as sole bookrunner for the Offering and A.G.P./Alliance Global Partners ("A.G.P.") acted as the sole U.S. agent to the Company in connection with the Offering.

The Common Shares were sold pursuant to the listed issuer financing exemption ("LIFE Exemption") under Part 5A of National Instrument 45-106 - *Prospectus Exemptions* ("NI 45-106"), in the provinces of British Columbia, Alberta and Ontario. The Company filed a Form 45-106F1 offering document (the "Offering Document"), which may be accessed under the Company's profile at <u>www.sedarplus.ca</u> and on the Company's website at <u>https://www.btq.com</u>. Pursuant to applicable Canadian securities laws, the Shares issued pursuant to the LIFE Exemption are immediately freely tradeable for Canadian purchasers and are not subject to a restricted trade period.

The Company intends to use the net proceeds from the Offering for general corporate purposes, working capital and in relation to its quantum computation memory product. The Company has paid A.G.P. Canada a cash fee equal to 7% of the gross proceeds from the Offering and issued to A.G.P. Canada non- transferable broker warrants (each, a "Broker Warrant") equal to 5% of the total number of Common Shares sold pursuant to the Offering. Each Broker Warrant will be exercisable for one Common Share at a price of C$4.09 per Broker Warrant and is exercisable for a period of 60 months following the completion of the Offering.

The securities to be offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act or under any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S under the U.S. Securities Act) absent registration or any applicable exemption from the registration requirements under the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

**About BTQ**

BTQ was founded by a group of post-quantum security experts with an interest in addressing the urgent security threat posed by large-scale quantum computers. With the support of leading research institutes and universities, BTQ's extensive technology portfolio and commercialization platform is focused on accelerating quantum advantage.

**Forward-Looking Statements:**

Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares and its use of proceeds from the Offering. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.

------

News Release \| Page 2

The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.

Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward- looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

*The Cboe Canada does not accept responsibility for the adequacy or accuracy of the content of this Press Release.*

------

## Exhibit 99.50

------

**FORM 51-102F3**

**MATERIAL CHANGE REPORT**

**Item 1. Name and Address of Company**

BTQ Technologies Corp. (the "**Company**")

16 - 113 555 Burrard Street

Vancouver, BC, V7X 1M8

**Item 2. Dates of Material Change**

December 16 and December 19, 2024

**Item 3. News Releases**

News releases relating to the material change were disseminated through Cision on December 16 and December 19, 2024.

**Item 4. Summary of Material Change**

On December 16, 2024, the Company announced that it had entered into an agreement with A.G.P. Canada Investments ULC ("**A.G.P. Canada**"), who had agreed to sell, on a commercially reasonable efforts private placement basis, up to a maximum of 3,355,704 common shares of the Company ("**Common Shares**") at a price of C$2.98 per Common Share, for aggregate gross proceeds of up to approximately C$10,000,000 (the "**Offering**").

On December 19, 2024, the Company announced the closing of the Offering. Under the Offering, the Company sold 3,355,704 Common Shares (the "**Offered Securities**") at a price of C$2.98 per Common Share, for aggregate gross proceeds of approximately C$10,000,000.

**Item 5. Full Description of Material Change**

On December 16, 2024, the Company entered into an agreement with A.G.P. Canada, who agreed to sell, on a commercially reasonable efforts private placement basis, up to a maximum of 3,355,704 Common Shares at a price of C$2.98 per Common Share, for aggregate gross proceeds of up to approximately C$10,000,000.

The Offered Securities issued under the Offering were offered to purchasers pursuant to the listed issuer financing exemption ("**LIFE Exemption**") under Part 5A of National Instrument 45-106 - *Prospectus Exemptions* ("**NI 45-106**"), in the provinces of British Columbia, Alberta and Ontario. The Offered Securities are not subject to resale restrictions pursuant to applicable Canadian securities laws in accordance with the LIFE Exemption.

The Company paid A.G.P. Canada a cash fee equal to 7% of the gross proceeds from the Offering. In addition, the Company issued A.G.P. Canada non-transferable broker warrants (each, a "**Broker Warrant**") equal to 5% of the Offered Securities sold pursuant to the Offering. Each Broker Warrant is exercisable for one Common Share at a price of C$4.09 per Common Share for a period of 60 months following the completion of the Offering.

------

The Offered Securities have not been, and will not be, registered under the U.S. Securities Act or under any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S under the U.S. Securities Act) absent registration or any applicable exemption from the registration requirements under the U.S. Securities Act and applicable U.S. state securities laws. This material change report shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

**Item 6. Reliance on subsection 7.1(2) of National Instrument 51-102**

Not applicable.

**Item 7. Omitted Information**

Not applicable.

**Item 8. Executive Officer**

Olivier Roussy Newton, Chief Executive Officer

Telephone Number: 323-537-7681

**Item 9. Date of Report**

December 19, 2024

------

## Exhibit 99.51

------

![](exhibit99-51x1x1.jpg)

**BTQ Technologies Announces Funding from National**

**Research Council of Canada Industrial Research Assistance**

**Program (NRC IRAP)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Funding:** BTQ Technologies will receive funding of up to $150,000 from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP). This funding will enhance BTQ's IP portfolio, contributing to the company's R&D efforts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Innovative Research:** The NRC IRAP-funded project aims to develop distributed consensus algorithms for secure quantum random number generation (QRNG) as an oracular service, which is vital for cryptography and various mission-critical industries such as blockchain, telecommunications, and finance.

**Vancouver, British Columbia, December 23, 2024 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce that it will receive up to $150,000 in funding from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP). This funding will support the research and development project titled "Secure Shared Quantum Random Number Generation Using Distributed Consensus Algorithms." The project aims to develop distributed consensus algorithms for secure quantum random number generation (QRNG) as an oracular service.

Random number generation (RNG) is central to many applications in cryptography and scientific simulation techniques and is crucial in industries such as blockchain, telecommunications, and finance. BTQ plans to pursue additional research and development funding and collaborations to expand its presence in Canada's vibrant quantum and cybersecurity ecosystems.

Olivier Roussy-Newton, Chairman and CEO of BTQ, commented on the support from NRC IRAP: "We are delighted to receive this support from NRC IRAP for our QRNG research and development project as we continue to build our presence in Canada's vibrant quantum ecosystem."

**About BTQ**

BTQ Technologies Corp. (CBOE CA: BTQ, FSE: NG3, OTCQX: BTQQF) was founded by a group of post-quantum security experts with an interest in addressing the urgent security threat posed by large-scale quantum computers. With the support of leading research institutes and universities, BTQ's extensive technology portfolio and commercialization platform is focused on accelerating quantum advantage.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u> \| <u>X/Twitter</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

------

![](exhibit99-51x2x1.jpg)

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.52

------

![](exhibit99-52x1x1.jpg)

**BTQ Technologies Announces Strategic Collaboration with**

**South Korean Quantum Organizations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Strategic Collaboration**: BTQ Technologies has signed an MOU with South Korea's Future Quantum Convergence Forum (FQCF), Quantum Industrial Standard Association (QuINSA), and Future Quantum Convergence Institute (QCI) to drive innovation and foster global cooperation in quantum technologies through initiatives in industrial standards, events, and industry-academic programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **South Korea's Quantum Leadership**: The partnership aligns with South Korea's ambitious Quantum Technology Industry Act and national strategy, aiming to become a global quantum economy hub by 2035 with initiatives like developing a 1,000-qubit quantum computer, building a 100-km quantum network, and fostering 1,200 quantum companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **BTQ's Mission**: This collaboration underscores BTQ's commitment to advancing quantum security solutions and strengthening its presence in the rapidly growing South Korean quantum ecosystem, furthering its mission to safeguard global digital infrastructure against emerging quantum threats.

**Vancouver, December 31, 2024 - BTQ Technologies Corp. (the "Company")** (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce the signing of a Memorandum of Understanding (**"MOU"**) with the Future Quantum Convergence Forum (**"FQCF"**), the Quantum Industrial Standard Association (**"QuINSA"**), and the Future Quantum Convergence Institute (**"QCI"**). This collaboration represents a significant step toward fostering global innovation and cooperation in quantum technologies.

The MOU outlines a framework for mutually beneficial activities aimed at advancing business growth, international expansion, and industrial collaboration. Together, the parties will explore initiatives in areas such as industrial standards, events and seminars, and industry-academic cooperation programs.

**Key Areas of Collaboration:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Industrial Standard Development:** Joint efforts to establish and promote quantum industrial standards to accelerate global adoption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Events and Seminars:** Organization of collaborative events, both online and offline, to share knowledge and foster partnerships within the quantum technology ecosystem.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Industry-Academic Programs:** Development of cooperative programs to bridge the gap between academia and industry, facilitating the discovery of new use cases and models for quantum technology industrialization.

------

![](exhibit99-52x2x1.jpg)

"This partnership underscores BTQ's commitment to driving quantum innovation on a global scale," said Nicolas Roussy Newton, Chief Operating Officer of BTQ Technologies. "Collaborating with leading organizations like FQCF, QuINSA, and QCI enables us to accelerate the development of cutting-edge quantum solutions while building stronger ties with the South Korean quantum ecosystem."

"Hyo-Sil Kim, Director of QCI, expressed her expectations, stating, "We look forward to fostering mutually beneficial collaboration in the field of quantum communication with the FQCF, the QuINSA, and Canada's BTQ. This partnership will serve as a significant step toward advancing global quantum technology and standardization."

This partnership is part of BTQ Technologies' ongoing mission to deliver advanced quantum security solutions and contribute to the global quantum technology landscape.

**South Korea's Vision for Quantum Technology Leadership**

South Korea is making significant strides in quantum technology, highlighted by the enactment of the Quantum Technology Industry Act in 2023, which took effect on November 1, 2024, and the unveiling of its Quantum Science and Technology Strategy in the same year. These initiatives are designed to establish South Korea as a global leader in quantum innovation by 2035.

**Key Developments and Goals:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Legislative Framework**: The Quantum Technology Industry Act establishes a strategic foundation for research, industry growth, and security integration. It mandates a coordinated approach through a Quantum Strategy Committee, chaired by the Prime Minister, which develops comprehensive plans every five years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **National Strategy**: South Korea aims to achieve:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**○ A 1,000-qubit quantum computer by the early 2030s.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ A **100-km quantum network** for secure intercity communication

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ A **10% market share** in the global quantum industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Training of **2,500 core professionals** and **10,000 quantum-related experts** by 2035.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**○ The creation of 1,200 quantum technology companies.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Infrastructure and Research**: Investments include quantum fabs, testing facilities, and designated Quantum Science and Technology Research Centers to foster industry-academia-research collaboration. Efforts also focus on advanced quantum sensors for industrial and defense applications.

------

![](exhibit99-52x3x1.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **International Collaboration**: South Korea is actively pursuing alliances with the United States, European Union, and other quantum-leading nations. Investment in global cooperation will scale up, promoting joint research, personnel exchange, and international supply chain development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Private Sector Integration**: By incentivizing private sector involvement with exclusive licensing and IP rights during technology transfers, South Korea ensures active participation in quantum innovation.

**Vision for 2035:**

South Korea's strategy reflects a bold vision to become the global hub for the quantum economy, transforming its expertise in internet technologies into quantum communication and computation leadership. The roadmap emphasizes a cohesive ecosystem that integrates national security, academic research, industry growth, and international partnerships.

These initiatives underline South Korea's proactive approach to securing a competitive edge in the global quantum landscape, making it a compelling partner for international collaborations such as BTQ Technologies' recent MOU with Korean quantum organizations.

**About Future Quantum Convergence Forum (FQCF)**

Future Quantum Convergence Forum (FQCF) serves as an interface among industry, academia, and research institutions, driving the activation of the overall Korean quantum industry ecosystem. For more information please visit <u>https://www.fqcf.org/</u>

**About QuINSA**

QuINSA is an industry-led international de facto standardization organization for the quantum information technology industry. It will play a crucial role in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Developing international de facto standards and proposals for various quantum technologies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Analyzing global standardization trends in quantum information technology

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Identifying use cases and promoting industrialization

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Cooperating with international standardization organizations

For more information please visit <u>http://www.qs.or.kr</u>

------

![](exhibit99-52x4x1.jpg)

**About BTQ**

BTQ Technologies Corp. (CBOE CA: BTQ, FSE: NG3, OTCQX: BTQQF) was founded by a group of post-quantum security experts with an interest in addressing the urgent security threat posed by large-scale quantum computers. With the support of leading research institutes and universities, BTQ's extensive technology portfolio and commercialization platform is focused on accelerating quantum advantage.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

------

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

--

Photo:

![](exhibit99-52xu001.jpg)

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## Exhibit 99.53

------

![](exhibit99-53x1x1.jpg)

**BTQ Technologies Acquires Cutting-Edge**

**Computing-in-Memory Intellectual Property from Cimtech**

**Technology Co.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Strategic Acquisition**: BTQ Technologies Corp. has acquired advanced computing-in-memory (CIM) intellectual property from Cimtech Technology Co., a leader in memory technology and CIM solutions, to enhance its post-quantum cryptography and quantum-secure communication capabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Cutting-Edge Technology**: Cimtech's state-of-the-art CIM IP, developed using TSMC's 28nm HPC process, includes critical assets like Verilog models and timing libraries, enabling high-speed, low-power computation ideal for next-generation cryptographic accelerators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Innovative Applications**: This acquisition supports BTQ's development of specialized Number Theoretic Transform (NTT) accelerators, addressing growing computational demands in applications such as zero-knowledge proofs, homomorphic encryption, and post-quantum cryptography.

**Vancouver, January 15, 2025 - BTQ Technologies Corp. (the "Company")** (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce the acquisition of advanced intellectual property (IP) from Cimtech Technology Co., LTD ("**Cimtech**"), a leading innovator in memory technology and computing-in-memory (CIM) solutions. This strategic acquisition positions BTQ at the forefront of computing innovation, enhancing its capabilities in post-quantum cryptography and quantum-secure communication technologies.

Cimtech's cutting-edge CIM technology, developed in collaboration with National Tsing Hua University and supported by its R&D office in Hsinchu, Taiwan, complements BTQ's mission to deliver next-generation secure and energy-efficient computing solutions. The integration of this IP is a strategic move to enhance BTQ's capabilities in addressing the growing challenges of post-quantum cryptography and quantum-ready systems.

**What is Computing-in-Memory (CIM)?**

Computing-in-Memory (CIM) is a next-generation architecture designed to overcome the limitations of traditional computing systems. By integrating computation and memory storage into a unified framework, CIM drastically reduces data movement, improving speed and energy efficiency. This approach is particularly valuable for applications in machine learning, cryptography, and quantum computing, where the demand for processing power and efficiency continues to grow exponentially.

------

![](exhibit99-53x2x1.jpg)

**The Significance of Cimtech's IP**

Cimtech Technology Co. has developed a state-of-the-art 32x64 CIM node using TSMC's 28nm High-Performance Computing (HPC) process. This IP includes critical design assets such as Verilog behavior models, timing libraries, layout (GDS), and other advanced components essential for implementing CIM technology. Notably, Cimtech's IP enables high-speed, low-power computation, making it a cornerstone for creating cutting-edge cryptographic accelerators and secure communication hardware.

Cimtech Technology Co. is a leader in memory technology, specializing in computing-in-memory silicon intellectual property (IP). The company collaborates closely with National Tsing Hua University (Taiwan), leveraging cutting-edge research and academic expertise to develop groundbreaking innovations. Its research and development office is located in the Center of Innovative Incubator at Tsing Hua University in Hsinchu, Taiwan, placing Cimtech at the heart of technological advancements in the CIM domain.

Cimtech's innovation is driven by the expertise of Jalen Hsu, the company's Design Team Leader. Jalen is a seasoned expert in analog IC design, semiconductor processes, and system-on-chip (SoC) project management. Over his distinguished career, he has held leadership roles at industry giants like TSMC and Rambus, where he spearheaded pioneering projects in memory circuits, silicon-based device physics, and computing architectures. Mr.Hsu's work has earned international recognition through multiple IEEE publications and patents, including advancements in ESD protection and CMOS image sensors. Under his guidance, Cimtech has developed cutting-edge CIM IP that is poised to transform the landscape of secure computing.

**Enhancing Number Theoretic Transform (NTT) Capabilities**

A key area where this acquisition will have a profound impact is in the implementation of the Number Theoretic Transform (NTT). NTT is fundamental in accelerating complex mathematical computations required for applications like zero-knowledge proofs (ZK), homomorphic encryption (HE), and post-quantum cryptography (PQC). By leveraging Cimtech's CIM IP, BTQ aims to develop specialized NTT accelerators that significantly enhance computational efficiency and security.

"The demand for NTT computation in future computing devices, driven by applications like ZK, HE, and PQC, is growing rapidly," said Jalen Hsu, Design Team Leader at Cimtech Technology Co. "By combining BTQ's advanced algorithms with Cimtech's circuit design expertise and state-of-the-art CIM IP, we aim to accelerate the adoption of NTT accelerators and drive technological advancements across industries."

------

![](exhibit99-53x3x1.jpg)

**Strategic Benefits**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Enhanced Efficiency**: CIM technology significantly reduces energy consumption while increasing computational speed, a critical requirement for post-quantum cryptographic applications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Future-Ready Solutions**: The integration of this IP strengthens BTQ's capacity to deliver hardware solutions optimized for quantum-resistant security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Advanced Toolkits**: The acquired assets, including proprietary design kits and behavioral models, will accelerate BTQ's development pipeline for quantum-secure systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Innovation Leadership**: Cimtech's CIM IP solidifies BTQ's position as a leader in advancing the state of secure computing technologies.

"Acquiring Cimtech's innovative CIM technology aligns perfectly with our commitment to building the future of quantum-secure systems," said Nicolas Roussy Newton, COO of BTQ Technologies. "This acquisition empowers BTQ to address the emerging challenges of post-quantum cryptography with unparalleled efficiency and security."

**About Cimtech Technology Co.**

Cimtech Technology Co., LTD is a leading innovator in memory technology, specializing in computing-in-memory (CIM) silicon property (IP) solutions. Based in Taiwan, Cimtech collaborates with prominent academic institutions, including National Tsing Hua University, to leverage cutting-edge research and advance the field of CIM technology. The company's R&D operations, located at the Center of Innovative Incubator at Tsing Hua University in Hsinchu, place it at the forefront of technological development. Cimtech is dedicated to delivering high-performance, energy-efficient IP tailored to meet the needs of next-generation cryptographic and computing applications.

**About BTQ**

BTQ Technologies Corp. (CBOE CA: BTQ, FSE: NG3, OTCQX: BTQQF) was founded by a group of post-quantum security experts with an interest in addressing the urgent security threat posed by large-scale quantum computers. With the support of leading research institutes and universities, BTQ's extensive technology portfolio and commercialization platform is focused on accelerating quantum advantage.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

------

![](exhibit99-53x4x1.jpg)

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

--

------

## Exhibit 99.54

------

![](exhibit99-54x1x1.jpg)

**BTQ Technologies Announces Publication of Research on<br>Quantum Proof-of-Work Consensus in "Quantum Science<br>and Technology" Journal**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Prestigious Publication Acceptance**: BTQ Technologies' research paper, "Proof-of-Work Consensus by Quantum Sampling," marks a significant milestone in advancing sustainable and quantum-secure blockchain technology. It has been accepted for publication in the highly respected, peer-reviewed journal *Quantum Science and Technology*, published by IOP Publishing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Rigorous Peer Review**: The paper underwent an extensive peer-review process, affirming the quality, innovation, and significance of the proposed quantum-based Proof-of-Work (PoW) consensus method for blockchain technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Research Overview**: The paper introduces a novel approach using coarse-grained boson sampling (CGBS) to create a more efficient, energy-saving, and quantum-secure method for validating blockchain transactions, addressing limitations of traditional PoW systems.

**Vancouver, January 27, 2025 - BTQ Technologies Corp. (the "Company")** (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce to announce the publication of the research *paper "Proof-of-Work Consensus by Quantum Sampling" in the prestigious journal Quantum Science and Technology*, published by IOP Publishing. This peer-reviewed, open-access article marks a significant milestone in advancing sustainable and quantum-secure blockchain technology.

The paper, co-authored by BTQ researchers, introduces a novel approach to use boson sampling to improve blockchain consensus. Blockchain consensus is the process that ensures all transactions are validated and recorded securely across a network. The proposed method uses coarse-grained boson sampling to perform these validations more efficiently while significantly reducing energy consumption compared to traditional methods."

**Key Highlights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Innovative Technology:** The research demonstrates how CGBS can enable a new type of Proof-of-Work (PoW) consensus, replacing energy-intensive calculations in traditional blockchain mining with efficient quantum processes. This innovation makes blockchain systems faster and more sustainable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Energy Efficiency:** Unlike conventional PoW, which requires immense computational power and high energy consumption, this approach utilizes quantum hardware to complete mining tasks with minimal energy.

------

![](exhibit99-54x2x1.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Post-Quantum Security:** The proposed approach is designed to resist attacks from quantum computers, ensuring long-term security for blockchain systems as technology evolves.

This research addresses a major challenge in blockchain technology: balancing security with sustainability. Traditional PoW systems, such as those used in Bitcoin, demand substantial energy to function. The quantum-powered alternative proposed in this paper offers a more eco-friendly solution without compromising security. Furthermore, it showcases a practical application for emerging quantum computing technology, marking a significant step toward its commercialization.

"This research reflects BTQ's commitment to driving innovation at the intersection of quantum computing and blockchain technology," said Nicolas Roussy Newton, COO of BTQ Technologies. "By introducing a sustainable and quantum-secure approach to consensus, we are tackling environmental challenges and ensuring the future viability of blockchain systems. This is crucial for maintaining trust and efficiency in decentralized networks."

This publication underscores BTQ's leadership in quantum technologies and highlights the Company's strategy to capitalize on emerging opportunities while mitigating risks in blockchain and cybersecurity. The research demonstrates BTQ's ability to translate cutting-edge science into scalable, market-ready solutions that align with global trends in sustainability and quantum readiness.

The publication underwent a rigorous peer-review process, underscoring the quality and impact of the work. It is available for open access on the *Quantum Science and Technology* website, ensuring wide dissemination to the global scientific and technology communities.

To read the full paper, visit: <u>Quantum Science and Technology Journal</u>.

**About IOPscience**

IOPscience is an online service for journal content published by IOP Publishing. IOPscience embraces innovative technologies to make it easier for researchers to access scientific, technical and medical content. For more information please visit <u>https://iopscience.iop.org/</u>

**About BTQ**

BTQ Technologies Corp. (CBOE CA: BTQ, FSE: NG3, OTCQX: BTQQF) was founded by a group of post-quantum security experts with an interest in addressing the urgent security threat posed by large-scale quantum computers. With the support of leading research institutes and universities, BTQ's extensive technology portfolio and commercialization platform is focused on accelerating quantum advantage.

------

![](exhibit99-54x3x1.jpg)

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

------

![](exhibit99-54x4x1.jpg)

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

--

------

## Exhibit 99.55

------

AMENDED AND RESTATED

![](exhibit99-55x1x1.jpg)

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Financial Statements

Three and Nine Months Ended September 30, 2024 and 2023

(unaudited)

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Financial Position<br>(Expressed in Canadian dollars)

---

| |
|:---|
| Assets |
| Current assets |
| &nbsp;&nbsp;Cash |
| &nbsp;&nbsp;Short-term investments (Note 8) |
| &nbsp;&nbsp;Other receivables (Note 15) |
| &nbsp;&nbsp;Prepaid expenses and deposits |
| Total current assets |
| Non-current assets |
| &nbsp;&nbsp;&nbsp;Property and equipment (Note 4) |
| &nbsp;&nbsp;&nbsp;Right-of-use asset (Note 5) |
| &nbsp;&nbsp;&nbsp;Investments (Note 7) |
| &nbsp;&nbsp;&nbsp;Intangible asset (Note 19) |
| &nbsp;&nbsp;&nbsp;Deposits |
| Total non-current assets |
| Total assets |
| Liabilities and shareholders' equity (deficit) |
| Current liabilities |
| &nbsp;&nbsp;Accounts payable and accrued liabilities (Note 15) |
| &nbsp;&nbsp;Corporate taxes payable |
| &nbsp;&nbsp;Other payable |
| &nbsp;&nbsp;Current portion of lease obligation (Note 9) |
| &nbsp;&nbsp;Deferred revenue (Note 22) |
| &nbsp;&nbsp;Due to related parties (Note 15) |
| Total current liabilities |
| Non-current liabilities |
| &nbsp;&nbsp;Convertible debt (Note 10) |
| &nbsp;&nbsp;Lease obligation (Note 9) |
| Total liabilities |
| Shareholders' equity (deficit) |
| &nbsp;&nbsp;Share capital (Notes 3 and 11) |
| &nbsp;&nbsp;Equity portion of convertible debt reserve (Note 10) |
| &nbsp;&nbsp;Options reserve (Notes 3 and 12) |
| &nbsp;&nbsp;Warrants reserve |
| &nbsp;&nbsp;RSUs reserve (Note 14) |
| &nbsp;&nbsp;Deficit) |
| Total shareholders' equity (deficit) |
| Total liabilities and shareholders' equity (deficit) |

---

Nature of operations and going concern (Note 1)

Subsequent events (Note 24)

Approved and authorized for issuance on behalf of the Board of Directors on February 5, 2025:

<u> *"*Olivier Roussy Newton*"* </u> Director <u> *"Michael Resendes"* </u> Director

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss <br>(Expressed in Canadian dollars)

(unaudited)

---

| |
|:---|
| Revenue (Note 22) |
| Expenses |
| &nbsp;&nbsp;Consulting fees (Note 15) |
| &nbsp;&nbsp;Depreciation (Notes 4 and 5) |
| &nbsp;&nbsp;General and administrative (Note 21) |
| &nbsp;&nbsp;Marketing and promotion (Note 15) |
| &nbsp;&nbsp;Professional fees (Note 15) |
| &nbsp;&nbsp;Research and development (Note 15) |
| &nbsp;&nbsp;Share-based compensation (Notes 12, 14, and 15) |
| &nbsp;&nbsp;Transfer agent and regulatory fees |
| &nbsp;&nbsp;Wages and benefits (Note 15) |
| Total expenses |
| Loss before other income (expense) |
| Other income (expense) |
| &nbsp;&nbsp;Collaboration and grant income |
| &nbsp;&nbsp;Foreign exchange loss) |
| &nbsp;&nbsp;Interest expense (Notes 9 and 10) |
| &nbsp;&nbsp;Interest income |
| &nbsp;&nbsp;Listing costs (Note 3) |
| &nbsp;&nbsp;Loss on sale of property and equipment) |
| &nbsp;&nbsp;Transaction costs (Note 3) |
| Total other income (expense) |
| Net loss and comprehensive loss for the period) |
| Loss per share, basic and diluted) |
| Weighted average number of common shares outstanding |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Deficit) <br>(Expressed in Canadian dollars)

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | Equity portion |  |
|  | Share capital | Share capital | of convertible |  |
|  | Share capital | Share capital | debt | Warrants |
|  | Number of | Amount | reserve | reserve |
|  | shares | $| $| $|
| Balance, December 31, 2023 | 123193879 | 34317779 |  | 67386) |
| Shares issued for options exercised | 260000 | 171808 | -) |  |
| Share-based compensation |  |  | -) | -) |
| Shares issued for vested RSU's | 750000 | 456000 |  | -) |
| Equity portion of convertible debt |  |  | 305555 |  |
| Net loss and comprehensive loss for the period |  |  |  | -) |
| Balance, September 30, 2024 | 124203879 | 34945587 | 305555 | 67386) |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Deficit) <br>(Expressed in Canadian dollars)

(unaudited)

---

| | | | |
|:---|:---|:---|:---|
|  | Share capital |  |  |
|  |  | Options | Warrants |
|  | Number of | reserve | reserve |
|  | shares | $| $|
| Balance, December 31, 2022 | 92000000 |  | -) |
| Shares of the Company pursuant to reverse takeover | 8747629 |  |  |
| Revaluation of stock options pursuant to reverse takeover |  | 97532 |  |
| Shares issued for cash | 18001250 |  |  |
| Shares issued to finder for the Transaction | 2500000 |  |  |
| Share issuance costs | -) |  | 67386) |
| Shares issued from vested RSU's | 1822500 |  | -) |
| Fair value of stock options granted |  | 1271628 |  |
| Fair value of restricted share units granted |  |  |  |
| Net loss and comprehensive loss for the period |  |  | -) |
| Balance, September 30, 2023 | 123071379 | 1369160 | 67386) |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Statements of Cash Flows <br>(Expressed in Canadian dollars)

(unaudited)

---

| |
|:---|
| Operating activities |
| Net loss and comprehensive loss for the period) |
| Items not involving cash: |
| &nbsp;&nbsp;Depreciation |
| &nbsp;&nbsp;Foreign exchange translation gain) |
| &nbsp;&nbsp;Interest expense |
| &nbsp;&nbsp;Listing costs |
| &nbsp;&nbsp;Loss on disposal of property and equipment |
| &nbsp;&nbsp;Share-based compensation) |
| &nbsp;&nbsp;Transaction costs |
| Changes in non-cash operating working capital: |
| &nbsp;&nbsp;&nbsp;Other receivables) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and deposits) |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities) |
| &nbsp;&nbsp;&nbsp;Other payable |
| &nbsp;&nbsp;&nbsp;Deferred revenue |
| Net cash used in operating activities) |
| Investing activities |
| &nbsp;&nbsp;&nbsp;Redemption of short-term investment |
| &nbsp;&nbsp;&nbsp;Proceeds from repayment of loan receivable |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment) |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of property and equipment |
| &nbsp;&nbsp;&nbsp;Purchase of intangible asset) |
| &nbsp;&nbsp;&nbsp;Purchase of investment) |
| &nbsp;&nbsp;&nbsp;Cash acquired in reverse takeover |
| Net cash provided by investing activities |
| Financing activities |
| &nbsp;&nbsp;Repayment of lease obligation) |
| &nbsp;&nbsp;Proceeds from convertible debt |
| &nbsp;&nbsp;Proceeds from issuance of shares |
| &nbsp;&nbsp;Share issuance costs) |
| Net cash provided by financing activities |
| Change in cash) |
| Cash, beginning of period |
| Cash, end of period |
| Supplemental cash flow information (Note 16) |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**1. NATURE OF OPERATIONS AND GOING CONCERN**

BTQ Technologies Corp. (formerly Sonora Gold & Silver Corp.) ("the Company") was incorporated on November 23, 1983 under the Business Corporations Act (British Columbia). The principal activity of the Company is the development of computer-based technology related to post-quantum cryptography, particularly as it applies to blockchain and related technologies, and their protection from the emerging security risk of quantum computing. The Company's head office is located at 16-104 555 Burrard Street, Vancouver, BC, Canada. The Company's common shares trade on Cboe Canada under the ticker symbol "BTQ".

On February 17, 2023, the Company acquired all of the issued and outstanding shares of BTQ AG in exchange for 92,000,000 common shares. This transaction constituted a reverse takeover of the Company by BTQ AG with BTQ AG being identified as the accounting acquirer. As a result, these consolidated financial statements are a continuation of BTQ AG. The Company's results of operations are included from February 17, 2023 onwards, except for share capital which has been retroactively adjusted to reflect the capital of the Company. Refer to Note 3.

These consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. During the nine months ended September 30, 2024, the Company has a net loss and has negative cash flow from operations. As at September 30, 2024, the Company has a working capital deficit of $1,127,391 and an accumulated deficit of $39,127,263. The Company's ability to continue its operations and to realize its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs. Management is of the opinion that sufficient working capital will be obtained from external financing to meet the Company's liabilities and commitments as they become due, although there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These factors indicate a material uncertainty that may cast significant doubt on the ability of the Company to continue as a going concern. These consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. Such adjustments could be material.

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICY INFORMATION** 

**Statement of Compliance**

These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") applicable to interim financial information, as outlined in International Accounting Standard ("IAS") 34, "Interim Financial Reporting" and using the accounting policies consistent with those in the audited financial statements as at and for the year ended December 31, 2023 except as detailed below.

The condensed interim consolidated financial statements of the Company have been prepared on an accrual basis and are based on historical cost, except for certain financial assets and liabilities that are measured at fair value.

**Basis of Presentation**

These consolidated financial statements have been prepared on a historical cost basis except for certain financial assets and liabilities, which are measured at fair value, as specified by IFRS for each type of asset, liability, income, and expense as set out in the accounting policies below.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICY INFORMATION** (continued)

**Basis of consolidation**

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, BTQ AG, a company incorporated in the Principality of Liechtenstein, and BTQ Technologies Australia Pty Ltd., a company incorporated in Australia.

These consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances are eliminated on consolidation. Control exists where the parent entity has power over the investee and is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Subsidiaries are included in the financial statements from the date control commences until the date control ceases.

**Revenue recognition**

Under IFRS 15, "Revenue from Contracts with Customers", the Company uses the 5-step model for revenue recognition based on identifying the contract with the customer, identifying the performance obligations, determining the individual transaction price, and allocating the transaction price to the individual performance obligations making up the contract. Revenue is then recognized when or as the associated performance obligations are delivered and based on the expected consideration to be received. The Company generates revenues from licensing the right to use the Company's intellectual property. The fees that are outlined in an agreement are recognized when the Company's obligations have been performed. For licenses with multiple performance obligations, the Company will identify specific distinct goods and services and will recognize revenue when the performance obligations for each distinct good or service has been performed.

**Accounting standards issued but not yet effective**

A number of new standards, and amendments to standards and interpretations, are not yet effective for the period ended September 30, 2024, and have not been early adopted in preparing these consolidated financial statements. The Company has assessed these standards, including amendments to IAS 1 - Non- current liabilities and Covenants, which is effective January 1, 2024. These new standards, and amendments to standards and interpretations are either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements.

**3. REVERSE TAKEOVER**

On December 31, 2021 (as amended on April 29, 2022, July 30, 2022, and November 29, 2022), the Company, BTQ AG, and shareholders of BTQ AG entered into an agreement pursuant to which the Company agreed to acquire all of the issued and outstanding shares of BTQ AG (the "Transaction").

The closing of the Transaction occurred on February 17, 2023, at which time the Company issued 92,000,000 common shares in exchange for the issued and outstanding common shares of BTQ AG. The Company consolidated its common shares on a 10:1 basis immediately prior to the closing of the transaction**.**

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**3. REVERSE TAKEOVER** (continued)

As a result of the completion of the Transaction, the former shareholders of BTQ AG acquired 75.88% of the outstanding common shares of the Company, and, for accounting purposes, are considered to have acquired control of the Company. Accordingly, the Transaction constitutes a reverse acquisition of the Company by BTQ AG and has been accounted for as a reverse acquisition transaction in accordance with the guidance provided in IFRS 2, *Share-based Payment* and IFRS 3, *Business Combinations*. As the Company did not qualify as a business prior to the closing of the transaction according to the definition in IFRS 3, this reverse acquisition did not constitute a business combination; rather it was treated as an issuance of shares by BTQ AG for the net assets of the Company. Accordingly, no goodwill was recorded with respect to the Transaction. The Transaction was measured at the fair value of the common shares that BTQ AG would have had to issue to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051, and the fair value of 350,000 stock options of the Company with a fair value of $97,532, to give the shareholders of the Company the same percentage of equity interest in the combined entity that results from the reverse acquisition had it taken the legal form of BTQ AG acquiring the Company. The Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction. The fair value of common shares and stock options issued were estimated based on the Company's financing event which took place concurrently to the reverse takeover transaction at the price of $0.40 per common share. Refer to Note 10. As BTQ AG was deemed to be the acquirer for accounting purposes, its assets, liabilities, and operations since its incorporation on March 26, 2021 are included in these consolidated financial statements at their historical carrying values. The assets, liabilities, and results of operations of the Company are included in these consolidated financial statements from the date acquisition on February 17, 2023.

The purchase price was allocated as follows:

---

| |
|:---|
| Fair value of the Company's shares (8,747,629 common shares) |
| Fair value of 350,000 stock options of the Company outstanding |
| Total consideration |
| Less: fair value of identifiable assets acquired and liabilities assumed: |
| Cash |
| Cash held in escrow |
| Receivables |
| Short-term investment |
| Accounts payable and accrued liabilities) |
| Subscription receipts liabilities) |
| Net liabilities assumed) |
| Listing costs |

---

The fair value of stock options of the Company was calculated using the Black-Scholes option pricing model with the following assumptions: volatility of 150%, expected life of 2.1 years, no dividends, no forfeitures, and a risk-free rate of 4.15%.

The Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**4. PROPERTY AND EQUIPMENT**

---

| |
|:---|
| Cost: |
| Balance, December 31, 2023 |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposals) |
| Balance, September 30, 2024 |
| Accumulated depreciation: |
| Balance, December 31, 2023 |
| &nbsp;&nbsp;&nbsp;&nbsp;Addition |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposals) |
| Balance, September 30, 2024 |
| Carrying amounts: |
| As at December 31, 2023 |
| As at September 30, 2024 |

---

**5. RIGHT-OF-USE ASSET**

---

| |
|:---|
| Cost: |
| Balance, December 31, 2023 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal) |
| Balance, September 30, 2024 |
| Accumulated depreciation: |
| Balance, December 31, 2023 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange translation difference) |
| Balance, September 30, 2024 |
| Carrying amounts: |
| As at December 31, 2023 |
| As at September 30, 2024 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**6. LOAN RECEIVABLE**

On December 1, 2022, BTQ AG entered into an agreement with MEV Trading Inc. ("MEV"), under which the BTQ AG granted a loan of $1,354,400 (US$1,000,000) which is non-interest bearing, and due on June 30, 2023. In consideration for the loan, MEV issued a warrant to BTQ AG entitling BTQ AG to purchase shares of MEV non-voting stock equal to 10% of the loan amount based on the fully-diluted pre-money valuation of the borrower as determined by the most recent qualified equity financing round before the maturity date or within one year of issuance, whichever occurs earlier (expired on June 30, 2023). The fair value of the warrants issued was determined to be nominal. On August 7, 2023, the Company received repayment of the $1,343,300 (US$1,000,000) loan receivable.

**7. INVESTMENTS**

---

| | |
|:---|:---|
|  | $|
| Balance, December 31, 2023 and September 30, 2024 | 77229 |

---

During the year ended December 31, 2022, the BTQ AG invested $63,915 (US$50,000) in the form of a Simple Agreement for Future Equity ("SAFE") in the Holonym Foundation, which is a public benefit corporation. The investment is not traded in an active market.

On January 11, 2023, BTQ AG invested $13,314 (US$10,000) in the form of a SAFE into Cysic Inc. The investment is not traded in an active market.

**8. SHORT-TERM INVESTMENT**

The Company has pledged a guaranteed investment certificate ("GIC") as collateral for the Company's credit cards. The GIC earns interest at Prime Rate less 2.7% per annum and has a maturity date of June 6, 2026. The GIC was redeemed during the nine months ended September 30, 2024.

**9. LEASE OBLIGATION**

On May 15, 2022, the Company entered into a premises lease agreement which gives the Company the right to use an underlying asset which expired on May 14, 2024. The Company's obligation to make lease payments arising from the lease is calculated by discounting the fixed lease payments over the lease term at the Company's incremental borrowing rate. The incremental borrowing rate used in the calculation was 13%.

On May 15, 2024, the Company entered into a premises lease agreement which gives the Company the right to use an underlying asset which expires on May 14, 2026. The Company's obligation to make lease payments arising from the lease is calculated by discounting the fixed lease payments over the lease term at the Company's incremental borrowing rate. The incremental borrowing rate used in the calculation was 13%.

---

| |
|:---|
| Balance, December 31, 2023 |
| Addition |
| Payments) |
| Interest |
| Foreign exchange translation difference |
| Balance, September 30, 2024 |
| Less: current portion |
| Non-current portion |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**10. CONVERTIBLE DEBT**

On September 9, 2024, the Company issued convertible debt for proceeds of $1,000,000. The convertible debt is non-interest bearing and due on September 9, 2026. At the election of the lender, the principal amount of the debt is convertible into common shares at $0.40 per share.

The present value of the liability component of the convertible debt at issuance was $694,445, using a discount rate of 20%, which is the estimated interest rate the Company would pay on a similar debt instrument without a conversion option. The residual value of $305,555 was allocated to the equity component. The discount on the convertible debt totaling $305,555 will be amortized over the term of the convertible loans using the effective interest rate method. During the period ended September 30, 2024, the Company recorded accretion of $7,445 which is included in interest expense. As at September 30, 2024, the carrying value of the convertible debt is $701,890. Refer to Note 24(h).

**11. SHARE CAPITAL**

Authorized: Unlimited number of common shares without par value Share transactions during the three months ended September 30, 2024:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the nine months ended September 30, 2024, the Company issued 260,000 common shares for proceeds of $104,000 pursuant to the exercise of stock options. The fair value of stock options exercised of $67,808 was transferred from options reserve to share capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On March 5, 2024, the Company issued 750,000 common shares pursuant to the conversion of vested RSUs. Upon conversion, the fair value of $456,000 for the vested RSUs was transferred from RSUs reserve to share capital.

Share transactions during the three months ended September 30, 2023:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 17, 2023, the Transaction closed, resulting in a reverse takeover (refer to Note 3). The Transaction was measured at the fair value of the shares that BTQ AG would have had to issued to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 17, 2023, the Company issued 2,500,000 common shares with a fair value of $1,000,000 as finder's fee for the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 17, 2023, the Company completed a subscription receipt financing of 18,001,250 common shares at $0.40 per share for gross proceeds of $7,200,500. In connection with the financing, the Company incurred share issuance costs of $93,174 and issued 232,936 finders' warrants with fair value of $67,386. The fair value of the finders' warrants was calculated using the Black-Scholes option pricing model.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On July 7, 2023, the Company issued 1,822,500 common shares pursuant to the conversion of vested RSUs. Upon conversion, the fair value of $712,125 for the vested RSUs was transferred from RSUs reserve to share capital.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**11. SHARE CAPITAL** (continued)

**Escrowed shares**

On completion of the Transaction, certain principals of the Company entered into a NP 46-201 Escrow Agreement with the NEO Exchange and Computershare Trust Company of Canada, as escrow agent, in respect of 45,250,000 common shares. Under the terms of the Escrow Agreement, 25% of such escrowed securities were released upon closing (February 17, 2023) with subsequent 25% releases occurring 6, 12, and 18 months from closing. These escrow shares will be released as follows:

---

| | |
|:---|:---|
| Date of automatic timed release | Amount of escrow shares released |
| On the date that the Company's common shares were listed on the NEO, February 17, 2023 | 1/4 of the escrowed shares |
| 6 months after the listing date (August 17, 2023) | 1/4 of the escrowed shares |
| 12 months after the listing date (February 17, 2024) | 1/4 of the escrowed shares |
| 18 months after the listing date (August 17, 2024) | The remainder of the escrowed shares |

---

As at September 30, 2024, there are no common shares remaining in escrow.

**12. STOCK OPTIONS**

The Company has a stock option plan (the "Plan") for directors, officers, employees, and consultants of the Company. Stock options are exercisable for periods of up to five years, as determined by the Board of Directors of the Company, to purchase common shares of the Company at a price not less than the discounted market price on the date of the grant. The maximum number of shares which may be issuable under the Plan cannot exceed 10% of the total number of issued and outstanding common shares on a non- diluted basis.

The following table summarizes the continuity of the Company's stock options:

---

| | | |
|:---|:---|:---|
|  |  | Weighted |
|  |  | average |
|  |  | exercise |
|  | Number of | price |
|  | stock options | $|
| Outstanding, December 31, 2023 | 7770000 | 0.41 |
| &nbsp;&nbsp;Granted | 800000 | 0.46 |
| &nbsp;&nbsp;Exercised | (260000) | 0.40 |
| &nbsp;&nbsp;Expired and forfeited | (3120000) | 0.41 |
| Outstanding, September 30, 2024 | 5190000 | 0.43 |
| Exercisable, September 30, 2024 | 2770000 | 0.42 |

---

Additional information regarding stock options outstanding as at September 30, 2024, is as follows:

---

| | | | |
|:---|:---|:---|:---|
| Outstanding | Outstanding | Exercisable | Exercisable |
|  | Weighted |  |  |
|  | average |  | Weighted |
|  | remaining |  | average |
| Number of | contractual | Number of | exercise price |
| $stock options | life (years) | $stock options | $|
| 4400000 | 2.1 | 2487500 | 0.40 |
| 580000 | 2.7 | 230000 | 0.56 |
| 160000 | 3.3 | 40000 | 0.64 |
| 50000 | 3.9 | 12500 | 0.68 |
| 5190000 | 2.2 | 2770000 | 0.42 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**12. STOCK OPTIONS** (continued)

The fair value for stock options granted have been estimated using the Black-Scholes option pricing model assuming no expected dividends or forfeitures and the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | Nine months | Nine months |
|  | ended | ended |
|  | September 30, | September 30, |
|  | 2024 | 2023 |
| Risk-free interest rate | 3.38% | 3.40% |
| Expected life (in years) | 4.6 | 4.37 |
| Expected volatility | 215% | 150% |

---

During the nine months ended September 30, 2024, the Company recognized share-based compensation expense of $(50,615) (2023 - $1,271,628), with a corresponding increase to options reserve. The weighted average fair value of the stock options granted during the nine months ended September 30, 2024 was $0.45 (2023 - $0.34) per option.

**13. SHARE PURCHASE WARRANTS**

The following table summarizes the continuity of share purchase warrants:

---

| | | |
|:---|:---|:---|
|  |  | Weighted |
|  |  | average |
|  |  | exercise |
|  | Number of | price |
|  | warrants | $|
| Balance, December 31, 2023 and September 30, 2024 | 232936 | 0.40 |

---

As at September 30, 2024, the following share purchase warrants were outstanding and exercisable:

---

| | |
|:---|:---|
| Number of |  |
| warrants |  |
| outstanding | $Expiry date |
| 232936 | February 17, 2025 |

---

**14. RESTRICTED SHARE UNITS**

A summary of the changes in RSUs is presented below:

---

| | |
|:---|:---|
|  | Number of |
|  | RSUs |
| Balance, December 31, 2023 | 1985000 |
| &nbsp;&nbsp;Converted to shares | (750000) |
| Balance, September 30, 2024 | 1235000 |
| Unvested | 67500 |
| Vested, September 30, 2024 | 1167500 |

---

During the nine months ended September 30, 2024, the Company recognized share-based compensation expense of $(140,316) (2023 - $1,389,821) with a corresponding decrease to RSU reserve and $456,000 (2023 - $712,125) was transferred to share capital upon the vesting of 750,000 RSUs.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**15. RELATED PARTY TRANSACTIONS**

Key management personnel are persons responsible for planning, directing, and controlling the activities of an entity, and include all officers and directors of the Company. Key management personnel compensation during the nine months ended September 30, 2024 and 2023 was comprised of the following:

---

| | |
|:---|:---|
|  | Nine months |
|  | ended |
|  | September 30, |
|  | 2023 |
|  | $|
| Consulting fees | 72668 |
| Marketing and promotion | 72668 |
| Professional fees | 38661 |
| Research and development | 339660 |
| Wages and benefits | 216812 |
| Total short-term benefits | 740469 |
| Share-based payments) | 577281 |
|  | 1317750 |

---

As at September 30, 2024, the Company owed $116,580 (December 31, 2023 - $114,223) to the CEO of the Company, of which $91,089 (December 31, 2023 - $89,247) is included in accounts payable and accrued liabilities. The amounts owed are non-interest bearing, unsecured, and due on demand.

As at September 30, 2024, the Company was owed $149,924 (December 31, 2023 - $49,888) from the Chief Operating Officer ("COO") of the Company, which is included in other receivables.

As at September 30, 2024, the Company owed $7,350 (December 31, 2023 - $7,350) to a firm where the Chief Financial Officer of the Company is a partner, which is included in accounts payable and accrued liabilities.

As at September 30, 2024, the Company owed $134,990 (December 31, 2023 - $132,260) to the former Chief Cryptographer of the Company, which is included in accounts payable and accrued liabilities.

As at September 30, 2024, the Company owed $8,099 (December 31, 2023 - $7,936) to the Head of Corporate Development of the Company, which is included in accounts payable and accrued liabilities.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

 **16. SUPPLEMENTAL CASH FLOW INFORMATION**

---

| | | |
|:---|:---|:---|
|  | Nine months | Nine months |
|  | ended | ended |
|  | September 30, | September 30, |
|  | 2024 | 2023 |
|  | $| $|
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;Discount on convertible debt recorded in equity portion of convertible debt reserve | 305555 |  |
| &nbsp;&nbsp;Receivables acquired in reverse takeover |  | 25308 |
| &nbsp;&nbsp;Short-term investment acquired in reverse takeover |  | 2875 |
| &nbsp;&nbsp;Accounts payable and accrued liabilities assumed in reverse takeover |  | 455077 |
| &nbsp;&nbsp;Shares issued as a finder's fee for the Transaction |  | 1000000 |
| &nbsp;&nbsp;Finders' warrants issued pursuant to private placement |  | 67386 |
| &nbsp;&nbsp;Fair value of stock options exercised transferred from options reserve to share capital | 67808 |  |
| &nbsp;&nbsp;Shares issued for vested RSUs | 456000 | 712125 |

---

**17. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fair Values

Fair value hierarchy

The following provides a description of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at September 30, 2024 and December 31, 2023 as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in | Significant |  |  |
|  | active markets | other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | September 30, |
|  | (Level 1) | (Level 2) | (Level 3) | 2024 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**17. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT** (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fair Values (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in | Significant |  |  |
|  | active markets | other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | December 31, |
|  | (Level 1) | (Level 2) | (Level 3) | 2023 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

---

The fair values of the Company's other financial instruments, which include cash, short-term investment, other receivables, accounts payable and accrued liabilities, other payable, lease obligation, and due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Credit Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Foreign Exchange Rate Risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency.

The following tables indicate the impact of foreign currency exchange risk on net working capital as at September 30, 2024 and December 31, 2023. The tables below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the tables below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as at September 30, 2024 and December 31, 2023.

---

| | | | |
|:---|:---|:---|:---|
| As at September 30, 2024 | AUD | TWD | US$ |
| Cash |  | 1091534 | 49450 |
| Accounts payable and accrued liabilities | (348500) | (1216211) | (170056) |
| Lease obligation |  | (3417780) |  |
| Total foreign currency financial assets and liabilities | (348500) | (3542457) | (120606) |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 34850 | 354246 | 12061 |

---

---

| | | |
|:---|:---|:---|
| As at December 31, 2023 | TWD | US$ |
| Cash | 9201660 | 296479 |
| Accounts payable and accrued liabilities |  | (190659) |
| Lease obligation | (778794) |  |
| Total foreign currency financial assets and liabilities | 8422866 | 105820 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 842287 | 10582 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**17. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT** (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner. Refer to going concern disclosure in Note 1.

The following amounts are the contractual maturities of financial liabilities as at September 30, 2024 and December 31, 2023:

---

| | | | |
|:---|:---|:---|:---|
| As at September 30, 2024 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 1179221 | 1179221 |  |
| Other payable | 368272 | 368272 |  |
| Lease obligation | 146117 | 88776 | 57341 |
| Convertible debt | 1000000 |  | 1000000 |
| Due to related parties | 25491 | 25491 |  |
| Total | 2719101 | 1661760 | 1057341 |

---

---

| | | | |
|:---|:---|:---|:---|
| As at December 31, 2023 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 856682 | 856682 |  |
| Lease obligation | 33554 | 33554 |  |
| Due to related parties | 28003 | 28003 |  |
| Total | 918239 | 918239 | - |

---

**18. CAPITAL MANAGEMENT**

The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders. The capital structure of the Company consists of cash and equity comprised of issued share capital, share-based payment reserve, and warrant reserve.

The Company manages its capital structure and makes adjustments to it in light of economic conditions. The Company, upon approval from its Board of Directors, will balance its overall capital structure through new share issuances or by undertaking other activities as deemed appropriate under the specific circumstances.

The Company is not subject to externally imposed capital requirements and the Company's overall strategy with respect to capital risk management remains unchanged from the year ended December 31, 2023.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**19. INTANGIBLE ASSETS**

On July 23, 2024, the Company entered into an agreement to purchase the intellectual property relating to four US patent applications for $275,782.

**20. SEGMENTED INFORMATION**

The Company has one operating segment, the research and development of computer-based technology related to post-quantum cryptography. The Company's head office is in Canada and operations are in Canada and Taiwan. Geographic information for revenue and non-current assets other than financial instruments is as follows:

---

| | | | |
|:---|:---|:---|:---|
| As at September 30, 2024 | Canada | Taiwan | Total |
|  | $| $| $|
| Non-current assets |  |  |  |
| &nbsp;&nbsp;Property and equipment |  | 57053 | 57053 |
| &nbsp;&nbsp;Right-of-use asset |  | 143686 | 143686 |
| &nbsp;&nbsp;Intangible asset | 275782 |  | 275782 |
| &nbsp;&nbsp;Deposits |  | 45336 | 45336 |
|  | 275782 | 246075 | 521857 |
| Revenue | 416667 | - | 416667 |

---

---

| | | | |
|:---|:---|:---|:---|
| As at December 31, 2023 | Canada | Taiwan | Total |
|  | $| $| $|
| Non-current assets |  |  |  |
| &nbsp;&nbsp;Property and equipment |  | 102820 | 102820 |
| &nbsp;&nbsp;Right-of-use asset |  | 29905 | 29905 |
| &nbsp;&nbsp;Deposits |  | 35872 | 35872 |
|  | - | 168597 | 168597 |

---

**21. GENERAL AND ADMINISTRATIVE EXPENSES**

The following is a breakdown of general and administrative expenses for the nine months ended September 30, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | Nine months | Nine months |
|  | ended | ended |
|  | September 30, | September 30, |
|  | 2024 | 2023 |
|  | $| $|
| Foreign office representation |  | 93971 |
| Insurance | 47500 | 45500 |
| IT and communications | 118079 | 4995 |
| Office and miscellaneous | 97185 | 249863 |
| Rent | 143862 | 76477 |
| Travel | 192453 | 78935 |
|  | 599079 | 549741 |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**22. REVENUE**

During the nine months ended September 30, 2024, the Company earned license revenue of $416,667 (2023 - $nil) from a company controlled by the COO. As at September 30, 2024, the Company has deferred revenue of $565,497 (December 31, 2023 - $nil) for this company.

A breakdown of the revenue is presented below:

---

| | | |
|:---|:---|:---|
|  | Nine months | Nine months |
|  | ended | ended |
|  | September 30, | September 30, |
|  | 2024 | 2023 |
|  | $| $|
| <u>Major goods/service lines</u> |  |  |
| Software license and related consulting services | 416667 |  |
| <u>Timing of revenue recognition</u> |  |  |
| Software license and services transferred over time | 416667 |  |

---

**23. RESTATEMENT**

The Company has restated its financial statements for the three and nine months ended September 30, 2023 to correct expense cut-off errors, accounting for the premises lease under IFRS 16, amortization expenses related to improperly capitalized intangible assets and the application of the change in functional and presentation currency, refer to our 2023 audited financial statements. The statement of cash flows has been restated to reflect the changes detailed above.

The impact of the restatements for the three and nine months ended September 30, 2023 is summarized below:

Statement of Operations and Comprehensive Loss

---

| |
|:---|
| Expenses |
| &nbsp;&nbsp;Depreciation) |
| &nbsp;&nbsp;General and administrative |
| &nbsp;&nbsp;Professional fees) |
| &nbsp;&nbsp;Research and development) |
| &nbsp;&nbsp;Transfer agent and regulatory fees) |
| Total expenses) |
| Loss before other income (expense) |
| Other income (expense) |
| &nbsp;&nbsp;Foreign exchange loss) |
| &nbsp;&nbsp;Interest expense) |
| Total other income (expense) |
| Comprehensive income (loss) |
| &nbsp;&nbsp;Foreign currency translation adjustment) |
| Net loss and comprehensive loss) |
| Loss per share, basic and diluted) |

---

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**23. RESTATEMENT** (continued)

<u>Statement of Operations and Comprehensive Loss</u> (continued)

---

| |
|:---|
| Expenses |
| &nbsp;&nbsp;Depreciation) |
| &nbsp;&nbsp;General and administrative |
| &nbsp;&nbsp;Professional fees |
| &nbsp;&nbsp;Research and development) |
| &nbsp;&nbsp;Transfer agent and regulatory fees |
| &nbsp;&nbsp;Wages and benefits |
| Total expenses) |
| Loss before other income (expense) |
| Other income (expense) |
| &nbsp;&nbsp;Foreign exchange loss) |
| &nbsp;&nbsp;Interest expense) |
| Total other income (expense) |
| Net loss for the period) |
| Comprehensive Income (loss) |
| &nbsp;&nbsp;Foreign currency translation adjustment) |
| Net comprehensive loss for the period) |
| Loss per share, basic and diluted) |

---

<u>Statement of Changes in Shareholders' Equity</u>

---

| | |
|:---|:---|
|  | As at September 30, 2023 |
|  | Adjustments |
|  | $|
| Shareholders' equity |  |
| &nbsp;&nbsp;Accumulated other comprehensive loss) | 46153 |
| &nbsp;&nbsp;Deficit) | 485690) |
| Total shareholders' equity | 531843 |

---

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**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**23. RESTATEMENT** (continued)

Statement of Cash Flows

---

| |
|:---|
| Operating activities |
| Net loss for the period) |
| Items not involving cash: |
| &nbsp;&nbsp;Depreciation) |
| &nbsp;&nbsp;Foreign exchange loss) |
| &nbsp;&nbsp;Interest expense) |
| Changes in non-cash operating working capital: |
| &nbsp;&nbsp;Accounts payable and accrued liabilities) |
| Net cash used in operating activities) |
| Financing activities |
| Repayment of lease obligations) |
| Net cash provided by financing activities |
| Effect of foreign exchange rate changes on cash and cash equivalents) |
| Change in cash and cash equivalents |

---

**24. SUBSEQUENT EVENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On October 1, 2024, the Company granted 1,000,000 stock options exercisable at $0.35 per common share expiring on October 1, 2027 to a consultant. On December 28, 2024, the stock options were modified to reduce the number of stock options granted to 125,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On October 22, 2024, the Company granted 50,000 stock options exercisable at $0.42 per common share expiring on October 22, 2026 to a director of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On November 5, 2024, the Company issued 90,000 common shares pursuant to the conversion of vested RSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On November 8, 2024, the Company entered into a convertible debt agreement for proceeds of $500,000. The convertible debt is non-interest bearing and due on November 14, 2026. At the election of the lender, the principal amount of the debt is convertible into common shares at $0.40 per share. Refer to Note 24(h).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) On December 2, 2024, the Company granted 300,000 stock options exercisable at $0.27 per common share expiring on December 2, 2029.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) On December 9, 2024, the Company issued 800,000 RSUs to consultants that will vest over a period of 2 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) On December 10, 2024, the Company granted 50,000 stock options exercisable at $1.51 per common share expiring on December 10, 2029.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) On December 19, 2024, the Company issued 3,355,704 common shares at $2.98 per share for gross proceeds of $10,000,000. In connection with the financing, the Company incurred share issuance costs of $764,288 and issued 167,785 finder's warrants exercisable at $4.09 per common share expiring on December 19, 2029.

------

**BTQ TECHNOLOGIES CORP.**<br> Notes to the Condensed Interim Consolidated Financial Statements <br>Three and Nine Months Ended September 30, 2024 and 2023 <br>(Expressed in Canadian dollars)<br> (unaudited)<br>

**24. SUBSEQUENT EVENTS** (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On December 24, 2024, the Company issued 3,750,000 common shares pursuant to the conversion of $1,500,000 in convertible debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) On January 3, 2025, the Company entered into an agreement to acquire intellectual property for $72,210 (US$50,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Subsequent to September 30, 2024, the Company issued 425,000 common shares for proceeds of $170,000 pursuant to the exercise of stock options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Subsequent to September 30, 2024, the Company issued 174,542 common shares for proceeds of $69,817 pursuant to the exercise of share purchase warrants.

------

## Exhibit 99.56

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**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

This Management's Discussion and Analysis ("MD&A") of BTQ Technologies Corp. ("BTQ", or the "Company") is for the quarter ended September 30, 2024 and is dated February 5, 2025. The MD&A should be read in conjunction with the Company's unaudited condensed interim consolidated financial statements and related notes for the quarter ended September 30, 2024. The unaudited condensed interim consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and all monetary amounts are expressed in Canadian dollars. The following comments may contain management estimates of anticipated future trends, activities, or results. These are not a guarantee of future performance since actual results could change based on other factors and variables beyond management control.

The management of the Company is responsible for the preparation and integrity of the consolidated financial statements, including the maintenance of appropriate information systems, procedures, and internal controls and to ensure that information used internally or disclosed externally, including the consolidated financial statements and MD&A, is complete and reliable. The Company's board of directors (the "Board") follows recommended corporate governance guidelines for public companies to ensure transparency and accountability to shareholders. The Board's audit committee meets with management quarterly to review the financial statements including the MD&A and to discuss other financial, operating, and internal control matters.

Additional information relating to the Company, including its Annual Information Form for the year ended December 31, 2023, is available under the Company's profile on SEDAR+ at www.sedarplus.ca.

**DESCRIPTION OF BUSINESS AND OVERVIEW**

BTQ is a British Columbia corporation founded by a group of experienced post-quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the Bitcoin network. Bitcoin's store of value thesis - one that supports a crypto ecosystem of over $1 trillion in market capitalization - has several potential quantum attack vectors that could compromise the network. This paradigm shift requires a new direction in cryptography and blockchain design. BTQ is building a portfolio of intellectual property to safeguard the crypto asset class with energy efficient quantum processes and currently holds several patent applications for generating quantum algorithms.

Quantum computers can take a very large integer and find out its prime factor extremely rapidly by using Shor's algorithm. Theoretically, a universal large scale quantum computer could be used to disrupt cryptocurrencies, break into digital wallets, and access and decrypt confidential communications. Ethereum and Algor, two of the most technologically advanced cryptocurrencies, announced plans to transition to post-quantum standards.

BTQ has strategically established an office in Taipei, Taiwan, home to the most advanced hardware and post-quantum ecosystems. The Taipei engineering office was focused on research and development related to post-quantum cryptography, eco-friendly proof of work mining, and formal verification within smart contracts platforms.

BTQ is listed on the NEO Exchange (the "NEO") under the symbol "BTQ", the OTCQB under the symbol "BTQQF" and the Frankfurt Stock Exchange under the symbol "NG3".

<u>Acquisition</u>

On December 31, 2021 (as amended on April 29, 2022, July 30, 2022, and November 29, 2022), the Company entered into a share exchange agreement with BTQ AG (the "Acquisition"). BTQ AG was incorporated in the Principality of Liechtenstein on March 26, 2021 by a group of experienced post-quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the Bitcoin network.

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

In connection with the Acquisition, the Company completed a private placement (the "Offering") of 18,001,250 subscription receipts at a price of $0.40 per subscription receipt, for gross proceeds of $7,200,500, with each subscription receipt automatically converting with no additional consideration into one post-Consolidation Share (each as defined below) concurrent with the closing of the Acquisition.

On February 17, 2023, the Company closed the Acquisition resulting in the issuance of 92,000,000 post- Consolidation Shares to the BTQ AG shareholders. Concurrent with the closing, the Company changed its name from Sonora Gold & Silver Corp. to BTQ Technologies Corp. and completed a consolidation (the "Consolidation") of its common shares on the basis of ten pre-Consolidation shares to one post- Consolidation share (each, a "Share"). Immediately following the Consolidation, and excluding those Shares issued pursuant to the Acquisition or the Offering, the former securityholders of Sonora Gold and Silver Corp. ("SOC") held an aggregate of 8,747,629 Shares and 350,000 stock options in the Company. All Share amounts have been retroactively restated to reflect the Consolidation for all periods presented.

On closing of the Acquisition, the gross proceeds of $7,200,500 from the Offering were released from escrow and each subscription receipt was converted into one Share. In connection with the Acquisition, the Company issued 2,500,000 Shares with a fair value of $1,000,000 to a finder as a success fee. In connection with the Offering, the Company also paid $93,175 in finders' fees and issued 232,936 finders' warrants exercisable at an exercise price of $0.40 per Share for a period of two years.

As a condition of the Acquisition, the Company voluntarily delisted its Shares from the TSX-V and the Shares commenced trading on the NEO on February 21, 2023 under the symbol "BTQ".

**DISCUSSION OF OPERATIONS**

The following are operational highlights for the year ended December 31, 2023 and events subsequent up until the date of this MD&A.

<u>Product Updates</u>

On March 2, 2023, the Company announced the alpha release of Keelung, a domain-specific language designed for fast, private, and secure application development. Based on research in the field of post- quantum zero-knowledge cryptography, Keelung will empower developers to create secure and reliable post-quantum zero-knowledge proofs without the need for specialized cryptography skills. Both Keelung and its compiler have been implemented in Haskell, enabling developers to produce high-level zero- knowledge proofs protected by Haskell's type system while leveraging Haskell's extensive ecosystem and tooling. Keelung will be 100% open-source, allowing for transparency, collaboration, and community-driven development.

Keelung is now live and open-sourced. The release information can be found here: https://github.com/btq- ag/keelung/releases. The steps to complete over the coming year are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Language Extensions (v0.19.0 - v0.20.0): Added support for user-defined datatypes, unsigned integer comparisons, and optimizations to the constraint system and compiler.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Optimization and Stability (v0.21.0): Introduced a more precise method for reference counting on unsigned integers, renaming of primitive datatype conversions, and numerous bug fixes and stability improvements for the compiler.

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Upcoming Optimizations (v0.22.0+): Planned optimizations include operators for slicing and joining unsigned integers, improved polynomial representation, faster polynomial insertion, standard library optimizations (e.g., AES, Blake2), and constraint reduction for faster proof generation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Developer Experience (Ongoing): Refinements to the DSL syntax, performance improvements for common data types, benchmarking in the CI/CD pipeline, and expanded documentation and tutorials to improve the developer experience.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Ecosystem Integration (Future): Planned integration with popular ZK toolchains like Snarkjs/Circom, support for PLONK-based proving systems, and quantitative information flow analysis for privacy leakage detection.

On June 5, 2023, the Company published a research paper on proof-of-work consensus by quantum sampling. The paper presents a novel approach that has the potential to revolutionize blockchain consensus algorithms.

On June 26, 2023, the Company announced that it had received approval from the USPTO for its patent application, "A system and method for quantum-safe authentication, encryption, and decryption of information". The patent relates to methods for generating a private cryptographic key for use in a secure cryptogram for transmission between entities, enabling quantum-safe encryption.

On July 27, 2023, the Company announced that its Quantum-Secure Signature Technology "Preon" had been selected by the National Institute of Standards and Technology (NIST) for consideration in their Post- Quantum Cryptography (PQC) standardization process. Preon is a robust and efficient post-quantum signature scheme, showcasing distinctive features including small key size, rapid key generation, minimal assumptions, and flexible functionality. These attributes make it resistant to potential threats from both classical and quantum computers. The co-authors of this submission include Hon Hai Research Institute, the research arm of global leader Hon Hai Precision Industry Co., Ltd. (Foxconn).

On October 4, 2023, BTQ announced the advancement of its collaboration with ITRI to develop a security chip that utilizes QCIM (Quantum Computation in Memory) technology. This chip will be used for the computation of Kyber, a standardized algorithm by the National Institute of Standards and Technology (NIST). In 2022, BTQ entered a multi-year collaboration agreement with ITRI to develop energy-efficient post-quantum hardware solutions for applications in blockchain, telecom, and other industries with a need for long-term data security. In the first phase of collaboration, BTQ and ITRI successfully validated the proof of concept of applying computation-in-memory in an ASIC chip. To further the collaboration, BTQ is entering into this new phase of the project with ITRI.

<u>Market-Related Activity</u>

Effective March 14, 2023, the Company began trading on the FSE under the symbol "NG3" (ISIN: CA0558691014 \| WKN: A3D4V9). The Frankfurt Stock Exchange is the largest of the seven stock exchanges in Germany.

Effective May 9, 2023, the Company began trading on the OTCQX under the symbol "BTQQF". OTC Markets Group operates markets on which 12,000 U.S. and global securities trade with the OTCQX Best Market as the highest tier. Trading on OTCQX will enhance the visibility and accessibility of the Company to U.S. investors.

On March 18, 2024, the Company announced a revised timeline for the filing of its annual consolidated financial statements for the year ended December 31, 2023 (the "Financial Statements") and the related management's discussion and analysis and certifications (collectively, with the Financial Statements, the "Annual Filings"). The default in filing within the required 90 days is primarily due to delays relating to the restatement of the comparative period in the Financial Statements, comprising BTQ AG's financial statements for the period ended December 31, 2022, which were audited by another auditor. As a result of the delays, the Company had applied for a management cease trade order (an "MCTO") under National Policy 12-203 Management Cease Trade Orders ("NP 12-203") in respect of the default. The MCTO was lifted after the Company completed its December 31, 2023 filings.

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

<u>Business Development Activities</u>

On March 2-3, 2023, representatives of the Company attended the Quantum Beach conference in Miami in order to meet with companies, investors, and potential partners across the quantum technologies industry. Mathieu Gauthier, Head of Corporate Development, spoke on the quantum security panel, alongside other industry executives from leading companies in the post-quantum security space, as well as senior government officials.

On April 24, 2023, Chris Tam, Head of Partnerships at the Company, spoke at ETHTaipei. The talk, titled "The Future of Zero-Knowledge: Challenges, Advancements, and Tools for Developing Post-Quantum zk- SNARKs," examined the challenges and successes of using post-quantum proving systems. The presentation also examined the strengths, weaknesses, and trends of arithmetic circuit backends such as R1CS, PLONK, and AIR, while introducing tools to transition towards developing post-quantum zk- SNARKs. This presentation reinforced the Company's commitment to advancing the blockchain and quantum technology industry.

On May 1, 2023, the Company was informed that it was the recipient of a US$10,000 grant from the Stellar Community Fund. The grant is specifically aimed at funding the Company's research in building an Efficient Scaling Mechanism for Lattice-Based Post-Quantum Signatures. The Stellar Community Fund ("SCF") is an open-application awards program that draws on community input to support developers and startups building on Stellar and Soroban. The Stellar Blockchain network is a distributed ledger used to transmit digital currencies and has a market cap of over US$2 billion.

On May 1, 2023, the Company secured office space at the Bentall II Tower located at 555 Burrard Street in Vancouver, BC. The Company is leasing this office space from WeWork at a monthly rate of $3,180 per month for a total commitment of 12 months. This additional office space will be used for meetings with investors and potential clients, and for the hiring of both technical and non-technical personnel in Canada. Starting October 1, 2023, the Company increased office space at the Bentall II Tower in Vancouver. The new monthly rate per month is $10,100 for a reset commitment of 12 months.

On May 15, 2023, BTQ Technologies Announced its Acceptance into the Quantum Industry Canada (QIC) Consortium, joining other leading quantum technology companies such as DWave and Xanadu. Quantum Industry Canada's mission is to ensure that Canadian quantum innovation and talent is translated into Canadian business success and economic prosperity. Earlier this year, the Canadian Minister of Innovation, Science, and Industry announced a $1.4 million investment in QIC as part of the National Quantum Strategy.

On May 22, 2023, BTQ was awarded a US$10,000 grant by StarkWare Industries, the developer of StarkNet, a permissionless decentralized ZK-Rollup. The grant was specifically awarded to implement BTQ's PQScale technique for digital signatures onto the StarkNet infrastructure.

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

On May 24, 2023, the Company announced the nomination of Mr. Lonny Wong as the company's Chief Financial Officer. Lonny has been leading BTQ's finance and accounting organization and reports directly to Olivier Roussy Newton, Chief Executive Officer and Chairman. He brings close to 30 years of public practice experience and specializes in providing auditing, assurance, financial reporting, and consulting services to public companies and companies looking to go public.

On June 22, 2023, BTQ announced that it had joined leading quantum technology companies and research labs like Microsoft Azure Quantum and the Centre for Quantum Technologies (CQT) in the Quantum Energy Initiative (QEI). The Quantum Energy Initiative seeks to develop energetic quantum advantage and build quantum technologies in a sustainable and responsible manner.

On July 5, 2023, the Company established a strategic research partnership with South Korea's International Research Institute for Cyber Security (IRCS). The partnership aims to enhance the development of post- quantum cryptography, specifically focusing on SOLMAE signature scheme and other lattice-based cryptosystems, thereby expanding BTQ's influence in the Asia-Pacific region.

On July 24, 2023, the Company announced the addition of Brandt Pasco, an accomplished legal and private equity professional, to its advisory board. Mr. Pasco, currently the Managing Member of Pasco & Associates, is renowned for his expertise in building high-value companies and his deep understanding of technological regulatory law.

On August 21, 2023, BTQ announced the launch of "The Quantum State" podcast led by renowned researcher Anastasia Marchenkova. The series, further bolstered by experts Professor Gavin Brennen and Peter Rohde, serves as BTQ's dedicated platform for exploring the latest insights, trends, and groundbreaking advancements in the world of quantum computing.

On September 18, 2023, the Company announced it had been selected for the 2023 Canada Quantum Technology R&D Mission to South Korea, marking a significant stride in international quantum collaborations. From October 31st to November 2nd, the Canadian delegation, which includes 11 leading companies and institutions in the realms of quantum sensing, quantum computing, and quantum communication, participated in a series of collaborative events. Various meetings are arranged with South Korean companies, research institutes, academia, and other key players in the quantum technology sector.

On October 1, 2023, the Company entered into a revised lease agreement for a larger office space in the Bentall II building located in downtown Vancouver where the Company's headquarters were already located. This additional space will accommodate the company's growing technical research team in Canada.

On October 16, 2023, BTQ announced its ecosystem partnership with Cysic for Keelung, a zero-knowledge domain-specific language for fast, private and secure applications. Keelung provides developers with the ability to create secure and reliable post-quantum zero-knowledge proofs without requiring specialized cryptography skills. BTQ's partnership with Cysic will explore the integration of Keelung with Cysic's hardware acceleration solutions, offering end-users access to faster, more efficient, and more secure zero- knowledge proof generation.

On October 19, 2023, BTQ announced the addition of Peter Rohde, an accomplished theoretical quantum computer scientist, to its world-class technical team. Dr. Rohde, currently an Honorary Senior Lecturer at Macquarie University, and Associate Investigator at the ARC Centre of Excellence for Engineered Quantum Systems, is renowned for his deep understanding of optical quantum computing, quantum networking and the economics of quantum technology. Based at the Quantum Terminal in Sydney, Mr. Rohde will help drive research, as well as expand BTQ's technical team in Australia.

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

On November 29, 2023, BTQ and Hon Hai Research Institute announced a Research and Collaboration Agreement aiming to support the academic community by promoting the standardization of post-quantum cryptography. BTQ and Hon Hai first in their submission of Preon, a post-quantum signature scheme submitted as part of the NIST "Call for Additional Digital Signature Schemes for the Post-Quantum Cryptography Standardization Process".

On December 29, 2023, the Company announced its participation and sponsorship at CfC St. Moritz, a premier digital assets and blockchain conference for investors and decision-makers in the Swiss Alps. Christopher Tam, BTQ's Head of Partnerships, led a workshop titled "Future-Proofing Digital Assets: Exploring the Sustainability of Digital Assets in the Quantum Era," focusing on the challenges and opportunities stemming from post-quantum cryptography.

On February 20, 2024, BTQ announced its participation in the Commonwealth Scientific and Industrial Research Organisation's Next Generation Emerging Technologies Graduates Program ("NGETGP"). This initiative aims to cultivate the next wave of tech talent and advance the field of emerging technologies. As part of this agreement, BTQ Technologies joined forces with the Commonwealth Scientific and Industrial Research Organisation ("CSIRO"), top Australian universities, Sydney Quantum Academy, and Diraq Pty Ltd to create the next generation of quantum technology specialists.

On March 13, 2024, BTQ announced its sponsorship with the Cybersecurity and Privacy Institute ("CPI") at the University of Waterloo and the establishment of a multi-year relationship for R&D collaboration. CPI's mission is to be internationally recognized as a leading interdisciplinary research institute making significant impacts in improving information security and human privacy. Earlier this year, CPI secured over $3.3 million in funding from the National Cybersecurity Consortium (NCC) under the Cyber Security Innovation Network (CSIN) program.

On March 21, 2024, BTQ announced that Christopher Tam, Head of Partnerships, will be a featured speaker at ETHTaipei. During his talk, Chris discussed transitioning Ethereum towards quantum resistance, addressing the impacts and challenges posed by quantum technologies on digital currencies.

On May 3, 2024, the Company entered into a Software Consulting Agreement with ZKP Corp., a Delaware corporation, for which the Company will receive $1,000,000 for the use of its proprietary software and the provision of related services.

On April 1, 2024, BTQ announced its partnership with the newly incorporated Australian Quantum Software Network (AQSN), a not-for-profit organization dedicated to pioneering advancements in quantum software development in Australia.

On October 3, 2024, BTQ announced it was to present at the 2024 Cantech Letter Conference in Toronto where Nicolas Roussy Newton, the COO of BTQ, delivered an investor presentation and participated in scheduled 1-on-1 meetings with investors at the conference that took place on October 9<sup>th</sup> following the announcement.

On November 5, 2024, BTQ and Macquarie University announced a strategic research collaboration to advance quantum computing and secure communications. The partnership is focused in the areas of quantum information theory and post-quantum secure communications, with the aim of integrating quantum processing into a range of communication protocols to enhance speed, security, and energy efficiency.

On December 31, 2024, the Company announced that it signed a Memorandum of Understanding ("MOU") with South Korea's Future Quantum Convergence Forum and the Quantum Industrial Association, and the Future Quantum Convergence Institute. The MOU outlines a framework for mutually beneficial activities aimed at advancing business growth, international expansion, and industrial collaboration. Together, the parties will explore initiatives in areas such as industrial standards, events and seminars, and industry- academic cooperation programs.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

<u>Media Coverage</u>

On April 17, 2023, the Company was covered by CoinDesk for its innovative approach to quantum-safe encryption technology, which has the potential to revolutionize data security in blockchain applications and adjacent industries, including finance, healthcare, and government. With over 10 million website visits and 1.6 million podcast downloads each month, CoinDesk is the leading source of news on cryptocurrency and blockchain, covering breaking news and providing in-depth analyses on the next generation of investing and the future of money.

On June 21, 2023, BTQ announced it had been featured in the New Scientist magazine for its collaborative research paper, "Proof-of-Work Consensus by Quantum Sampling". The paper, which features a collaboration with leading researchers from universities in Australia and the United States, introduces a groundbreaking Quantum Proof-of-Work scheme for blockchain consensus. The article discusses the potential of the team's approach which uses coarse-grained boson-sampling (CGBS), to reduce the energy consumption of cryptocurrencies, such as Bitcoin, by an order of magnitude.

<u>Corporate</u>

On August 31, 2023, BTQ announced that, at the annual general and special meeting (the "Meeting") of shareholders of the Company ("Shareholders") that was held on August 30, 2023, all five nominees for the board of directors of the Company were elected. At the Meeting, Shareholders also approved (i) the appointment of BDO LLP as auditors of the Company until the close of the next annual general meeting of shareholders and the directors were authorized to determine their remuneration (ii) the Company's omnibus equity incentive plan (the "Omnibus Plan"); and (iii) the ratification of certain historically granted RSUs pursuant to the Omnibus Plan.

On September 9, 2024, the Company issued convertible debt for proceeds of $1,000,000. The convertible debt is non-interest bearing and due on September 9, 2026. At the election of the lender, the principal amount of the debt is convertible into common shares at $0.40 per share.

On September 18, 2024, BTQ announced the appointment of Jeffrey Morais, Kohei Suenaga, Eylon Yogev, and Deepesh Singh to its leadership and scientific advisory board.

On September 24, 2024, BTQ announced the completion of the acquisition of Radical Semiconductor's Processing-in-Memory Technology Portfolio, advancing its Post-Quantum Cryptography capabilities. The integration of Radical's cutting-edge technology is set to enhance BTQ's quantum-secure communications infrastructure and provide substantial growth opportunities in emerging markets such as IoT, financial services, blockchain, and government sectors.

On October 16, 2024, the Company announced the appointment of Hunter Scharfe as a Senior Advisor.

On November 8, 2024, the Company issued convertible debt for proceeds of $500,000. The convertible debt is non-interest bearing and due on November 14, 2026. At the election of the lender, the principal amount of the debt is convertible into common shares at $0.40 per share.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

On November 12, 2024, the Company filed a Notice of Change of Auditor to appoint MNP LLP to replace BDO Canada LLP.

On December 16, 2024, the Company announced the appointment of Sean Hackett and Zach Belateche, the co-founders of Radical Semiconductor, as advisors to the Company. In addition, Anne Reinders was appointed as Head of Cryptography.

On December 19, 2024, the Company issued 3,355,704 common shares at $2.98 per share for gross proceeds of $10,000,000. In connection with the financing, the Company incurred share issuance costs of $764,288 and issued 167,785 finder's warrants exercisable at $4.09 per common share expiring on December 19, 2029.

On December 24, 2024, the Company issued 3,750,000 common shares pursuant to the conversion of $1,500,000 in convertible debt.

On January 15, 2025, the Company announced the acquisition of intellectual property from Cimtech Technology Co., Ltd., an innovator in memory technology and computing-in memory ("CIM") solutions. This strategic acquisition enhances the Company's capabilities in post-quantum cryptography and quantum- secure communication technologies.

**Trends**

<u>Quantum Computing</u>

According to McKinsey & Company, the quantum technology market will be valued at over $106 billion by 2040<sup>1</sup>, with the bulk of the value projected to come from quantum computing as opposed to quantum sensing and quantum communications. The quantum security industry sits within quantum computing and is a rapidly growing field that focuses on developing secure cryptographic solutions for the age of quantum computing. As quantum computers become more powerful, they will become increasingly capable of breaking traditional cryptographic systems, creating a need for even more robust and advanced quantum- resistant solutions. Traditional cryptographic methods are at risk of being broken, which will have serious implications for national security, financial institutions, and other industries that rely on secure communication and data storage. Estimates of when a commercial quantum computer will hit the market vary, however, last year, IBM unveiled the Osprey (433 qubits) and updated its road map to develop a 4,000+ qubit processor in 2025<sup>2</sup>, indicating that these super computers will be available in the near future. In addition to private sector funding, Government bodies around the world are also investing large sums of capital into quantum technologies. At $15.3 billion, China leads the way in publicly announced quantum funding initiatives, followed by the EU at $8.4 billion, USA at $3.7 billion, Japan at $1.8 billion, UK at $1.3 billion, Canada at $1.1 billion, and several others between $0.1 billion and $1.0 billion<sup>3</sup>.

Overall, the quantum security industry is a rapidly evolving field that will continue to see significant growth and development in the coming years. As businesses and organizations seek to protect their data from the threat of quantum computing, the need for effective and innovative quantum-resistant security solutions will only continue to increase. Investors are recognizing this with about two-thirds, or 68 percent, of all Quantum Technology startup investments since 2001 having occurred in 2021 and 2022<sup>4</sup>.

_________________________

<sup>1</sup> https://www.mckinsey.com/featured-insights/the-rise-of-quantum-computing

<sup>2</sup> https://newsroom.ibm.com/2022-11-09-IBM-Unveils-400-Qubit-Plus-Quantum-Processor-and-Next-Generation-IBM- Quantum-System-Two

<sup>3</sup> https://www.mckinsey.com/~/media/mckinsey/business%20functions/mckinsey%20digital/our%20insights/quantum% 20technology%20sees%20record%20investments%20progress%20on%20talent%20gap/quantum-technology- monitor-april-2023.pdf

4 https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/quantum-technology-sees-record-investments- progress-on-talent-gap

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**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

<u>Post-Quantum Cryptography</u>

One of the main trends in the quantum security industry is the development of post-quantum cryptography ("PQC") algorithms. PQC algorithms are designed to be resistant to attacks from quantum computers, making them a crucial component of quantum-resistant security systems. Many organizations, including government agencies and financial institutions, are already investing in PQC research and development to ensure the security of their sensitive data.

A key driver in the development of the PQC industry is The National Institute of Standards and Technology ("NIST"), a U.S. Department of Commerce agency which sets the standards for businesses and other organizations to secure sensitive data and protect critical infrastructure<sup>5</sup>. NIST compliance standards must be met by anyone who processes, stores, or transmits sensitive information for the Department of Defense, General Services Administration, NASA, and other government agencies, and is largely seen as the de facto standard body to make cryptographic standards for the entire world.

In 2016, NIST initiated a process to solicit, evaluate, and standardize one or more quantum-resistant public- key cryptographic algorithms. These new cryptography standards will specify additional digital signature and public-key encryption algorithm(s) which are capable of protecting sensitive information well into the foreseeable future, including after the advent of quantum computers. In 2022, NIST officially announced the standardized algorithms from Round 3 of this PQC competition. This was a landmark milestone as government agencies and businesses had been waiting nearly six years for a clear direction as to which algorithms are trustworthy. PQC algorithms are much larger than their classical counterparts. For example, even the smallest NIST-approved digital signature algorithm is over 10x larger than the current Elliptic Curve Digital Signature Algorithm<sup>6</sup>. This is particularly problematic for distributed ledgers where each full node keeps an entire record of all activities on the ledger. If a blockchain like Bitcoin and Ethereum were to adopt the newly standardized PQC algorithms today, the size of both chains would have to be increased to an unmanageable extent.

<u>Competition and Market Participants</u>

Generally, BTQ differentiates itself from its competitors with its work at the intersection of post-quantum cryptography and blockchain. The Company works on developing next-generation cryptographic primitives like zero-knowledge cryptography to achieve advanced security and efficiency, which is novel in the industry.

Large publicly traded quantum companies exist in the space, including: D-Wave Systems (NYSE: QBTS), IONQ (NYSE: IONQ), Arqit Quantum (NASDAQ: ARQQ). However, these companies are not direct competitors as their main goal is to build a commercial quantum computer with real-world useability. These companies are capital intensive and well-funded by both institutional investors and governments and their valuations range from approximately US$50 million to over US$1 billion.

With a surge in funding and general investor interest and excitement in the industry, several companies are emerging in the post-quantum security space. There are various companies that try to tackle the same global problem as BTQ: getting today's infrastructure secured for the quantum revolution, however, the approaches vary widely based on cryptographic techniques, as well as end uses served and therefore is not a winner takes all market. In fact, other companies operating directly in the space may offer potential collaboration opportunities. Below is a non-exhaustive list of indirect competitors to BTQ:

_________________________

5 https://www.btq.com/en/blog/blockchain-security

6 https://falcon-sign.info/

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

PQ Shield, for example, describes itself as a PQC company contributing to the global standards and core technologies to power the future security layer of the world's leading organizations. Its quantum-secure cryptographic solutions work with companies' legacy systems to protect sensitive data now and for years to come. The company mainly serves the defense & infrastructure, IoT and OEM markets. PQ Shield raised $20 million as part of their Series A round in January 2022<sup>7</sup>.

Additionally, Isara provides security solutions specializing in cryptographic risk management and in creating crypto-agile and quantum-safe security solutions for today's information technology ecosystems. The company broadly targets enterprises and governments. Isara raised over $10 million in 2018 to fund its R&D efforts<sup>8</sup>.

In the blockchain space, large technology companies are building their own secured blockchains. For example, IBM offers blockchain services that help secure multiple aspects of critical industries like supply chains, banking, healthcare, and government. The goal of these blockchains is usually to streamline and scale processes in a secure manner<sup>9</sup>.

SandboxAQ, an enterprise SaaS company stemming from Alphabet (previously Google), is another key player in the space. Sandbox provides solutions at the nexus of AI and Quantum technology to address some of the world's most challenging problems. The company's core team and inspiration formed at Alphabet Inc., emerging as an independent, growth-capital-backed company in 2022. The company aims to protect the public sector, life sciences & healthcare, financial services, cybersecurity, material science & manufacturing, and global navigation<sup>10</sup>.

<u>Investor Awareness</u>

Effective April 11, 2023, the Company retained Venture North Capital Inc. ("Venture North") for strategic marketing, investor relations, and capital markets communications services. Venture North arranges and attends meetings with professional investors, maintains ongoing contacts and broadens relationships with the professional investment community on the Company's behalf.

The agreement with Venture North had an initial trial term of 4 months and has been automatically renewed monthly until such time it is terminated on 30 days' notice. Pursuant to the terms of the consulting agreement, the Company pays a monthly fee of $8,500 and granted 500,000 stock options exercisable at $0.40 per common share expiring on October 1, 2024. Of the options issued to Venture North, 125,000 shall vest immediately following the 4-month trial and an additional 125,000 options quarterly.

_________________________

7 https://www.prnewswire.com/news-releases/pqshield-collaborates-with-nccoe-and-industry-to-ease-the-real-world-implementation-of-quantum-resistant-cryptography-301794688.html

8 https://www.isara.com/company/newsroom/shasta-ventures-investment.html

9 https://www.ibm.com/blockchain

10 https://www.sandboxaq.com/solutions/security-suite

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

<u>Reverse Takeover</u>

In accordance with IFRS 3, business combinations, the substance of the Acquisition is a reverse takeover as the shareholders of BTQ AG held 75.88% of the resulting issuer shares and SOC's shareholders held 24.12% of the resulting issuer shares. Accordingly, for accounting purposes, BTQ AG was treated as the accounting parent company (legal subsidiary) and the Company has been treated as the accounting subsidiary (legal parent) in these consolidated financial statements. As BTQ AG was deemed to be the acquirer for accounting purposes, its assets, liabilities and operations since incorporation are included in these consolidated financial statements at their historical carrying values. The Company's results of operations have been included from February 17, 2023.

As the Acquisition did not constitute a business combination, the reverse takeover transaction was accounted for in accordance with IFRS 2, share-based payments, whereby equity instruments issued were recognized at fair value and allocated to the net assets acquired (liabilities assumed). Any difference is the value of the listing which was expensed on completion of the Acquisition.

The Transaction was measured at the fair value of the common shares that BTQ AG would have had to issue to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051, and the fair value of 350,000 stock options of the Company with a fair value of $97,532, to give the shareholders of the Company the same percentage of equity interest in the combined entity that results from the reverse acquisition had it taken the legal form of BTQ AG acquiring the Company. The fair value of the 8,747,629 common shares was determined based on the pricing of the Offering with a value of $0.40 being allocated to each Share. The purchase price was allocated to the net assets acquired as follows:

---

| |
|:---|
| Fair value of the Company's shares (8,747,629 common shares) |
| Fair value of 350,000 stock options of the Company outstanding |
| Total consideration |
| Less: fair value of identifiable assets acquired and liabilities assumed: |
| Cash |
| Cash held in escrow |
| Prepaid expenses |
| Restricted cash |
| Accounts payable and accrued liabilities) |
| Subscription receipts liabilities) |
| Net liabilities assumed) |
| Listing costs |

---

The Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction.

**RESULTS OF OPERATIONS**

**For the nine months ended September 30, 2024**

The net loss for the nine months ended September 30, 2024 was $4,558,910 (2023: $11,902,596). The main categories are listed below:

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

<u>Revenue of $416,667 (2023: $nil)</u>

The Company earned license revenue from a company with common officers and directors.

<u>General and administrative of $599,079 (2023: $549,741)</u>

The increase is due to the Company's growth and higher overall activity during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.

<u>Marketing and promotion of $573,278 (2023: $898,375)</u>

The decrease is due to the Company spending more money on marketing and promotion after closing the Transaction on February 17, 2023. Marketing and promotion activities are lower this year as the Company reigned in spending on this area to conserve cash.

<u>Professional fees of $836,106 (2023: $438,714)</u>

The increase is mainly due to the increase in the audit fees incurred to the Company's auditor for the year ended December 31, 2023, accounting costs incurred to the outsourced accounting consulting firm and the CFO's firm after becoming a publicly listed entity on February 17, 2023.

<u>Research and development of $2,036,282 (2023: $1,647,563)</u>

The Company had increased research and development activities, including research and development being conducted in Canada during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.

<u>Share-based compensation of $(190,931) (2023: $2,661,449)</u>

For the nine months ended September 30, 2024, the Company granted 800,000 (2023: 8, 0950,000) stock options and nil (2023: 3,740,000) restricted stock units.

<u>Transfer agent and regulatory fees of $72,780 (2023: $95,982)</u>

During the three months ended March 31, 2023, the Company incurred significant transfer agent, regulatory, and listing fees relating to the Transaction.

<u>Wages and benefits of $501,945 (2023: $514,021)</u>

Both periods are comparable.

<u>Listing and transaction costs of $nil (2023: $5,006,915)</u>

Listing and transaction costs relate to the Transaction. See Reverse Takeover section above.

**USE OF AVAILABLE FUNDS**

In connection with the Acquisition and the listing of the Shares on the NEO, the Company filed a listing statement dated February 17, 2023 under its SEDAR profile at www.sedar.com. Below is a reconciliation of the expected use of available funds against the actual use of such funds as at September 30, 2024:

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

---

| | | |
|:---|:---|:---|
| **Item<br>**  | Use of Available Funds<br>$| Actual Use of Available<br>Proceeds as at<br>September 30, 2024<br>$|
| Transaction costs related to the Acquisition | 700000 | 705078 |
| Research contracts | 750000 |  |
| Software and hardware development | 4215770 | 3988993 |
| Sales and business development | 1500000 | 1804167 |
| General and administrative costs estimated for 12-months | 1830759 | 2698291 |
| Unallocated working capital | 200000 |  |
| **Total** | **9196529** | **9196529** |

---

**SUMMARY OF QUARTERLY RESULTS**

The following table sets out financial information for the past eight quarters:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) |
|  | September 30, | June 30, | March 31, | December 31, |
|  | 2024 | 2024 | 2024 | 2023 |
| Total revenues | 326094 | 90573 |  |  |
| Net loss | (1029346) | (1695192) | (1834372) | (3500699) |
| Net loss per share, basic and diluted | (0.01) | (0.01) | (0.01) | (0.02) |
|  | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) |
|  | September 30, | June 30, | March 31, | December 31, |
|  | 2023 | 2023 | 2023 | 2022 |
| Total revenues |  |  |  |  |
| Net loss | (2418203) | (2822927) | (6661466) | (1425672) |
| Net loss per share, basic and diluted | (0.02) | (0.02) | (0.07) | (0.02) |

---

The net loss for the quarter ended December 31, 2023 includes share-based compensation of $1,259,207 related to the issuance of stock options and restricted stock units.

The net loss for the quarter ended September 30, 2023 includes share-based compensation of $755,390 related to the issuance of stock options and restricted stock units.

The net loss for the quarter ended June 30, 2023 includes share-based compensation of $1,623,513 related to the issuance of stock options and restricted stock units.

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

The net loss for the quarter ended March 31, 2023 includes costs of $5,006,915 relating to the Transaction, share-based compensation of $282,545 related to the issuance of stock options and increased level of activity as BTQ became public as a subsidiary of the Company with a concurrent financing effective February 17, 2023.

**LIQUIDITY AND CAPITAL RESOURCES**

As at September 30, 2024, the Company had cash of $822,679 and a working capital deficit of $1,127,391 compared to cash of $2,862,023 and working capital of $2,806,924 as at December 31, 2023.

The Company's operations used cash of $3,371,749 during the nine months ended September 30, 2024 (2023: $5,471,542). The Company's investing activities provided net cash of $304,851 (2023:$1,339,874). The cash requirements during the nine months ended September 30, 2024 were funded from the net proceeds from share issuances of $104,000 (2023: $7,107,326) and proceeds from issuance of convertible debt of $1,000,000 (2023: $nil), offset by $76,446 (2023: $78,407) for the repayment of the lease obligation.

The Company's aggregate operating, investing, and financing activities during the nine months ended September 30, 2024 resulted in an decrease in its cash balance of $2,039,344 (2023: increase of $2,897,251).

The Company's accounts payable and accrued liabilities are due in the short term. While the Company has been successful in obtaining the necessary financing through the issuance of common shares and loans in the past, there is no assurance it will be able to raise funds in this manner in the future and there remain material uncertainties that may cast significant doubt as to the Company's ability to continue as a going concern.

The directors regularly review cash flow forecasts to determine whether the Company has sufficient cash reserves to meet future working capital requirements and discretionary business development opportunities.

The consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. During the nine months ended September 30, 2024, the Company has a net loss and negative cash flow from operations. As at September 30, 2024, the Company has a working capital deficit of $1,127,391 and an accumulated deficit of $39,127,263. The Company's ability to continue its operations and to realize its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs. Management is of the opinion that sufficient working capital will be obtained from external financing to meet the Company's liabilities and commitments as they become due, although there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These factors indicate a material uncertainty that may cast significant doubt on the ability of the Company to continue as a going concern. These consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. Such adjustments could be material.

**OFF BALANCE SHEET ARRANGEMENTS**

There are no off-balance sheet arrangements to which the Company is committed.

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

**RELATED PARTY TRANSACTIONS**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

Key management personnel are persons responsible for planning, directing, and controlling the activities of an entity, and include all officers and directors of the Company. Key management personnel compensation during the nine months ended September 30, 2024 and 2023 was comprised of the following:

---

| | |
|:---|:---|
|  | Nine months |
|  | ended |
|  | September 30, |
|  | 2023 |
|  | $|
| &nbsp;&nbsp;Consulting fees incurred to Ming-Yang Chih, former Chief Strategic Officer | 72668 |
| &nbsp;&nbsp;Marketing and promotion incurred to Mathieu Gauthier, Head of Corporate Development | 72668 |
| &nbsp;&nbsp;Professional fees incurred to Saturna Group Chartered Professional Accountants LLP, a firm where the CFO, Lonny Wong, is a partner | 38661 |
| &nbsp;&nbsp;Research and development incurred to Po-Chun Ko (former Chief Technology Officer) and Chen-Mou Cheng (former Chief Cryptographer) | 339660 |
| &nbsp;&nbsp;Wages and benefits incurred to Nicolas Roussy Newton (COO) and Peter Lavelle (former Chief Legal Officer) | 216812 |
| &nbsp;&nbsp;Total short-term benefits | 740469 |
| &nbsp;&nbsp;Share-based payments) | 577281 |
|  | 1317750 |

---

During the nine months ended September 30, 2024, the Company earned license and consulting services revenue of $416,667 (2023 - $nil) from ZKP Corp., a company controlled by Nicolas Roussy Newton, the Chief Operating Officer ("COO") of the Company. As at September 30, 2024, the Company has deferred revenue of $565,497 (December 31, 2023 - $nil) for this company.

As at September 30, 2024, the Company owed $116,580 (December 31, 2023 - $114,223) to Olivier Roussy Newton, the Chief Executive Officer of the Company ("CEO"), of which $91,089 (December 31, 2023 - $89,247) is included in accounts payable and accrued liabilities. The amounts owed are non-interest bearing, unsecured, and due on demand.

As at September 30, 2024, the Company was owed $149,924 (December 31, 2023 - $49,888) from Nicolas Roussy Newton, the COO of the Company, which is included in other receivables.

As at September 30, 2024, the Company owed $7,350 (December 31, 2023 - $7,350) to Saturna Group Chartered Professional Accountants LLP, a firm where the Chief Financial Officer of the Company ("CFO") is a partner, which is included in accounts payable and accrued liabilities.

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

As at September 30, 2024, the Company owed $134,990 (December 31, 2023 - $132,260) to Chen-Mou Cheng, the former Chief Cryptographer of the Company, which is included in accounts payable and accrued liabilities.

As at September 30, 2024, the Company owed $8,099 (December 31, 2023 - $7,936) to Mathieu Gauthier, the Head of Corporate Development of the Company, which is included in accounts payable and accrued liabilities.

**ACCOUNTING POLICIES**

A number of new standards, and amendments to standards and interpretations, are not yet effective for the period ended September 30, 2024, and have not been early adopted in preparing the consolidated financial statements. These new standards, and amendments to standards and interpretations are either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements.

**CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS**

<u>Use of estimates</u>

The preparation of consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from our company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

*Reverse Takeover*

The reverse takeover transaction was measured at the fair value of the common shares and stock options that BTQ would have had to issue to the shareholders of the Company. The fair value of common shares and stock options issued were estimated based on the Company's financing event which took place concurrently with the reverse takeover transaction. The fair values of identifiable assets acquired and liabilities assumed approximated their carrying values.

<u>Research and development costs</u>

Research costs are recognized as an expense when incurred but development costs may be capitalized as intangible assets if certain conditions are met as described in IAS 38 *Intangible Assets*. Management has determined that development costs do not meet the conditions for capitalization under IAS 38 and all research and development costs have been expensed.

<u>Fair value of stock options</u>

Fair values of stock options are determined using the Black-Scholes option pricing model. Estimating fair value requires determining the most appropriate valuation model for a grant of equity instruments, which is dependent on the terms and conditions of the grant. Option-pricing models require the use of highly subjective estimates and assumptions including the expected stock price volatility. Changes in the underlying assumptions can materially affect the fair value estimates and, therefore, existing models do not necessarily provide reliable measurement of the fair value of the Company's stock options and performance warrants.

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

<u>*Deferred income taxes*</u>

The determination of income tax expense and the composition of deferred income tax assets and liabilities involves judgment and estimates as to the future taxable earnings, expected timing of reversals of deferred income tax assets and liabilities, and interpretations of tax laws. The Company is subject to assessments by tax authorities who may interpret the tax law differently. Changes in these interpretations, judgments, and estimates may materially affect the final amount of current and deferred income tax provisions, deferred income tax assets and liabilities, and results of operations.

<u>*Going concern presentation*</u>

The consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The assessment of the Company's ability to source future operations and continue as a going concern involves judgement. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. If the going concern assumption is not appropriate for the financial statements, then adjustments would be necessary in the carrying value of the assets and liabilities, the reported revenue and the expenses and the statement of financial position classifications used.

**FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**

**Fair Values**

The following provides a description of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at September 30, 2024 and December 31, 2023 as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using | Fair value measurements using |
|  | Quoted prices in |  |  |  |
|  | active markets | Significant other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | September 30, |
|  | (Level 1) | (Level 2) | (Level 3) | 2024 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using | Fair value measurements using |
|  | Quoted prices in |  |  |  |
|  | active markets | Significant other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | December 31, |
|  | (Level 1) | (Level 2) | (Level 3) | 2023 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

---

The fair values of the Company's other financial instruments, which include cash, short-term investment, other receivables, and accounts payable and accrued liabilities, lease obligation, and due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

**Credit Risk**

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash. Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

**Foreign Exchange Rate Risk**

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency.

The following tables indicate the impact of foreign currency exchange risk on net working capital as at September 30, 2024 and December 31, 2023. The table below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the table below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as at September 30, 2024 and December 31, 2023.

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

---

| | | | |
|:---|:---|:---|:---|
| As at September 30, 2024 | AUD | TWD | US$ |
| Cash |  | 1091534 | 49450 |
| Accounts payable and accrued liabilities | (348500) | (1216211) | (170056) |
| Lease obligation |  | (3417780) |  |
| Total foreign currency financial assets and liabilities | (348500) | (3542457) | (120606) |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 34850 | 354246 | 12061 |
| December 31, 2023 |  | TWD | US$ |
| Cash |  | 9201660 | 296479 |
| Accounts payable and accrued liabilities |  |  | (190659) |
| Lease obligation |  | (778794) |  |
| Total foreign currency financial assets and liabilities |  | 8422866 | 105820 |
| Impact of a 10% strengthening or weakening of foreign exchange rate |  | 842287 | 10582 |

---

**Interest Rate Risk**

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

**Liquidity Risk**

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner. Refer to going concern disclosure under Liquidity and Capital Resources.

The following amounts are the contractual maturities of financial liabilities as at September 30, 2024 and December 31, 2023:

---

| | | | |
|:---|:---|:---|:---|
| September 30, 2024 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 1179221 | 1179221 |  |
| Other payable | 368272 | 368272 |  |
| Lease obligation | 146117 | 88776 | 57341 |
| Convertible debt | 1000000 |  | 1000000 |
| Due to related parties | 25491 | 25491 |  |
| Total | 2719101 | 1661760 | 1057341 |

---

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

---

| | | | |
|:---|:---|:---|:---|
| December 31, 2023 |  | Within | Within |
|  | Total | 1 year | 2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 856682 | 856682 |  |
| Lease obligation | 33554 | 33554 |  |
| Due to related parties | 28003 | 28003 |  |
| Total | 918239 | 918239 | - |

---

**DISCLOSURE OF OUTSTANDING SHARE DATA**

The authorized capital of the Company consists of an unlimited number of common shares without par value.

As of the date of this report, the Company had 131,999,125 common shares outstanding, 226,179 share purchase warrants outstanding, 3,550,000 stock options outstanding, and 1,945,000 RSUs outstanding.

**DISCLOSURE CONTROLS AND PROCEDURES**

The CEO and the CFO have designed, or caused to be designed under their supervision, the Company's disclosure controls and procedures ("DCP") to provide reasonable assurance that material information relating to the Company and its consolidated subsidiaries has been recorded, processed, summarized and disclosed in a timely manner in accordance with regulatory requirements and good business practices and that the Company's DCP will enable the Company to meet its ongoing disclosure requirements.

The CEO and CFO have evaluated the effectiveness of the Company's disclosure controls and procedures and have concluded that based on this evaluation, our disclosure controls and procedures are not effective at a reasonable assurance level due to the material weakness described below in Internal Control over Financial Reporting.

**INTERNAL CONTROL OVER FINANCIAL REPORTING**

The CEO and the CFO have designed, or caused to be designed under their supervision, the Company's internal controls over financial reporting ("ICFR") in order to provide reasonable assurance regarding the reliability of the Company's financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards ("IFRS").

A material weakness is a control deficiency, or combination of control deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement in the annual or interim financial statements will not be prevented or detected on a timely basis.

The CEO and CFO conducted an evaluation the effectiveness of the Company's ICFR as at September 30, 2024 based on *Internal Control-Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") for the Company as a whole. Based on this evaluation, management concluded that material weaknesses existed as at September 30, 2024.

The following material weaknesses were identified in the design and operation of its internal controls:

1. Lack of cash controls - The Company does not have sufficient internal controls over financial reporting for the cash process, including having an employee and a third party professional consultant with signing authority over certain of the Company's foreign bank accounts.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

2. Lack of segregation of duties - There is a lack of segregation of duties among individuals with administrative access to various systems and applications used by the Company. In addition, there is no evidence of a review process over control activities such as, but not limited to, financial statements and disclosures, purchase authorization, cut-off of transactions posted by the accounting team, cash controls over Company credit cards, and review of contracts. This increases the risk of error and fraud due to the ability to override controls.

3. Accounting for complex transactions - During the course of our audit, some auditor proposed adjustments were made to correct certain complex transactions, including, but not limited to, share- based compensation and international tax implications. In addition, a number of adjustments were made to correct and restate the prior year information which was not addressed prior to the year end audit. There still exists a lack of review and approval on the accounting treatment of these transactions in accordance with the relevant IFRS.

**LIMITATION OF CONTROLS AND PROCEDURES**

The Company's management, including its CEO and CFO, believe that any DCP and ICFR, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override to the control. The design of any control system also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any control system will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost effective, control system, misstatements due to error or fraud may occur and not be detected.

**CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING**

There have been no changes to our internal control over financial reporting for the three months ended September 30, 2024, that could have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**RISK FACTORS**

The current business of BTQ AG has been the business of the Company since February 17, 2023. The following is a summary of certain risk factors relating to the business. The risks presented below should not be considered exhaustive and may not be all of that the Company may face.

***General Risks***

*The Company has a limited operating history*

The Company has a limited history of operations and is in the early stage of development. As such, the Company will be subject to many risks common to early-stage enterprises, including undercapitalization, cash shortages, limitations with respect to personnel, financial and other resources, and lack of revenue. There is no assurance that the Company will achieve its operating goals. There is no assurance that the Company will be successful in achieving a return on shareholders' investment and the likelihood of success must be considered in light of its early stage of operations. There can be no assurance that the Company will be able to earn material revenue or that any of its activities will generate positive cash flow.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

*The Company may require additional funds to finance its operations*

Additional funds raised through debt or equity offerings may be needed to finance the Company's ongoing and future activities. There can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Failure to obtain additional financing could cause the Company to reduce or terminate its operations.

If additional funds are raised through further issuances of equity or securities convertible into equity, existing shareholders could suffer significant dilution, and any new equity securities issued could have rights, preferences and privileges superior to those of holders of securities of the Company. Any debt financing secured in the future could involve restrictive covenants relating to capital raising activities and other financial and operational matters, which may make it more difficult for the Company to obtain additional capital and to pursue business opportunities.

Refer to going concern disclosure under Liquidity and Capital Resources.

*The Company is subject to competition from other post-quantum encryption companies*

The Company will compete with other post-quantum cryptography and technology businesses, including other businesses focused on applying post-quantum cryptography to blockchain.

*The Company's compliance and risk management programs may not be effective*

The Company's ability to comply with applicable laws and rules will be largely dependent on the establishment and maintenance of compliance, review, and reporting systems, as well as the ability to attract and retain qualified compliance and other risk-management personnel, as needed. The Company cannot provide any assurance that its compliance policies and procedures will be effective or that it will be successful in monitoring or evaluating its risks. If there is any alleged non-compliance with applicable laws or regulations, The Company could be subject to investigations and judicial or administrative proceedings that may result in substantial penalties or civil lawsuits for damages, restitution or other remedies, which could be significant. Any of these outcomes, individually or together, may materially and adversely affect the Company's reputation, financial condition and valuation, and the value of its shares.

*Unexpected market disruptions may cause major losses for the Company*

The Company may incur major losses in the event of disrupted markets and other extraordinary events in which market behavior diverges significantly from historically recognized patterns. The risk of loss in such events may be compounded by the fact that, in disrupted markets, many positions may become illiquid, making it difficult or impossible to close out positions against which markets are moving. Market disruptions caused by unexpected political, military and terrorist events, or other factors, may from time to time cause dramatic losses for the Company.

*The Company will be reliant on attracting and retaining skilled management and directors*

The success of the Company will, in part, be dependent upon the skill, judgment, industry relationships and expertise of the Board and management. The loss of a director or key management personnel may materially and adversely affect the business of the Company. There can be no assurance that these individuals will continue to be employed by, or remain involved with, the Company for a particular period of time.

------

**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

*Market risk for securities*

There can be no assurance that an active trading market for the Company's shares will be sustained. The market price for the Company's Shares may be subject to wide fluctuations. Factors such as government regulation, price fluctuations, share price movements of peer companies and competitors, as well as overall market movements, may have a significant impact on the market price of the Company's securities. The stock market has from time to time experienced extreme price and volume fluctuations, which have often been unrelated to the operating performance of particular companies. Market forces may render it difficult or impossible for the Company to secure purchasers to purchase its securities at a price which will not lead to severe dilution to existing shareholders, or at all. In addition, shareholders may realize less than the original amount invested on dispositions of their shares during periods of such market price decline.

*Foreign exchange risk*

The Company is a Canadian company, and most of its expenses and fundraising is done in Canadian dollars, however, its operations are predominantly denominated in U.S. dollars and Taiwan dollars. As a result, the Company is subject to foreign exchange risks relating to the relative value of the U.S. dollar and Taiwan dollar as compared to the Canadian dollar. A decline in the U.S. dollar or Taiwan dollar could result in a decrease in the real value of the Company's revenues and adversely impact financial performance.

*Tax*

No assurance can be given that new taxation rules will not be enacted or existing rules will not be applied in a manner which could result in the Company being subject to additional taxation or which could otherwise have a material adverse effect on the Company's results from operations and financial condition.

*The Company may be subject to litigation*

The Company may be subject to litigation arising out of, or related to, its operations. Damages claimed under such litigation may be material, and the outcome of such litigation may materially impact the Company's operations and the value of its shares. While the Company expects to assess the merits of any lawsuits and defend such lawsuits accordingly, it may be required to incur significant expense or devote significant financial resources to such defenses. In addition, the adverse publicity surrounding such claims may have a material adverse effect on the Company's operations.

*Investment Risk*

There is no assurance that the Company will achieve its investment objective. An investment may not earn any positive return and may result in the loss of some or all of the capital invested.

*Ability to generate profits*

There can be no assurance that the Company will generate net profits in future periods. Further, there can be no assurance that the Company will be cash flow positive in future periods. In the event that the Company fails to achieve profitability in future periods, the value of the Company's shares may decline. In addition, if the Company is unable to achieve or maintain positive cash flows, the Company would be required to seek additional funding, which may not be available on favorable terms, if at all.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

*Management of growth*

The Company has recently experienced, and may continue to experience, growth in the scope of its operations. This growth has resulted in increased responsibilities for the Company's existing personnel, the hiring of additional personnel and, in general, higher levels of operating expenses. In order to manage its current operations and any future growth effectively, the Company will need to continue to implement and improve its operational, financial and management information systems, as well as hire, manage and retain its employees and maintain its corporate culture including technical and customer service standards. There can be no assurance that the Resulting Issuer will be able to manage such growth effectively or that its management, personnel or systems will be adequate to support the Company's operations.

*Reliance on key personnel*

The Company's future growth and its ability to develop depend, to a significant extent, on its ability to attract and retain highly qualified personnel. The Company will rely on a limited number of key employees, consultants and members of senior management and there is no assurance that the Company will be able to retain such key employees, consultants and senior management. The loss of one or more of such key employees, consultants or members of senior management, if not replaced, could have a material adverse effect on the Company's business, financial condition and prospects.

*The Company has no immediate plans to pay regular dividends on the Company, so shareholders of the Company may not receive funds without selling their Company Shares.*

The Company does not currently have plans to pay regular dividends on Company Shares. Any declaration and payment of future dividends to holders of Company Shares will be at the sole discretion of the Board and will depend on many factors, including the financial condition, earnings, capital requirements, level of indebtedness, statutory and contractual restrictions applying to the payment of dividends and other considerations of the Company that the Company's Board deems relevant.

***Business and Industry Risks***

*Regulatory changes or actions may alter the nature of an investment in the Company or restrict the use of digital assets in a manner that adversely affects the Company's operations*

Due to their global nature, blockchain-related technologies and encryption-related technologies are subject to regulatory fragmentation due to different treatment depending on jurisdiction. Certain governments have categorized certain blockchain technologies as illegal, while others have embraced their utility and have approved them for trade. Ongoing and/or future regulatory actions may have a substantial impact on the Company's business operations.

*The Company relies upon the use of internally/externally built proprietary software, data and intellectual property that may be subject to substantial risk*

The Company's liquidity contribution strategy is dependent on internally and externally developed software, data and intellectual property. Its operations may be severely and adversely affected by the malfunction of technology.

*Banks may not provide banking services, or may cut off banking services, to businesses that provide services related to blockchain-based technologies*

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**MANAGEMENT'S DISCUSSION AND ANALYSIS<br>FOR THE QUARTER ENDED SEPTEMBER 30, 2024<br>(AMENDED AND RESTATED)**

A number of companies that provide blockchain-related services have been unable to find banks that are willing to provide them with bank accounts and banking services. Similarly, a number of such companies have had their existing bank accounts closed by their banks. Banks may refuse to provide bank accounts and other banking services to blockchain-related companies, or companies that accept digital assets, for a number of reasons, such as perceived compliance risks or costs.

*The Company may be unable to obtain adequate insurance to insure its operations*

The Company intends to insure its operations in accordance with technology industry practice. However, given the novelty of digital assets and associated businesses, such insurance may not be available, may be uneconomical for the Company, or the nature or level may be insufficient to provide adequate insurance cover. The occurrence of an event that is not covered or fully covered by insurance could have a material adverse effect on the Company.

*The business of the Company will be exposed to cybersecurity risks*

Cyber incidents can result from deliberate attacks or unintentional events, and may arise from internal sources (e.g., employees, contractors, service providers, suppliers and operational risks) or external sources (e.g., nation states, terrorists, hacktivists, competitors and acts of nature). Cyber incidents include unauthorized access to information systems and data (e.g., through hacking or malicious software) for purposes of misappropriating or corrupting data or causing operational disruption. Cyber incidents also may be caused in a manner that does not require unauthorized access, such as causing denial-of-service attacks on websites (e.g., efforts to make network services unavailable to intended users). A cyber incident that affects the Company might cause disruptions and adversely affect its business operations, and might also result in violations of applicable law (e.g., personal information protection laws), each of which might result in potentially significant financial losses and liabilities, regulatory fines and penalties, reputational harm, and reimbursement and other compensation costs. In addition, substantial costs might be incurred to investigate, remediate and prevent cyber incidents.

**FORWARD-LOOKING STATEMENTS**

*This MD&A includes certain statements that may be deemed "forward-looking statements" concerning the future performance of the Company's business, its operations, its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All statements in this report that do not directly and exclusively relate to historical facts, constitute forward- looking statements. These statements represent the Company's intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements. The Company disclaims any intention or obligation to update or revise such forward-looking statements, as a result of new information, future events or otherwise. Factors that may cause actual results to vary from forward looking statements include, but are not limited to, the Company's ability to access capital, competitive risks and reliance on key personnel, as described in more detail in this document under "Risk Factors". Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.*

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## Exhibit 99.57

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**Form 52-109F2R**

***Certification of Refiled Interim Filings***

This certificate is being filed on the same date that BTQ Technologies Corp. (the "issuer") has refiled the interim financial report and interim MD&A for the interim period ended September 30, 2024.

I, Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies Corp., certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A, (together, the "interim filings") of the issuer for the interim period ended September 30, 2024.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. ***Responsibility:*** The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the end of the period covered by the interim filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework.

------

5.2 **ICFR - material weaknesses relating to design:** The issuer has disclosed in its interim MD&A for each material weakness relating to design existing for the interim period end

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A description of the material weakness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The impact of the material weakness on the issuer's financial reporting and its ICFR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The issuer's current plans, if any, or any actions already undertaken, for remediating the material weakness.

5.3 N/A

6. ***Reporting changes in ICFR:*** The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on July 1, 2024 and ended on September 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: February 6, 2025

(signed) "Olivier Roussy Newton"

______________________________

Olivier Roussy Newton

Chief Executive Officer

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## Exhibit 99.58

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**Form 52-109F2R**

***Certification of Refiled Interim Filings***

This certificate is being filed on the same date that BTQ Technologies Corp. (the "issuer") has refiled the interim financial report and interim MD&A for the interim period ended September 30, 2024.

I, Lonny Wong, Chief Financial Officer of BTQ Technologies Corp., certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A, (together, the "interim filings") of the issuer for the interim period ended September 30, 2024.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. ***Responsibility:*** The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the end of the period covered by the interim filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework.

------

5.2 **ICFR - material weaknesses relating to design:** The issuer has disclosed in its interim MD&A for each material weakness relating to design existing for the interim period end

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A description of the material weakness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The impact of the material weakness on the issuer's financial reporting and its ICFR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The issuer's current plans, if any, or any actions already undertaken, for remediating the material weakness.

5.3 N/A

6. ***Reporting changes in ICFR:*** The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on July 1, 2024 and ended on September 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: February 6, 2025

(signed) "Lonny Wong"

______________________________

Lonny Wong

Chief Financial Officer

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## Exhibit 99.59

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![](exhibit99-59x1x1.jpg)

**BTQ Technologies Sponsors Quantum Australia Conference<br>Brisbane 2025; COO Nicolas Roussy Newton to Speak on<br>Quantum Security Panel**

**Vancouver, February 10, 2025 - BTQ Technologies Corp.** (the "**Company**") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce its sponsorship of the *Quantum Australia Conference Brisbane 2025*, taking place from March 25 to 27 at the Brisbane Convention and Exhibition Centre. As part of its commitment to advancing the quantum ecosystem, BTQ Technologies' Chief Operating Officer, Nicolas Roussy Newton, will speak on the panel "Securing Our Assets in a Quantum Era." This discussion will explore the growing cybersecurity challenges posed by quantum computing and the urgent need for quantum-resistant security measures.

The Quantum Australia Conference is Australia's premier quantum industry event, bringing together top researchers, business leaders, government officials, and technology pioneers. Administered by the University of Sydney and funded by the Department of Industry, Science and Resources, the conference is designed to position Australia as a global leader in quantum innovation.

The event features keynote presentations, expert panel discussions, and networking opportunities, with a focus on translating quantum technologies into real-world applications. Key themes include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The latest advancements in quantum innovation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Australia's growing quantum ecosystem

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The potential of quantum technologies to transform industries

BTQ Technologies is dedicated to developing quantum-secure solutions that protect critical digital assets from emerging quantum threats. The company's expertise in post-quantum cryptography and quantum-proof security solutions is helping businesses and governments prepare for a secure digital future.

During the panel discussion, Nicolas Roussy Newton will share insights into BTQ's pioneering approach to quantum security, including its post-quantum cryptographic solutions and their real-world applications.

"Quantum technology is advancing at an unprecedented pace, and ensuring our digital infrastructure remains secure is paramount," said Nicolas Roussy Newton, COO of BTQ Technologies. "Quantum Australia 2025 provides a vital platform for industry leaders, researchers, and policymakers to collaborate on the urgent need for quantum-secure systems and how businesses can proactively adapt."

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![](exhibit99-59x2x1.jpg)

BTQ Technologies is proud to join other distinguished sponsors, including KPMG, Sydney Quantum Academy, Q-CNTRL, and PsiQuantum, in supporting this landmark event.

For more information about Quantum Australia Conference Brisbane 2025, visit <u>https://quantum-australia.com/</u>

**About Quantum Australia Conference** 

Quantum Australia was established as the national centre for quantum growth in May 2024, thanks to an $18.4 million grant from the Department of Industry, Science and Resources to a consortium of research institutes, industry partners and quantum companies. Additional financial support is provided by state governments, and our university and industry partners. For more information about Quantum Australia Conference Brisbane 2025, visit <u>https://quantum-australia.com/</u>

**About BTQ**

BTQ Technologies Corp. (CBOE CA: BTQ, FSE: NG3, OTCQX: BTQQF) was founded by a group of post-quantum security experts with an interest in addressing the urgent security threat posed by large-scale quantum computers. With the support of leading research institutes and universities, BTQ's extensive technology portfolio and commercialization platform is focused on accelerating quantum advantage.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

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![](exhibit99-59x3x1.jpg)

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

--

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## Exhibit 99.60

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![](exhibit99-60x1x1.jpg)

**BTQ Technologies and Coxwave Awarded Grant to Develop<br>AI Chatbot Solutions for Quantum Physics Education and<br>Research**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Grant and Partnership:** BTQ Technologies and Coxwave have partnered to develop AI-powered chatbot solutions for quantum physics education and research, supported by a US$117,000 grant from the Korean Government's "AI Voucher" program, administered by NIPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **AI-Driven Solutions:** The collaboration will create two AI-driven solutions: AI Tutor, which simplifies quantum physics for the general public through interactive Q&A, and AI Assistant, which supports professional researchers by facilitating in-depth inquiries and data analysis, enhancing both accessibility and efficiency in quantum education and research.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Impact and Innovation:** By combining BTQ's quantum expertise with Coxwave's AI capabilities, the partnership aims to enhance accessibility and drive innovation in quantum education and research, contributing to the broader adoption of quantum science and technology.

**Vancouver, February 12, 2025 - BTQ Technologies Corp. (the "Company")** (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce a strategic partnership with Coxwave, the operator of the AI product analysis platform Align AI, to develop advanced AI chatbot solutions for quantum physics education and research. This collaboration is with a US$117,000 grant through the Korean Government's "AI Voucher" program, administered by the National IT Industry Promotion Agency **("NIPA"**). The program supports partnerships between domestic AI companies and international clients, fostering global innovation in AI-driven solutions.

Through this agreement, BTQ and Coxwave will leverage Coxwave's cutting-edge AI expertise and real-time monitoring via the Align AI platform to create two specialized chatbot solutions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● AI Tutor - Designed for the general public, this chatbot simplifies quantum physics concepts through interactive Q&A, making the subject more accessible to learners at all levels.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● AI Assistant - Developed for professional researchers, this AI Agent will facilitate in-depth inquiries into complex quantum topics, enhancing research efficiency and collaboration.

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![](exhibit99-60x2x1.jpg)

"At BTQ, we are committed to expanding the quantum ecosystem by making quantum education more accessible while enhancing research capabilities for experts in the field," said Olivier Roussy Newton, CEO of BTQ Technologies. "By integrating Coxwave's advanced AI solutions with our quantum technology expertise, we aim to break down barriers to quantum learning, fostering both innovation and broader industry adoption."

"This partnership showcases the power of AI to transform education and research," added Kim Joo-won, CEO of Coxwave. "Having provided AI chatbot solutions to Fast Campus, one of Korea's largest online education platforms, we understand AI's impact on making complex subjects more accessible. Partnering with BTQ allows us to apply our AI expertise to the rapidly evolving field of quantum technology, where accessibility remains a major challenge. Combining our AI-driven educational tools with BTQ's deep expertise in quantum research and security can bridge the gap between advanced quantum concepts and learners at all levels."

The collaboration between BTQ Technologies and Coxwave marks a significant step toward making quantum education and research more accessible through AI-driven solutions. By combining expertise in quantum technology with state-of-the-art AI analytics, both companies are paving the way for a future where cutting-edge quantum science is not only more understandable but also more widely adopted across industries. As this initiative unfolds, it is expected to contribute meaningfully to the global quantum ecosystem, fostering breakthroughs in both education and advanced research.

**About Coxwave**

Founded in 2021, Coxwave specializes in advanced analytics and AI-driven solutions. Its flagship product, Align AI, launched in 2022, is designed to analyze user interactions with generative AI platforms, delivering actionable insights that optimize AI-driven services and improve performance. By leveraging AI to enhance education and research, Coxwave continues to push the boundaries of innovation. For more information, please visit <u>https://tryalign.ai/</u>

**About BTQ**

BTQ Technologies Corp. (CBOE CA: BTQ, FSE: NG3, OTCQX: BTQQF) was founded by a group of post-quantum security experts with an interest in addressing the urgent security threat posed by large-scale quantum computers. With the support of leading research institutes and universities, BTQ's extensive technology portfolio and commercialization platform is focused on accelerating quantum advantage.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

------

![](exhibit99-60x3x1.jpg)

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.61

------

![](exhibit99-61x1x1.jpg)

**BTQ Technologies Submits Application to List on NASDAQ**

**Vancouver, February 19, 2025 - BTQ Technologies Corp.** (the "**Company**") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce it has filed an application to list its common shares on the NASDAQ Capital Market (the "Nasdaq"). The Company will continue to maintain the listing of its common shares on the CBOE Canada exchange under the symbol "BTQ."

"We are excited to take this significant step in our growth journey by applying for a listing on the Nasdaq, one of the world's most prestigious stock exchanges," said Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies. "We believe a Nasdaq listing will increase our visibility, expand our access to institutional and retail investors in the U.S. and globally, and further establish BTQ as a leader in quantum-secure communications and cryptographic solutions."

In anticipation of its proposed Nasdaq listing, BTQ Technologies will file a Form 40-F Registration Statement with the United States Securities and Exchange Commission (the "SEC").

The listing of the Company's common shares on the Nasdaq remains subject to the approval of the Nasdaq and the satisfaction of all applicable listing and regulatory requirements, including the SEC declaring the Form 40-F Registration Statement effective. No assurance can be given that such application will be approved or that such listing will be completed. The Company will provide updates on its progress as additional information becomes available.

**About BTQ**

BTQ Technologies Corp. (CBOE CA: BTQ, FSE: NG3, OTCQX: BTQQF) was founded by a group of post-quantum security experts with an interest in addressing the urgent security threat posed by large-scale quantum computers. With the support of leading research institutes and universities, BTQ's extensive technology portfolio and commercialization platform is focused on accelerating quantum advantage.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

------

![](exhibit99-61x2x1.jpg)

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither CBOE Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, the continued listing on CBOE Canada, the completion of the Nasdaq listing and the filing and effectiveness of the Form 40-F Registration Statement, anticipated markets in which the Company may be listing its common shares and benefits of such listings. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the ability to achieve benefits from a Nasdaq listing; the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The forward-looking information and forward-looking statements contained in this news release are made as of the date of this news release, and the Company does not undertake to update any forward-looking information or forward-looking statements, except in accordance with applicable securities laws.*

------

## Exhibit 99.62

------

![](exhibit99-62x1x1.jpg)

**BTQ Technologies Awarded Mitacs Elevate Grant to Advance**

**Cutting-Edge Quantum Simulation Research**

* **BTQ Technologies Partners with Mitacs:** BTQ Technologies has been awarded a $158,000 Mitacs Elevate Postdoctoral Fellowship at the University of Toronto, supporting research on reducing resource requirements for quantum simulations to accelerate quantum computing advancements.

* **Cutting-Edge Research in Quantum Algorithm Optimization:** Led by Dr. Aleksei Uvarov and supervised by Professor Artur Izmaylov, the project will develop novel techniques, including LCU block encoding, tensor decomposition optimizations, and spectral range reduction, to enhance the scalability and efficiency of quantum simulations.

* **Strengthening Industry-Academic Collaboration in Quantum Security**: BTQ is reinforcing its leadership in quantum security by bridging the gap between theoretical research and real-world applications, furthering its mission to secure mission-critical networks in the quantum era.

**Vancouver, February 27, 2025 - BTQ Technologies Corp. (the "Company")** (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce participation as an industry partner in the Mitacs Elevate Postdoctoral Fellowship Program, funding advanced research on reducing resource requirements for quantum simulation. This collaboration reflects BTQ's commitment to fostering academic partnerships and accelerating quantum computing advancements.

The research project, titled "Exploiting the Structure of Quantum Hamiltonians to Reduce the Resource Requirements for Quantum Simulation," has been awarded a $158,000 Mitacs Elevate grant. Led by Dr. Aleksei Uvarov, a postdoctoral researcher at the University of Toronto's Department of Physical and Environmental Sciences, and supervised by Professor Artur Izmaylov, the project will focus on optimizing quantum algorithms for more efficient simulation of complex quantum systems.

As an industry partner, BTQ is supporting the research to develop novel computational techniques, including linear combination of unitaries (LCU) block encoding, tensor decomposition optimizations, and spectral range reduction. These innovations have the potential to enhance the scalability of quantum simulations, making them more viable for real-world applications in quantum chemistry, materials science, and secure communications.

"At BTQ Technologies, we recognize that industry-academic collaboration is key to unlocking the full potential of quantum computing," said Olivier Roussy Newton, CEO at BTQ Technologies. "By conducting this research, we are investing in breakthrough technologies that could lead to more efficient quantum simulation methods, ultimately advancing the development of quantum-secure solutions."

------

![](exhibit99-62x2x1.jpg)

Mitacs, a national non-profit organization, connects top researchers with industry partners to drive innovation in Canada. Through this partnership, BTQ is helping bridge the gap between theoretical quantum research and practical, real-world applications, reinforcing its leadership in the quantum security sector.

**About Mitacs**

Mitacs empowers Canadian innovation through effective partnerships that deliver solutions to the world's most pressing problems. By driving economic growth and productivity, Mitacs creates meaningful change to improve the quality of life for all Canadians. Founded in 1999, Mitacs has grown beyond its origins in mathematics. Today, the organization supports a range of disciplines, from STEM to social innovation. With close to 400 employees and offices in Ottawa, Montréal, Toronto, and Vancouver Mitacs is an integral part of Canada's innovation ecosystem. For more information please visit <u>https://www.mitacs.ca/</u>

**About BTQ**

BTQ Technologies Corp. (CBOE CA: BTQ, FSE: NG3, OTCQX: BTQQF) was founded by a group of post-quantum security experts with an interest in addressing the urgent security threat posed by large-scale quantum computers. With the support of leading research institutes and universities, BTQ's extensive technology portfolio and commercialization platform is focused on accelerating quantum advantage.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

------

![](exhibit99-62x3x1.jpg)

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.63

------

![](exhibit99-63x1x1.jpg)

**BTQ Technologies Announces Appointment of Dr. Gavin**

**Brennen as Chief Quantum Officer**

**Vancouver, March 12, 2025 - BTQ Technologies Corp. (**the **"Company")** (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce the appointment of Dr. Gavin Brennen as Chief Quantum Officer (CQO). Dr. Brennen, who has already been serving as Quantum Information Advisor and Director of BTQ Australia, will now also drive the company's global technological roadmap and strategy.

Dr. Brennen is a Professor of Physics in the School of Mathematical and Physical Sciences at Macquarie University in Sydney, where he leads a theory research group focused on designing quantum computers, simulators, and sensors. A core aspect of his work involves developing quantum algorithms and protocols that outperform their classical counterparts. He has served for several years as Director of the Macquarie Centre for Quantum Engineering and as a Chief Investigator at the Australian Research Council Centre of Excellence for Engineered Quantum Systems (EQUS). Dr. Brennen further contributes to the quantum community through his involvement in the Standards Australia working group for Quantum Technologies and as Co-Director of the Australian Quantum Software Network (AQSN).

He brings over 20 years of expertise in quantum technologies to BTQ, including pioneering work on neutral atom quantum computers, quantum simulation for synthesizing advanced materials, and quantum error correction to enable reliable, large-scale quantum processors. In addition to his academic accomplishments, Dr. Brennen has been a crucial resource for BTQ in his previous role as Quantum Information Advisor. His research, including publications such as "Proof-of-work consensus by quantum sampling," has been instrumental in laying the foundation for BTQ's quantum-secure blockchain solutions. With his new position as CQO, Dr. Brennen formalizes his leadership within BTQ's technical team and strengthens the company's commitment to advancing quantum-based security solutions.

"We are delighted to expand Dr. Brennen's leadership responsibilities at BTQ," said Olivier Roussy Newton, CEO of BTQ Technologies. "His profound expertise in quantum computing, cryptography, and algorithm development has already set our solutions apart. Now, as Chief Quantum Officer, he will guide us in harnessing the power of quantum to stay at the forefront of quantum security."

"I am excited to join the team at BTQ Technologies in this new role," said Dr. Brennen. "From the beginning BTQ has been forward looking in translating cryptography research, much of it in-house, into commercial solutions for quantum security. We plan to continue this approach using Fault-tolerant Intermediate Scale Quantum (FISQ) devices for novel applications in industry."

------

![](exhibit99-63x2x1.jpg)

**About BTQ**

BTQ Technologies Corp. (CBOE CA: BTQ, FSE: NG3, OTCQX: BTQQF) was founded by a group of post-quantum security experts with an interest in addressing the urgent security threat posed by large-scale quantum computers. With the support of leading research institutes and universities, BTQ's extensive technology portfolio and commercialization platform is focused on accelerating quantum advantage.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

------

![](exhibit99-63x3x1.jpg)

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

--

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## Exhibit 99.64

------

![](exhibit99-64x001.jpg)

**BTQ TECHNOLOGIES CORP.**

Consolidated Financial Statements

For the Years Ended December 31, 2024 and 2023

(Expressed in Canadian dollars)

------

---

| | |
|:---|:---|
| **Independent Auditor's Report** | ![](exhibit99-64x002.jpg) |

---

To the Shareholders of BTQ Technologies Corp.:<br>

**Opinion**

We have audited the consolidated financial statements of BTQ Technologies Corp. and its subsidiaries (the "Company"), which comprise the consolidated statement of financial position as at December 31, 2024 and the consolidated statements of operations and comprehensive loss, changes in shareholders' equity and cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at December 31, 2024 and the results of its consolidated operations and its consolidated cash flows for the year then ended in accordance with IFRS® Accounting Standards as issued by the International Accounting Standard Board.

**Basis for Opinion**

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

**Key Audit Matters**

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined that there were no key audit matters to communicate in our report.

**Other Matter**

The consolidated financial statements for the year ended December 31, 2023 were audited by another auditor who expressed an unmodified opinion on those statements on June 3, 2024.

**Other Information**

Management is responsible for the other information. The other information comprises Management's Discussion and Analysis.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. We obtained Management's Discussion and Analysis prior to the date of this auditor's report. If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

MNP LLP <br> 1 Adelaide Street East, Suite 1900, Toronto ON, M5C 2V9 1.877.251.2922 T: 416.596.1711 F: 416.596.7894

------

**Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements**

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards as issued by the International Accounting Standard Board, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

**Auditor's Responsibilities for the Audit of the Consolidated Financial Statements**

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

* Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

* Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

* Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

* Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

* Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

* Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Company as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for the purposes of the group audit. We remain solely responsible for our audit opinion.

---

| | |
|:---|:---|
| *1 Adelaide Street East, Suite 1900, Toronto ON, M5C 2V9* | ![](exhibit99-64xu003.jpg) |
| *1.877.251.2922 T: 416.596.1711 F: 416.596.7894* | ![](exhibit99-64xu003.jpg) |

---

------

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

The engagement partner on the audit resulting in this independent auditor's report is Eduard Shvekher.

---

| | |
|:---|:---|
|  | ![](exhibit99-64xu001.jpg) |
| Toronto, Ontario | Chartered Professional Accountants |
| March 24, 2025 | Licensed Public Accountants |

---

---

| | |
|:---|:---|
| *1 Adelaide Street East, Suite 1900, Toronto ON, M5C 2V9* | ![](exhibit99-64xu003.jpg) |
| *1.877.251.2922 T: 416.596.1711 F: 416.596.7894* | ![](exhibit99-64xu003.jpg) |

---

------

**BTQ TECHNOLOGIES CORP.**<br>Consolidated Statements of Financial Position <br>(Expressed in Canadian dollars)

---

| | | |
|:---|:---|:---|
|  | December 31,<br>2024<br>$| December 31,<br>2023<br>$|
| Assets |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash | 9336892 | 2862023 |
| &nbsp;&nbsp;&nbsp;Short-term investments (Note 9) |  | 577875 |
| &nbsp;&nbsp;&nbsp;Other receivables (Note 17) | 223109 | 120569 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and deposits | 64643 | 229696 |
| Total current assets | 9624644 | 3790163 |
| Non-current assets |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment (Note 5) |  | 102820 |
| &nbsp;&nbsp;&nbsp;Right-of-use asset (Note 6) |  | 29905 |
| &nbsp;&nbsp;&nbsp;Investments (Note 8) | 77229 | 77229 |
| &nbsp;&nbsp;&nbsp;Deposits | 29605 | 35872 |
| Total non-current assets | 106834 | 245826 |
| Total assets | 9731478 | 4035989 |
| Liabilities and shareholders' equity |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities (Note 17) | 1357502 | 859709 |
| &nbsp;&nbsp;&nbsp;Corporate taxes payable | 92750 | 65000 |
| &nbsp;&nbsp;&nbsp;Lease obligation (Note 11) |  | 33554 |
| &nbsp;&nbsp;&nbsp;Deferred revenue (Note 22) | 315497 |  |
| &nbsp;&nbsp;&nbsp;Due to related parties (Note 17) | 27172 | 24976 |
| Total liabilities | 1792921 | 983239 |
| Shareholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;Share capital (Notes 4 and 13) | 45553931 | 34317779 |
| &nbsp;&nbsp;&nbsp;Options reserve (Notes 4 and 14) | 1890026 | 2018686 |
| &nbsp;&nbsp;&nbsp;Warrants reserve (Note 13) | 498876 | 67386 |
| &nbsp;&nbsp;&nbsp;RSUs reserve (Note 16) | 640813 | 1217252 |
| &nbsp;&nbsp;&nbsp;Deficit | (40645089) | (34568353) |
| Total shareholders' equity | 7938557 | 3052750 |
| Total liabilities and shareholders' equity | 9731478 | 4035989 |

---

Subsequent events (Note 26)

Approved and authorized for issuance on behalf of the Board on March 24, 2025:

<u>*"*Olivier Roussy Newton*"*</u><u> </u> Director <u>*"Michael Resendes"*</u><u> </u> Director

(The accompanying notes are an integral part of these consolidated financial statements)

------

**BTQ TECHNOLOGIES CORP.**<br>Consolidated Statements of Operations and Comprehensive Loss <br>(Expressed in Canadian dollars)

---

| | | |
|:---|:---|:---|
|  | Year ended <br>December 31,<br>2024<br>$| Year ended <br>December 31,<br>2023<br>$|
| Revenue (Note 22) | 666667 |  |
| Expenses |  |  |
| &nbsp;&nbsp;&nbsp;Business development, marketing, and promotion (Note 17) | 779967 | 1341812 |
| &nbsp;&nbsp;&nbsp;Consulting fees (Note 17) | 216352 | 120497 |
| &nbsp;&nbsp;&nbsp;Depreciation (Notes 5 and 6) | 86880 | 113164 |
| &nbsp;&nbsp;&nbsp;General and administrative (Note 24) | 756017 | 912690 |
| &nbsp;&nbsp;&nbsp;Professional fees (Note 17) | 1089994 | 636285 |
| &nbsp;&nbsp;&nbsp;Research and development (Notes 17) | 2732496 | 2553365 |
| &nbsp;&nbsp;&nbsp;Share-based compensation (Notes 14, 16, and 17) | 1063 | 3920656 |
| &nbsp;&nbsp;&nbsp;Transfer agent and filing fees | 139377 | 120355 |
| &nbsp;&nbsp;&nbsp;Wages and benefits (Note 17) | 575532 | 761463 |
| Total expenses | 6377678 | 10480287 |
| Loss before other income (expense) | (5711011) | (10480287) |
| Other income (expense) |  |  |
| &nbsp;&nbsp;&nbsp;Collaboration and other income (Note 23) | 108913 | 283816 |
| &nbsp;&nbsp;&nbsp;Foreign exchange loss | (62650) | (87185) |
| &nbsp;&nbsp;&nbsp;Impairment of intangible asset (Note 10) | (275782) |  |
| &nbsp;&nbsp;&nbsp;Impairment of property and equipment (Note 5) | (52002) |  |
| &nbsp;&nbsp;&nbsp;Interest income | 17876 | 16209 |
| &nbsp;&nbsp;&nbsp;Interest expense (Note 11 and 12) | (54663) | (11179) |
| &nbsp;&nbsp;&nbsp;Listing costs (Note 4) |  | (4006915) |
| &nbsp;&nbsp;&nbsp;Loss on sale of property and equipment | (25099) |  |
| &nbsp;&nbsp;&nbsp;Transaction costs (Note 4) |  | (1052754) |
| Total other expense | (343407) | (4858008) |
| Loss before income taxes | (6054418) | (15338295) |
| Income tax provision (Note 25) | (22318) | (65000) |
| Net loss and comprehensive loss for the year | (6076736) | (15403295) |
| Loss per share, basic and diluted | (0.05) | (0.13) |
| Weighted average number of common shares outstanding | 124241167 | 118302780 |

---

(The accompanying notes are an integral part of these consolidated financial statements)

------

**BTQ TECHNOLOGIES CORP.**<br>Consolidated Statements of Changes in Shareholders' Equity <br>(Expressed in Canadian dollars)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Share capital | Share capital | Equity portion<br>of convertible<br>debt<br>reserve<br>$ | Options<br>reserve<br>$ | Warrants<br>reserve<br>$ | RSUs<br>reserve<br>$ | Deficit<br>$ | Total<br>shareholders'<br>equity<br>$ |
|  | Number of<br>shares | Amount<br>$| Equity portion<br>of convertible<br>debt<br>reserve<br>$ | Options<br>reserve<br>$ | Warrants<br>reserve<br>$ | RSUs<br>reserve<br>$ | Deficit<br>$ | Total<br>shareholders'<br>equity<br>$ |
| Balance, December 31, 2023 | 123193879 | 34317779 |  | 2018686 | 67386 | 1217252 | (34568353) | 3052750 |
| Shares issued for cash | 3355704 | 10000000 |  |  |  |  |  | 10000000 |
| Share issuance costs |  | (1331119) |  |  | 470286 |  |  | (860833) |
| Equity portion of convertible debt |  |  | 427483 |  |  |  |  | 427483 |
| Shares issued for options exercised | 560000 | 433662 |  | (209662) |  |  |  | 224000 |
| Shares issued for warrants exercised | 134105 | 92437 |  |  | (38796) |  |  | 53641 |
| Shares issued for vested RSU's | 840000 | 496500 |  |  |  | (496500) |  |  |
| Shares issued for the conversion of convertible debt | 3750000 | 1544672 | (427483) |  |  |  |  | 1117189 |
| Share-based compensation |  |  |  | 81002 |  | (79939) |  | 1063 |
| Net loss for the year |  |  |  |  |  |  | (6076736) | (6076736) |
| Balance, December 31, 2024 | 131833688 | 45553931 | - | 1890026 | 498876 | 640813 | (40645089) | 7938557 |

---

(The accompanying notes are an integral part of these consolidated financial statements)

------

**BTQ TECHNOLOGIES CORP.**<br>Consolidated Statements of Changes in Shareholders' Equity <br>(Expressed in Canadian dollars)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Share capital | Share capital | Options<br>reserve<br>$ | <br>Warrants<br>reserve<br>$ | <br>RSUs<br>reserve<br>$ | <br>Deficit<br>$ | Total<br>shareholders'<br>equity<br>$ |
|  | Number of<br>shares | Amount<br>$| Options<br>reserve<br>$ | <br>Warrants<br>reserve<br>$ | <br>RSUs<br>reserve<br>$ | <br>Deficit<br>$ | Total<br>shareholders'<br>equity<br>$ |
| Balance, December 31, 2022 | 92000000 | 21943784 |  |  |  | (19165058) | 2778726 |
| Shares of the Company pursuant to reverse takeover | 8747629 | 3499051 |  |  |  |  | 3499051 |
| Revaluation of stock options pursuant to reverse takeover |  |  | 97532 |  |  |  | 97532 |
| Shares issued for cash | 18001250 | 7200500 |  |  |  |  | 7200500 |
| Shares issued to finder for the Transaction | 2500000 | 1000000 |  |  |  |  | 1000000 |
| Share issuance costs |  | (107806) |  | 14632 |  |  | (93174) |
| Fair value of finders' warrants allocated to transaction costs |  |  |  | 52754 |  |  | 52754 |
| Share-based compensation |  |  | 1921154 |  | 1999502 |  | 3920656 |
| Shares issued for vested RSU's | 1945000 | 782250 |  |  | (782250) |  |  |
| Net loss for the year |  |  |  |  |  | (15403295) | (15403295) |
| Balance, December 31, 2023 | 123193879 | 34317779 | 2018686 | 67386 | 1217252 | (34568353) | 3052750 |

---

(The accompanying notes are an integral part of these consolidated financial statements)

------

**BTQ TECHNOLOGIES CORP.**<br>Consolidated Statements of Cash Flows <br>(Expressed in Canadian dollars)

---

| | | |
|:---|:---|:---|
|  | Year ended <br>December 31,<br>2024<br>$| Year ended <br>December 31,<br>2023<br>$|
| Operating activities |  |  |
| Net loss for the year | (6076736) | (15403295) |
| Items not involving cash: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation | 86880 | 113164 |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation loss | 5787 | 17486 |
| &nbsp;&nbsp;&nbsp;Gain from termination of lease | (2783) |  |
| &nbsp;&nbsp;&nbsp;Impairment of intangible assets | 275782 |  |
| &nbsp;&nbsp;&nbsp;Impairment of property and equipment | 52002 |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 54663 | 11179 |
| &nbsp;&nbsp;&nbsp;Listing costs |  | 4006915 |
| &nbsp;&nbsp;&nbsp;Loss on disposal of property and equipment | 25099 |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 1063 | 3920656 |
| &nbsp;&nbsp;&nbsp;Transaction costs |  | 1052754 |
| Changes in non-cash operating working capital: |  |  |
| &nbsp;&nbsp;&nbsp;Other receivables | (102540) | 12281 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and deposits | 144174 | (210383) |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 497793 | (528857) |
| &nbsp;&nbsp;&nbsp;Corporate taxes payable | 27750 | 65000 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 315497 |  |
| &nbsp;&nbsp;&nbsp;Due to related parties |  | (2361) |
| Net cash used in operating activities | (4695569) | (6945461) |
| Investing activities |  |  |
| &nbsp;&nbsp;&nbsp;Cash acquired in reverse takeover |  | 16562 |
| &nbsp;&nbsp;&nbsp;Purchase of short-term investments |  | (575000) |
| &nbsp;&nbsp;&nbsp;Redemption of short-term investments | 577875 |  |
| &nbsp;&nbsp;&nbsp;Purchase of intangible asset | (275782) |  |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment |  | (17788) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of property and equipment | 10946 |  |
| &nbsp;&nbsp;&nbsp;Purchase of investments |  | (13314) |
| &nbsp;&nbsp;&nbsp;Proceeds from deposits | 17037 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from loan receivable |  | 1335500 |
| Net cash provided by investing activities | 330076 | 745960 |
| Financing activities |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from convertible debt | 1500000 |  |
| &nbsp;&nbsp;&nbsp;Repayment of lease obligation | (76446) | (104016) |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of shares | 10277641 | 7200500 |
| &nbsp;&nbsp;&nbsp;Share issuance costs | (860833) | (93174) |
| Net cash provided by financing activities | 10840362 | 7003310 |
| Increase in cash | 6474869 | 803809 |
| Cash, beginning of year | 2862023 | 2058214 |
| Cash, end of year | 9336892 | 2862023 |

---

Supplemental cash flow information (Note 18)

(The accompanying notes are an integral part of these consolidated financial statements)

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**1. CORPORATE INFORMATION**

BTQ Technologies Corp. (formerly Sonora Gold & Silver Corp.) ("the Company") was incorporated on November 23, 1983 under the Business Corporations Act (British Columbia). The principal activity of the Company is the development of computer-based technology related to post-quantum cryptography, particularly as it applies to blockchain and related technologies, and their protection from the emerging security risk of quantum computing. The Company's head office is located at 16-104 555 Burrard Street, Vancouver, BC, Canada. The Company's common shares trade on Cboe Canada under the ticker symbol "BTQ".

On February 17, 2023, the Company acquired all of the issued and outstanding shares of BTQ AG in exchange for 92,000,000 common shares. This transaction constituted a reverse takeover of the Company by BTQ AG with BTQ AG being identified as the accounting acquirer. As a result, these consolidated financial statements are a continuation of BTQ AG. The Company's results of operations are included from February 17, 2023 onwards, except for share capital which has been retroactively adjusted to reflect the capital of the Company. Refer to Note 4.

**2. BASIS OF PRESENTATION**

**Statement of Compliance**

The accompanying consolidated financial statements have been prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board ("IFRS") on a going concern basis.

**Basis of Preparation**

These consolidated financial statements have been prepared on a historical cost basis except for certain financial assets and liabilities, which are measured at fair value, as specified by IFRS for each type of asset, liability, income, and expense as set out in the accounting policies below.

**Basis of Consolidation**

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, BTQ AG, a company incorporated in the Principality of Liechtenstein, and BTQ Technologies Australia Pty Ltd., a company incorporated in Australia.

These consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances are eliminated on consolidation. Control exists where the parent entity has power over the investee and is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Subsidiaries are included in the financial statements from the date control commences until the date control ceases.

**Functional Currency and Presentation Currency**

The functional currency of the Company and its subsidiaries is the Canadian dollar, which is also the presentation currency of these consolidated financial statements.

As a result of the reverse takeover of the Company by BTQ AG on February 17, 2023 (refer to Note 4), BTQ AG changed both its functional currency and the presentation currency of its financial statements from the U.S. dollar to the Canadian dollar.

BTQ AG is in the research and development stage and relies on the Company for its funding and decision making. In consideration of the indicators in IAS 21, *The Effects of changes in Foreign Exchange Rates,* the Company determined that BTQ AG is an extension of the Company. As a result, BTQ AG has the same functional currency as the Company, which is the Canadian dollar.

Under IAS 21, a change in an entity's functional currency is applied prospectively from the date of change.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**2. BASIS OF PRESENTATION** (continued)

**Functional Currency and Presentation Currency** (continued)

Effective February 17, 2023, the accounting acquirer, BTQ AG, changed its presentation currency from U.S. dollars to Canadian dollars. In making this change in presentation currency, the Company followed the guidance in IAS 21 and has applied this change retrospectively, as if the Canadian dollar has always been its presentation currency, as follows:

* Assets and liabilities have been translated into Canadian dollar at the rate of exchange prevailing at the respective reporting dates;

* The consolidated statements of loss and comprehensive loss were translated at the average exchange rates for the respective reporting periods, or at the exchange rates prevailing at the applicable transaction date;

* Equity transactions have been translated at the exchange rate prevailing at the date of the transactions; and

* Exchange differences arising on translation were recorded in the consolidated statement of operations and comprehensive loss.

**Use of Estimates and Judgments**

The preparation of these consolidated financial statements in conformity with IFRS requires the Company's management to make judgments, estimates, and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, revenues, and expenses. Estimates and underlying assumptions are reviewed on an ongoing basis, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

Significant estimates and judgments exercised by management in applying the Company's accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements are as follows:

<u>*Reverse Takeover*</u>

The reverse takeover transaction was measured at the fair value of the common shares and stock options that BTQ would have had to issue to the shareholders of the Company. The fair value of common shares and stock options issued were estimated based on the Company's financing event which took place concurrently with the reverse takeover transaction. The fair values of identifiable assets acquired and liabilities assumed approximated their carrying values.

<u>*Research and development costs*</u>

Research costs are recognized as an expense when incurred but development costs may be capitalized as intangible assets if certain conditions are met as described in IAS 38 *Intangible Assets*. Management has determined that development costs do not meet the conditions for capitalization under IAS 38 and all research and development costs have been expensed.

<u>*Fair values of stock options*</u>

Fair values of stock options are determined using the Black-Scholes option pricing model. Estimating fair value requires determining the most appropriate valuation model for a grant of equity instruments, which is dependent on the terms and conditions of the grant. Option-pricing models require the use of highly subjective estimates and assumptions including the expected stock price volatility. Changes in the underlying assumptions can materially affect the fair value estimates and, therefore, existing models do not necessarily provide reliable measurement of the fair value of the Company's stock options and performance warrants.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**2. BASIS OF PRESENTATION** (continued)

**Use of Estimates and Judgments** (continued)

<u>*Deferred income taxes*</u>

The determination of income tax expense and the composition of deferred income tax assets and liabilities involves judgment and estimates as to the future taxable earnings, expected timing of reversals of deferred income tax assets and liabilities, and interpretations of tax laws. The Company is subject to assessments by tax authorities who may interpret the tax law differently. Changes in these interpretations, judgments, and estimates may materially affect the final amount of current and deferred income tax provisions, deferred income tax assets and liabilities, and results of operations.

<u>*Going concern presentation*</u>

These consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The assessment of the Company's ability to source future operations and continue as a going concern involves judgement. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. If the going concern assumption is not appropriate for the financial statements, then adjustments would be necessary in the carrying value of the assets and liabilities, the reported revenue and the expenses and the statement of financial position classifications used.

<u>*Impairment of non-current assets*</u>

The Company evaluates the recoverability of non-current assets, including property and equipment, right of use assets, and definite life intangible assets, whether events or changes in circumstances indicate that the carrying value of the asset, or asset group, may not be recoverable. When the Company determines that the carrying value of the long-lived asset may not be recoverable based upon the existence of one or more of the indicators, the assets are assessed for impairment based on the estimate of future discounted. If the carrying value of an asset exceeds its estimated recoverable amount, an impairment loss is recorded for the excess of the asset's carrying value over its recoverable amount. Management judgement is required in the determination of indicators of impairment.

<u>*Convertible debentures*</u>

Convertible debentures are financial instruments which contain a separate financial liability and equity instrument. The identification of such components embedded within a convertible debenture requires significant judgement given that it is based on the interpretation of the substance of the contractual arrangement. The individual fair values attributed to the different components of a financing transaction, and/or derivative financial instruments, are determined using valuation techniques. The Company uses judgement to select the methods used to make certain assumptions and in performing the fair value calculations in order to determine the values attributed to each component of a transaction at the time of their issuance. These valuation estimates could be significantly different because of the use of judgement and the inherent uncertainty in estimating the fair value of these instruments that are not quoted in an active market.

**3. MATERIAL ACCOUNTING POLICY INFORMATION**

**Cash and Cash Equivalents**

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance, are readily convertible to known amounts of cash, and which are subject to insignificant risk of changes in value to be cash equivalents.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**3. MATERIAL ACCOUNTING POLICY INFORMATION** (continued)

**Short-term Investments**

Short-term investments consist of highly liquid short-term interest bearing securities with maturities at the date of purchase of greater than three months, but less than one year, and of other marketable securities.

**Property and Equipment**

The Company depreciates the cost of property and equipment over their estimated useful lives using the declining balance basis at the following rates:

---

| | |
|:---|:---|
| IT equipment | 25% |
| Furniture and equipment | 10% |

---

Residual values and useful economic lives are reviewed at least annually, and adjusted if appropriate, at each reporting date. Subsequent expenditure relating to an item of property and equipment is capitalized when it is probable that future economic benefits from the use of the assets will be increased. All other subsequent expenditures are recognized as repairs and maintenance expenses during the period in which they are incurred. Gains and losses on disposal of equipment are determined by comparing the proceeds from disposal with the carrying amount of the asset and are recognized net within other income in the consolidated statement of operations and comprehensive loss.

**Leases**

Under IFRS 16 - Leases, the Company recognizes a right-of-use asset and a lease liability at the lease commencement date for leases greater than 12 months. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. Right-of-use assets are subsequently depreciated over the remaining term of the lease and are carried at cost less accumulated depreciation and impairment. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Lease liabilities are subsequently reduced by lease payments net of interest expense calculated using the effective interest method.

The Company has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease.

The termination of the lease is accounted for as a decrease in the scope of the lease with remaining lease liability and right of use assets derecognized and any gain or loss relating to the termination is recognized in the consolidated statements of operations and comprehensive loss.

**Impairment of Non-Current Assets**

At each reporting date, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there are any indications of impairment. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any.

Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash generating unit ("CGU") to which the asset belongs. The recoverable amount is determined as the higher of fair value less direct costs to sell and the asset's value in use. In assessing value in use, the estimated future cash flows are discounted to their present value. Estimated future cash flows are calculated using estimated recoverable reserves, estimated future commodity prices, and the expected future operating and capital costs. The pre-tax discount rate applied to the estimated future cash flows reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**3. MATERIAL ACCOUNTING POLICY INFORMATION** (continued)

**Impairment of Non-Current Assets** (continued)

If the carrying amount of an asset or CGU exceeds its recoverable amount, the carrying amount of the asset or CGU is reduced to its recoverable amount through an impairment charge to the consolidated statement of operations and comprehensive loss.

Assets that have been impaired are tested for possible reversal of the impairment whenever events or changes in circumstance indicate that the impairment may have reversed. When an impairment subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but only so that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation, depletion and amortization) had no impairment loss been recognized for the asset or CGU in prior periods. A reversal of impairment is recognized as a gain in the consolidated statement of operations and comprehensive loss.

**Foreign Currency Translation**

The functional currency of the Company and its subsidiaries is the currency of the primary economic environment in which the entity operates. The Company's and its subsidiaries' functional currency is the Canadian dollar.

Transactions denominated in currencies other than the functional currency are translated using the exchange rate in effect on the transaction date or at the annual average rate. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange in effect at the consolidated statements of financial position date. Non-monetary items are translated using the historical rate on the date of the transaction. Foreign exchange gains and losses are included in the consolidated statement of operations and comprehensive loss.

**Financial Instruments**

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the respective instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are included in the initial carrying value of the related instrument and are amortized using the effective interest method. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in the consolidated statement of operations and comprehensive loss.

Fair value estimates are made at the statement of financial position date based on relevant market information and information about the financial instrument. All financial instruments are classified into either: fair value through profit or loss ("FVTPL") or amortized cost.

The Company has made the following classifications:

---

| | |
|:---|:---|
| Cash | Amortized cost |
| Short-term investments | Amortized cost |
| Other receivables (excluding GST) | Amortized cost |
| Deposits | FVTPL |
| Investments | FVTPL |
| Accounts payable and accrued liabilities | Amortized cost |
| Lease obligation | Amortized cost |
| Due to related parties | Amortized cost |

---

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**3. MATERIAL ACCOUNTING POLICY INFORMATION** (continued)

<u>*Financial assets*</u>

IFRS 9 - Financial Instruments ("IFRS 9") establishes three primary measurement categories for financial assets: amortized cost, fair value through other comprehensive income ("FVOCI") and fair value through profit or loss ("FVTPL"). The Company determines the classification of the financial assets at initial recognition. The basis of classification depends on the Company's business model for managing its financial instruments and the contractual cash flow characteristics of the instrument.

A financial asset (unless it is a trade receivable without a significant financing component that is initially measured at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition. Subsequent to initial recognition, financial assets are measured at amortized cost using the effective interest method, less any impairment.

*Financial assets at amortized cost*

Financial assets are measured at amortized cost if they are not designated at FVTPL, and the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are non-derivative financial assets which are held within a business model whose objective is to hold assets to collect contractual cash flows and selling financial assets; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

*Financial assets at FVTOCI*

Financial assets are measured at fair value through other comprehensive income only if they not designated at FVTPL, and the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it has been held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Interest income is calculated using the effective interest method and gains or losses arising from impairment and foreign exchange are recognized in the consolidated statement of operations and comprehensive loss. All other changes in the carrying amount of financial assets are recognized in other comprehensive income. Upon derecognition, the cumulative gain or loss previously recognized in other comprehensive income is reclassified to the consolidated statement of operations and comprehensive loss. The Company does not hold any financial assets measured at fair value through other comprehensive income.

*Financial assets at FVTPL*

Assets that do not meet the criteria to be measured at amortized cost, or fair value through other comprehensive income, are measured at fair value through profit or loss. All interest income and changes in the financial assets' carrying amount are recognized in the consolidated statement of operations and comprehensive loss.

*Impairment of financial assets*

Financial assets, other than those classified as FVTPL, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been decreased.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**3. MATERIAL ACCOUNTING POLICY INFORMATION** (continued)

**Financial Instruments** (continued)

When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are offset against the allowance account. Changes in the carrying amount of the allowance account are recognized in the consolidated statement of operations and comprehensive loss. Loss allowances are based on the lifetime expected credit losses that result from all possible default events over the expected life of the trade receivable, using the simplified approach.

For financial assets measured at amortized cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through the consolidated statement of operations and comprehensive loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized.

<u>*Financial liabilities and equity instruments*</u> 

*Classification as debt or equity*

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

*Equity instruments*

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized as the proceeds received, net of direct issue costs.

*Other financial liabilities*

Other financial liabilities (including loans and borrowings and trade payables and other liabilities) are initially measured at fair value, net of transaction costs. Subsequently, other financial liabilities are measured at amortized cost using the effective interest method.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

**Research and Development Costs**

Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in the consolidated statement of operations and comprehensive loss as incurred.

Development activities involve a plan or design for the production of new or substantially improved products or processes. Development expenditure is capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use or sell the asset. The expenditure capitalized includes the cost of materials, direct labour, overhead costs that are directly attributable to preparing the asset for its intended use, and borrowing costs on qualifying assets. Other development expenditures are recognized in the consolidated statements of operations and comprehensive loss as incurred.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**3. MATERIAL ACCOUNTING POLICY INFORMATION** (continued)

**Revenue Recognition**

The Company's accounting policy for revenue recognition under IFRS 15, Revenue from Contracts with Customers, follows a five-step model to determine the amount and timing of revenue to be recognized:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Identifying the contract with a customer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Identifying the performance obligations within the contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Determining the transaction price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Allocating the transaction price to the performance obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Recognizing revenue when/as performance obligation(s) are satisfied.

Revenue is recognized when or as the associated performance obligations are delivered and based on the expected consideration to be received. The Company generates revenues from licensing the right to use the Company's intellectual property. The fees that are outlined in an agreement are recognized when the Company's obligations have been performed. For licenses with multiple performance obligations, the Company will identify specific distinct goods and services and will recognize revenue when the performance obligations for each distinct good or service has been performed.

The Company also analyzes its collaboration arrangements to determine whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement. The Company assesses whether there are any elements of the collaboration that are more reflective of a vendor-customer relationship and is therefore within the scope of IFRS 15. For these elements of the arrangement that are accounted for pursuant to IFRS 15, the Company applies the five-step model above. The collaboration arrangements entered into during the years ended December 31, 2023 and 2024 did not meet the scope of IFRS 15. Refer to Note 23.

IFRS 11 characterizes a joint arrangement as parties that are bound by a contractual arrangement, and that the contractual arrangement gives two or more of those parties joint control over the arrangement. The Company assessed all of the collaboration agreements entered into during the years ended December 31, 2023 and 2024, and determined that none of the collaboration agreements met the characteristics of a joint arrangement due to the absence of joint control.

**Share-based Compensation**

The grant date fair value of equity-based payment awards granted to employees is generally recognized as share-based compensation expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant date fair value is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service.

The fair value of stock options is measured at the grant date using the Black-Scholes option pricing model. The fair value is recognized as an expense over the vesting period, which is the period over which all of the specified vesting conditions are satisfied with a corresponding increase in equity. For awards with graded vesting, the fair value of each tranche is recognized over its respective vesting period. Non-market vesting conditions are considered in making assumptions about the number of awards that are expected to vest. When the options are exercised, any proceeds received are credited to share capital along with the amount reflected in share-based payment reserve.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**3. MATERIAL ACCOUNTING POLICY INFORMATION** (continued)

**Related Party Transactions**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

**Income Taxes**

Tax expense recognized in the consolidated statements of operations and comprehensive loss comprises the sum of current and deferred income taxes not recognized in other comprehensive income or directly in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*i) Current income tax*

Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date, in the countries where the Company operates and generates taxable income.

*ii) Deferred income tax*

Deferred income tax is recognized using the liability method on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. However, the deferred income tax is not recognized if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable income or loss and that at the time of the transaction, does not give rise to equal taxable and deductible temporary differences. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred income tax asset is realized, or the deferred income tax liability is settled. A deferred income tax asset is recognized to the extent that it is probable that future taxable income will be available against which the temporary difference can be utilized. Deferred income tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Changes in deferred income tax assets or liabilities are recognized as a component of tax income or expense in the consolidated statement of operations and comprehensive loss except where they related to items that are recognized in other comprehensive income or directly in equity, in which case, related deferred tax is also recognized in other comprehensive income or equity, respectively.

Deferred income tax assets and liabilities have been offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset.

**Convertible Debentures**

Convertible debentures are financial instruments which in accordance to IAS 32 contain a separate financial liability and equity instrument or derivative liability. These financial instruments are accounted for separately dependent on the nature of their components. The identification of such components embedded within a convertible debenture requires significant judgment given that it is based on the interpretation of the substance of the contractual arrangement. The convertible debentures issued by the Company were considered to contain an equity conversion feature, refer to Note 12. The debt component is measured at fair value on the initial recognition using a market interest rate and the residual value assigned to the equity conversion feature. Subsequent to initial recognition, the equity conversion feature is not re-measured while the debt components are accreted to the face value of the convertible debenture using the effective interest rate through periodic charges to finance expense over the term of the convertible debenture. When the convertible debenture converted to shares under original terms of the convertible debenture, the carrying amount of the debt component is derecognized and recorded as share capital in the consolidates statements of changes in shareholders' equity.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**3. MATERIAL ACCOUNTING POLICY INFORMATION** (continued)

**Loss Per Share**

Basic loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. The computation of diluted loss per share assumes the conversion, exercise or contingent issuance of securities only when such conversion, exercise or issuance would have a dilutive effect on the income per share. The dilutive effect of convertible securities is reflected in the diluted loss per share by application of the "if converted" method. When a loss is incurred during the period, basic and diluted loss per share are the same as the exercise of stock options, share purchase warrants, and restricted share units is considered to be anti-dilutive. As at December 31, 2024, the Company has 6,886,616 (2023 - 9,987,936) potentially dilutive shares outstanding.

**Accounting Standards Effective January 1, 2024 and Issued But Not Yet Effective**

A number of new standards, and amendments to standards and interpretations, are not yet effective for the year ended December 31, 2024, and have not been early adopted in preparing these consolidated financial statements.

*IFRS 18 Presentation and Disclosure in Financial Statements*

In April 2024, the IASB issued IFRS 18 - Presentation and Disclosure in Financial Statements which will replace IAS 1, Presentation of Financial Statements. The key new concepts introduced in IFRS 18 relate to the structure of the statement of earnings (loss), required disclosures in the financial statements for certain earnings or loss performance measures that are reported outside an entity's financial statements and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general. IFRS 18 will apply for reporting periods beginning on or after January 1, 2027, and also applies to comparative information. The Company is still in the process of assessing the impact of this standard on its consolidated financial statements.

*Classification of liabilities as current or non-current (amendments to IAS 1, presentation of financial statements)*

On January 23, 2020, an amendment was issued to IAS 1 to address inconsistencies with how entities apply the standards over classification of current and non-current liabilities. The amendment serves to address whether, in the statement of financial position, debt and other liabilities with an uncertain settlement should be classified as current or non-current. This amendment is effective on January 1, 2024. The Company adopted the amendment on the effective date and the adoption did not have a material impact on the Company's consolidated financial statements.

*Non-current liabilities with covenants (amendments to IAS 1)*

The amendments to IAS 1 specify that only covenants with which an entity is required to comply on or before the reporting date affect the classification of a liability as current or non-current. In addition, an entity has to disclose information in the notes that enables users of financial statements to understand the risk that non- current liabilities with covenants could become repayable within twelve months. The amendments are effective for annual reporting periods beginning on or after January 1, 2024, and are to be applied retrospectively. The Company adopted the amendment on the effective date and the adoption did not have a material impact on the Company's consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**4. REVERSE TAKEOVER**

On December 31, 2021 (as amended on April 29, 2022, July 30, 2022, and November 29, 2022), the Company, BTQ AG, and shareholders of BTQ AG entered into an agreement pursuant to which the Company agreed to acquire all of the issued and outstanding shares of BTQ AG (the "Transaction").

The closing of the Transaction occurred on February 17, 2023, at which time the Company issued 92,000,000 common shares in exchange for the issued and outstanding common shares of BTQ AG. The Company consolidated its common shares on a 10:1 basis immediately prior to the closing of the transaction.

As a result of the completion of the Transaction, the former shareholders of BTQ AG acquired 75.88% of the outstanding common shares of the Company, and, for accounting purposes, are considered to have acquired control of the Company. Accordingly, the Transaction constitutes a reverse acquisition of the Company by BTQ AG and has been accounted for as a reverse acquisition transaction in accordance with the guidance provided in IFRS 2, *Share-based Payment* and IFRS 3, *Business Combinations*. As the Company did not qualify as a business prior to the closing of the transaction according to the definition in IFRS 3, this reverse acquisition did not constitute a business combination; rather it was treated as an issuance of shares by BTQ AG for the net assets of the Company. Accordingly, no goodwill was recorded with respect to the Transaction. The Transaction was measured at the fair value of the common shares that BTQ AG would have had to issue to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051, and the fair value of 350,000 stock options of the Company with a fair value of $97,532, to give the shareholders of the Company the same percentage of equity interest in the combined entity that results from the reverse acquisition had it taken the legal form of BTQ AG acquiring the Company. The Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction, which is included in the $1,052,754 transaction costs incurred for the Transaction. The fair value of common shares and stock options issued were estimated based on the Company's financing event which took place concurrently to the reverse takeover transaction at the price of $0.40 per common share. Refer to Note 13. As BTQ AG was deemed to be the acquirer for accounting purposes, its assets, liabilities, and operations since its incorporation on March 26, 2021 are included in these consolidated financial statements at their historical carrying values. The assets, liabilities, and results of operations of the Company are included in these consolidated financial statements from the date acquisition on February 17, 2023.

As BTQ AG was deemed to be the acquirer for accounting purposes, its assets, liabilities, and operations since its incorporation on March 26, 2021 are included in these consolidated financial statements at their historical carrying values. The assets, liabilities, and results of operations of the Company are included in these consolidated financial statements from the date of acquisition on February 17, 2023.

The purchase price is allocated as follows:

---

| |
|:---|
| &nbsp;&nbsp;Fair value of the Company's shares (8,747,629 common shares) |
| &nbsp;&nbsp;Fair value of 350,000 stock options of the Company outstanding |
| &nbsp;&nbsp;Total consideration |
| &nbsp;&nbsp;Less: fair value of identifiable assets acquired and liabilities assumed: |
| &nbsp;&nbsp;Cash |
| &nbsp;&nbsp;Cash held in escrow |
| &nbsp;&nbsp;Receivables |
| &nbsp;&nbsp;Short-term investment |
| &nbsp;&nbsp;Accounts payable and accrued liabilities) |
| &nbsp;&nbsp;Subscription receipts liabilities) |
| &nbsp;&nbsp;Net liabilities assumed) |
| &nbsp;&nbsp;Listing costs |

---

The fair value of stock options of the Company was calculated using the Black-Scholes option pricing model with the following assumptions: volatility of 150%, expected life of 2.1 years, no dividends, no forfeitures, and a risk-free rate of 4.15%.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**5. PROPERTY AND EQUIPMENT**

---

| | | | |
|:---|:---|:---|:---|
|  | IT equipment<br>$| Furniture and<br>equipment<br>$| Total<br>$|
| &nbsp;&nbsp;Cost: |  |  |  |
| &nbsp;&nbsp;Balance, December 31, 2022 | 101603 | 43921 | 145524 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 13179 | 4609 | 17788 |
| &nbsp;&nbsp;Balance, December 31, 2023 | 114782 | 48530 | 163312 |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal | (15976) | (41930) | (57906) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment | (98806) | (6600) | (105406) |
| &nbsp;&nbsp;Balance, December 31, 2024 | - | - | - |
| &nbsp;&nbsp;Accumulated depreciation: |  |  |  |
| &nbsp;&nbsp;Balance, December 31, 2022 | 31463 | 4393 | 35856 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 20466 | 4170 | 24636 |
| &nbsp;&nbsp;Balance, December 31, 2023 | 51929 | 8563 | 60492 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 12369 | 2404 | 14773 |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal | (11815) | (10046) | (21861) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment | (52483) | (921) | (53404) |
| &nbsp;&nbsp;Balance, December 31, 2024 | - | - | - |
| &nbsp;&nbsp;Carrying amounts: |  |  |  |
| &nbsp;&nbsp;As at December 31, 2023 | 62853 | 39967 | 102820 |
| &nbsp;&nbsp;As at December 31, 2024 | - | - | - |

---

The Company determined the recoverable amount of the property and equipment using a value in use approach and determined that the property and equipment will no longer be in use for future operations and research and development activities of the Company. Therefore, the recoverable amount of the remaining unsold property and equipment was determined to be $nil.

**6. RIGHT-OF-USE ASSET**

On May 15, 2022, the Company entered into a lease agreement which gives the Company the right to use an underlying asset for its Taiwan office which expires on May 15, 2024. On May 15, 2024, renewed the lease agreement which expires on May 15, 2026. On October 14, 2024, the lease agreement was terminated and the aiwan office was closed .

---

| |
|:---|
| &nbsp;&nbsp;Cost: |
| &nbsp;&nbsp;Balance, December 31, 2022 and 2023 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease termination) |
| &nbsp;&nbsp;Balance, December 31, 2024 |

---

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**6. RIGHT-OF-USE ASSET** (continued)

---

| | |
|:---|:---|
| &nbsp;&nbsp;Accumulated depreciation: |  |
| &nbsp;&nbsp;Balance, December 31, 2022 | 64736 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 88528 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange translation difference | 1257 |
| &nbsp;&nbsp;Balance, December 31, 2023 | 154521 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 72107 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease termination | (226628) |
| &nbsp;&nbsp;Balance, December 31, 2024 | - |
| &nbsp;&nbsp;Carrying amounts: |  |
| &nbsp;&nbsp;As at December 31, 2023 | 29905 |
| &nbsp;&nbsp;As at December 31, 2024 | - |

---

**7. LOAN RECEIVABLE**

On December 1, 2022, BTQ AG entered into an agreement with MEV Trading Inc. ("MEV"), under which the BTQ AG granted a loan of $1,354,400 (US$1,000,000) which is non-interest bearing, and due on June 30, 2023. In consideration for the loan, MEV issued a warrant to BTQ AG entitling BTQ AG to purchase shares of MEV non-voting stock equal to 10% of the loan amount based on the fully-diluted pre-money valuation of the borrower as determined by the most recent qualified equity financing round before the maturity date or within one year of issuance, whichever occurs earlier (expired on June 30, 2023). The fair value of the warrants issued was determined to be nominal. On August 7, 2023, the Company received repayment of the $1,343,300 (US$1,000,000) loan receivable.

**8. INVESTMENTS**

---

| | |
|:---|:---|
|  | $|
| &nbsp;&nbsp;Balance, December 31, 2022 | 63915 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions | 13314 |
| &nbsp;&nbsp;Balance, December 31, 2023 and 2024 | 77229 |

---

During the year ended December 31, 2022, the BTQ AG invested $63,915 (US$50,000) in the form of a Simple Agreement for Future Equity ("SAFE") in the Holonym Foundation ("Holonym"), which is a public benefit corporation. The investment is not traded in an active market.

On January 11, 2023, BTQ AG invested $13,314 (US$10,000) in the form of a SAFE into Cysic Inc. The investment is not traded in an active market.

The Company estimated the fair value of these investments and concluded that the carrying value approximates the fair value of the investments as at December 31, 2024 and 2023.

**9. SHORT-TERM INVESTMENT**

The Company pledged a guaranteed investment certificate ("GIC") as collateral for the Company's credit cards. The GIC earned interest at Prime Rate less 2.7% per annum and had a maturity date of June 6, 2026. The GIC was redeemed during the year ended December 31, 2024.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**10. INTANGIBLE ASSETS**

On July 23, 2024, the Company entered into an agreement to purchase the intellectual property relating to four US patent applications for $275,782. As at December 31, 2024, the Company recognized an impairment of $275,782 due to the uncertainty of future cash flows.

**11. LEASE OBLIGATION**

On May 15, 2022, the Company entered into a premises lease agreement which gives the Company the right to use an underlying asset which expires on May 14, 2024. The Company's obligation to make lease payments arising from the lease is calculated by discounting the fixed lease payments over the lease term at the Company's incremental borrowing rate. The incremental borrowing rate used in the calculation was 13%.

On May 15, 2024, the Company entered into a premises lease agreement which gives the Company the right to use an underlying asset which expires on May 14, 2026. The Company's obligation to make lease payments arising from the lease is calculated by discounting the fixed lease payments over the lease term at the Company's incremental borrowing rate. The incremental borrowing rate used in the calculation was 13%. On October 14, 2024, the lease agreement was terminated and the Taiwan office was closed.

---

| | | |
|:---|:---|:---|
|  | 2024<br>$| 2023<br>$|
| &nbsp;&nbsp;Balance, beginning of year | 33554 | 129062 |
| &nbsp;&nbsp;Additions | 179170 |  |
| &nbsp;&nbsp;Payments | (76446) | (104016) |
| &nbsp;&nbsp;Applied deposit | (8685) |  |
| &nbsp;&nbsp;Interest | 9990 | 11179 |
| &nbsp;&nbsp;Foreign exchange translation difference | 2168 | (2671) |
| &nbsp;&nbsp;Lease termination | (139751) |  |
| &nbsp;&nbsp;Balance, end of year |  | 33554 |
| &nbsp;&nbsp;Less: current portion |  | 33554 |
| &nbsp;&nbsp;Non-current portion | - | - |

---

**12. CONVERTIBLE DEBT**

On September 9, 2024, the Company issued convertible debt for proceeds of $1,000,000. The convertible debt is non-interest bearing and due on September 9, 2026. At the election of the lender, the principal amount of the debt is convertible into common shares at $0.40 per share. The present value of the liability component of the convertible debt at issuance was $694,445, using a discount rate of 20%, which is the estimated interest rate the Company would pay on a similar debt instrument without a conversion option. The residual value of $305,555 was allocated to the equity component. The discount on the convertible debt totaling $305,555 is amortized over the term of the convertible loans using the effective interest rate method. During the year ended December 31, 2024, the Company recorded accretion of $37,905 which is included in interest expense. On December 24, 2024, the debt was converted into common shares, refer to Note 13.

On November 8, 2024, the Company entered into a convertible debt agreement for proceeds of $500,000. The convertible debt is non-interest bearing and due on November 14, 2026. At the election of the lender, the principal amount of the debt is convertible into common shares at $0.40 per share. The present value of the liability component of the convertible debt at issuance was $378,072, using a discount rate of 15%, which is the estimated interest rate the Company would pay on a similar debt instrument without a conversion option. The residual value of $121,928 was allocated to the equity component. The discount on the convertible debt totaling $121,928 is amortized over the term of the convertible loans using the effective interest rate method. During the year ended December 31, 2024, the Company recorded accretion of $6,768 which is included in interest expense. On December 24, 2024, the debt was converted into common shares, refer to Note 13.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**13. SHARE CAPITAL**

Authorized: Unlimited number of common shares without par value Share transactions during the year ended December 31, 2024:

* During the year ended December 31, 2024, the Company issued 560,000 common shares for proceeds of $224,000 pursuant to the exercise of stock options. The fair value of stock options exercised of $209,662 was transferred from options reserve to share capital.

* During the year end December 31, 2024, the Company issued 134,105 common shares for proceeds of $53,641 pursuant to the exercise of warrants. The fair value of warrants exercised of $38,796 was transferred from warrants reserve to share capital.

* During the year ended December 31, 2024, the Company issued 840,000 common shares pursuant to the conversion of vested RSUs. Upon conversion, the fair value of $496,500 for the vested RSUs was transferred from RSUs reserve to share capital.

* On December 19, 2024, the Company issued 3,355,704 common shares at $2.98 per share for gross proceeds of $10,000,000. In connection with the financing, the Company incurred share issuance costs of $860,833 and issued 167,785 finders' warrants exercisable at $4.09 per common share expiring on December 19, 2029. The fair value of the finders' warrants was determined to be $470,286 which was calculated using the Black-Scholes option pricing model with the following assumptions: volatility of 206%, expected life of 5 years, no dividends, and a risk-free rate of 3.11%.

* On December 24, 2024, the Company issued 3,750,000 common shares pursuant to the conversion of the convertible debt (see Note 12). The carrying value of the convertible debt at the date of conversion was $1,117,189. The equity component of the convertible debt of $427,483 was transferred to share capital upon conversion.

Share transactions during the year ended December 31, 2023:

* On February 17, 2023, the Transaction closed, resulting in a reverse takeover (refer to Note 4). The Transaction was measured at the fair value of the shares that BTQ AG would have had to issued to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051.

* On February 17, 2023, the Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction.

* On February 17, 2023, the Company completed a subscription receipt financing of 18,001,250 common shares at $0.40 per share for gross proceeds of $7,200,500. In connection with the financing, the Company incurred share issuance costs of $93,174 and issued 232,936 finders' warrants exercisable at $0.40 per common share expiring on February 17, 2025. The fair value of finders' warrants was determined to be $67,386 which was calculated using the Black-Scholes option pricing model with the following assumptions: volatility of 150%, expected life of 2 years, no dividends, and a risk-free rate of 4.15%.

* On July 7, 2023, the Company issued 1,822,500 common shares pursuant to the conversion of vested RSUs.

* On November 6, 2023, the Company issued 22,500 common shares pursuant to the conversion of vested RSUs.

* On November 13, 2023, the Company issued 100,000 common shares pursuant to the conversion of vested RSUs.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**13. SHARE CAPITAL** (continued)

<u>Escrowed shares</u>

On completion of the Transaction, certain principals of the Company entered into a NP 46-201 Escrow Agreement with the NEO Exchange and Computershare Trust Company of Canada, as escrow agent, in respect of 45,250,000 common shares. Under the terms of the Escrow Agreement, 25% of such escrowed securities were released upon closing (February 17, 2023) with subsequent 25% releases occurring 6, 12, and 18 months from closing. These escrow shares will be released as follows:

---

| | |
|:---|:---|
| Date of automatic timed release | &nbsp;&nbsp;&nbsp;Amount of escrow shares released |
| On the date that the Company's common shares were listed on the NEO, February 17, 2023 | &nbsp;&nbsp;&nbsp;&nbsp;1/4 of the escrowed shares |
| 6 months after the listing date (August 17, 2023) | &nbsp;&nbsp;&nbsp;1/4 of the escrowed shares |
| 12 months after the listing date (February 17, 2024) | &nbsp;&nbsp;&nbsp;1/4 of the escrowed shares |
| 18 months after the listing date (August 17, 2024) | &nbsp;&nbsp;&nbsp;The remainder of the escrowed shares |

---

As at December 31, 2024, the Company has 20,362,500 common shares held in escrow.

**14. STOCK OPTIONS**

The Company has a stock option plan (the "Plan") for directors, officers, employees, and consultants of the Company. Stock options are exercisable for periods of up to five years, as determined by the Board of Directors of the Company, to purchase common shares of the Company at a price not less than the discounted market price on the date of the grant. The maximum number of shares which may be issuable under the Plan cannot exceed 10% of the total number of issued and outstanding common shares on a non- diluted basis.

The following table summarizes the continuity of the Company's stock options:

---

| | | |
|:---|:---|:---|
|  | <br>Number of <br>stock options | Weighted<br>average<br>exercise<br>price<br>$|
| Balance, December 31, 2022 |  |  |
| &nbsp;&nbsp;&nbsp;Outstanding stock options of the Company prior to reverse takeover | 350000 | 0.50 |
| &nbsp;&nbsp;&nbsp;Granted | 8310000 | 0.41 |
| &nbsp;&nbsp;&nbsp;Expired | (890000) | 0.44 |
| Outstanding, December 31, 2023 | 7770000 | 0.41 |
| &nbsp;&nbsp;&nbsp;Granted | 1325000 | 0.42 |
| &nbsp;&nbsp;&nbsp;Exercised | (560000) | 0.40 |
| &nbsp;&nbsp;&nbsp;Expired | (740000) | 0.40 |
| &nbsp;&nbsp;&nbsp;Forfeited | (3120000) | 0.42 |
| Outstanding, December 31, 2024 | 4675000 | 0.42 |
| Exercisable, December 31, 2024 | 1808750 | 0.41 |

---

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**14. STOCK OPTIONS** (continued)

Additional information regarding stock options outstanding as at December 31, 2024, is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Outstanding |  | Exercisable | Exercisable |
| <br>Range of <br>exercise prices<br>$| <br>Number of <br>stock options | Weighted<br>average<br>remaining<br>contractual<br>life (years) | Weighted <br>average <br>exercise price<br>$| <br>Number of <br>stock options | Weighted <br>average <br>exercise price<br>$|
| 0.27 | 300000 | 2.9 | 0.27 |  |  |
| 0.35 | 125000 | 2.8 | 0.35 |  |  |
| 0.40 to 0.45 | 3620000 | 2.5 | 0.41 | 1698750 | 0.41 |
| 0.485 to 0.50 | 420000 | 3.3 | 0.49 | 70000 | 0.49 |
| 0.57 | 100000 | 5.7 | 0.57 |  |  |
| 0.64 to 0.65 | 160000 | 3.0 | 0.64 | 40000 | 0.64 |
| 1.51 | 50000 | 4.0 | 1.51 |  |  |
|  | 4675000 | 2.6 | 0.42 | 1808750 | 0.41 |

---

The fair value for stock options granted have been estimated using the Black-Scholes option pricing model assuming no expected dividends or forfeitures and the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Risk-free interest rate | 3.17% | 3.59% |
| Expected life (in years) | 4.5 | 4.0 |
| Expected volatility | 203% | 199% |

---

During the year ended December 31, 2024, the Company recognized share-based compensation expense of $81,002 (2023 - $1,921,154). The weighted average fair value of the stock options granted during the year ended December 31, 2024 was $0.42 (2023 - $0.37) per option. The weighted average fair value of shares at the time of the stock option exercises during the year ended December 31, 2024 was $1.84 (2023 - $nil) per common share.

**15. SHARE PURCHASE WARRANTS**

The following table summarizes the continuity of share purchase warrants:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;<br>Number of <br>warrants | Weighted<br>average<br>exercise<br>price<br>$|
| &nbsp;&nbsp;Balance, December 31, 2022 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issued | 232936 | 0.40 |
| &nbsp;&nbsp;Balance, December 31, 2023 | 232936 | 0.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issued | 167785 | 4.09 |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercised | (134105) | 0.40 |
| &nbsp;&nbsp;Balance, December 31, 2024 | 266616 | 2.72 |

---

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**15. SHARE PURCHASE WARRANTS** (continued)

As at December 31, 2024, the following share purchase warrants were outstanding and exercisable:

---

| | | |
|:---|:---|:---|
| Number of <br>warrants<br> outstanding | Exercise<br>price<br>$| Expiry date |
| 98831 | 0.40 | February 17, 2025 |
| 167785 | 4.09 | December 19, 2029 |
| 266616 |  |  |

---

**16. RESTRICTED SHARE UNITS**

A summary of the changes in RSUs is presented below:

---

| | |
|:---|:---|
|  | Number of<br>RSUs |
| Balance, December 31, 2022 |  |
| &nbsp;&nbsp;&nbsp;Issued | 3930000 |
| &nbsp;&nbsp;&nbsp;Converted | (1945000) |
| Balance, December 31, 2023 | 1985000 |
| &nbsp;&nbsp;Issued | 800000 |
| &nbsp;&nbsp;Converted | (840000) |
| Balance, December 31, 2024 | 1945000 |
| Unvested | 845000 |
| Vested, December 31, 2024 | 1100000 |

---

During the year ended December 31, 2024, 800,000 restricted share units ("RSUs") (2023 - 3,930,000) were granted. The weighted average grant date fair value for RSUs granted during the year end December 31, 2024 was $0.75 per RSU (2023 - $0.44). During the year ended December 31, 2024, the Company recognized share-based compensation expense (recovery) of $(79,939) (2023 - $1,999,502) with a corresponding decrease (2023 - increase) to RSU reserve and $496,500 (2023 - $782,250) was transferred to share capital upon the vesting of 840,000 (2023 - 1,945,000) RSUs.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**17. RELATED PARTY TRANSACTIONS**

Key management personnel are persons responsible for planning, directing, and controlling the activities of an entity, and include all officers and directors of the Company. Related party transaction during the years ended December 31, 2024 and 2023 was comprised of the following:

---

| | | |
|:---|:---|:---|
|  | 2024<br>$| 2023<br>$|
| &nbsp;&nbsp;Business development, marketing, and promotion | 98626 | 97163 |
| &nbsp;&nbsp;Consulting fees | 24278 | 97163 |
| &nbsp;&nbsp;Professional fees | 84000 | 59661 |
| &nbsp;&nbsp;Research and development | 249842 | 413158 |
| &nbsp;&nbsp;Share-based compensation | 28905 | 765827 |
| &nbsp;&nbsp;Wages and benefits | 282623 | 290543 |
|  | 768274 | 1723515 |

---

As at December 31, 2024, the Company owed $124,247 (2023 - $114,223) to the CEO of the Company, of which $97,075 (2023 - $89,247) is included in accounts payable and accrued liabilities. The amounts owed are non-interest bearing, unsecured, and due on demand.

As at December 31, 2024, the Company was owed $137,369 (2023 - $49,888) from the Chief Operating Officer ("COO") of the Company, which is included in other receivables.

As at December 31, 2024, the Company owed $7,350 (2023 - $7,350) to a firm where the Chief Financial Officer of the Company is a partner, which is included in accounts payable and accrued liabilities.

As at December 31, 2024, the Company owed $nil (2023 - $132,260) to the former Chief Cryptographer of the Company, which is included in accounts payable and accrued liabilities.

As at December 31, 2024, the Company owed $15,020 (2023 - $7,936) to the Head of Corporate Development of the Company, which is included in accounts payable and accrued liabilities.

**18. SUPPLEMENTAL CASH FLOW INFORMATION**

---

| | | |
|:---|:---|:---|
|  | 2024<br>$| 2023<br>$|
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Receivables acquired in reverse takeover |  | 25308 |
| &nbsp;&nbsp;&nbsp;Short-term investment acquired in reverse takeover |  | 2875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities assumed in reverse takeover |  | 455077 |
| &nbsp;&nbsp;&nbsp;Right-of-use asset and corresponding lease obligation | 179170 |  |
| &nbsp;&nbsp;&nbsp;Carrying value of convertible debt recorded in share capital upon conversion | 1544672 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity portion of convertible debt transferred from reserve to share capital upon conversion | 427483 |  |
| &nbsp;&nbsp;&nbsp;Shares issued for vested RSUs | 496500 | 782250 |
| &nbsp;&nbsp;&nbsp;Fair value of stock options exercised transferred from options reserve to share capital | 209662 |  |
| &nbsp;&nbsp;&nbsp;Fair value of warrants exercised transferred from warrants reserve to share capital | 38796 |  |
| &nbsp;&nbsp;&nbsp;Finders' warrants issued pursuant to private placement | 470286 | 14632 |

---

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**19. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fair Values

<u>Fair value hierarchy</u>

The following provides a description of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

* Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

* Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

* Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at December 31, 2024 and 2023 as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in<br>active markets<br>for identical<br>instruments<br>(Level 1)<br>$| Significant<br>other<br>observable<br>inputs<br>(Level 2)<br>$| Significant<br>unobservable<br>inputs<br>(Level 3)<br>$| <br>Balance,<br>December 31,<br>2023 and 2024<br>$|
| Investments | - | - | 77229 | 77229 |

---

The fair values of the Company's other financial instruments, which include cash, short-term investments, other receivables (except GST), accounts payable and accrued liabilities, lease obligation, and due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Credit Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit loss by placing its cash and cash equivalents with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Foreign Exchange Rate Risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency.

The following tables indicate the impact of foreign currency exchange risk on net working capital as at December 31, 2024 and 2023. The tables below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the tables below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as at December 31, 2024 and 2023.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**19. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT** (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Foreign Exchange Rate Risk (continued)

---

| | | |
|:---|:---|:---|
| 2024 | TWD | US$ |
| Cash | 82993 | (1249) |
| Other receivables (except GST) |  | 106489 |
| Accounts payable and accrued liabilities | (6337488) | (237069) |
| Total foreign currency financial assets and liabilities | (6254495) | (131829) |
| Impact of a 10% strengthening or weakening of foreign exchange rate | (625450) | (13183) |

---

---

| | | |
|:---|:---|:---|
| 2023 | TWD | US$ |
| Cash | 9201660 | 296479 |
| Accounts payable and accrued liabilities |  | (190659) |
| Lease obligation | (778794) |  |
| Total foreign currency financial assets and liabilities | 8422866 | 105820 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 842287 | 10582 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner.

The following amounts are the contractual maturities of financial liabilities as at December 31, 2024, and 2023:

---

| | | | |
|:---|:---|:---|:---|
| 2024 | Total<br>$| Within<br>1 year<br>$| Within<br>2-5 years<br>$|
| Accounts payable and accrued liabilities | 1357502 | 1357502 |  |
| Due to related parties | 27172 | 27172 |  |
| Total | 1384674 | 1384674 | - |
| 2023 | Total | Within<br>1 year | Within<br>2-5 years |
|  | $| $| $|
| Accounts payable and accrued liabilities | 859709 | 859709 |  |
| Lease obligation | 33554 | 33554 |  |
| Due to related parties | 24976 | 24976 |  |
| Total | 918239 | 918239 | - |

---

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**20. CAPITAL MANAGEMENT**

The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders. The capital structure of the Company consists of cash and equity comprised of issued share capital, options reserve, warrant reserve, and RSUs reserve.

The Company manages its capital structure and makes adjustments to it in light of economic conditions. The Company, upon approval from its Board of Directors, will balance its overall capital structure through new share issuances or by undertaking other activities as deemed appropriate under the specific circumstances.

The Company is not subject to externally imposed capital requirements and the Company's overall strategy with respect to capital risk management remains unchanged from the year ended December 31, 2023.

**21. SEGMENTED INFORMATION**

The Company has one operating segment, the research and development of computer-based technology related to post-quantum cryptography. The Company's head office is in Canada and operations are in Canada, Taiwan, and Australia. Geographic information for non-current assets other than financial instruments is as follows:

---

| | | | |
|:---|:---|:---|:---|
| 2024 | Canada<br>$| Australia<br>$| Total<br>$|
| Non-current assets |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 18902 | 10703 | 29605 |
| Revenue | 666667 | - | 666667 |

---

---

| | | | |
|:---|:---|:---|:---|
| 2023 | Canada<br>$| Taiwan<br>$| Total<br>$|
| Non-current assets |  |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment |  | 102820 | 102820 |
| &nbsp;&nbsp;&nbsp;Right-of-use asset |  | 29905 | 29905 |
| &nbsp;&nbsp;&nbsp;Deposits |  | 35872 | 35872 |
|  | - | 168597 | 168597 |

---

**22. REVENUE**

During the year ended December 31, 2024, the Company earned license revenue of $666,667 (2023 - $nil) from a company controlled by the COO. As at December 31, 2024, the Company has deferred revenue of $315,497 (2023 - $nil), which represents the remaining period of the licensing agreement. A breakdown of the revenue is presented below:

---

| | | |
|:---|:---|:---|
|  | 2024<br>$| 2023<br>$|
| &nbsp;&nbsp;<u>Major goods/service lines</u> |  |  |
| &nbsp;&nbsp;Software license and related consulting services | 666667 | - |
| &nbsp;&nbsp;<u>Timing of revenue recognition</u> |  |  |
| &nbsp;&nbsp;Software license and services transferred over time | 666667 | - |

---

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**23. COLLABORATION INCOME**

On May 1, 2023 and November 1, 2023, the Company entered into research and collaboration agreements with a third party. The Company agreed to conduct a research program and was responsible for the engagement of the researchers and contractors while the other party provided funding. The two parties jointly own the rights of the intellectual property resulting from the research program. During the year ended December 31, 2024, the Company recorded collaboration income of $108,913 (2023 - $257,359).

**24. GENERAL AND ADMINISTRATIVE EXPENSES**

The following is a breakdown of general and administrative expenses for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | 2024<br>$| 2023<br>$|
| Foreign office representation |  | 125886 |
| Insurance | 62970 | 63700 |
| IT and communications | 119795 | 63317 |
| Office and miscellaneous | 118392 | 187420 |
| Rent | 161293 | 127705 |
| Travel | 232193 | 166662 |
| VAT | 61374 | 178000 |
|  | 756017 | 912690 |

---

**25. INCOME TAXES**

The following table reconciles the expected income tax expense (recovery) at the statutory income tax rates to the amounts recognized in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | 2024<br>$| 2023<br>$|
| &nbsp;&nbsp;Net loss before income taxes | (6054418) | (15403295) |
| &nbsp;&nbsp;Statutory tax rate | 27% | 27% |
| &nbsp;&nbsp;Expected income tax recovery | (1634693) | (4158890) |
| &nbsp;&nbsp;Tax effect of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Permanent differences and other | 29503 | 1949822 |
| &nbsp;&nbsp;&nbsp;&nbsp;Difference due to tax rate of foreign jurisdiction | 504207 | 649105 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange rate impact on temporary differences | (53385) | 24354 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing fees | (232425) | (25157) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrecognized deferred income tax assets | 1409111 | 1625766 |
| &nbsp;&nbsp;Income tax provision | 22318 | 65000 |

---

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Consolidated Financial Statements <br>Years Ended December 31, 2024 and 2023 <br>(Expressed in Canadian dollars)

**25. INCOME TAXES** (continued)

The significant components of deferred income tax assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
|  | 2024<br>$| 2023<br>$|
| &nbsp;&nbsp;Deferred income tax assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-capital losses carried forward | 3057355 | 1903613 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible asset | 74461 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share issuance costs | 201034 | 20126 |
| &nbsp;&nbsp;Total gross deferred income tax assets | 3332850 | 1923739 |
| &nbsp;&nbsp;Total unrecognized deductible deferred income tax assets | (3332850) | (1923739) |
| &nbsp;&nbsp;Net deferred income tax asset | - | - |

---

Deferred income tax assets are only recognized to the extent that the realization of tax benefits is determined to be probable. As at December 31, 2024 and 2023, the Company has not recognized the benefit of the following deductible temporary differences:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Expiry | 2024<br> $ | Expiry | 2023<br> $ |
| Non-capital losses - Canadian | 2043 to 2044 | 6425696 | 2043 | 3964523 |
| Non-capital losses - foreign | No expiry | 10574273 | No expiry | 6665540 |
| Share issuance costs | 2025 to 2028 | 744570 | 2024 to 2027 | 74539 |
|  |  | 17744539 |  | 10704602 |

---

The group's current tax provision of $22,318 (2023 - $65,000) relates to management's assessment of the amount of tax payable on open tax positions where the liabilities remain to be agreed upon with foreign tax authorities. Uncertain tax items for which a provision of $22,318 (2023 - $65,000) is made, relate principally to the interpretation of tax legislation regarding arrangements entered into by the group.

**26. SUBSEQUENT EVENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On January 3, 2025, the Company entered into an agreement to acquire intellectual property for US$50,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On January 30, 2025, the Company issued 100,000 RSUs to a consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subsequent to December 31, 2024, the Company issued 395,000 common shares for proceeds of $160,000 pursuant to the exercise of stock options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subsequent to December 31, 2024, the Company issued 40,437 common shares for proceeds of $16,175 pursuant to the exercise of share purchase warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subsequent to December 31, 2024, the Company issued 72,500 common shares pursuant to the conversion of RSUs.

------

## Exhibit 99.65

------

---

| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

---

This Management's Discussion and Analysis ("MD&A") of BTQ Technologies Corp. ("BTQ", or the "Company") is for the year ended December 31, 2024 and is dated March 24, 2025. The MD&A should be read in conjunction with the Company's audited consolidated financial statements and related notes for the year ended December 31, 2024. The consolidated financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS") and all monetary amounts are expressed in Canadian dollars. The following comments may contain management estimates of anticipated future trends, activities, or results. These are not a guarantee of future performance since actual results could change based on other factors and variables beyond management control.

The management of the Company is responsible for the preparation and integrity of the consolidated financial statements, including the maintenance of appropriate information systems, procedures, and internal controls and to ensure that information used internally or disclosed externally, including the consolidated financial statements and MD&A, is complete and reliable. The Company's board of directors (the "Board") follows recommended corporate governance guidelines for public companies to ensure transparency and accountability to shareholders. The Board's audit committee meets with management quarterly to review the financial statements including the MD&A and to discuss other financial, operating, and internal control matters.

Additional information relating to the Company is available under the Company's profile on SEDAR+ at www.sedarplus.ca.

**DESCRIPTION OF BUSINESS AND OVERVIEW**

The current business of BTQ was founded by a group of experienced post-quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the Bitcoin network. Bitcoin's store of value thesis - one that supports a crypto ecosystem of over $1 trillion in market capitalization - has several potential quantum attack vectors that could compromise the network. This paradigm shift requires a new direction in cryptography and blockchain design. BTQ is building a portfolio of intellectual property to safeguard the crypto asset class with energy efficient quantum processes and currently holds several patent applications for generating quantum algorithms.

Quantum computers can take a very large integer and find out its prime factor extremely rapidly by using Shor's algorithm. Theoretically, a universal large scale quantum computer could be used to disrupt cryptocurrencies, break into digital wallets, and access and decrypt confidential communications. Ethereum and Algor, two of the most technologically advanced cryptocurrencies, announced plans to transition to post-quantum standards.

BTQ is listed on Cboe Canada under the symbol "BTQ", the OTCQB under the symbol "BTQQF" and the Frankfurt Stock Exchange under the symbol "NG3".

<u>Acquisition</u>

On December 31, 2021 (as amended on April 29, 2022, July 30, 2022, and November 29, 2022), the Company entered into a share exchange agreement with BTQ AG (the "Acquisition"). BTQ AG was incorporated in the Principality of Liechtenstein on March 26, 2021 by a group of experienced post-quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the Bitcoin network.

In connection with the Acquisition, the Company completed a private placement (the "Offering") of 18,001,250 subscription receipts at a price of $0.40 per subscription receipt, for gross proceeds of $7,200,500, with each subscription receipt automatically converting with no additional consideration into one post-Consolidation Share (each as defined below) concurrent with the closing of the Acquisition.

------

---

| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

---

On February 17, 2023, the Company closed the Acquisition resulting in the issuance of 92,000,000 post- Consolidation Shares to the BTQ AG shareholders. Concurrent with the closing, the Company changed its name from Sonora Gold & Silver Corp. to BTQ Technologies Corp. and completed a consolidation (the "Consolidation") of its common shares on the basis of ten pre-Consolidation shares to one post- Consolidation share (each, a "Share"). Immediately following the Consolidation, and excluding those Shares issued pursuant to the Acquisition or the Offering, the former securityholders of Sonora Gold and Silver Corp. ("SOC") held an aggregate of 8,747,629 Shares and 350,000 stock options in the Company. All Share amounts have been retroactively restated to reflect the Consolidation for all periods presented.

On closing of the Acquisition, the gross proceeds of $7,200,500 from the Offering were released from escrow and each subscription receipt was converted into one Share. In connection with the Acquisition, the Company issued 2,500,000 Shares with a fair value of $1,000,000 to a finder as a success fee. In connection with the Offering, the Company also paid $93,174 in finders' fees and issued 232,936 finders' warrants exercisable at an exercise price of $0.40 per Share for a period of two years.

As a condition of the Acquisition, the Company voluntarily delisted its Shares from the TSX-V and the Shares commenced trading on Cboe Canada (formerly NEO Exchange) on February 21, 2023 under the symbol "BTQ".

**DISCUSSION OF OPERATIONS**

The following are operational highlights for the years ended December 31, 2023 and 2024 and events subsequent up until the date of this MD&A.

<u>Product Updates</u>

On March 2, 2023, the Company announced the alpha release of Keelung, a domain-specific language designed for fast, private, and secure application development. Based on research in the field of post- quantum zero-knowledge cryptography, Keelung will empower developers to create secure and reliable post-quantum zero-knowledge proofs without the need for specialized cryptography skills. Both Keelung and its compiler have been implemented in Haskell, enabling developers to produce high-level zero- knowledge proofs protected by Haskell's type system while leveraging Haskell's extensive ecosystem and tooling. Keelung will be 100% open-source, allowing for transparency, collaboration, and community-driven development.

Keelung is now live and open-sourced. The release information can be found here:

https://github.com/btq-ag/keelung/releases. The steps to complete over the coming year are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. Language Extensions (v0.19.0 - v0.20.0): Added support for user-defined datatypes, unsigned integer comparisons, and optimizations to the constraint system and compiler.

&nbsp;&nbsp;&nbsp;&nbsp;2. Optimization and Stability (v0.21.0): Introduced a more precise method for reference counting on unsigned integers, renaming of primitive datatype conversions, and numerous bug fixes and stability improvements for the compiler.

&nbsp;&nbsp;&nbsp;&nbsp;3. Upcoming Optimizations (v0.22.0+): Planned optimizations include operators for slicing and joining unsigned integers, improved polynomial representation, faster polynomial insertion, standard library optimizations (e.g., AES, Blake2), and constraint reduction for faster proof generation.

&nbsp;&nbsp;&nbsp;&nbsp;4. Developer Experience (Ongoing): Refinements to the DSL syntax, performance improvements for common data types, benchmarking in the CI/CD pipeline, and expanded documentation and tutorials to improve the developer experience.

------

---

| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

---

&nbsp;&nbsp;&nbsp;&nbsp;5. Ecosystem Integration (Future): Planned integration with popular ZK toolchains like Snarkjs/Circom, support for PLONK-based proving systems, and quantitative information flow analysis for privacy leakage detection.

On June 5, 2023, the Company published a research paper on proof-of-work consensus by quantum sampling. The paper presents a novel approach that has the potential to revolutionize blockchain consensus algorithms.

On June 26, 2023, the Company announced that it had received approval from the USPTO for its patent application, "A system and method for quantum-safe authentication, encryption, and decryption of information". The patent relates to methods for generating a private cryptographic key for use in a secure cryptogram for transmission between entities, enabling quantum-safe encryption.

On July 27, 2023, the Company announced that its Quantum-Secure Signature Technology "Preon" had been selected by the National Institute of Standards and Technology (NIST) for consideration in their Post- Quantum Cryptography (PQC) standardization process. Preon is a robust and efficient post-quantum signature scheme, showcasing distinctive features including small key size, rapid key generation, minimal assumptions, and flexible functionality. These attributes make it resistant to potential threats from both classical and quantum computers. The co-authors of this submission include Hon Hai Research Institute, the research arm of global leader Hon Hai Precision Industry Co., Ltd. (Foxconn).

On October 4, 2023, BTQ announced the advancement of its collaboration with ITRI to develop a security chip that utilizes QCIM (Quantum Computation in Memory) technology. This chip will be used for the computation of Kyber, a standardized algorithm by the National Institute of Standards and Technology (NIST). In 2022, BTQ entered a multi-year collaboration agreement with ITRI to develop energy-efficient post-quantum hardware solutions for applications in blockchain, telecom, and other industries with a need for long-term data security. In the first phase of collaboration, BTQ and ITRI successfully validated the proof of concept of applying computation-in-memory in an ASIC chip. To further the collaboration, BTQ is entering into this new phase of the project with ITRI.

<u>Corporate Activities</u>

On November 29, 2023, BTQ and Hon Hai Research Institute announced a Research and Collaboration Agreement aiming to support the academic community by promoting the standardization of post-quantum cryptography. BTQ and Hon Hai first in their submission of Preon, a post-quantum signature scheme submitted as part of the NIST "Call for Additional Digital Signature Schemes for the Post-Quantum Cryptography Standardization Process".

On May 3, 2024, the Company entered into a software license agreement with ZKP Corp. ("ZKP"), a Delaware corporation controlled by Nicolas Roussy Newton, the Chief Operating Officer of the Company, for which the Company received $1,000,000 for the use of its proprietary software for a period of one year.

On September 9, 2024, the Company issued convertible debt for proceeds of $1,000,000. The convertible debt is non-interest bearing and due on September 9, 2026. At the election of the lender, the principal amount of the debt is convertible into common shares at $0.40 per share.

On July 23, 2024, BTQ entered into an agreement for the acquisition of Radical Semiconductor's Processing-in-Memory Technology Portfolio, advancing its Post-Quantum Cryptography capabilities. The integration of Radical's cutting-edge technology is set to enhance BTQ's quantum-secure communications infrastructure and provide substantial growth opportunities in emerging markets such as IoT, financial services, blockchain, and government sectors.

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

---

On November 5, 2024, the Company and Macquarie University announced a strategic research collaboration to advance quantum computing and secure communications. The partnership is focused in the areas of quantum information theory and post-quantum secure communications, with the aim of integrating quantum processing into a range of communication protocols to enhance speed, security, and energy efficiency.

On November 8, 2024, the Company issued convertible debt for proceeds of $500,000. The convertible debt is non-interest bearing and due on November 14, 2026. At the election of the lender, the principal amount of the debt is convertible into common shares at $0.40 per share.

On December 19, 2024, the Company issued 3,355,704 common shares at $2.98 per share for gross proceeds of $10,000,000 pursuant to a brokered listed issuer financing exemption ("LIFE") offering. In connection with the financing, the Company incurred share issuance costs of $860,833 and issued 167,785 finder's warrants exercisable at $4.09 per common share expiring on December 19, 2029.

On December 24, 2024, the Company issued 3,750,000 common shares pursuant to the conversion of

$1,500,000 in convertible debt.

On January 3, 2025, the Company entered into an agreement to for the acquisition of intellectual property from Cimtech Technology Co., Ltd., an innovator in memory technology and computing-in memory ("CIM") solutions. This strategic acquisition enhances the Company's capabilities in post-quantum cryptography and quantum-secure communication technologies.

**Trends**

<u>Quantum Computing</u>

According to McKinsey & Company, the quantum technology market will be valued at over $106 billion by 20401, with the bulk of the value projected to come from quantum computing as opposed to quantum sensing and quantum communications. The quantum security industry sits within quantum computing and is a rapidly growing field that focuses on developing secure cryptographic solutions for the age of quantum computing. As quantum computers become more powerful, they will become increasingly capable of breaking traditional cryptographic systems, creating a need for even more robust and advanced quantum- resistant solutions. Traditional cryptographic methods are at risk of being broken, which will have serious implications for national security, financial institutions, and other industries that rely on secure communication and data storage. Estimates of when a commercial quantum computer will hit the market vary, however, last year, IBM unveiled the Osprey (433 qubits) and updated its road map to develop a 4,000+ qubit processor in 20252, indicating that these super computers will be available in the near future. In addition to private sector funding, Government bodies around the world are also investing large sums of capital into quantum technologies. At $15.3 billion, China leads the way in publicly announced quantum funding initiatives, followed by the EU at $8.4 billion, USA at $3.7 billion, Japan at $1.8 billion, UK at $1.3 billion, Canada at $1.1 billion, and several others between $0.1 billion and $1.0 billion3.

_____________________________

1 <u>https:</u><u>//www.mckinsey.com/featured-insights/the-rise-of-quantum-computing</u>

2 <u>https://newsroom.ibm.com/2022-11-09-IBM-Unveils-400-Qubit-Plus-Quantum-Processor-and-Next-Generation-IBM-</u> <u>Quantum-System-Two</u>

3 <u>htt</u><u>ps://www.mckinsey.com/~/media/mckinsey/business%20functions/mckinsey%20digital/our%20insights/quantum%</u>

<u>20technology%20sees%20record%20investments%20progress%20on%20talent%20gap/quantum-technology-</u> <u>monitor-april-2023.pdf</u>

------

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

---

Overall, the quantum security industry is a rapidly evolving field that will continue to see significant growth and development in the coming years. As businesses and organizations seek to protect their data from the threat of quantum computing, the need for effective and innovative quantum-resistant security solutions will only continue to increase. Investors are recognizing this with about two-thirds, or 68 percent, of all Quantum Technology startup investments since 2001 having occurred in 2021 and 20224.

<u>Post-Quantum Cryptography</u>

One of the main trends in the quantum security industry is the development of post-quantum cryptography ("PQC") algorithms. PQC algorithms are designed to be resistant to attacks from quantum computers, making them a crucial component of quantum-resistant security systems. Many organizations, including government agencies and financial institutions, are already investing in PQC research and development to ensure the security of their sensitive data.

A key driver in the development of the PQC industry is The National Institute of Standards and Technology ("NIST"), a U.S. Department of Commerce agency which sets the standards for businesses and other organizations to secure sensitive data and protect critical infrastructure5. NIST compliance standards must be met by anyone who processes, stores, or transmits sensitive information for the Department of Defense, General Services Administration, NASA, and other government agencies, and is largely seen as the de facto standard body to make cryptographic standards for the entire world.

In 2016, NIST initiated a process to solicit, evaluate, and standardize one or more quantum-resistant public- key cryptographic algorithms. These new cryptography standards will specify additional digital signature and public-key encryption algorithm(s) which are capable of protecting sensitive information well into the foreseeable future, including after the advent of quantum computers. In 2022, NIST officially announced the standardized algorithms from Round 3 of this PQC competition. This was a landmark milestone as government agencies and businesses had been waiting nearly six years for a clear direction as to which algorithms are trustworthy. PQC algorithms are much larger than their classical counterparts. For example, even the smallest NIST-approved digital signature algorithm is over 10x larger than the current Elliptic Curve Digital Signature Algorithm6. This is particularly problematic for distributed ledgers where each full node keeps an entire record of all activities on the ledger. If a blockchain like Bitcoin and Ethereum were to adopt the newly standardized PQC algorithms today, the size of both chains would have to be increased to an unmanageable extent.

<u>Competition and Market Participants</u>

Generally, BTQ differentiates itself from its competitors with its work at the intersection of post-quantum cryptography and blockchain. The Company works on developing next-generation cryptographic primitives like zero-knowledge cryptography to achieve advanced security and efficiency, which is novel in the industry.

Large publicly traded quantum companies exist in the space, including: D-Wave Systems (NYSE: QBTS), IONQ (NYSE: IONQ), Arqit Quantum (NASDAQ: ARQQ). However, these companies are not direct competitors as their main goal is to build a commercial quantum computer with real-world useability. These companies are capital intensive and well-funded by both institutional investors and governments and their valuations range from approximately US$50 million to over US$1 billion.

_____________________________

4 <u>https:</u><u>//www.mckinsey.com/capabilities/mckinsey-digital/our-insights/quantum-technology-sees-record-investments-</u> <u>progress-on-talent-gap</u>

5 <u>https:</u><u>//www.btq.com/en/blog/blockchain-security</u>

6 <u>https://falcon-sign.info/</u>

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

---

With a surge in funding and general investor interest and excitement in the industry, several companies are emerging in the post-quantum security space. There are various companies that try to tackle the same global problem as BTQ: getting today's infrastructure secured for the quantum revolution, however, the approaches vary widely based on cryptographic techniques, as well as end uses served and therefore is not a winner takes all market. In fact, other companies operating directly in the space may offer potential collaboration opportunities. Below is a non-exhaustive list of indirect competitors to BTQ:

PQ Shield, for example, describes itself as a PQC company contributing to the global standards and core technologies to power the future security layer of the world's leading organizations. Its quantum-secure cryptographic solutions work with companies' legacy systems to protect sensitive data now and for years to come. The company mainly serves the defense & infrastructure, IoT and OEM markets. PQ Shield raised

$20 million as part of their Series A round in January 20227.

Additionally, Isara provides security solutions specializing in cryptographic risk management and in creating crypto-agile and quantum-safe security solutions for today's information technology ecosystems. The company broadly targets enterprises and governments. Isara raised over $10 million in 2018 to fund its R&D efforts8.

In the blockchain space, large technology companies are building their own secured blockchains. For example, IBM offers blockchain services that help secure multiple aspects of critical industries like supply chains, banking, healthcare, and government. The goal of these blockchains is usually to streamline and scale processes in a secure manner9.

SandboxAQ, an enterprise SaaS company stemming from Alphabet (previously Google), is another key player in the space. Sandbox provides solutions at the nexus of AI and Quantum technology to address some of the world's most challenging problems. The company's core team and inspiration formed at Alphabet Inc., emerging as an independent, growth-capital-backed company in 2022. The company aims to protect the public sector, life sciences & healthcare, financial services, cybersecurity, material science & manufacturing, and global navigation10.

<u>Reverse Takeover</u>

In accordance with IFRS 3, business combinations, the substance of the Acquisition is a reverse takeover as the shareholders of BTQ AG held 75.88% of the resulting issuer shares and SOC's shareholders held 24.12% of the resulting issuer shares. Accordingly, for accounting purposes, BTQ AG was treated as the accounting parent company (legal subsidiary) and the Company has been treated as the accounting subsidiary (legal parent) in these consolidated financial statements. As BTQ AG was deemed to be the acquirer for accounting purposes, its assets, liabilities and operations since incorporation are included in these consolidated financial statements at their historical carrying values. The Company's results of operations have been included from February 17, 2023.

As the Acquisition did not constitute a business combination, the reverse takeover transaction was accounted for in accordance with IFRS 2, share-based payments, whereby equity instruments issued were recognized at fair value and allocated to the net assets acquired (liabilities assumed). Any difference is the value of the listing which was expensed on completion of the Acquisition.

_____________________________

7 <u>https:</u><u>//www.prnewswire.com/news-releases/pqshield-collaborates-with-nccoe-and-industry-to-ease-the-real-world-</u><u>implementation-of-quantum-resistant-cryptography-301794688.html</u>

8 <u>https:</u><u>//www.isara.com/company/newsroom/shasta-ventures-investment.htm</u>l

9 <u>https:</u><u>//www.ibm.com/blockchain</u>

10 <u>https:</u><u>//www.sandboxaq.com/solutions/security-suite</u>

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

---

The Transaction was measured at the fair value of the common shares that BTQ AG would have had to issue to the shareholders of the Company, being 8,747,629 common shares with a fair value of $3,499,051, and the fair value of 350,000 stock options of the Company with a fair value of $97,532, to give the shareholders of the Company the same percentage of equity interest in the combined entity that results from the reverse acquisition had it taken the legal form of BTQ AG acquiring the Company. The fair value of the 8,747,629 common shares was determined based on the pricing of the Offering with a value of $0.40 being allocated to each Share. The purchase price was allocated to the net assets acquired as follows:

---

| |
|:---|
| Fair value of the Company's shares (8,747,629 common shares) |
| Fair value of 350,000 stock options of the Company outstanding |
| Total consideration |
| Less: fair value of identifiable assets acquired and liabilities assumed: |
| Cash |
| Cash held in escrow |
| Prepaid expenses |
| Restricted cash |
| Accounts payable and accrued liabilities) |
| Subscription receipts liabilities) |
| Net liabilities assumed) |
| Listing costs |

---

The Company issued 2,500,000 common shares with a fair value of $1,000,000 as a finder's fee for the Transaction.

**SELECTED ANNUAL INFORMATION**

The following table presents selected audited financial information for the three most recent fiscal year ends.

---

| | | | |
|:---|:---|:---|:---|
|  | 2024<br>$| 2023<br>$| 2022<br>$|
| &nbsp;&nbsp;Revenues | 666667 |  |  |
| &nbsp;&nbsp;Net loss | (6076736) | (15403295) | (18752548) |
| &nbsp;&nbsp;Net loss per share, basic and diluted | (0.05) | (0.13) | (0.37) |
| &nbsp;&nbsp;Total assets | 9731478 | 4035989 | 3868614 |
| &nbsp;&nbsp;Total non-current financial liabilities | - | - | 47088 |

---

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

---

**RESULTS OF OPERATIONS**

**For the year ended December 31, 2024**

The net loss for the year ended December 31, 2024 was $6,076,736 (2023: $15,403,295). The main categories are listed below:

<u>Revenue of $666,667 (2023: $nil)</u><br> The Company entered into a licensing agreement with ZKP during the year.

<u>Business development, marketing, and promotion of $779,967 (2023: $1,341,812)</u><br> The decrease is due to terminated marketing agreements during the year. In addition, the Company spent more marketing and promotion in the prior year to increase awareness as the Company became a publicly listed entity.

<u>General and administrative of $756,017 (2023: $912,690)</u><br> The decrease is mainly due to the closure of the Company's Taiwan office in October 2024 after several months of downsizing staff.

<u>Professional fees of $1,089,994 (2023: $636,285)</u>

The increase is mainly due to the increase in audit fees incurred during the year. In addition, the Company incurred higher legal fees as a result of the Taiwan office closure and termination of most of its employees.

<u>Research and development of $2,732,496 (2023: $2,553,365)</u><br> The increase was mainly due to research and development fees incurred to Macquarie University.

<u>Share-based compensation of $1,063 (2023: $3,920,656)</u>

The decrease in share-based compensation was mainly due to the forfeiture of 3,120,000 stock options of the Company as a result of employee terminations during the year. During the year-ended December 31, 2024, the Company granted 1,325,000 (2023: 8,310,000) stock options and 800,000 (2023: 3,930,000) restricted stock units.

<u>Wages and benefits of $575,532 (2023: $761,463)</u><br> The decrease is mainly due to the termination of employees and closure of Taiwan office.

<u>Listing and transaction costs of $nil (2023: $5,059,669)</u><br> Listing and transaction costs relate to the RTO transaction in the prior year. See Reverse Takeover section above.

**FOURTH QUARTER**

**For the three months ended December 31, 2024**

The net loss for the three months ended December 31, 2024 was $1,517,826 (2023: $3,500,699). The decrease in net loss compared to the three months ended December 31, 2023 is mainly due to the recognized revenue during the year and the decrease in expenditures following the closure of the Taiwan office. The main categories are listed below:

<u>Revenue of $250,000 (2023: $nil)</u>

The Company recognized revenue of $250,000 for the licensing agreement with ZKP entered into during the year.

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

---

<u>Business development, marketing, and promotion of $206,689 (2023: $443,437)</u>

The Company spent more marketing and promotion in the previous year to increase awareness as the Company became a publicly listed entity.

<u>General and administrative of $156,938 (2023: $362,949)</u><br> The decrease is mainly due to the closure of the Company's Taiwan branch office during the year.

<u>Professional fees of $235,888 (2023: $197,571)</u><br> Slight increase in professional fees due to an increase in legal fees.

<u>Research and development of $696,214 (2023: $905,802)</u><br> The decrease is mainly due to the termination of research and development employees located in Taiwan prior to the fourth quarter of the current year.

<u>Share-based compensation of $191,994 (2023: $1,259,207)</u><br> The decrease in share-based compensation was mainly due to stock options forfeitures as a result of employee terminations during the year. The Company also granted lesser options which are graded vesting every period. The Company granted 1,325,000 (2023: 8,310,000) stock options and 800,000 (2023: 3,930,000) restricted stock units during the year.

<u>Wages and benefits of $73,587 (2023: $247,442)</u><br> The decrease is mainly due to the termination of employees located in Taiwan prior to the fourth quarter of the current year.

**USE OF AVAILABLE FUNDS**

In connection with the Acquisition and the listing of the Shares on the NEO, the Company filed a listing statement dated February 17, 2023 under its SEDAR+ profile at www.sedarplus.ca. Below is a reconciliation of the expected use of available funds against the actual use of such funds as at December 31, 2024:

---

| | | |
|:---|:---|:---|
| **Item** | Use of Available Funds<br>$| Actual Use of Available <br>Proceeds as at <br>December 31, 2024<br>$|
| Transaction costs related to the Acquisition | 700000 | 705078 |
| Research contracts | 750000 |  |
| Software and hardware development | 4215770 | 3988993 |
| Sales and business development | 1500000 | 1804167 |
| General and administrative costs<br>estimated for 12-months | 1830759 | 2698291 |
| Unallocated working capital | 200000 |  |
| **Total** | **9196529** | **9196529** |

---

In connection with the brokered LIFE offering which closed on December 19, 2024, below is a reconciliation of the expected use of available funds against the actual use of such funds as at December 31, 2024:

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

---

---

| | | |
|:---|:---|:---|
| **Item** | Use of Available Funds<br>$| Actual Use of Available <br>Proceeds as at <br>December 31, 2024<br>$|
| Quantum Computation in Memory Product | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3810000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| General and administrative | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1400000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| Ongoing operations | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1500000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| Working capital | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2429167 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1307444 |
| **Total** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9139167** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1307444** |

---

**SUMMARY OF QUARTERLY RESULTS**

The following table sets out financial information for the past eight quarters:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) |
|  | December 31,<br>2024 | September 30,<br>2024 | June 30,<br>2024 | March 31,<br>2024 |
| Total revenues | 250000 | 326094 | 90573 |  |
| Net loss | (1517826) | (1029346) | (1695192) | (1834372) |
| Net loss per share, basic and diluted | (0.01) | (0.01) | (0.01) | (0.02) |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) |
|  | December 31,<br>2023 | September 30,<br>2023 | June 30,<br>2023 | March 31,<br>2023 |
| Total revenues |  |  |  |  |
| Net loss | (3500699) | (2418203) | (2822927) | (6661466) |
| Net loss per share, basic and diluted | (0.02) | (0.02) | (0.02) | (0.07) |

---

The net loss for the quarter ended December 31, 2023 includes share-based compensation of $1,259,207 related to the issuance of stock options and restricted stock units.

The net loss for the quarter ended September 30, 2023 includes share-based compensation of $755,391 related to the issuance of stock options and restricted stock units.

The net loss for the quarter ended June 30, 2023 includes share-based compensation of $1,623,513 related to the issuance of stock options and restricted stock units.

The net loss for the quarter ended March 31, 2023 includes costs of $5,059,669 relating to the Reverse Take Over transaction, share-based compensation of $282,545 related to the issuance of stock options and increased level of activity as BTQ became public as a subsidiary of the Company with a concurrent financing effective February 17, 2023.

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

---

**LIQUIDITY AND CAPITAL RESOURCES**

As at December 31, 2024, the Company had cash of $9,336,892 and working capital of $7,831,723 compared to cash of $2,862,023 and working capital of $2,806,924 as at December 31, 2023.

The Company's operations used cash of $4,695,569 (2023: $6,945,461) during the year ended December 31, 2024. The Company's investing activities provided cash of $330,076 (2023: 745,960). The cash requirements during the year ended December 31, 2024 were funded from the net proceeds from share issuances of $9,416,808 (2023: $7,107,326) and $1,500,000 (2023: $nil) from the convertible debt. The Company's aggregate operating, investing, and financing activities during the year ended December 31, 2024 resulted in an increase in its cash balance of $6,474,869.

**OFF BALANCE SHEET ARRANGEMENTS**

There are no off-balance sheet arrangements to which the Company is committed.

**RELATED PARTY TRANSACTIONS**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

Key management personnel are persons responsible for planning, directing, and controlling the activities of an entity, and include all officers and directors of the Company. Related party transactions during the years ended December 31, 2024 and 2023 was comprised of the following:

---

| | | |
|:---|:---|:---|
|  | 2024<br>$| 2023<br>$|
| Consulting fees incurred to Ming-Yang Chih, former Chief Strategic Officer | 24278 | 97163 |
| Marketing and promotion incurred to Mathieu Gauthier, Head of Corporate Development | 98626 | 97163 |
| Professional fees incurred to Saturna Group Chartered Professional Accountants LLP, a firm where the CFO, Lonny Wong, is a partner | 84000 | 59661 |
| Research and development incurred to Po-Chun Ko (former Chief | 249842 | 413158 |
| Technology Officer), Chen-Mou Cheng (former Chief Cryptographer), and Chelpis Quantum Tech Co. (company owned by Ming-Yang Chih) |  |  |
| Wages and benefits incurred to Nicolas Roussy Newton (COO) and Peter Lavelle (former Chief Legal Officer) | 282623 | 290543 |
| Total short-term benefits | 739369 | 957688 |
| Share-based payments | 28905 | 765827 |
|  | 768274 | 1723515 |

---

As at December 31, 2024, the Company owed $124,247 (2023 - $114,223) for expenses paid on behalf of the Company to the CEO of the Company, of which $97,075 (2023 - $89,247) is included in accounts payable and accrued liabilities. The amounts owed are non-interest bearing, unsecured, and due on demand.

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

---

As at December 31, 2024, the Company was owed $137,369 (2023 - $49,888) from the Chief Operating Officer ("COO") of the Company, which is included in other receivables.

As at December 31, 2024, the Company owed $7,350 (2023 - $7,350) to a firm for professional fees rendered where the Chief Financial Officer of the Company is a partner, which is included in accounts payable and accrued liabilities.

As at December 31, 2024, the Company owed $nil (2023 - $132,260) for a bonus pursuant to a consulting agreement to the former Chief Cryptographer of the Company, which is included in accounts payable and accrued liabilities.

As at December 31, 2024, the Company owed $15,020 (2023 - $7,936) in consulting fees to the Head of Corporate Development of the Company, which is included in accounts payable and accrued liabilities.

During the year ended December 31, 2024, the Company earned license revenue of $666,667 (2023 - $nil) from a ZKP, a company controlled by the COO. As at December 31, 2024, the Company has deferred revenue of $315,497 (2023 - $nil) for this company. The license agreement relates to certain non-core technology of the Company that is not of a near-term focus for development, and the licensing of such technology to ZKP provided the Company with near-term revenue stream and enabled ZKP to access certain U.S. focused funding sources for the development of a related product.

**Accounting Standards Effective January 1, 2024 and Issued But Not Yet Effective**

A number of new standards, and amendments to standards and interpretations, are not yet effective for the year ended December 31, 2024, and have not been early adopted in preparing these consolidated financial statements.

*IFRS 18 Presentation and Disclosure in Financial Statements*

In April 2024, the IASB issued IFRS 18 - Presentation and Disclosure in Financial Statements which will replace IAS 1, Presentation of Financial Statements. The key new concepts introduced in IFRS 18 relate to the structure of the statement of earnings (loss), required disclosures in the financial statements for certain earnings or loss performance measures that are reported outside an entity's financial statements and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general. IFRS 18 will apply for reporting periods beginning on or after January 1, 2027, and also applies to comparative information. The Company is still in the process of assessing the impact of this standard on its consolidated financial statements.

*Classification of liabilities as current or non-current (amendments to IAS 1, presentation of financial statements)*

On January 23, 2020, an amendment was issued to IAS 1 to address inconsistencies with how entities apply the standards over classification of current and non-current liabilities. The amendment serves to address whether, in the statement of financial position, debt and other liabilities with an uncertain settlement should be classified as current or non-current. This amendment is effective on January 1, 2024. The Company adopted the amendment on the effective date and the adoption did not have a material impact on the Company's consolidated financial statements.

*Non-current liabilities with covenants (amendments to IAS 1)*

The amendments to IAS 1 specify that only covenants with which an entity is required to comply on or before the reporting date affect the classification of a liability as current or non-current. In addition, an entity has to disclose information in the notes that enables users of financial statements to understand the risk that non-current liabilities with covenants could become repayable within twelve months. The amendments are effective for annual reporting periods beginning on or after January 1, 2024, and are to be applied retrospectively. The Company adopted the amendment on the effective date and the adoption did not have a material impact on the Company's consolidated financial statements.

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

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**CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS**

<u>Use of estimates</u>

The preparation of consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from our company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

*Reverse Takeover*

The reverse takeover transaction was measured at the fair value of the common shares and stock options that BTQ would have had to issue to the shareholders of the Company. The fair value of common shares and stock options issued were estimated based on the Company's financing event which took place concurrently with the reverse takeover transaction. The fair values of identifiable assets acquired and liabilities assumed approximated their carrying values.

<u>Research and development costs</u>

Research costs are recognized as an expense when incurred but development costs may be capitalized as intangible assets if certain conditions are met as described in IAS 38 *Intangible Assets*. Management has determined that development costs do not meet the conditions for capitalization under IAS 38 and all research and development costs have been expensed.

<u>Fair values of stock options</u>

Fair values of stock options are determined using the Black-Scholes option pricing model. Estimating fair value requires determining the most appropriate valuation model for a grant of equity instruments, which is dependent on the terms and conditions of the grant. Option-pricing models require the use of highly subjective estimates and assumptions including the expected stock price volatility. Changes in the underlying assumptions can materially affect the fair value estimates and, therefore, existing models do not necessarily provide reliable measurement of the fair value of the Company's stock options and performance warrants.

<u>*Deferred income taxes*</u>

The determination of income tax expense and the composition of deferred income tax assets and liabilities involves judgment and estimates as to the future taxable earnings, expected timing of reversals of deferred income tax assets and liabilities, and interpretations of tax laws. The Company is subject to assessments by tax authorities who may interpret the tax law differently. Changes in these interpretations, judgments, and estimates may materially affect the final amount of current and deferred income tax provisions, deferred income tax assets and liabilities, and results of operations.

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

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<u>*Going concern presentation*</u>

The consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The assessment of the Company's ability to source future operations and continue as a going concern involves judgement. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. If the going concern assumption is not appropriate for the financial statements, then adjustments would be necessary in the carrying value of the assets and liabilities, the reported revenue and the expenses and the statement of financial position classifications used.

<u>*Impairment of non-current assets*</u>

The Company evaluates the recoverability of non-current assets, including property and equipment, right of use assets, and definite life intangible assets, whether events or changes in circumstances indicate that the carrying value of the asset, or asset group, may not be recoverable. When the Company determines that the carrying value of the long-lived asset may not be recoverable based upon the existence of one or more of the indicators, the assets are assessed for impairment based on the estimate of future discounted cash flow. If the carrying value of an asset exceeds its estimated recoverable amount, an impairment loss is recorded for the excess of the asset's carrying value over its recoverable amount. Management judgement is required in the determination of indicators of impairment.

<u>*Convertible debentures*</u>

Convertible debentures are financial instruments which contain a separate financial liability and equity instrument. The identification of such components embedded within a convertible debenture requires significant judgement given that it is based on the interpretation of the substance of the contractual arrangement. The individual fair values attributed to the different components of a financing transaction, and/or derivative financial instruments, are determined using valuation techniques. The Company uses judgement to select the methods used to make certain assumptions and in performing the fair value calculations in order to determine the values attributed to each component of a transaction at the time of their issuance. These valuation estimates could be significantly different because of the use of judgment and the inherent uncertainty in estimating the fair value of these instruments that are not quoted in an active market.

**FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**

**Fair Values**

The following provides a description of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

---

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at December 31, 2024 and 2023 as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in |  |  |  |
|  | active markets | Significant other | Significant |  |
|  | for identical | observable | unobservable | Balance, |
|  | instruments | inputs | inputs | December 31, |
|  | (Level 1) | (Level 2) | (Level 3) | 2023 and 2024 |
|  | $| $| $| $|
| Investments | - | - | 77229 | 77229 |

---

The fair values of the Company's other financial instruments, which include cash, short-term investment, other receivables, loan receivable, and accounts payable and accrued liabilities, lease obligation, and due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

**Credit Risk**

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit loss by placing its cash and cash equivalents with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

**Foreign Exchange Rate Risk**

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency.

The following table indicates the impact of foreign currency exchange risk on net working capital as at December 31, 2024 and 2023. The table below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the table below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as at December 31, 2024 and 2023.

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| | | |
|:---|:---|:---|
| 2024 | TWD | US$ |
| Cash | 82993 | (1249) |
| Other receivables (except GST) |  | 106489 |
| Accounts payable and accrued liabilities | (6337488) | (237069) |
| Total foreign currency financial assets and liabilities | (6254495) | (131830) |
| Impact of a 10% strengthening or weakening of foreign exchange rate | (625450) | (13183) |

---

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

---

---

| | | |
|:---|:---|:---|
| 2023 | TWD | US$ |
| Cash | 9201660 | 296479 |
| Accounts payable and accrued liabilities |  | (190659) |
| Lease obligation | (778794) |  |
| Total foreign currency financial assets and liabilities | 8422866 | 105820 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 842287 | 10582 |

---

**Interest Rate Risk**

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

**Liquidity Risk**

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner. Refer to going concern disclosure under Liquidity and Capital Resources.

The following amounts are the contractual maturities of financial liabilities as at December 31, 2024 and 2023:

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| | | | |
|:---|:---|:---|:---|
| 2024 | Total<br>$| Within <br>1 year<br>$| Within <br>2-5 years<br>$|
| Accounts payable and accrued liabilities | 1357502 | 1357502 |  |
| Due to related parties | 27172 | 27172 |  |
| Total | 1384674 | 1384674 | - |

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| | | | |
|:---|:---|:---|:---|
| 2023 | Total<br>$| Within <br>1 year<br>$| Within <br>2-5 years<br>$|
| Accounts payable and accrued liabilities | 859709 | 859709 |  |
| Lease obligation | 33554 | 33554 |  |
| Due to related parties | 24976 | 24976 |  |
| Total | 918239 | 918239 | - |

---

**DISCLOSURE OF OUTSTANDING SHARE DATA**

The authorized capital of the Company consists of an unlimited number of common shares without par value.

As of the date of this report, the Company had 132,341,625 common shares, 167,785 share purchase warrants outstanding, 3,485,000 stock options outstanding and 1,972,500 RSUs outstanding.

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

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**DISCLOSURE CONTROLS AND PROCEDURES**

The CEO and the CFO have designed, or caused to be designed under their supervision, the Company's disclosure controls and procedures ("DCP") to provide reasonable assurance that material information relating to the Company and its consolidated subsidiaries has been recorded, processed, summarized and disclosed in a timely manner in accordance with regulatory requirements and good business practices and that the Company's DCP will enable the Company to meet its ongoing disclosure requirements.

The CEO and CFO have evaluated the effectiveness of the Company's disclosure controls and procedures and have concluded that based on this evaluation, our disclosure controls and procedures are not effective at a reasonable assurance level due to the material weakness described below in Internal Control over Financial Reporting.

**INTERNAL CONTROL OVER FINANCIAL REPORTING**

The CEO and the CFO have designed, or caused to be designed under their supervision, the Company's internal controls over financial reporting ("ICFR") in order to provide reasonable assurance regarding the reliability of the Company's financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.

A material weakness is a control deficiency, or combination of control deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement in the annual or interim financial statements will not be prevented or detected on a timely basis.

The CEO and CFO conducted an evaluation the effectiveness of the Company's ICFR as at December 31, 2024 based on *Internal Control-Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") for the Company as a whole. Based on this evaluation, management concluded that no material weaknesses existed as at December 31, 2024.

**LIMITATION OF CONTROLS AND PROCEDURES**

The Company's management, including its CEO and CFO, believe that any DCP and ICFR, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override to the control. The design of any control system also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any control system will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost effective, control system, misstatements due to error or fraud may occur and not be detected.

**CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING**

There have been no changes to our internal control over financial reporting for the fiscal year ended December 31, 2024, that could have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

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**RISK FACTORS**

The following is a summary of certain risk factors relating to the business. The risks presented below should not be considered exhaustive and may not be all of that the Company may face.

***General Risks***

*The Company has a limited operating history*

The Company has a limited history of operations and is in the early stage of development. As such, the Company will be subject to many risks common to early-stage enterprises, including undercapitalization, cash shortages, limitations with respect to personnel, financial and other resources, and limited revenue. There is no assurance that the Company will achieve its operating goals. There is no assurance that the Company will be successful in achieving a return on shareholders' investment and the likelihood of success must be considered in light of its early stage of operations. There can be no assurance that the Company will be able to earn material revenue or that any of its activities will generate positive cash flow.

*The Company is subject to competition from other post-quantum encryption companies*

The Company will compete with other post-quantum cryptography and technology businesses, including other businesses focused on applying post-quantum cryptography to blockchain.

*The Company's compliance and risk management programs may not be effective*

The Company's ability to comply with applicable laws and rules will be largely dependent on the establishment and maintenance of compliance, review, and reporting systems, as well as the ability to attract and retain qualified compliance and other risk-management personnel, as needed. The Company cannot provide any assurance that its compliance policies and procedures will be effective or that it will be successful in monitoring or evaluating its risks. If there is any alleged non-compliance with applicable laws or regulations, The Company could be subject to investigations and judicial or administrative proceedings that may result in substantial penalties or civil lawsuits for damages, restitution or other remedies, which could be significant. Any of these outcomes, individually or together, may materially and adversely affect the Company's reputation, financial condition and valuation, and the value of its shares.

*Unexpected market disruptions may cause major losses for the Company*

The Company may incur major losses in the event of disrupted markets and other extraordinary events in which market behavior diverges significantly from historically recognized patterns. The risk of loss in such events may be compounded by the fact that, in disrupted markets, many positions may become illiquid, making it difficult or impossible to close out positions against which markets are moving. Market disruptions caused by unexpected political, military and terrorist events, or other factors, may from time to time cause dramatic losses for the Company.

*The Company will be reliant on attracting and retaining skilled management and directors*

The success of the Company will, in part, be dependent upon the skill, judgment, industry relationships and expertise of the Board and management. The loss of a director or key management personnel may materially and adversely affect the business of the Company. There can be no assurance that these individuals will continue to be employed by, or remain involved with, the Company for a particular period of time.

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

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*Market risk for securities*

There can be no assurance that an active trading market for the Company's shares will be sustained. The market price for the Company's Shares may be subject to wide fluctuations. Factors such as government regulation, price fluctuations, share price movements of peer companies and competitors, as well as overall market movements, may have a significant impact on the market price of the Company's securities. The stock market has from time to time experienced extreme price and volume fluctuations, which have often been unrelated to the operating performance of particular companies. Market forces may render it difficult or impossible for the Company to secure purchasers to purchase its securities at a price which will not lead to severe dilution to existing shareholders, or at all. In addition, shareholders may realize less than the original amount invested on dispositions of their shares during periods of such market price decline.

*Foreign exchange risk*

The Company is a Canadian company, and most of its expenses and fundraising is done in Canadian dollars, however, its operations are predominantly denominated in U.S. dollars and Taiwan dollars. As a result, the Company is subject to foreign exchange risks relating to the relative value of the U.S. dollar and Taiwan dollar as compared to the Canadian dollar. A decline in the U.S. dollar or Taiwan dollar could result in a decrease in the real value of the Company's revenues and adversely impact financial performance.

*Tax*

No assurance can be given that new taxation rules will not be enacted or existing rules will not be applied in a manner which could result in the Company being subject to additional taxation or which could otherwise have a material adverse effect on the Company's results from operations and financial condition.

*The Company may be subject to litigation*

The Company may be subject to litigation arising out of, or related to, its operations. Damages claimed under such litigation may be material, and the outcome of such litigation may materially impact the Company's operations and the value of its shares. While the Company expects to assess the merits of any lawsuits and defend such lawsuits accordingly, it may be required to incur significant expense or devote significant financial resources to such defenses. In addition, the adverse publicity surrounding such claims may have a material adverse effect on the Company's operations.

*Investment Risk*

There is no assurance that the Company will achieve its investment objective. An investment may not earn any positive return and may result in the loss of some or all of the capital invested.

*Ability to generate profits*

There can be no assurance that the Company will generate net profits in future periods. Further, there can be no assurance that the Company will be cash flow positive in future periods. In the event that the Company fails to achieve profitability in future periods, the value of the Company's shares may decline. In addition, if the Company is unable to achieve or maintain positive cash flows, the Company would be required to seek additional funding, which may not be available on favorable terms, if at all.

*Management of growth*

The Company has recently experienced, and may continue to experience, growth in the scope of its operations. This growth has resulted in increased responsibilities for the Company's existing personnel, the hiring of additional personnel and, in general, higher levels of operating expenses. In order to manage its current operations and any future growth effectively, the Company will need to continue to implement and improve its operational, financial and management information systems, as well as hire, manage and retain its employees and maintain its corporate culture including technical and customer service standards. There can be no assurance that the Resulting Issuer will be able to manage such growth effectively or that its management, personnel or systems will be adequate to support the Company's operations.

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

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*Reliance on key personnel*

The Company's future growth and its ability to develop depend, to a significant extent, on its ability to attract and retain highly qualified personnel. The Company will rely on a limited number of key employees, consultants and members of senior management and there is no assurance that the Company will be able to retain such key employees, consultants and senior management. The loss of one or more of such key employees, consultants or members of senior management, if not replaced, could have a material adverse effect on the Company's business, financial condition and prospects.

*The Company has no immediate plans to pay regular dividends on the Company, so shareholders of the Company may not receive funds without selling their Company Shares.*

The Company does not currently have plans to pay regular dividends on Company Shares. Any declaration and payment of future dividends to holders of Company Shares will be at the sole discretion of the Board and will depend on many factors, including the financial condition, earnings, capital requirements, level of indebtedness, statutory and contractual restrictions applying to the payment of dividends and other considerations of the Company that the Company's Board deems relevant.

***Business and Industry Risks***

*Regulatory changes or actions may alter the nature of an investment in the Company or restrict the use of digital assets in a manner that adversely affects the Company's operations*

Due to their global nature, blockchain-related technologies and encryption-related technologies are subject to regulatory fragmentation due to different treatment depending on jurisdiction. Certain governments have categorized certain blockchain technologies as illegal, while others have embraced their utility and have approved them for trade. Ongoing and/or future regulatory actions may have a substantial impact on the Company's business operations.

*The Company relies upon the use of internally/externally built proprietary software, data and intellectual property that may be subject to substantial risk*

The Company's liquidity contribution strategy is dependent on internally and externally developed software, data and intellectual property. Its operations may be severely and adversely affected by the malfunction of technology.

*Banks may not provide banking services, or may cut-off banking services, to businesses that provide services related to blockchain-based technologies*

A number of companies that provide blockchain-related services have been unable to find banks that are willing to provide them with bank accounts and banking services. Similarly, a number of such companies have had their existing bank accounts closed by their banks. Banks may refuse to provide bank accounts and other banking services to blockchain-related companies, or companies that accept digital assets, for a number of reasons, such as perceived compliance risks or costs.

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| |
|:---|
| ![](exhibit99-65xu001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br>**FOR THE YEAR ENDED DECEMBER 31, 2024** |

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*The Company may be unable to obtain adequate insurance to insure its operations*

The Company intends to insure its operations in accordance with technology industry practice. However, given the novelty of digital assets and associated businesses, such insurance may not be available, may be uneconomical for the Company, or the nature or level may be insufficient to provide adequate insurance cover. The occurrence of an event that is not covered or fully covered by insurance could have a material adverse effect on the Company.

*The business of the Company will be exposed to cybersecurity risks*

Cyber incidents can result from deliberate attacks or unintentional events, and may arise from internal sources (e.g., employees, contractors, service providers, suppliers and operational risks) or external sources (e.g., nation states, terrorists, hacktivists, competitors and acts of nature). Cyber incidents include unauthorized access to information systems and data (e.g., through hacking or malicious software) for purposes of misappropriating or corrupting data or causing operational disruption. Cyber incidents also may be caused in a manner that does not require unauthorized access, such as causing denial-of-service attacks on websites (e.g., efforts to make network services unavailable to intended users). A cyber incident that affects the Company might cause disruptions and adversely affect its business operations, and might also result in violations of applicable law (e.g., personal information protection laws), each of which might result in potentially significant financial losses and liabilities, regulatory fines and penalties, reputational harm, and reimbursement and other compensation costs. In addition, substantial costs might be incurred to investigate, remediate and prevent cyber incidents.

FORWARD-LOOKING STATEMENTS

*This MD&A includes certain statements that may be deemed "forward-looking statements" concerning the future performance of the Company's business, its operations, its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All statements in this report that do not directly and exclusively relate to historical facts, constitute forward- looking statements. These statements represent the Company's intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements. The Company disclaims any intention or obligation to update or revise such forward-looking statements, as a result of new information, future events or otherwise. Factors that may cause actual results to vary from forward looking statements include, but are not limited to, the Company's ability to access capital, competitive risks and reliance on key personnel, as described in more detail in this document under "Risk Factors". Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.*

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## Exhibit 99.66

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![](exhibit99-66x001.jpg)

**BTQ TECHNOLOGIES CORP.** 

**ANNUAL INFORMATION FORM**

**FOR THE YEAR ENDED DECEMBER 31, 2024**

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**TABLE OF CONTENTS**

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| | |
|:---|:---|
| &nbsp;&nbsp;[**GLOSSARY OF DEFINED TERMS**](#page_3) | [**3**](#page_3) |
| &nbsp;&nbsp;[**GENERAL**](#page_5) | [**5**](#page_5) |
| &nbsp;&nbsp;[**CURRENCY AND EXCHANGE RATE INFORMATION**](#page_5) | [**5**](#page_5) |
| &nbsp;&nbsp;[**STATEMENT REGARDING FORWARD LOOKING INFORMATION**](#page_5) | [**5**](#page_5) |
| &nbsp;&nbsp;[**CORPORATE STRUCTURE**](#page_6) | [**6**](#page_6) |
| &nbsp;&nbsp;[**GENERAL DEVELOPMENT OF THE BUSINESS**](#page_7) | [**7**](#page_7) |
| &nbsp;&nbsp;[**DESCRIPTION OF BUSINESS**](#page_8) | [**8**](#page_8) |
| &nbsp;&nbsp;[**RISK FACTORS**](#page_17) | [**17**](#page_17) |
| &nbsp;&nbsp;[**DIVIDENDS**](#page_23) | [**23**](#page_23) |
| &nbsp;&nbsp;[**DESCRIPTION OF CAPITAL STRUCTURE**](#page_23) | [**23**](#page_23) |
| &nbsp;&nbsp;[**MARKET FOR SECURITIES**](#page_24) | [**24**](#page_24) |
| &nbsp;&nbsp;[**ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL RESTRICTIONS ON TRANSFER**](#page_25) | [**25**](#page_25) |
| &nbsp;&nbsp;[**DIRECTORS AND OFFICERS**](#page_26) | [**26**](#page_26) |
| &nbsp;&nbsp;[**AUDIT COMMITTEE DISCLOSURE**](#page_29) | [**29**](#page_29) |
| &nbsp;&nbsp;[**PROMOTERS**](#page_30) | [**30**](#page_30) |
| &nbsp;&nbsp;[**INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS**](#page_30) | [**30**](#page_30) |
| &nbsp;&nbsp;[**LEGAL PROCEEDINGS AND REGULATORY ACTIONS**](#page_30) | [**30**](#page_30) |
| &nbsp;&nbsp;[**AUDITORS, TRANSFER AGENT AND REGISTRAR**](#page_31) | [**31**](#page_31) |
| &nbsp;&nbsp;[**MATERIAL CONTRACTS**](#page_31) | [**31**](#page_31) |
| &nbsp;&nbsp;[**INTEREST OF EXPERTS**](#page_31) | [**31**](#page_31) |
| &nbsp;&nbsp;[**ADDITIONAL INFORMATION**](#page_31) | [**31**](#page_31) |
| &nbsp;&nbsp;[**APPENDIX "A"**](#page_32) | [**32**](#page_32) |

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**GLOSSARY OF DEFINED TERMS**

In this Annual Information Form, the following capitalized words and terms shall have the following meanings:

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| | |
|:---|:---|
| **$** | Unless otherwise indicated, Canadian dollars. |
| **AIF** | This Annual Information Form of the Company for the year ended December 31, 2024. |
| **BTQ** | BTQ Technologies Corp. |
| **BCBCA** | *Business Corporations Act* (British Columbia) including the regulations thereunder, as amended. |
| **BCSC** | British Columbia Securities Commission. |
| **Board** | The board of directors of the Company. |
| **Cboe** | Cboe Canada (formerly known as the NEO Exchange Inc.) |
| **CEO** | Chief Executive Officer. |
| **CFO** | Chief Financial Officer. |
| **Common Shares** | Common shares without par value in the capital of the Company. |
| **Company** | BTQ Technologies Corp. |
| **Computershare** | Computershare Trust Company of Canada. |
| **Governmental Authority** | Any (i) international, multinational, national, federal, provincial, state, municipal, local or other governmental or public department, central bank, court, arbitral body, commission, board, bureau, agency or instrumentality, domestic or foreign, (ii) subdivision or authority of any of the above, (iii) quasi- governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account of any of the foregoing, or (iv) stock exchange or securities authorities. |
| **Insider** | Means, in relation to the Company:<br> (a) a director or senior officer of the Company;<br> (b) a director or senior officer of the corporation that is an Insider or subsidiary of the Company;<br> (c) a person that beneficially owns or controls, directly or indirectly, voting shares carrying more than 10% of the voting rights attached to all outstanding voting shares of the Company; or |

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| | |
|:---|:---|
|  | (d) the Company itself if it holds any of its own securities. |
| **Listing Statement** | Listing Statement of the Corporation dated February 17, 2023. |
| **NI 51-102** | National Instrument 51-102 - *Continuous Disclosure Obligations.* |
| **person** | Any individual, firm, partnership, joint venture, venture capital fund, association, trust, trustee, executor, administrator, legal personal representative, estate group, body corporate, corporation, unincorporated association or organization, Governmental Authority, syndicate or other entity, whether or not having legal status. |
| **Promoter** | &nbsp;&nbsp;&nbsp;&nbsp; A person who:<br> (a) acting alone or in concert with one or more other persons, directly or indirectly, takes the initiative in founding, organizing or substantially reorganizing the business of the Company; or<br> (b) in connection with the founding, organization or substantial reorganization of the business of the Company, directly or indirectly receives, in consideration of services or property or both, 10% or more of a class of the Company's own securities or 10% or more of the proceeds from the sale of a class of the Company's own securities of a particular issue,<br> but does not include a person who:<br> (c) receives securities or proceeds referred to in paragraph (b) solely<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) as underwriting commissions, or<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii) in consideration for property, and<br> (d) does not otherwise take part in founding, organizing or substantially reorganizing the business. |
| **Equity Incentive Plan** | The omnibus equity incentive plan of the Company dated February 17, 2023. |

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**GENERAL**

Unless otherwise noted herein, information in this AIF is presented as at December 31, 2024.

In this annual information form, a reference to the "Company", "BTQ", "we", "us", "our" and similar words refer to BTQ Technologies Corp., its subsidiaries and affiliates, or any one of them, as the context requires.

**CURRENCY AND EXCHANGE RATE** **INFORMATION**

In this AIF, otherwise specified or the context otherwise requires, all dollar amounts are expressed in Canadian dollars. All references to "dollars", "$" or "C$" are to Canadian dollars, all references to "US$" are to United States dollars.

On December 31, 2024, the daily exchange rate as quoted by the Bank of Canada was US$1.00 = C$1.4389

**STATEMENT REGARDING FORWARD LOOKING** **INFORMATION**

This AIF contains forward-looking information within the meaning of applicable Canadian securities legislation with respect to the Company and its subsidiaries. Forward looking information may include, but is not limited to: information with respect to amounts and use of available funds; anticipated developments in operations in future periods; planned asset acquisitions; future business operations; the adequacy of financial resources; the costs and timing of development of the Company's business; the costs, timing and receipt of approvals, consents and permits under applicable legislation; executive compensation approaches and practices; the growth of the quantum technology and security market; the future applications of Company products; the timeline for a quantum computer hitting the market; the use of Company office space; the development of and applicability of quantum technologies; the commercialization of the Company's intellectual property; the general adoption of quantum technologies; the Company's research and development plan; the results from Company research and development; future intellectual property registrations of the Company; the future availability of Company products; and the composition of directors and committees.

Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words and phrases such as "will", "may", "is expected to", "anticipates", "estimates", "intends", "plans", "projection", "could", "vision", goals", "objective" and "outlook") are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. In making these forward-looking statements, the Company has made certain assumptions, as contemplated below.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the performance of the Company's business and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the intention to grow the Company's business and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the introduction and continued offering of services and product features;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the market for the Company's products and services and competitive conditions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the Company's pricing and revenue models;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the future liquidity and financial capacity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the treatment of the Company and its subsidiaries under government regulatory and taxation regimes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the Company's intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the Company's ability to operate in certain markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the Company's ability to meet current and future obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the Company's ability to obtain services in a timely manner or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the Company's ability to obtain financing on acceptable terms or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the Company's targeted business milestones and related timelines and costs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● expectations of the blockchain, quantum computing and cryptocurrency markets and associated regulations;

The above list is not exhaustive of factors that may affect any of the forward-looking information contained in this AIF. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Forward-looking information involves statements about the future and is inherently uncertain, and the actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in this AIF under the heading "Risk Factors" and elsewhere in this AIF. Forward-looking information contained in this AIF is based on the beliefs, expectations and opinions of management of the Company on the date the statements are made, and the Company does not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. In making the forward-looking statements in this AIF, the Company has applied several material assumptions which may prove to be inaccurate, including, but not limited to, the assumptions that any financing needed to fund the operations of the Company will be available on reasonable terms. Other assumptions are discussed throughout this AIF and, in particular in the "Risk Factors" section of this AIF. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking information.

**CORPORATE** **STRUCTURE**

**Name, Address and Incorporation**

BTQ Technologies Corp. (previously known as Sonora Gold & Silver Corp.) was incorporated on November 23, 1983 under the *Business Corporations Act* (British Columbia) as "Southern Star Resources Ltd." On February 17, 2023, the Company acquired 100% of the issued and outstanding securities of BTQ AG, a Liechtenstein entity, pursuant to a "reverse takeover transaction" whereby BTQ AG became a wholly owned subsidiary of the Company (the "**Transaction**") and the Company changed its name from "Sonora Gold & Silver Corp." to "BTQ Technologies Corp.".

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The Company's corporate headquarters is located at 16-113 555 Burrard Street, Vancouver, British Columbia, Canada, V7X 1M8 and its registered office is located at 25th Floor, 700 West Georgia Street, Vancouver, British Columbia, Canada, V7Y 1B3.

**Intercorporate Relationships**

The following diagram sets out the intercorporate relationships among the Company's material subsidiaries as of the date of this AIF, including the percentage ownership of voting securities and the jurisdiction of formation or existence of each subsidiary.

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| |
|:---|
| <br> **BTQ TECHNOLOGIES CORP.**<br> (a British Columbia company) |
| &nbsp;&nbsp; 100% |
| <br> **BTQ AG**<br> (a Liechtenstein entity) |

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**GENERAL DEVELOPMENT OF THE** **BUSINESS**

**Three-Year History**

<u>Prior to the Transaction</u>

BTQ AG was incorporated in the Principality of Liechtenstein on March 26, 2021 by a group of businesspeople and experienced post-quantum cryptographers.

On December 31, 2021, the Company and BTQ entered into a share exchange agreement, which was subsequently amended on April 29, 2022, July 30, 2022, and November 29, 2022.

On September 2, 2022, the Company issued an aggregate of 12,712,500 subscription receipts at a price of $0.40 per subscription receipt for aggregate gross proceeds of $5,085,000. On November 10, 2022, the Company the issued an additional 3,163,750 subscription receipts at a price of $0.40 per subscription receipt for aggregate gross proceeds of $1,265,500. On December 5, 2022, the Company issued an additional 2,225,000 subscription receipts at a price of $0.40 per subscription receipt for aggregate gross proceeds of $890,000. Each subscription receipt automatically converted, with no additional consideration, into one Common Share (as defined below) concurrent with the closing of the Transaction.

On February 17, 2023, the Company closed the Transaction, which included (a) consolidating its common shares on the basis of ten pre-consolidation shares to one post-consolidation share (each post-consolidation share, a "**Common Share**"); (b) issuing 92,000,000 Common Shares to the former BTQ AG shareholders; and (c) changing its name from "Sonora Gold & Silver Corp." to "BTQ Technologies Corp.".

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In connection with the closing of the Transaction, on February 21, 2023, the Company voluntarily delisted its Common Shares from the TSX Venture Exchange and listed its Common Shares on Cboe Canada (formerly known as the NEO Exchange) under the symbol "BTQ".

<u>From Transaction date to current date</u>

On May 3, 2024, the Company entered into a Software License Agreement with ZKP Corp., a Delaware corporation controlled by the COO of the Company, for which the Company received $1,000,000 for the use of its proprietary software and the provision of related services.

On September 9, 2024, the Company issued convertible debt for proceeds of $1,000,000. The convertible debt is non-interest bearing and due on September 9, 2026. At the election of the lender, the principal amount of the debt is convertible into common shares at $0.40 per share.

On July 23, 2024, the Company entered into an agreement for the acquisition of Radical Semiconductor's Processing-in-Memory Technology Portfolio, advancing its Post-Quantum Cryptography capabilities. The integration of Radical's cutting-edge technology is set to enhance BTQ's quantum-secure communications infrastructure and provide substantial growth opportunities in emerging markets such as IoT, financial services, blockchain, and government sectors.

On November 8, 2024, the Company issued convertible debt for proceeds of $500,000. The convertible debt is non-interest bearing and due on November 14, 2026. At the election of the lender, the principal amount of the debt is convertible into common shares at $0.40 per share.

On December 19, 2024, the Company issued 3,355,704 common shares at $2.98 per share for gross proceeds of $10,000,000 pursuant to a brokered listed issuer financing exemption ("LIFE") offering. In connection with the financing, the Company incurred share issuance costs of $860,833 and issued 167,785 agent's warrants exercisable at $4.09 per common share expiring on December 19, 2029.

On December 24, 2024, the Company issued 3,750,000 common shares pursuant to the conversion of $1,500,000 in convertible debt.

On January 3, 2025, the Company entered into an agreement to acquire intellectual property from Cimtech Technology Co., Ltd., an innovator in memory technology and computing-in memory ("CIM") solutions. This strategic acquisition enhances the Company's capabilities in post-quantum cryptography and quantum-secure communication technologies.

**Significant Acquisitions**

The Company has not completed any significant acquisitions during its most recently completed financial year and for which disclosure is required under Part 8 of NI 51-102.

**DESCRIPTION OF** **BUSINESS**

**General**

BTQ is a British Columbia corporation founded by a group of businesspeople and experienced post- quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the blockchain network, where several potential quantum attack vectors may compromise the network. This paradigm shift requires a new direction in cryptography and blockchain design. BTQ is building a portfolio of intellectual property to safeguard the crypto asset class with energy efficient quantum processes and currently holds several patent applications for generating quantum algorithms. In addition to blockchain applications, the derived intellectual property the Company is building covers a wide range of mission-critical applications, including defense, financial services, insurance, and IoT devices.

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Quantum computers can take a very large integer and find out its prime factor extremely rapidly by using Shor's algorithm. Theoretically, a universal large-scale quantum computer could be used to disrupt cryptocurrencies, break into digital wallets, and access and decrypt confidential communications. Ethereum and Algor, two of the most technologically advanced cryptocurrencies, announced plans to transition to post-quantum standards.

BTQ has strategically established a branch office in Taipei, Taiwan, home to the most advanced hardware and post-quantum ecosystems. The Taipei engineering office will focus on research and development related to post-quantum cryptography, eco-friendly proof of work proving, and formal verification within smart contracts platforms.

BTQ is listed on the Cboe Canada Exchange (previously known as the NEO Exchange) (the "**Cboe**") under the symbol "BTQ", the OTCQX under the symbol "BTQQF" and the Frankfurt Stock Exchange under the symbol "NG3".

As a research-based company, BTQ Technologies Corp. is building a patent portfolio based on the research undertaken in its Canada, Australia, and elsewhere.

The Company intends to commercialize this intellectual property by way of software and hardware products, licensing agreements, as well as service contracts with large entities in the finance and technology sectors who will hire the Company as a third-party service provider when transitioning from current cryptography standards to post-quantum encryption.

**Principal Products or Services**

BTQ has one reportable operating segment, research and development, which has two principal areas of focus: hardware and software. Currently, BTQ has no commercial productions and is in the early stages of developing its proprietary hardware and software. In the near term for its hardware program, BTQ is planning to continue to develop its mixed-signal computing technology hardware. In the near term for its software program, BTQ is planning to research and develop a proprietary zero-knowledge proof programming language and compiler and BTQ's signature post-quantum Blockchain compression algorithm. In the long term, BTQ is planning to research and develop a formal verification programming language for use in application development.

<u>Research and Development related to Hardware Products and Services</u>

BTQ was engaged in the first phase of research of a proof of concept integrated circuit chip application (the "**Computer Chip**") with respect to a Compute-in-Memory ("**CIM**") implementation of a quantum-resistant hash function. Such research was in collaboration with ITRI with a tapeout submitted to Taiwan Semiconductor Manufacturing Company Limited ("**TSMC**") for production with initial results expected in the near-term. Since entering into the ITRI Mixed-Signal Crypto Accelerator Agreement on March 1, 2022, ITRI and BTQ have been working with TSMC semiconductor fabrication plants in order to bring the Computer Chip into commercialization.

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BTQ is also developing a security chip named QCIM, which involves both CIM technology and two post- quantum cryptographic algorithms, namely Kyber and Dilithium. BTQ's goal is to implement fast and efficient post-quantum cryptography (PQC) in hardware for blockchain and non-blockchain applications. BTQ is using a combination of in-house and subcontracted research in the development of QCIM, with the relevant outside party being CimTech (see material contracts summary below). QCIM is currently in a preliminary research and development phase, and is expected to be ready for commercialization by the end of 2025 or early 2026.

*Cryptographically Agile Secure Hardware ("CASH")*

CASH is a Post-Quantum Cryptography Accelerator product that is compact, energy-efficient, and powerful enough to fit into low-power devices like smart cards. The technology can handle both new PQC methods and traditional encryption methods (like AES and RSA). This means fewer chips are needed, which saves space, reduces power consumption, and cuts costs. CASH Technology is being developed by building on the patents that were acquired from Radical Semiconductor ("Radical"). Key members of the Radical team are working on the technology within BTQ with the first proof of concept expected in the first half of 2026.

<u>Research and Development related to Software Products and Services Software</u>

*Post-quantum Digital Signature Compression Algorithm*

BTQ's proprietary post-quantum digital signature compression algorithm (the "**Post-quantum Digital Signature Compression Algorithm**"), which builds upon the foundation of BTQ's patents, aims to provide post-quantum scaling and supplemental services to existing blockchains by increasing transaction speeds and efficiency, lowering transaction costs and providing greater security. Scaling solutions relate to software deployed on existing blockchains to improve the transactional speed and lower transaction costs associated with user transactions. For example, several of Ethereum's scaling solutions improve its transactional efficiency by collecting transactions from multiple users and publishing a set of transactions to the Ethereum blockchain as a single transaction. This improves the speed and cost at which users transact over the network by increasing the number of transactions that get published in a block and distributing the cost of a single transaction across a group of users. Post-quantum signatures are digital signatures that are specifically designed to withstand attacks from quantum computers. The Post-quantum Digital Signature Compression Algorithm aims to protect users from attacks by both classical and quantum computers, thus offering two distinct advantages of scalability and security. Currently, the Post-quantum Digital Signature Compression Algorithm is in its development phase.

On August 14, 2022, BTQ filed a patent application in Europe for the application entitled "Improved Blockchain System and Method", which protects a method of aggregating two or more digital signatures together into a blockchain block, wherein the signature scheme is the Falcon signature scheme. This additional patent application, once registered, will complement BTQ's existing patents by protecting the underlying intellectual property which increases the range of services that BTQ anticipates providing. These services now include methods for authenticating, encrypting, and decrypting information in a quantum-safe manner and reducing the space required to transmit and store quantum-resistant digital signatures. All research and development related to the Post-quantum Digital Signature Compression Algorithm is being done in-house.

*Quantum Proof-of-Work Mining*

The other branch of BTQ's software arm is currently conducting research as to the general viability of applications of quantum computing to blockchain environments. On March 9, 2022, BTQ entered into the Macquarie Research Agreement with Macquarie University to research whether quantum computers could be used to perform proof-of-work proving for blockchain-based technologies and how such proof-of-work proving would be completed in a commercialized setting. BTQ has determined that one such direction is developing a quantum-proving algorithm to replace existing proving algorithms such as SHA-256, which is the cryptographic hash function which blockchain miners must solve in order to produce a new block on the blockchain. A quantum-proving algorithm can be used in the transition from classical-computing to quantum computing, allowing both types of computers to simultaneously partake in the proving process.

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The research into creating a quantum proof-of-work proving infrastructure is in its preliminary phases and therefore the principal steps required for BTQ to commercialize such research have not yet been ascertained with certainty. However, if BTQ determines through its research and research partners that quantum- computing applications can be applicable to blockchain environments, BTQ anticipates it will need to develop proof-of-work proving-specific code and undertake significant platform research and development before the product would be commercially available.

<u>Other Software Developments</u>

*Zero-Knowledge Programming Language and Compiler (Keelung)*

On March 2, 2023, the Company announced the alpha release of Keelung, a domain-specific language designed for fast, private, and secure application development. Based on research in the field of post- quantum zero-knowledge cryptography, Keelung will empower developers to create secure and reliable post-quantum zero-knowledge proofs without the need for specialized cryptography skills. Both Keelung and its compiler have been implemented in Haskell, enabling developers to produce high-level zero- knowledge proofs protected by Haskell's type system while leveraging Haskell's extensive ecosystem and tooling. Keelung will be 100% open-source, allowing for transparency, collaboration, and community- driven development.

The Company is currently maintaining the open-source version of the product which was released to the public during Q4 2023. The Company is expanding backend integrations, which is expected in the last half of 2025, and working on providing support for targeting multiple proving systems (e.g. PLONK-based and STARK based).

**Production and Services**

Currently, BTQ has no commercial production and is in the research and development stages of advancing its proprietary hardware and software. Upon the successful conclusion of BTQ's research and development activities, BTQ will be relying on a hybrid model of producing, with respect to its software division, post- quantum blockchain infrastructure, zero-knowledge software tools and verifiable scripting products internally, while at the same time engaging certain preferred subcontractors to execute BTQ's proving hardware manufacturing contracts and research related to quantum proof-of-work with respect to in its hardware division.

**Specialized Skills and Knowledge**

BTQ relies on the specialized skill and knowledge of its employees and certain subcontractors for its research and development activities. In particular, team members must have expertise in quantum computing, blockchain systems, computer component manufacturing, regulatory systems, and software development.

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**Competitive Conditions**

BTQ protects its brand and the intellectual property related to its hardware and software programs through a collection of trademark applications and patent applications in Canada, the United States and Europe and other registered intellectual property protections. As BTQ generates new data and further develops its proprietary intellectual property, it will expand its registrations throughout the development program and continue to take all the necessary steps to protect their intellectual property.

*Quantum Computing*

Large publicly-traded quantum companies exist in the quantum computing space, including: D-Wave Systems (NYSE: QBTS), IONQ (NYSE: IONQ) and Arqit Quantum (NASDAQ: ARQQ). However, these companies are not direct competitors of BTQ as their main goal is to build a commercial quantum computer with real-world useability. These companies are capital intensive and therefore well funded by both institutional investors and governments alike. The valuations of these companies range from US$50 million to over US$1 billion.

With this surge in funding and general investor interest and excitement in the industry, several companies are emerging in the post-quantum security space. There are various companies that try to tackle the same global problem as BTQ: getting today's infrastructure secured for the quantum revolution, however, the approaches vary widely based on cryptographic techniques, as well as end uses served and therefore is not a winner takes all market. In fact, other companies operating directly in the space may offer potential collaboration opportunities.

PQ Shield, for example, describes itself as "a post-quantum cryptography (PQC) company contributing to the global standards and core technologies to power the future security layer of the world's leading organizations. Its quantum-secure cryptographic solutions work with companies' legacy systems to protect sensitive data now and for years to come". PQ Shield mainly serves the defense and infrastructure, IoT and OEM markets.

Additionally, ISARA Corporation provides security solutions specializing in cryptographic risk management and in creating crypto-agile and quantum-safe security solutions for today's information technology ecosystems. ISARA Corporation broadly targets enterprises and governments. ISARA Corporation raised over $10 million in 2018 to fund its R&D efforts.

To date, BTQ has engaged in key strategic partnerships, notably through the Next Generation Emerging Technologies Graduates Program (NGETGP) in collaboration with CSIRO and top Australian universities. Additionally, BTQ is involved in developing open-source quantum computing software in partnership with the Australian Quantum Software Network (AQSN), enhancing its capabilities in quantum software development to further enhance collaboration opportunities. BTQ's publication of the "Proof-of-Work Consensus by Quantum Sampling" paper also enhances its competitive position by demonstrating real- world use cases for quantum computers much sooner than previously anticipated by the quantum industry.

*Blockchain*

In the blockchain space, large technology companies are building their own secured blockchains. For example, IBM offers blockchain services that help secure multiple aspects of critical industries like supply chains, banking, healthcare, and government. The goal of these blockchains is usually to streamline and scale processes in a secure manner. For example, SandboxAQ, an enterprise SaaS company, provides solutions at the nexus of AI and Quantum technology (AQ) to address some of the world's most challenging problems.

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There are additional "public blockchain" protocols implementing post-quantum cryptography in blockchain environments. Algorand, a Proof-of-Stake cryptocurrency protocol, is focusing on integrating post- quantum cryptography to fortify their cross-chain applications in an effort to withstand attacks by sufficiently large quantum computers that try to alter the state of the blockchain. Starkware is another competitor who is preparing to defend against the growing threat of quantum computers. In 2018 Starkware raised $30M to build technology to improve blockchain scalability and security. zkSync is another competitor who is trying to improve blockchain scalability but is not aligned with BTQ's post-quantum security mission.

BTQ differentiates itself from its competitors with its work at the intersection of NIST standardised post- quantum cryptographic algorithms and blockchain. The Company works on developing next-generation cryptographic primitives like zero-knowledge cryptography to achieve advanced security and efficiency, which is novel in the space.

*Post Quantum Cryptography*

The global quantum cryptography market size was valued at over US$200 million in 2022 and is expected to grow at a CAGR of 22.6%, reaching over US$2,300 million by 2033. Primary competitors and market participants in the security hardware industry are those who develop and manufacture security chips. United Kingdom-based PQShield is a company focusing on post-quantum security intellectual property. BTQ's unique products, such as PQScale, Keelung, Kenting, and QCIM address different aspects of the quantum problem. By building tightly integrated solutions from hardware to software, the company sets itself apart from competitors by offering a full-stack service for post-quantum cryptography.

BTQ has engaged in several strategic collaborations to improve its competitive position. Notably, its partnership with Hon Hai Research Institute (part of Foxconn) aims to promote the standardization of PQC, thereby leading advancements in quantum-safe cryptography. The collaboration with ITRI and the development of quantum computation in memory technology for the Kyber algorithm are also significant, as they enhance BTQ's capabilities in providing secure and efficient PQC solutions.

**Products**

*Cryptographically Agile Secure Hardware ("CASH")*

CASH is a Post-Quantum Cryptography Accelerator product that is compact, energy-efficient, and powerful enough to fit into low-power devices like smart cards. The technology can handle both new PQC methods and traditional encryption methods (like AES and RSA). This means fewer chips are needed, which saves space, reduces power consumption, and cuts costs. CASH Technology is being developed by building on the patents that were acquired from Radical Semiconductor ("Radical"). Key members of the Radical team are working on the technology within BTQ with the first proof of concept expected in the first half of 2026.

<u>Keelung</u>

As described previously in this AIF, on March 2, 2023, the Company announced the alpha release of Keelung, a domain-specific language designed for fast, private, and secure application development. Both the Keelung language and compiler are open source under the Apache 2.0 License. Further developments have been made to the language, primarily for increasing support for efficient operations over post-quantum cryptographic primitives.

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<u>PQScale</u>

We have made significant progress on PQScale, our quantum-resistant blockchain scaling solution that leverages zero-knowledge proofs to accelerate transactions and reduce costs. PQScale continues to evolve and deliver new services. We have been working on PQScale under several grants to integrate the technology into several platforms.

<u>Kenting</u>

Kenting remains at the forefront of specialized hardware development for post-quantum zero-knowledge proving. Our team has continued to innovate and refine our hardware solution, resulting in faster and more seamless service. The latest generation of Kenting hardware offers increased computational power, improved scalability, and enhanced reliability. We are currently looking to make the latest generation of Kenting hardware available on AWS EC2 F1 instances.

<u>QByte</u>

QByte continues to serve as a valuable resource for industry professionals, researchers, and enthusiasts, offering comprehensive coverage and analysis of the rapidly evolving quantum computing landscape. It is available to use online free of charge, and at this time no further development or commercialization of the products is being planned.

<u>Preon</u>

Preon is a post-quantum signature scheme developed by BTQ Technologies Corp. that has been selected as a candidate in the NIST Post-Quantum Cryptography Standardization Process. It is characterized by its small key size, rapid key generation, minimal assumptions, and flexible functionality, making it resistant to potential threats from both classical and quantum computers. Preon has been selected by NIST in the first round (additional signatures) for its post-quantum cryptography standardization process. BTQ anticipates further optimization of Preon in the coming months, as the current reference implementation's performance data is meant for expository purposes and not indicative of the scheme's potential in practice.

QPoW

Boson Sampling is a non-universal NISQ-era architecture for optical quantum computing with comparatively straightforward engineering requirements - a passive optical interferometer with photon sources and photo-detectors. Since it is a highly restricted problem, its utility has been questioned for several years. Recently, boson samplers were demonstrated to have outperformed an equivalent classical simulation by orders of magnitude. BTQ researchers have demonstrated the applicability of boson sampling to the problem of proof-of-work (PoW), a distributed algorithm used in blockchain protocols such as Bitcoin. Classical algorithms are known for their computationally intensive inverse-hashing problems that consume vast amounts of power, bringing blockchain technology under major criticism. In BTQ's QPoW protocol, this energy-intensive inverse hashing problem is substituted with one based on boson sampling. Each classical node is replaced by a quantum counterpart, where light sources are passed through an interferometer, and the output configuration is detected. Since the output configuration is inherently random, several samples are collected and the data is manipulated to reach consensus using different binning strategies. This protocol has demonstrated that a blockchain network comprising quantum nodes performing QPoW can achieve the same outcome (distributed consensus) using orders of magnitude less energy than a corresponding network of classical simulators. QPoW has an initial prototype, BTQ is looking for commercialization partners and licensing partners.

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QRiNG

QRiNG operates through Quantum Consensus Networks (QCNs) that achieve full peer-to-peer connectivity via Quantum Key Distribution (QKD). Consensus is achieved through the majority consistency of pairwise QKD bit-strings, where nodes verify each other, and an honest majority determines network connectivity. Quantum Consensus Networks (QCNs) utilize quantum-enabled nodes to achieve consensus on generating certifiable quantum randomness, a vital resource for cryptography and many other applications. QRiNG harnesses the randomness from QCNs, which act as quantum random oracles, injecting entropy into global keys using entropy addition. This process enables classical Distributed Consensus Networks (DCNs) to reach quantum-grade random consensus. QRiNG is in the early research and development stage.

**Components**

BTQ's hardware and software programs are still in their preliminary stages of research and development. As such, it is not yet possible to determine exactly what components or raw materials will be required, or what their pricing, availability and sources will be.

**Intellectual Property**

The Company protects its intellectual property through various strategies, including non-disclosure agreements and applying for patents, when appropriate. Currently, the Company has the following patents and patent applications.

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| | | | |
|:---|:---|:---|:---|
| **Current Patents** | **Current Patents** | **Current Patents** | **Current Patents** |
| **Name** | **Jurisdiction/s** | **Application No. <br>(Patent No., if different than**<br>**Application No.)** | **Status** |
| &nbsp;&nbsp;A SYSTEM AND METHOD FOR QUANTUM-SAFE AUTHENTICATION, ENCRYPTION AND DECRYPTION OF INFORMATION | &nbsp;&nbsp;Canada | &nbsp;&nbsp;CA 3078558 | &nbsp;&nbsp;Expiring 8 October 2038\* |
| &nbsp;&nbsp;A SYSTEM AND METHOD FOR QUANTUM-SAFE AUTHENTICATION, ENCRYPTION AND DECRYPTION OF INFORMATION | &nbsp;&nbsp;Europe | &nbsp;&nbsp;EP 18800260.4 (EP 3692681) | &nbsp;&nbsp;Expiring 8 October 2038\* |
| &nbsp;&nbsp;A SYSTEM AND METHOD FOR QUANTUM-SAFE AUTHENTICATION, ENCRYPTION AND DECRYPTION OF INFORMATION | &nbsp;&nbsp;Great Britain | &nbsp;&nbsp;EP 3692681 | &nbsp;&nbsp;Expiring 8 October 2038\* |
| &nbsp;&nbsp;A SYSTEM AND METHOD FOR QUANTUM-SAFE AUTHENTICATION, ENCRYPTION AND DECRYPTION OF INFORMATION | &nbsp;&nbsp;Unitary Patent | &nbsp;&nbsp;EP 3692681 | &nbsp;&nbsp;Expiring 8 October 2038\* |
| &nbsp;&nbsp;A SYSTEM AND METHOD FOR QUANTUM-SAFE AUTHENTICATION, ENCRYPTION AND DECRYPTION OF INFORMATION | &nbsp;&nbsp;United States | &nbsp;&nbsp;US 16/754,055 (US 11477017) | &nbsp;&nbsp;Expiring 8 October 2038\* |
| &nbsp;&nbsp;A SYSTEM AND METHOD FOR QUANTUM-SAFE AUTHENTICATION, ENCRYPTION AND DECRYPTION OF INFORMATION | &nbsp;&nbsp;United States | &nbsp;&nbsp;US 17/930,681 (US 11991275) | &nbsp;&nbsp;Expiring 17 December 2038\* |
| **Pending Patents** | **Pending Patents** | **Pending Patents** | **Pending Patents** |
| &nbsp;&nbsp;IMPROVED BLOCKCHAIN SYSTEM (POST-QUANTUM AGGREGATE SIGNATURES) AND METHOD | &nbsp;&nbsp;United States | &nbsp;&nbsp;US 19/103296 | &nbsp;&nbsp;Pending |
| &nbsp;&nbsp;IMPROVED BLOCKCHAIN SYSTEM (POST-QUANTUM AGGREGATE SIGNATURES) AND METHOD | &nbsp;&nbsp;Canada | &nbsp;&nbsp;To be confirmed | &nbsp;&nbsp;Pending |
| &nbsp;&nbsp;IMPROVED BLOCKCHAIN SYSTEM (POST-QUANTUM AGGREGATE SIGNATURES) AND METHOD | &nbsp;&nbsp;Europe | &nbsp;&nbsp;EP 23754332.7 | &nbsp;&nbsp;Pending |
| &nbsp;&nbsp;IMPROVED BLOCKCHAIN SYSTEM (POST-QUANTUM AGGREGATE SIGNATURES) AND METHOD | &nbsp;&nbsp;Australia | &nbsp;&nbsp;To be confirmed | &nbsp;&nbsp;Pending |
| &nbsp;&nbsp;IMPROVED BLOCKCHAIN SYSTEM (POST-QUANTUM AGGREGATE SIGNATURES) AND METHOD | &nbsp;&nbsp;China | &nbsp;&nbsp;To be confirmed | &nbsp;&nbsp;Being filed on April 14, 2025 |
| &nbsp;&nbsp;IMPROVED BLOCKCHAIN SYSTEM (POST-QUANTUM AGGREGATE SIGNATURES) AND METHOD | &nbsp;&nbsp;Japan | &nbsp;&nbsp;To be confirmed | &nbsp;&nbsp;Pending |
| &nbsp;&nbsp;&nbsp;&nbsp;IMPROVED BLOCKCHAIN SYSTEM AND METHOD<br>(DELAYED PROOF OF VALIDITY) | &nbsp;&nbsp;International/PCT | &nbsp;&nbsp;PCT/EP2023/086754 | &nbsp;&nbsp;Pending (application will expire 19 June 2025, when national applications will be filed) |

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; IMPROVED BLOCKCHAIN SYSTEM AND METHOD (QUANTUM ANALOGUES OF PROOF OF WORK SCHEMES) | &nbsp;&nbsp; International/PCT (National Office below) | &nbsp;&nbsp; PCT/EP2024/064555 | &nbsp;&nbsp; Pending (application will expire by 27 November 2025, when national applications will be<br> filed) |
| &nbsp;&nbsp; IMPROVED BLOCKCHAIN SYSTEM AND METHOD (QUANTUM ANALOGUES OF PROOF OF WORK SCHEMES) | &nbsp;&nbsp; Europe | &nbsp;&nbsp; EP 23175874.9 | &nbsp;&nbsp; Pending |
| &nbsp;&nbsp; QUANTUM RANDOM NUMBER GENERATOR (QRNG) | &nbsp;&nbsp; Europe | &nbsp;&nbsp; EP 24199620.6 | &nbsp;&nbsp; Pending |
| &nbsp;&nbsp; NON-VOLATILE STORAGE OF SECURE DATA IN 6T SRAM CELLS USING HOT<br> CARRIER INJECTION | &nbsp;&nbsp; United States | &nbsp;&nbsp; US 18/302,667 | &nbsp;&nbsp; Pending |
| &nbsp;&nbsp; HIGH-RELIABILITY PROCESSING-IN-MEMORY<br> WITH TRANSPOSE SUPPORT USING SPLIT-6T SRAM | &nbsp;&nbsp; United States | &nbsp;&nbsp; US 18/302,674 | &nbsp;&nbsp; Pending |
| &nbsp;&nbsp; IN-MEMORY HIGH PARALLELISM BIT-SERIAL POLYNOMIAL<br> MULTIPLICATION | &nbsp;&nbsp; United States | &nbsp;&nbsp; US 18/302,679 | &nbsp;&nbsp; Pending |
| &nbsp;&nbsp; IN-MEMORY REDUNDANT<br> BINARY ARITHMETIC ON WIDE BITWIDTH INTEGERS | &nbsp;&nbsp; United States | &nbsp;&nbsp; 18/302,684 | &nbsp;&nbsp; Pending |

---

Note: \* All expiry dates are subject to payment of periodic patent annuity fees.

**Cycles**

BTQ does not expect the development of its proprietary hardware and software to be subject to cyclical or seasonal forces.

**Economic Dependence**

As of the current reporting period, BTQ does not possess any contracts upon which its business is substantially dependent. This absence is attributed to the Company being in the research and development stage, where the Company's primary focus lies in the exploration and advancement of innovative solutions. Consequently, there are no prevailing contracts in place for the sale of a significant portion of Company's products or services, nor for the acquisition of substantial requirements of goods, services, or raw materials. Furthermore, The Company does not currently hold any franchise, license, or other agreements pertaining to the use of patents, formulas, trade secrets, processes, or trade names that are indispensable to its operations. Given Company's developmental status, the Company's business remains centred on refining and enhancing its offerings, thereby precluding the existence of contractual dependencies at this juncture.

**Changes to Contracts**

It is not expected that the business of the Company will be affected by the renegotiation or termination of contracts or sub-contracts in the current financial.

**Environmental Protection**

In the current financial year and for future years, the Company anticipates no significant financial or operational effects stemming from environmental protection requirements. As BTQ primarily engages in research and development, with a strong focus on the development of hardware and software solutions, the its operations are not subject to substantial environmental compliance obligations. Thus, the Company does not foresee any substantial impact on its capital expenditures, profit or loss, or competitive position as a result of environmental protection requirements. The Company's ongoing efforts center on the advancement of innovative technologies and solutions, and while it remains committed to environmental sustainability, its current business activities and strategic priorities do not expose us to substantial environmental compliance costs or obligations.

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**Employees**

As of BTQs most recent financial year end, it has a total of 27 employees or equivalent.

**Foreign Operations**

BTQ had strategically established a branch office in Taipei, Taiwan. The Taipei engineering office was focused on research and development related to post-quantum cryptography, eco-friendly proof of work proving, and formal verification within smart contracts platforms until its closure in October 2024. During the 2024, the Company transitioned its research and development activities from Taiwan to Canada and Australia.

BTQ also has a number of consultants working for the Company in Canada, Korea, Hong Kong, United States, Israel, and Australia. The Company also maintains an office space in Sydney, Australia for use by its team of research consultants located there.

**Lending and Grants**

The Company does not have any dedicated investment policies or investment restrictions.

**Bankruptcy and Similar Proceedings**

There have been no bankruptcy, receivership, or similar proceedings initiated against the Company or any of its subsidiaries within the three most recently completed financial years, nor during or proposed for the current financial year.

**Reorganizations**

The Company completed the Transaction in February 2023. See "General Development of Business".

**Social and Environmental Risks**

The Company does not have any social or environmental policies.

**RISK** **FACTORS**

Readers should carefully consider all such risks, which include but are not limited to the following:

**General Risks**

*Limited Operating History*

BTQ has a limited history of operations and is in the early stage of development. As such, BTQ will be subject to many risks common to early stage enterprises, including undercapitalization, cash shortages, limitations with respect to personnel, financial and other resources, and lack of revenue. There is no assurance that BTQ will achieve its operating goals. There is no assurance that BTQ will be successful in achieving a return on shareholders' investment and the likelihood of success must be considered in light of its early stage of operations. There can be no assurance that BTQ will be able to earn material revenue or that any of its activities will generate positive cash flow.

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*Future Capital Requirements and Uncertainty of Additional Funding*

The Company may require funding through debt or equity offering for its ongoing and future activities. There can be no assurance that BTQ will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Failure to obtain additional financing could cause BTQ to reduce or terminate its operations.

If additional funds are raised through further issuances of equity or securities convertible into equity, existing shareholders could suffer significant dilution, and any new equity securities issued could have rights, preferences, and privileges superior to those of other BTQ securityholders. Any debt financing secured in the future could involve restrictive covenants relating to capital raising activities and other financial and operational matters, which may make it more difficult for BTQ to obtain additional capital and to pursue business opportunities.

*Operational Reliance on Third-Party Providers*

The Company relies upon independent third-party services providers. The Company's operations could be interrupted or impaired if these third-party service providers experience operational or other systems difficulties or failures, terminate their services, or fail to comply with regulations. Replacing vendors or addressing other issues with the Company's third-party service providers could entail significant delay, expense, and disruption of service. As a result, if the third-party service providers experience difficulties, are subject to cybersecurity breaches, or terminate their services and the Company is unable to replace them with other service providers in a timely manner, the Company's operations could be interrupted. If an interruption were to continue for a significant period, the Company's business, financial condition, and results of operations could be adversely affected.

*Competition*

The Company will compete with other post-quantum cryptography and technology businesses, including other businesses focused on applying post-quantum cryptography to blockchain. Because its industry is evolving and characterized by technological change, it is difficult for the Company to predict whether, when and by whom new competing technologies may be introduced or when new competitors may enter the market. The Company faces increased competition from companies with strong positions in certain markets the Company intends to serve and in new markets and regions it may enter. Many of the Company's competitors have significantly greater financial and other resources than the Company currently possesses and may spend significant amounts of resources to gain market share. The Company cannot assure investors that it will be able to compete effectively against current and future competitors. In addition, increased competition or other competitive pressures may result in price reductions, reduced margins or loss of market share, any of which could have a material adverse effect on the Company's business, financial condition or results of operations. Competitors may be able to respond to new or emerging technologies and changes in customer requirements more effectively than the Company can, or devote greater resources to the development, promotion and sale of products than the Company can. Current and potential competitors may establish cooperative relationships among themselves or with third parties, including through mergers or acquisitions, to increase the ability of their products to address the needs of the Company's prospective customers. If these competitors were to acquire significantly increased market share, it could have a material adverse effect on the Company's business, financial condition or results of operations. The Company's competitors may also establish or strengthen co-operative relationships with systems integrators, third-party consulting firms or other parties with whom the Company has relationships, thereby limiting its ability to promote its products.

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If the Company is not able to differentiate our business from those of our competitors, drive value for customers or effectively align its financial and operations resources with its goals and objectives, it may not be able to compete effectively against its competitors. If the Company fails to compete effectively against its competitors, its business and profitability may be adversely affected.

*Compliance and Risk Management Programs*

The Company's ability to comply with applicable laws and rules will be largely dependent on the establishment and maintenance of compliance, review, and reporting systems, as well as the ability to attract and retain qualified compliance and other risk-management personnel, as needed. The Company cannot provide any assurance that its compliance policies and procedures will be effective or that it will be successful in monitoring or evaluating its risks. If there is any alleged non-compliance with applicable laws or regulations, The Company could be subject to investigations and judicial or administrative proceedings that may result in substantial penalties or civil lawsuits for damages, restitution or other remedies, which could be significant. Any of these outcomes, individually or together, may materially and adversely affect BTQ's reputation, financial condition and valuation, and the value of its Common Shares.

*Unexpected Market Disruptions*

The Company may incur major losses in the event of disrupted markets and other extraordinary events in which market behavior diverges significantly from historically recognized patterns. The risk of loss in such events may be compounded by the fact that, in disrupted markets, many positions may become illiquid, making it difficult or impossible to close out positions against which markets are moving. Market disruptions caused by unexpected political, military and terrorist events, or other factors, may from time to time cause dramatic losses for BTQ.

*Dependence on Key Personnel*

The success of BTQ will, in part, be dependent upon the skill, judgment, industry relationships and expertise of the Board and management. The loss of a director or key management personnel may materially and adversely affect the business of BTQ. There can be no assurance that these individuals will continue to be employed by, or remain involved with, BTQ for a particular period of time.

*Market Risk for Securities*

There can be no assurance that an active trading market for BTQ's shares will be sustained. The market price for the Company's Common Shares may be subject to wide fluctuations. Factors such as government regulation, price fluctuations, share price movements of peer companies and competitors, as well as overall market movements, may have a significant impact on the market price of BTQ's securities. The stock market has from time to time experienced extreme price and volume fluctuations, which have often been unrelated to the operating performance of particular companies. Market forces may render it difficult or impossible for BTQ to secure purchasers to purchase its securities at a price which will not lead to severe dilution to existing shareholders, or at all. In addition, shareholders may realize less than the original amount invested on dispositions of their Common Shares during periods of such market price decline.

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*Foreign Exchange Risk*

The Company is a Canadian company, and most of its expenses and fundraising is done in Canadian dollars, however, its operations are predominantly denominated in U.S. dollars. As a result, the Company is subject to foreign exchange risks relating to the relative value of the U.S. dollar as compared to the Canadian dollar. A decline in the U.S. dollar could result in a decrease in the real value of the Company's revenues and adversely impact financial performance.

*Tax*

No assurance can be given that new taxation rules will not be enacted or existing rules will not be applied in a manner which could result in BTQ being subject to additional taxation or which could otherwise have a material adverse effect on BTQ's results from operations and financial condition.

*Litigation*

BTQ may be subject to litigation arising out of, or related to, its operations. Damages claimed under such litigation may be material, and the outcome of such litigation may materially impact BTQ's operations and the value of its Common Shares. While BTQ expects to assess the merits of any lawsuits and defend such lawsuits accordingly, it may be required to incur significant expense or devote significant financial resources to such defenses. In addition, the adverse publicity surrounding such claims may have a material adverse effect on BTQ's operations and its Common Shares.

*Investment Risk*

There is no assurance that BTQ will achieve its investment objective. An investment may not earn any positive return and may result in the loss of some or all of the capital invested.

*Ability to Generate Profits*

There can be no assurance that BTQ will generate net profits in future periods. Further, there can be no assurance that BTQ will be cash flow positive in future periods. In the event that BTQ fails to achieve profitability in future periods, the value of the Common Shares may decline. In addition, if BTQ is unable to achieve or maintain positive cash flows, BTQ would be required to seek additional funding, which may not be available on favourable terms, if at all. This risk is a factor which indicates a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.

*Management of Growth*

The Company has recently experienced, and may continue to experience, growth in the scope of its operations. This growth has resulted in increased responsibilities for BTQ's existing personnel, the hiring of additional personnel and, in general, higher levels of operating expenses. In order to manage its current operations and any future growth effectively, BTQ will need to continue to implement and improve its operational, financial and management information systems, as well as hire, manage and retain its employees and maintain its corporate culture including technical and customer service standards. There can be no assurance that BTQ will be able to manage such growth effectively or that its management, personnel or systems will be adequate to support BTQ's operations.

*Reliance on Key Personnel*

BTQ's future growth and its ability to develop depend, to a significant extent, on its ability to attract and retain highly qualified personnel. The Company will rely on a limited number of key employees, consultants and members of senior management and there is no assurance that BTQ will be able to retain such key employees, consultants and senior management. The loss of one or more of such key employees, consultants or members of senior management, if not replaced, could have a material adverse effect on BTQ's business, financial condition and prospects.

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*Dividends*

BTQ does not currently have plans to pay regular dividends on its Common Shares. Any declaration and payment of future dividends to holders of Common Shares will be at the sole discretion of BTQ Board and will depend on many factors, including the financial condition, earnings, capital requirements, level of indebtedness, statutory and contractual restrictions applying to the payment of dividends and other considerations of BTQ that BTQ Board deems relevant. Shareholders of BTQ may not receive funds without selling their Common Shares.

**Business and Industry Risks**

*Regulatory Risks.*

Due to their global nature, blockchain-related technologies and encryption-related technologies are subject to regulatory fragmentation due to different treatment depending on jurisdiction. Certain governments have categorized certain blockchain technologies as illegal, while others have embraced their utility and have approved them for trade. Ongoing and/or future regulatory actions may have a substantial impact on BTQ's business operations.

The activities of the Company may be subject to regulation by governmental authorities. Achievement of the Company's business objectives are contingent, in part, upon compliance with regulatory requirements enacted by these governmental authorities and obtaining all regulatory approvals, where necessary, for the sale of its products. The Company cannot predict the time required to secure all appropriate regulatory approvals for its products, or the extent of testing and documentation that may be required by governmental authorities. Any delays in obtaining, or failure to obtain regulatory approvals would significantly delay the development of markets and products and could have a material adverse effect on the business, results of operations and financial condition of the Company. The effect of future regulatory change could materially and adversely affect the Company.

*Reliance on Internally & Externally Built Software, Data and Intellectual Property*

BTQ's business is dependent on internally and externally developed software, data, and intellectual property. Its operations may be severely and adversely affected by the malfunction of such technology.

Failure to protect the Company's intellectual property could harm its ability to compete effectively. The Company is highly dependent on its ability to protect its proprietary technology. The Company intends to rely on a combination of copyright, trademark and trade secret laws, as well as non-disclosure agreements and other contractual provisions to establish and maintain its proprietary rights. The Company intends to protect its rights vigorously. However, there can be no assurance that these measures will, in all cases, be successful. Enforcement of the Company's intellectual property rights may be difficult, particularly in some nations outside of North America in which the Company may seek to market its products. While U.S. and Canadian copyright laws, international conventions and international treaties may provide meaningful protection against unauthorized duplication of software, the laws of some foreign jurisdictions may not protect proprietary rights to the same extent as the laws of Canada or of the United States. The absence of internationally harmonized intellectual property laws makes it more difficult to ensure consistent protection of the Company's proprietary rights. Software piracy has been, and is expected to be, a persistent problem for the software industry, and piracy of the Company's products represents a loss of revenue to the Company. Despite the precautions the Company may take, unauthorized third parties, including its competitors, may be able to: (i) copy certain portions of its products; or (ii) reverse engineer or obtain and use information that the Company regards as proprietary. Also, the Company's competitors could independently develop technologies that are perceived to be substantially equivalent or superior to the Company's technologies. The Company's competitive position may be materially adversely affected by its possible inability to effectively protect its intellectual property.

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*Banks Accounts and Services*

A number of companies that provide blockchain-related services have been unable to find banks that are willing to provide them with bank accounts and banking services. Similarly, a number of such companies have had their existing bank accounts closed by their banks. Banks may refuse to provide bank accounts and other banking services to blockchain-related companies, or companies that accept digital assets, for a number of reasons, such as perceived compliance risks or costs.

*Insurance*

BTQ intends to insure its operations in accordance with technology industry practice. However, given the novelty of digital assets and associated businesses, such insurance may not be available, may be uneconomical for BTQ, or the nature or level may be insufficient to provide adequate insurance cover. The occurrence of an event that is not covered or fully covered by insurance could have a material adverse effect on BTQ.

*Cybersecurity Risks*

Cyber incidents can result from deliberate attacks or unintentional events, and may arise from internal sources (e.g., employees, contractors, service providers, suppliers and operational risks) or external sources (e.g., nation states, terrorists, hacktivists, competitors and acts of nature). Cyber incidents include unauthorized access to information systems and data (e.g., through hacking or malicious software) for purposes of misappropriating or corrupting data or causing operational disruption. Cyber incidents also may be caused in a manner that does not require unauthorized access, such as causing denial-of-service attacks on websites (e.g., efforts to make network services unavailable to intended users). A cyber incident that affects BTQ might cause disruptions and adversely affect its business operations, and might also result in violations of applicable law (e.g., personal information protection laws), each of which might result in potentially significant financial losses and liabilities, regulatory fines and penalties, reputational harm, and reimbursement and other compensation costs. In addition, substantial costs might be incurred to investigate, remediate and prevent cyber incidents.

*Enforcement of Judgments Against Foreign Persons*

BTQ was incorporated under the Personen- and Gesellschaftsrecht in the Principality of Liechtenstein, and most of its operations are currently located in Liechtenstein and Taipei. Investors should be aware that some of the directors and officers of BTQ will be located outside of Canada and, as a result, it may be difficult to enforce a Canadian court judgment based upon the civil liability provisions of Canadian securities laws against BTQ or any of these persons in a Canadian or Liechtenstein court, or to affect service of process upon these persons in Canada. All or a substantial portion of the assets of these persons are likely to be located outside of Canada and, as a result, it may not be possible to satisfy a judgment against such persons in Canada or to enforce a judgment obtained in Canadian courts against such persons outside of Canada. Also, if Canadian law is found to be applicable to a claim which the Liechtenstein or Taipei court can and is prepared to hear, the content of applicable Canadian law must be proved as a fact by expert witnesses, which can be a time-consuming and costly process. If proceedings were to be brought in Liechtenstein or Taipei, all procedural matters may be required to be governed by Liechtenstein or Taipei law. Additionally, it may be difficult for an investor, or any other person or entity, to assert Canadian securities law claims in original actions instituted in Liechtenstein or Taipei.

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**DIVIDENDS**

The Company has not declared or paid any cash dividends on its securities since the completion of the Transaction. The Company currently intends to retain any future earnings to fund the development and growth of its business and/or to pay down debt and do not currently anticipate paying dividends on the subordinate voting shares. Any determination to pay dividends in the future will be at the discretion of the Board and will depend on many factors, including, among others, the Company's financial condition, current and anticipated cash requirements, contractual restrictions and financing agreement covenants, solvency tests imposed by applicable corporate law and other factors that the Board may deem relevant.

**DESCRIPTION OF CAPITAL** **STRUCTURE**

**Common Shares**

The Company is authorized to issue an unlimited number of Common Shares, of which there are 131,833,688 issued and outstanding as of the date of this AIF. Each Common Share entitles the holder thereof to one vote per Common Share at meetings of the shareholders of the Company, to receive dividends if, as and when declared by the board of directors of the Company and to receive *pro rata* the remaining property and assets of the Company upon its dissolution or winding-up. Shareholders have no pre-emptive rights, subscription or conversion rights.

All Common Shares are of the same class with equal rights and privileges. Shares are not subject to future calls or assessments. The Corporation may issue additional Shares and options therefore from time to time on terms and conditions acceptable to the directors.

**Warrants**

As at the date of this AIF, the Company has 167,785 Common Share purchase warrants outstanding, exercisable to purchase Common Shares for $4.09 per Common Share until December 19, 2029.

**Options**

The Company has a "rolling" long-term omnibus equity incentive plan ("**Omnibus Plan**"), which was recently reapproved by shareholders at the Company's 2023 annual general meeting held on August 30, 2023. The Omnibus Plan provides flexibility to the Company to grant equity-based incentive awards in the form of the Company's options ("**Options**"), restricted share units ("**RSUs**"), preferred shared units and deferred share units.

The Omnibus Plan provides that the aggregate maximum number of the outstanding common shares of the Company that may be issued upon the exercise or settlement of awards granted under the Omnibus Plan shall not exceed 10% of the issued and outstanding common shares from time to time. The aggregate number of common shares (a) issuable to insiders at any time (under all of the Company's security-based compensation arrangements) cannot exceed 10% of the issued and outstanding common shares and (b) issued to insiders within any one-year period (under all of the Company's security-based compensation arrangements) cannot exceed 10% of the issued and outstanding common shares. All directors, employees and consultants are eligible to participate in the Omnibus Plan. The extent to which any such individual is entitled to receive a grant of an award pursuant to the Omnibus Plan will be determined in the sole and absolute discretion of the Plan Administrator. Additional information can be found in the Company's Omnibus which is available on SEDAR+.

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As of the date of this AIF, the Company has 4,675,000 Options outstanding under the Omnibus Plan and 8,508,369 Options remain available for grant.

An Option entitles a holder thereof to purchase a prescribed number of Common Shares at an exercise price set at the time of the grant. The Plan Administrator will have the authority to determine the vesting terms applicable to grants of Options. Once an Option becomes vested, it shall remain vested and shall be exercisable until expiration or termination of the Option, unless otherwise specified by the Plan Administrator, or as otherwise set forth in any written employment agreement, award agreement or other written agreement between the Company or a subsidiary of the Company and the participant.

The options are more fully described in the Company's Omnibus which is available on SEDAR+.

**Restricted Share Units**

As of the date of this AIF, the Company has 1,945,000 restricted share units outstanding under the Omnibus Plan. An RSU is a unit equivalent in value to a common share credited by means of a bookkeeping entry in the books of the which entitles the holder to receive one common share (or the value thereof) for each RSU after a specified vesting period. Upon settlement, holders will redeem each vested RSU for the following at the election of such holder but subject to the approval of the Plan Administrator: (a) one fully paid and non-assessable common share in respect of each vested RSU, (b) a cash payment or (c) a combination of common shares and cash. The RSUs are more fully described in the Company's Omnibus Plan which is available on SEDAR+.

**MARKET FOR** **SECURITIES**

**Trading Price and Volume**

The Common Shares are listed and posted for trading on (i) the Cboe Canada exchange under the symbol "BTQ"; (ii) the OTCQB Market under the symbol "BTQQF"; and (iii) the Frankfurt Stock Exchange under the symbol "NG3".

The following table sets forth the reported closing high and low prices and the aggregate volume of trading of Common Shares on Cboe Canada during the financial year ended December 31, 2024:

*Share Price in C$*

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| | | | |
|:---|:---|:---|:---|
| **Date** | **High** | **Low** | **Average Daily<br>Volume** |
| January 2024 | 0.86 | 0.55 | 59809 |
| February 2024 | 0.61 | 0.46 | 72653 |
| March 2024 | 0.58 | 0.40 | 59507 |

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| | | | |
|:---|:---|:---|:---|
| April 2024 | 0.45 | 0.34 | 21090 |
| May 2024 | 0.45 | 0.3 | 31693 |
| June 2024 | 0.65 | 0.35 | 88016 |
| July 2024 | 0.57 | 0.38 | 98730 |
| August 2024 | 0.45 | 0.29 | 20913 |
| September 2024 | 0.37 | 0.25 | 60163 |
| October 2024 | 0.42 | 0.27 | 51831 |
| November 2024 | 0.375 | 0.245 | 85067 |
| December 2024 | 0.26 | 5.58 | 1848947 |

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**Prior Sales**

The following table sets for the details regarding all issuances of the Company's securities that are outstanding but not listed or quoted on a marketplace, including issuances of all securities convertible or exchangeable into shares of the Company, during the most recently completed financial year:

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| | | | |
|:---|:---|:---|:---|
| **Date of Issuance** | **Security** | **Number of <br>Securities Issued** | **Exercise Price Per <br>Security ($)** |
| March 1, 2024 | Stock Options | 200000 | 0.485 |
| March 5, 2024 | Stock Options | 100000 | 0.50 |
| March 6, 2024 | Stock Options | 100000 | 0.485 |
| June 13, 2024 | Stock Options | 400000 | 0.44 |
| September 9, 2024 | Convertible Loan | 2500000 | 0.40 |
| October 1, 2024 | Stock Options | 125000 | 0.35 |
| October 22, 2024 | Stock Options | 50000 | 0.42 |
| November 8, 2024 | Convertible Loan | 1250000 | 0.40 |
| December 2, 2024 | Stock Options | 300000 | 0.27 |
| December 9, 2024 | Restricted Share Units | 800000 | N/A |
| December 10, 2024 | Stock Options | 50000 | 1.51 |
| December 19, 2024 | Agent's Warrants | 167785 | 4.09 |

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**ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL** **** <br> **RESTRICTIONS ON TRANSFER**

The Common Shares that are subject to escrow or contractual restrictions and the percentage of our outstanding Common Shares represented by such Common Shares, are set out below.

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| | |
|:---|:---|
| &nbsp;&nbsp; **Designation of Class** | &nbsp;&nbsp; **Percentage of Class** |
| &nbsp;&nbsp; Common Shares<br>&nbsp;&nbsp; 20362500<sup>(1)</sup> | &nbsp;&nbsp; 15.45% |

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(1) These Common Shares may not be sold, transferred, hypothecated or otherwise traded until February 21, 2026.

**DIRECTORS AND** **OFFICERS**

**Name, Occupation and Security Holdings**

The following table sets out, as of the date of this AIF, the names of the directors and officers of the Company, the province or state, and country of residence of each such director and officer, their respective positions and offices held with the Company and their principal occupations during the last five years. The term of office of each of the directors expires at the next annual general meeting of shareholders or until their successor is elected or appointed.

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| | | |
|:---|:---|:---|
| **Name, Province <br>and Country of <br>Residence and**<br>**Position Held** | <br>**Date Elected or <br>Appointed** | <br>**Principal Occupations During Last Five Years** |
| **Olivier Roussy Newton**<br>*Zug, Switzerland* Chief Executive Officer and<br>Director | February 17, 2023 | Entrepreneur; President of EV Technology Group; Founder of Latent Capital; Co-Founder of DEFI Technologies; former director of Hive Blockchain Technologies Ltd. |
| **Lonny Wong** *Vancouver, British Columbia* Chief Financial<br>Officer | May 18, 2023 | Partner at Saturna Group Chartered Professional Accountants LLP, a public accounting firm located in Vancouver, BC |
| **Nicolas Roussy Newton**<br>*Hong Kong Island, Hong Kong*<br>Chief Operating Officer and<br>Director | February 17, 2023 | Entrepreneur; Investor |
| **Michael Resendes** *Toronto, Ontario*<br>Director | February 17, 2023 | Regional Controller at the Dilwari Group of Companies; director of Sonora Gold & Silver Corp. |

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| | | |
|:---|:---|:---|
| **Name, Province <br>and Country of <br>Residence and**<br>**Position Held** | <br>**Date Elected or <br>Appointed** | <br>**Principal Occupations During Last Five Years** |
| **Johan Wattenstrom** *Zug, Switzerland*<br>Director | February 17, 2023 | Chief Executive Officer of Nortide Capital AG |
| **Kevin Mulhern**<br>*Toronto, Ontario*<br>Director | February 17, 2023 | Vice President of Business Operations of Broadridge; formerly CEO and Founder of AdvisorStream Ltd. |

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As of the date of this AIF, all directors and executive officers of BTQ, as a group, beneficially own, directly or indirectly, or exercise control or direction over, 43,063,675 Common Shares, representing 32.54% of all outstanding Common Shares.

**Biographies**

*Olivier Roussy Newton - Chief Executive Officer; Director.* Mr. Roussy Newton founded and led HIVE Blockchain Technologies, the first crypto mining company to list publicly in 2017. He is a partner at Latent Capital, an investment fund focused on quantum computing, financial technology and bioinformatics. He is also a co-founder and President of EV Technology Group Ltd. (EVT). Mr. Roussy Newton co-founded DeFi Technologies Inc, which bridges the gap between centralized and decentralized finance. Defi Technologies is listed in Canada under the ticker NEO: DEFI. He is also a founder and director of Valour Inc.

*Lonny Wong - Chief Financial Officer.* Mr. Wong is a partner of Saturna Group Chartered Professional Accountants LLP. Saturna Group is a boutique firm located in Vancouver, BC, which specializes in providing auditing, assurance, financial reporting, and consulting services to public companies and companies looking to go public. He has over 30 years of public practice experience. Prior to co-founding Saturna Group in 2008, he worked at an independent mid-sized firm in Vancouver, BC. He holds a Bachelor of Arts from the University of British Columbia and is a Chartered Professional Accountant.

*Nicolas Roussy Newton - Chief Operating Officer and Director.* Mr. Roussy Newton is a serial entrepreneur, and is a director of Novus Paradigm, which incubates new companies working on quantum- related technologies.

*Michael Resendes - Director.* Mr. Resendes holds a designation as a Chartered Professional Accountant with CPABC and a bachelor of accounting from the British Columbia Institute of Technology. Mr. Resendes has over 20 years of experience in accounting, primarily in the automotive finance industry as a controller and assistant manager. Since September, 2017, Mr. Resendes has been the Regional Controller at the Dilwari Group of Companies.

*Johan Wattenstrom - Director.* Mr. Wattenstrom has over 25 years of experience in the financial service industry. He has founded and exited two companies within the digital asset space and also founded and built several businesses within the proprietary trading, market making, financial products and brokerage spaces. He is the current CEO and co-founder of Nortide Capital AG, an investment and proprietary trading firm that is active across all asset classes, and is the COO and co-founder of Valour Inc., a technology company focused on expanding investor access to decentralised technologies. Within the traditional equity space, he has built three proprietary trading businesses, which included trading systems and development of risk systems, as well as establishing prime brokerage setup and best practice accounting and legislative frameworks. Mr. Wattenstrom has a bachelor's degree of business administration and economics with an emphasis on corporate financing and derivatives from Stockholm University.

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*Kevin Mulhern.* Mr. Mulhern is an entrepreneur who brings a deep background in the financial service industry. He has worked for both large and boutique wealth management firms, and in new media, big data, and web-based services. After witnessing a growing need for marketing automation, Mr. Mulhern brought together a team of like-minded technology and experienced industry experts in 2013 to launch the award- winning AdvisorStream digital marketing platform, which automates millions of personalised communications each week for Advisors across the US, Canada, and the UK. Mr. Mulhern has a Bachelor's degree from the University of Western Ontario.

**Cease Trade Orders, Bankruptcies, Penalties or Sanctions**

*Cease Trade Orders*

Other than the Company's management cease trade order in 2024 or as otherwise disclosed herein, to the best of the Company's knowledge, no director, executive officer or Promoter of the Company is, or during the ten years preceding the date of this AIF has been, a director, chief executive officer or chief financial officer of any company that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) was the subject of a cease trade or similar order that denied the relevant company access to any exemptions under applicable securities legislation that was in effect for a period of more than 30 consecutive days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold the assets of that person.

*Penalties or Sanctions*

None of the directors, officers, Insiders or Promoters of the Company or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company has been subject to any penalties or sanctions imposed by a court relating to securities legislation or by any securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or has been subject to any other penalties or sanctions imposed by a court or regulatory body or self-regulatory authority that would be likely to be considered important to a reasonable investor making an investment decision.

*Personal Bankruptcies*

None of the directors, officers, Insiders or Promoters of the Company or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company is, or within the 10 years before the date of this AIF, has been declared bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or has been subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold their assets.

**Conflicts of Interest**

There may from time to time be potential conflicts of interest to which some of the directors, officers, Insiders and Promoters of the Company will be subject in connection with the operations of the Company. Some of the individuals who are directors or officers of the Company are also directors and/or officers of other reporting and non-reporting issuers. Conflicts, if any, will be subject to the procedures and remedies provided under applicable laws. In particular, in the event that such a conflict of interest arises at a meeting of the Company's directors, a director who has such a conflict will abstain from voting for or against the approval of such participation or such terms, unless otherwise permitted by applicable laws. In accordance with applicable laws, the directors of the Company are required to act honestly, in good faith and in the best interests of the Company.

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To the best of the Company's knowledge, there are no known existing or potential conflicts of interest among the Company, its Promoters, directors and officers or other members of management of the Company or of any proposed Promoter, director, officer or other member of management as a result of their outside business interests except that certain of the directors and officers serve as directors and officers of other companies, and therefore it is possible that a conflict may arise between their duties to the Company and their duties as a director or officer of such other companies.

**AUDIT COMMITTEE** **DISCLOSURE**

**Audit Committee**

The Audit Committee consists of individuals who are "independent" and "financially literate" within the meaning of National Instrument 52-110 - *Audit Committees*. The Company's Audit Committee is comprised of Michael Resendes, Kevin Mulhern, and Johan Wattenstrom. Each member of the Audit Committee has an understanding of the accounting principles used to prepare financial statements and varied experience as to the general application of such accounting principles, as well as an understanding of the internal controls and procedures necessary for financial reporting. For additional details regarding the relevant education and experience of each member of the Audit Committee, see the relevant biographical experiences for each member under the heading "Directors and Officers - Name, Occupation and Security Holdings" in this AIF.

The Board has adopted a written charter for the Audit Committee which sets out the Audit Committee's role of providing oversight of the Company's financial management and of the design and implementation of an effective system of internal financial controls as well as to review and report to the Board on the integrity of the financial statements of the Company, its subsidiaries and associated companies. This includes helping directors meet their responsibilities, facilitating better communication between directors and the external auditor, enhancing the independence of the external auditor, increasing the credibility and objectivity of financial reports and strengthening the role of the directors by facilitating in-depth discussions among directors, management and the external auditor.

The mandate of the Audit Committee is set out in the written charter of the Audit Committee. A copy of the Audit Committee charter is included as Appendix "A" hereto.

**Audit Committee Oversight**

At no time since the commencement of the Company's most recently completed financial year was a recommendation of the Audit Committee to nominate or compensate an external auditor not adopted by the Board.

**Pre-Approval Policies and Procedures**

The Audit Committee has adopted specific policies and procedures for the engagement of non-audit services as set out in the Audit Committee charter of the Company. The full text of the Company's Audit Committee charter is disclosed in Appendix "A" to this AIF.

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**External Auditor Service Fees**

*Audit Fees*

MNP LLP is expected to bill the Company $139,100 for the year ended December 31, 2024 for audit fees. BDO Canada LLP billed the Company $386,950 for the year ended December 31, 2023 for audit fees.

*Audit-Related Fees*

MNP LLP billed the Company $37,450 for the year ended December 31, 2024 for assurance and related services related to the performance of the audit or review of the Company's financial statements, which are not included in audit fees.

BDO Canada LLP billed the Company $nil for the year ended December 31, 2023 for assurance and related services related to the performance of the audit or review of the Company's financial statements, which are not included in audit fees.

*Tax Fees*

No tax fees were charged by the external auditors for the years ended December 31, 2024 and 2023.

*All Other Fees*

No other fees were charged by the external auditors for the years ended December 31, 2024 and 2023.

**PROMOTERS**

No person is or has been within the two financial years immediately preceding the date hereof, or during the current financial year, a Promoter of the Company.

**INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL** **TRANSACTIONS**

Other than as disclosed elsewhere in this AIF, no director, executive officer or principal shareholder of the Company, or any associate or affiliate of the foregoing, has had any material interest, direct or indirect, in any transaction within the three most recently completed financial years or during the current financial year prior to the date of this AIF that has materially affected or will materially affect the Company.

Nicolas Roussy Newton, director and executive officer of the Company, is the majority shareholder of ZKP Corp., a party to the Software License Agreement. For more information on the Software License Agreement, see *"General Development of the Business - Three Year History of the Company - From Transaction date to current date"*.

**LEGAL PROCEEDINGS AND REGULATORY** **ACTIONS**

There are no actual or pending legal proceedings material to the Company that the Company is or was a party to, or that any of its property is or was the subject of, since the beginning of the Company's most recently completed financial year. In addition, the Company is not currently aware of any such legal proceedings being contemplated.

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**AUDITORS, TRANSFER AGENT AND REGISTRAR**

The auditor of the Company is MNP LLP.

The Company's register and transfer agent is Computershare Investor Services Inc. at its office located at 3rd Floor, 510 Burrard Street, Vancouver, British Columbia, V6C 3B9.

**MATERIAL** **CONTRACTS**

Except as described herein, the Company has not entered into any material contracts in the past fiscal year, other than contracts entered into in the ordinary course of business, and the agency agreement dated December 19, 2024 entered into with A.G.P. Canada Investments ULC with respect to the LIFE offering.

**INTEREST OF** **EXPERTS**

The Company's external auditor for the year ended December 31, 2024 was MNP LLP. MNP LLP has advised the Company that it is independent of the Company in accordance with the Code of Professional Conduct of the Chartered Professional Accountants of Ontario.

**ADDITIONAL** **INFORMATION**

Additional information relating to the Company may be found under the Company's profile on SEDAR+ at <u>www.sedarplus.ca</u> l

Additional information, including directors' and officers' remuneration and indebtedness, principal holders of securities of the Company and securities authorized for issuance under equity compensation plans, may be found in the Company's Management Information Circular,, which is also available on the Company's profile on SEDAR+ at <u>www.sedarplus.ca</u>.

Additional financial information is provided in the Company's audited annual consolidated financial statements and the management's discussion and analysis for its most recently completed financial year.

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**APPENDIX "A"**

**BTQ TECHNOLOGIES CORP.** (the "**Company**")

**AUDIT COMMITTEE CHARTER**

**I. ROLE AND OBJECTIVES**

The Audit Committee is a committee of the Board of Directors (the "**Board**") of BTQ Technologies Corp (the "**Corporation**") to which the Board has delegated certain oversight responsibilities relating to the Corporation's financial statements, external auditors, risk management, compliance with legal and regulatory requirements and management information technology. In this Charter, the Corporation and all entities controlled by the Corporation are collectively referred to as "**BTQ**".

The objectives of the Audit Committee are to maintain oversight of:

(a) the Corporation's accounting and financial reporting processes;

(b) the audits of the Corporation's financial statements;

(c) the integrity of the Corporation's financial statements, the reporting process and itsinternal control over financial reporting;

(d) the reports, qualifications, independence and performance of the Corporation's externalauditor;

(e) the Corporation's risk identification, assessment and management program;

(f) the Corporation's compliance with applicable legal and regulatory requirements;

(g) the Corporation's management of information technology related to financial reporting and financial controls; and

(h) the maintenance of open channels of communication among management of the Corporation, the external auditors and the Board.

**II. MEMBERSHIP AND POLICIES**

The Board, based on recommendation from the Nomination and Governance Committee, will appoint or reappoint members of the Audit Committee. Each member shall serve until his or her successor is appointed unless the member resigns, is removed or ceases to be a director. The Board of Directors may fill a vacancy that occurs in the Committee at any time.

The Audit Committee must be composed of not less than three (3) members of the Board, each of whom must be independent pursuant to the rules and regulations of all applicable stock exchanges and United States and Canadian securities laws and regulations.

No member of the Audit Committee may have participated in the preparation of the financial statements of the Corporation or any of its then-current subsidiaries at any time during the immediately prior three years.

Each member of the Audit Committee must be financially literate, as determined by the Board, and be able to read and understand fundamental financial statements, including the Corporation's balance sheet, income statement, and cash flow statement. Additionally, at least one member of the Audit Committee must have accounting or related financial management expertise, as determined by the Board. A person who is an "audit committee financial expert" as defined in Item 407(d)(5)(ii) of Regulation S-K may be presumed to have accounting or related financial management expertise.

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The Board, in consultation with the Nomination and Governance Committee, will appoint or reappoint the Chair of the Audit Committee from amongst its members.

The Audit Committee may at any time retain outside financial, legal or other advisors as it determines necessary to carry out its duties, at the expense of the Corporation. The Corporationshall provide for appropriate funding, as determined by the Audit Committee in its capacity as a committee of the Board, for payment of: (i) compensation to the external auditor for the purpose of preparing or issuing an audit report or performing other audit, review or attestation services for the Corporation, (ii) compensation to any advisors employed by the Audit Committee, and (iii) ordinary administrative expenses of the Audit Committee that are necessary or appropriatein carrying out its duties.

In discharging its duties under this Charter, the Audit Committee may investigate any matter brought to its attention and will have access to all books, records, facilities and personnel, may conduct meetings or interview any officer or employee, the Corporation's legal counsel, externalauditors and consultants, and may invite any such persons to attend any part of any meeting of the Audit Committee.

The Audit Committee has neither the duty nor the responsibility to conduct audit, accounting or legal reviews, or to ensure that the Corporation's financial statements are complete, accurate and in accordance with International Financial Reporting Standards ("**IFRS**") as issued by the International Accounting Standards Board ("**IASB**"); rather, management is responsible for the financial reporting process, internal review process, and the preparation of the Corporation's financial statements in accordance with IFRS, and the Corporation's external auditor is responsible for auditing those financial statements.

**III. FUNCTIONS**

**A. Financial Statements, the Reporting Process and Internal Controls over Financial Reporting**

The Audit Committee will meet, as applicable, with management and the external auditor to review and discussannual and quarterly financial statements, management's discussion and analyses ("**MD&A**"), any earnings press releases, other financial disclosures and earnings guidance provided to analysts and rating agencies, and determine whether to recommend the approval of such documents to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with these procedures, the Audit Committee will, as applicable and without limitation establish:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. a procedure for complaints relating to the receipt, retention, and treatment of complaints received by the Corporation regarding accounting, internal accounting controls, or auditing matters; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. the confidential, anonymous submission by the Corporation's employees of concerns regarding questionable or auditing matters.

&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with these procedures, the Audit Committee will, as applicable and without limitation review and discuss with management and the external auditor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the information to be included in the Corporation's financial statements and other financial disclosures which require approval by the Board including the Corporation's annual and quarterly financial statements, notes thereto, MD&A and any earnings press releases or earnings guidance provided to analysis and rating agencies, paying particular attention to any use of "pro forma", "adjusted" and "non-GAAP" information, and ensuring that adequate procedures are in place for the review of the Corporation's public disclosure of financial information extracted or derived from the financial statements;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. any significant financial reporting issues, including major issues regarding accounting principles and financial statement presentations, identified during the reporting period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. any change in accounting policies, or selection or application of accounting principles, and their impact on the Corporation's financial results and disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. all significant estimates and judgments, significant risks and uncertainties madein connection with the preparation of the Corporation's financial statements that may have a material impact to the financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. any significant deficiencies or material weaknesses identified by management or the external auditor, compensating or mitigating controls and the final assessment and impact of such deficiencies or material weaknesses on disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. any major issues as to the adequacy of the internal controls and any special audit steps adopted in light of material internal control deficiencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. significant adjustments identified by management or the external auditor and the assessment of associated internal control deficiencies, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. any unresolved issues between management and the external auditor that could materially impact the financial statements and other financial disclosures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. any material correspondence with regulators, government agencies, anyemployee or whistleblower complaints and other reports of non-compliance which raise issues regarding the Corporation's financial statements or accountingpolicies and significant changes in regulations which may have a material impact on the Corporation's financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. the effect of regulatory and accounting initiatives, as well as any off-balance sheet structures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xi. significant matters of concern respecting audits and financial reporting processes, including any illegal acts, that have been identified in the course of the preparation or audit of the Corporation's financial statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xii. any analyses prepared by management and/or the external auditor setting forth significant financial reporting issues and judgments made in connection with the preparation of financial statements including analyses of the effects of IFRS on the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with the annual audit of the Corporation's financial statements, the Audit Committee will review with the external auditor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. prior to commencement of the annual audit, plans, scope, staffing, engagement terms and proposed fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. reports or opinions to be rendered in connection with the audit including the external auditor's review or audit findings report including alternative treatment ofsignificant financial information within IFRS that have been discussed with management and the associated impact on disclosure; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. the adequacy of internal controls, any audit problems or difficulties, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) any restrictions on the scope of the external auditor's activities or on access to requested information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any significant disagreements with management, and management's response (including discussion among management, the external auditor and, as necessary, internal and external legal counsel);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) any litigation, claim or contingency, including tax assessments and claims, that could have a material impact on the financial position of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) the impact on current or potential future disclosures.

In connection with its review of the annual audited financial statements and quarterly financial statements, the Audit Committee will also review any significant concerns raised during the Chief Executive Officer ("**CEO**") and Chief Financial Officer ("**CFO**") certifications with respect to the financial statements and BTQ's disclosure controls and internal controls. In particular, the Audit Committee will review with the CEO, CFO and external auditor: (i) all significant deficiencies, material weaknesses or significant changes in the design or operation of BTQ'sinternal control over financial reporting that could adversely affect the Corporation's ability to record, process, summarize and report financial information required to be disclosed by the Corporation in the reports that it files or submits under applicable securities laws, within the required time periods; and (ii) any fraud, whether or not material, that involves management of BTQ or other employees who have a significant role in BTQ's internal control over financial reporting. In addition, the Audit Committee will review with the CEO and CFO, BTQ's disclosure controls and procedures and periodically will review management's conclusions about the efficacy of disclosure controls and procedures, including any significant deficiencies, material weaknesses or material non-compliance with disclosure controls and procedures.

**B. The External Auditor**

The Audit Committee, in its capacity as a committee of the Board, is directly responsible for overseeing the relationship, reports, qualifications, independence and performance of the external auditor and audit services by other registered public accounting firms engaged by the Corporation. The Audit Committee has responsibility to take, or recommend that the Board take, appropriate action to oversee the independence of the external auditor. The AuditCommittee shall have the authority and responsibility to recommend the appointment and the revocation of the appointment of the external auditors engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services, and to fix their remuneration.

The external auditor will report directly to the Audit Committee. The Audit Committee's appointment of the external auditor is subject to annual approval by the shareholders.

With respect to the external auditor, the Audit Committee is responsible for:

(a) the appointment, termination, compensation, retention and oversight of the work of the external auditor engaged by the Corporation for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Corporation, including the review and approval of the terms of the external auditor's engagement letter and the proposed fees;

(b) resolution of disagreements or disputes between management and the external auditor regarding financial reporting for audit, review or attestation services;

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(c) pre-approval of all audit services and legally permissible non-audit services to be provided by the external auditors considering the potential impact of such services on the independence of external auditors and, subject to any *de minimis* exemption available under applicable laws. Such approval of non-audit services can be given either specifically or pursuant to pre-approval policies and procedures adopted by the committee including the delegation of this ability to oneor more members of the Audit Committee to the extent permitted by applicable law, provided that any pre-approvals granted pursuant to any such delegation may not delegate Audit Committee responsibilities to management of the Corporation, and must be reported to the full Audit Committee at the first scheduled meeting of the Audit Committee following such pre- approval;

(d) obtaining and reviewing, at least annually, a written report by the external auditor describing the external auditor's internal quality-control procedures, any material issues raised by the most recent internal quality-control review, or peer review, of the firm, or by any inquiry or investigation by governmental or professional authorities, within the preceding five years, respecting one or more independent audits carried out by the firm, and any steps taken to deal with any such issues and all relationships between the external auditors and the Corporation;

(e) obtaining a formal written statement delineating all relationships between the auditor andthe Corporation, consistent with The Public Company Accounting Oversight Board Rule 3526, and discussing any disclosed relationships or services with the auditor and how they may impact the objectivity and independence of the auditor;

(f) review of the external auditor which assesses three key factors of audit quality for the Audit Committee to consider and assess including: independence, objectivity and professional skepticism; quality of the engagement team; and quality of communications and interactions with the external auditor. A written comprehensive review of the externalauditor to be considered if required each year and completed at least every five (5) yearswhich will include an:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. assessment of quality of services and sufficiency of resources provided by theexternal auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. assessment of auditor independence, objectivity and professional skepticism, including the review and evaluation of the lead partner of the external auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. assessment of value of services provided by the external auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. assessment of written input from external auditor summarizing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) background of firm, size, resources, geographical coverage, relevantindustry experience, including reputational challenges, systemic audit quality issues identified by Canadian Public Accountability Board ("**CPAB**") and Public Company Accounting Oversight Board ("**PCAOB**") in public reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) industry experience of the audit team and plans for training and development of the team;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) how the external auditor demonstrated objectivity and professional skepticism during the audit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) how the firm and team met all criteria for independence including identification of all relationships that the external auditor has with the Corporation and its affiliates and steps taken to address possible institutional threats;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) involvement of engagement quality reviewer ("**EQR**") partner and significant concerns raised by the EQR partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) matters raised to national office or specialists during the review;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) significant disagreements between management and the external auditors and steps taken to resolve such disagreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) satisfaction with communication and cooperation with management and the Audit Committee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) findings and firm responses to reviews of the Corporation by CPAB and PCAOB;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. communication of the results of the comprehensive review of the external auditor to the Board and recommending that the Board take appropriate action, in response to the review, as required. It is understood that the Audit Committee may recommend tendering the external auditor engagement at their discretion. Inaddition to rotation of the EQR partner as required by law, the Audit Committee,together with the Board, will also consider whether it is necessary to periodically rotate the external audit firm itself. It will be at the discretion of the Audit Committee if the incumbent external auditor is invited to participate in the tendering process; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. setting clear hiring policies for the Corporation regarding partners and employeesand former partners and employees of the present and former external auditor of the Corporation. Before any such partner or employee is offered employment by the Corporation, prior approval from the Chair of the Audit Committee must be received and a one year grace period must pass from the date any work was last completed on an audit engagement before an external auditor employee can be considered for contract or employment by the Corporation.

**C. Risk Management**

The Audit Committee, in its capacity as a committee of the Board, is directly responsible for overseeing the risk identification, assessment and management program of the Corporation by discussing guidelines and policies to govern the process by which risk is identified, assessed and managed. Periodically, in conjunction with senior management, internal counsel and, as necessary, external counsel the Corporation's external auditors and other advisers, as it deems necessary, the Audit Committee willreview the following:

(a) the Corporation's method of reviewing significant risks inherent in BTQ's business, assets, facilities, and strategic directions, including the Corporation's risk management and evaluation process;

(b) discuss guidelines and policies with respect to risk assessment and risk management, including the Corporation's major financial risk exposures and the steps management has taken to monitor and control such exposures. The Audit Committee is not required to be the sole body responsible for risk assessment and management, but, as stated above, the committee must discuss guidelines and policies to govern the process by which risk assessment and management is undertaken.

(c) the major financial risk exposures and steps management has taken to monitor and manage such exposures;

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(d) the Corporation's annual insurance report including its risk retention philosophy and resulting uninsured exposure, if any, including corporate liability protection programs for directors and officers;

(e) the Corporation's loss prevention policies, risk management programs, disaster response and recovery programs in the context of operational considerations; and

(f) other risk management matters from time to time as the Audit Committee may consider appropriate or the Board may specifically direct.

**D. Additional Duties and Responsibilities**

The Audit Committee will also:

(a) meet separately, and periodically, with management, the external auditor and, as is appropriate, internal and external legal counsel and independent advisors in respect of issues not elsewhere listed concerning any other audit, finance or risk matter;

(b) review the appointment of the CFO and any other key financial executives who are involved in the financial reporting process;

(c) review the Corporation's information technology practices as they relate to financial reporting;

(d) periodically review Directors' and Officers' Liability Insurance Coverage;

(e) from time to time, discuss staffing levels and competencies of the finance team with the external auditor;

(f) review incidents, alleged or otherwise, as reported by whistleblowers, management, the external auditor, internal or external counsel or otherwise, of fraud, illegal acts or conflicts of interest and establish procedures for receipt, treatment and retention of records of incident investigations;

(g) facilitate information sharing with other committees of the Board as required to address matters of mutual interest or concern in respect of the Corporation's financial reporting;

(h) assist Board oversight in respect of issues not elsewhere listed concerning the integrity of the Corporation's financial statements, the Corporation's compliance with legal and regulatory requirements, the independent auditor's qualifications and independence, and the performance of the external auditors;

(i) have the authority and responsibility to recommend the appointment and the revocation of the appointment of registered public accounting firms (in addition to the external auditors) engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services, and to fix their remuneration.

In addition, the Audit Committee will perform such other functions as are assigned by law and on the instructions of the Board.

**IV. MEETINGS**

Notice of each meeting of the Audit Committee will be given to each member and, if applicable, to the external auditors. The notice will:

(a) be in writing (which may be communicated by fax or email);

(b) be accompanied by an agenda that states the nature of the business to be transacted at the meeting in reasonable detail;

------

(c) include copies of documentation to be considered at the meeting and reasonably sufficient time to review documentation; and

(d) be given at least 48 hours preceding the time stipulated for the meeting, unless notice is waived by the Audit Committee members.

A quorum for a meeting of the Audit Committee is a majority of the members present in person, by video conference, webcast or telephone.

If the Chair is not present at a meeting of the Audit Committee, a Chair will be selected from among the members present. The Chair will not have a second or deciding vote in the event of an equality of votes.

At each meeting, the Audit Committee will meet "in-camera", without management or external auditors present, and will periodically, and at least annually, meet in separate sessions with the lead partner of the external auditor at least annually.

The Audit Committee may invite others to attend any part of any meeting of the Audit Committee as it deems appropriate. This includes other directors, members of management, any employee, the Corporation's internal or external legal counsel, external auditors, advisors and consultants.

Minutes will be kept of all meetings of the Audit Committee. The minutes will include copies of all resolutions passed at each meeting, will be maintained with the Corporation's records, and will be available for review by members of the Audit Committee, the Board, and the external auditor.

**V. OTHER MATTERS**

**A. Review of Charter**

The Audit Committee shall review and reassess the adequacy of this Charter annually, and propose recommended changes to the Nomination and Governance Committee.

**B. Reporting**

The Audit Committee shall report to the Board activities and recommendations of each Audit Committee meeting and review with the Board any issues that arise with respect to the quality or integrity of the Corporation's financial statements, the Corporation's compliance with legal or regulatory requirements, the performance and independence of the Corporation's external auditors, management information technology with respect to financial reporting matters, risk management and communication between the parties identified above.

**C. Evaluation**

The Audit Committee's performance shall be evaluated periodically by the Nomination and Governance Committee and the Board as part of the Board assessment process established by the Nomination and Governance Committee and the Board.

This Charter was last approved by the Board of Directors on January 24, 2025.

------

## Exhibit 99.67

------

![](exhibit99-67x1x1.jpg)

**BTQ Technologies Announces Strategic Partnership with <br>QPerfect, Accelerating Neutral Atom Quantum Computing <br>Applications**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Strategic Investment in Quantum Pioneer:** BTQ Technologies has signed a term sheet to invest €2 million in QPerfect, a French deeptech company specializing in neutral atom quantum computing and design automation. The proposed investment grants BTQ a 16.67% equity stake, with an option to acquire full ownership within 12 months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Advancing Quantum Software Through MIMIQ:** QPerfect's flagship platform, MIMIQ, enables rapid, accurate, and scalable quantum algorithm execution-outperforming current simulators and quantum hardware. It forms the foundation of QPerfect's Quantum Logical Unit (QLU) framework, helping accelerate real-world quantum applications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Strengthening Global Quantum Security Infrastructure:** The partnership combines QPerfect's cutting-edge quantum capabilities with BTQ's expertise in post-quantum cryptography and hardware acceleration, reinforcing BTQ's strategic expansion in Europe and its mission to secure digital infrastructure in the quantum era.

**Vancouver, British Columbia, April 9, 2025 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce that it has signed a non-binding term sheet to invest €2,000,000 in QPerfect, a leading neutral atom quantum computing company based in Strasbourg.

This strategic investment reflects BTQ's ongoing commitment to building a robust global quantum ecosystem and accelerating the development of secure, real-world quantum applications. The proposed investment, based on a pre-money valuation of €10 million, would grant BTQ a 16.67% equity stake in QPerfect, with the option to acquire full ownership within 12 months.

QPerfect, founded in 2023, specializes in quantum computing and quantum design automation in particular with neutral atom quantum technology. The company provides powerful technology to enable researchers, developers, and manufacturers to realize the full potential of quantum computers, unlocking industry-transforming applications. Its flagship product, MIMIQ, is a cutting-edge platform that executes quantum algorithms with high speed, accuracy, and flexibility, surpassing existing quantum simulators and current quantum computers. The platform is extensively benchmarked and tested, making it a leading emulation platform for designing, testing, and optimizing large-scale quantum algorithms.

"We are thrilled to partner with QPerfect as part of our mission to secure the future of digital communications and create applications with quantum advantage," said Olivier Roussy Newton, CEO of BTQ Technologies. "QPerfect brings world-class scientific expertise and quantum software development capabilities that complement BTQ's strengths in post-quantum cryptography and hardware acceleration."

------

![](exhibit99-67x2x1.jpg)

"This partnership with BTQ reinforces our mission to make quantum computing practical and will accelerate our Quantum Logical Unit roadmap toward scalable and secure real-world applications," added Philippe Blot, CEO of QPerfect.

Subject to completion of due diligence and execution of definitive agreements, the investment will support QPerfect's development roadmap and expansion plans. The term sheet also outlines customary governance rights for BTQ, including board representation, information rights, and anti-dilution protections.

Both parties aim to finalize definitive agreements by June 30, 2025.

**About QPerfect**

**QPerfect** is a French quantum computing company based in Strasbourg, specializing in quantum computing and quantum design automation. Founded in 2023, the deeptech company has received the **i-Lab Grand Prix** and provides powerful technology to enable researchers, developers, and manufacturers to realize the full potential of quantum computers.

At the core of QPerfect's innovation is the **Quantum Logical Unit (QLU)**, a multi-layered framework designed to accelerate quantum development. Its flagship product, **MIMIQ**, forms the first layer of the QLU and offers a cutting-edge platform that executes quantum algorithms with unmatched speed, accuracy, and flexibility - surpassing existing simulators and current quantum computers.

For more information, please visit <u>https://qperfect.io</u>

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

------

![](exhibit99-67x3x1.jpg)

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the negotiation and entering into of definitive agreements in relation to the investment with QPerfect, the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about closing of the investment in QPerfect on the terms contemplated, general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time and as set forth in the Company's most recently filed annual information form. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.68

------

![](exhibit99-68x1x1.jpg)

**BTQ Technologies and EntangleTech Sign MOU to Advance**

**Quantum Education Initiatives in Taiwan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Strategic Partnership for Quantum Education:** BTQ Technologies has signed a Memorandum of Understanding with EntangleTech, a leading quantum education organization in Taiwan, to support the development of educational content focused on quantum computing and emerging technologies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Funding to Accelerate Content Development:** As part of the agreement, BTQ will provide resources and expertise to support EntangleTech's creation of videos, podcasts, and social media content that promotes quantum literacy and public engagement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Advancing Global Quantum Awareness:** The partnership reflects BTQ's global commitment to fostering quantum awareness and innovation, advancing cross-border collaboration to help prepare society for a quantum-secure future.

**Vancouver, British Columbia, April 28, 2025 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce the signing of a Memorandum of Understanding (MOU) with EntangleTech, is a quantum education and research organization in Taiwan dedicated to accelerating the adoption of quantum computing through hands-on learning and industry collaboration.

The MOU establishes a collaborative relationship aimed at enhancing public understanding and accessibility of quantum technologies. As part of the agreement, BTQ will provide resources and expertise to support EntangleTech's educational content development, including videos, podcasts, and social media materials focused on quantum advancements, industry trends, and academic research.

"At BTQ, we believe that education is critical to preparing society for the quantum future," said Nicolas Roussy Newton, COO of BTQ Technologies. "We are proud to support EntangleTech's efforts in Taiwan as they work to democratize quantum knowledge and foster innovation at the grassroots level."

The partnership reflects BTQ's broader commitment to global collaboration and outreach in the quantum ecosystem. The funding will help EntangleTech scale its content strategy, aiming to reach students, professionals, and the broader public with engaging, accessible resources on quantum computing.

"We are excited to collaborate with BTQ Technologies in our shared mission to cultivate quantum literacy and drive dialogue across communities," said Ran-Yu Chang, Founder and Chief Executive Officer of EntangleTech. "This support allows us to accelerate our educational programming and inspire the next generation of quantum thinkers in Taiwan and beyond."

This partnership underscores the importance of cross-border cooperation in advancing quantum research and awareness, ensuring that the benefits of quantum innovation are shared globally.

------

![](exhibit99-68x2x1.jpg)

**About EntangleTech**

Entangle Tech is a quantum education and research organization in Taiwan, dedicated to accelerating the adoption of quantum computing through hands-on learning and industry collaboration. Our key initiatives include the development of a national quantum education platform, the organization of Qracon (Taiwan's student-led quantum conference), and the launch of multiple public outreach programs. With strong ties to both academia and government agencies, Entangle Tech continues to play a leading role in shaping Taiwan's quantum ecosystem. For more information please visit <u>https://www.entangletech.tw/</u>

**<br>About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

------

![](exhibit99-68x3x1.jpg)

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.69

------

---

| | |
|:---|:---|
|  | ![](exhibit99-69x1x1.jpg) |
| May 01, 2025 | 510 Burrard St, 3rd Floor |
|  | Vancouver BC, V6C 3B9 |
|  | www.computershare.com |

---

To: All Canadian Securities Regulatory Authorities

**Subject: BTQ TECHNOLOGIES CORP.**

Dear Sir/Madam:

We advise of the following with respect to the upcoming Meeting of Security Holders for the subject Issuer:

---

| | | | |
|:---|:---|:---|:---|
| Meeting Type : |  | Annual General Meeting | Annual General Meeting |
| Record Date for Notice of Meeting : |  | May 16, 2025 |  |
| Record Date for Voting (if applicable) : |  | May 16, 2025 |  |
| Beneficial Ownership Determination Date : |  | May 16, 2025 |  |
| Meeting Date : |  | June 26, 2025 |  |
| Meeting Location (if available) : |  | Vancouver BC |  |
| Issuer sending proxy related materials directly to NOBO: | Issuer sending proxy related materials directly to NOBO: | Yes |  |
| Issuer paying for delivery to OBO: |  | No |  |
| **Notice and Access (NAA) Requirements:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NAA for Beneficial Holders |  | No |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NAA for Registered Holders |  | No |  |
| **Voting Security Details:** |  |  |  |
| **Description** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**CUSIP Number** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**CUSIP Number** | **ISIN** |
| COMMON | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;055869101 |  | CA0558691014 |

---

Sincerely,

**Computershare**

Agent for BTQ TECHNOLOGIES CORP.

------

## Exhibit 99.70

------

![](exhibit99-70x001.jpg)

**BTQ TECHNOLOGIES CORP.**

Condensed Interim Consolidated Financial Statements

Three Months Ended March 31, 2025 and 2024

(Expressed in Canadian dollars)

(unaudited)

------

**BTQ TECHNOLOGIES CORP.**<br>Condensed Interim Consolidated Statements of Financial Position<br>(Expressed in Canadian dollars)<br>(unaudited)

---

| | | |
|:---|:---|:---|
|  | March 31,<br>2025<br>$| December 31,<br>2024<br>$|
|  | (unaudited) |  |
| Assets |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;Cash | 8033792 | 9336892 |
| &nbsp;&nbsp;Other receivables (Note 8) | 254022 | 223109 |
| &nbsp;&nbsp;Prepaid expenses and deposits | 213930 | 64643 |
| Total current assets | 8501744 | 9624644 |
| Non-current assets |  |  |
| &nbsp;&nbsp;&nbsp;Investments (Note 3) | 77229 | 77229 |
| &nbsp;&nbsp;&nbsp;Deposits | 10770 | 29605 |
| Total non-current assets | 87999 | 106834 |
| Total assets | 8589743 | 9731478 |
| Liabilities and shareholders' equity |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;Accounts payable and accrued liabilities (Note 8) | 1494672 | 1357502 |
| &nbsp;&nbsp;Corporate taxes payable | 92666 | 92750 |
| &nbsp;&nbsp;Deferred revenue (Note 9) | 65497 | 315497 |
| &nbsp;&nbsp;Due to related parties (Note 8) | 27148 | 27172 |
| Total liabilities | 1679983 | 1792921 |
| Shareholders' equity |  |  |
| &nbsp;&nbsp;Share capital (Notes 4) | 46176790 | 45553931 |
| &nbsp;&nbsp;Options reserve (Notes 5) | 1836484 | 1890026 |
| &nbsp;&nbsp;Warrants reserve (Note 4) | 486082 | 498876 |
| &nbsp;&nbsp;RSUs reserve (Note 7) | 867473 | 640813 |
| &nbsp;&nbsp;Deficit | (42457069) | (40645089) |
| Total shareholders' equity | 6909760 | 7938557 |
| Total liabilities and shareholders' equity | 8589743 | 9731478 |

---

Nature of operations (Note 1)

Approved and authorized for issuance on behalf of the Board on May 15, 2025:

<u>*"*Olivier Roussy Newton*"*</u> Director <u>*"Michael Resendes"*</u> Director

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**<br>Condensed Interim Consolidated Statements of Loss and Comprehensive Loss<br>(Expressed in Canadian dollars)<br>(unaudited)

---

| | | |
|:---|:---|:---|
|  | Three months <br>ended<br>March 31,<br>2025<br>$| Three months <br>ended<br>March 31,<br>2024<br>$|
| Revenue (Note 9) | 250000 |  |
| Expenses |  |  |
| &nbsp;&nbsp;Business development, marketing, and promotion (Note 8) | 176532 | 283686 |
| &nbsp;&nbsp;Consulting fees (Note 8) | 61070 | 47948 |
| &nbsp;&nbsp;Depreciation |  | 27971 |
| &nbsp;&nbsp;General and administrative (Note 14) | 97348 | 256553 |
| &nbsp;&nbsp;Professional fees (Note 8) | 646258 | 312943 |
| &nbsp;&nbsp;Research and development (Note 8) | 293541 | 809486 |
| &nbsp;&nbsp;Share-based compensation (Notes 5, 7, and 8) | 607008 | (58270) |
| &nbsp;&nbsp;Transfer agent and regulatory fees | 102265 | 4720 |
| &nbsp;&nbsp;Wages and benefits (Note 8) | 66953 | 146674 |
| Total expenses | 2050975 | 1831711 |
| Loss before other income (expense) | (1800975) | (1831711) |
| Other income (expense) |  |  |
| &nbsp;&nbsp;Foreign exchange loss | (10772) | (8275) |
| &nbsp;&nbsp;Interest income |  | 6469 |
| &nbsp;&nbsp;Interest expense | (233) | (855) |
| Total other income (expense) | (11005) | (2661) |
| Net loss and comprehensive loss for the period | (1811980) | (1834372) |
| Loss per share, basic and diluted | (0.01) | (0.01) |
| Weighted average number of common shares outstanding, basic and diluted | 132121207 | 123529176 |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**<br>Condensed Interim Consolidated Statements of Changes in Shareholders' Equity<br>(Expressed in Canadian dollars)<br>(unaudited)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Share capital | Share capital | <br>Options<br>reserve<br>$ | <br>Warrants <br>reserve<br>$ | <br>RSUs<br>reserve<br>$ | <br>Deficit<br>$ | Total <br>shareholders'<br>equity<br>$ |
| | Number of <br>shares | Amount<br>$| <br>Options<br>reserve<br>$ | <br>Warrants <br>reserve<br>$ | <br>RSUs<br>reserve<br>$ | <br>Deficit<br>$ | Total <br>shareholders'<br>equity<br>$ |
| Balance, December 31, 2024 | 131833688 | 45553931 | 1890026 | 498876 | 640813 | (40645089) | 7938557 |
| Shares issued for options exercised | 395000 | 314765 | (154765) |  |  |  | 160000 |
| Shares issued for warrants exercised | 40437 | 28969 |  | (12794) |  |  | 16175 |
| Shares issued for vested RSU's | 172500 | 279125 |  |  | (279125) |  |  |
| Share-based compensation |  |  | 101223 |  | 505785 |  | 607008 |
| Net loss for the period |  |  |  |  |  | (1811980) | (1811980) |
| Balance, March 31, 2025 | 132441625 | 46176790 | 1836484 | 486082 | 867473 | (42457069) | 6909760 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Share capital | Share capital | Options<br>reserve<br>$ | Warrants <br>reserve<br>$ | RSUs<br>reserve<br>$ | Deficit<br>$ | Total <br>shareholders'<br>equity<br>$ |
|  | Number of <br>shares | Amount<br>$| Options<br>reserve<br>$ | Warrants <br>reserve<br>$ | RSUs<br>reserve<br>$ | Deficit<br>$ | Total <br>shareholders'<br>equity<br>$ |
| Balance, December 31, 2023 | 123193879 | 34317779 | 2018686 | 67386 | 1217252 | (34568353) | 3052750 |
| Shares issued for options exercised | 260000 | 171808 | (67808) |  |  |  | 104000 |
| Share-based compensation |  |  | 93500 |  | (151770) |  | (58270) |
| Shares issued for vested RSU's | 750000 | 456000 |  |  | (456000) |  |  |
| Net loss for the period |  |  |  |  |  | (1834372) | (1834372) |
| Balance, March 31, 2024 | 124203879 | 34945587 | 2044378 | 67386 | 609482 | (36402725) | 1264108 |

---

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**<br>Condensed Interim Consolidated Statements of Cash Flows<br>(Expressed in Canadian dollars)<br>(unaudited)

---

| | | |
|:---|:---|:---|
|  | Three months <br>ended<br>March 31,<br>2025<br>$| Three months <br>ended<br>March 31,<br>2024<br>$|
| Operating activities |  |  |
| Net loss for the period | (1811980) | (1834372) |
| Items not involving cash: |  |  |
| &nbsp;&nbsp;Depreciation and amortization |  | 27971 |
| &nbsp;&nbsp;Foreign exchange translation loss | (108) | 1476 |
| &nbsp;&nbsp;Interest expense |  | 855 |
| &nbsp;&nbsp;Share-based compensation | 607008 | (58270) |
| Changes in non-cash operating working capital: |  |  |
| &nbsp;&nbsp;&nbsp;Other receivables | (30913) | (64579) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and deposits | (136203) | (64439) |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 137170 | 299835 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | (250000) |  |
| Net cash used in operating activities | (1485026) | (1691523) |
| Investing activities |  |  |
| &nbsp;&nbsp;&nbsp;Redemption of short-term investment |  | 2875 |
| &nbsp;&nbsp;&nbsp;Proceeds from deposit | 5751 |  |
| Net cash provided by investing activities | 5751 | 2875 |
| Financing activities |  |  |
| &nbsp;&nbsp;Repayment of lease obligation |  | (25730) |
| &nbsp;&nbsp;Proceeds from stock options exercised | 160000 | 104000 |
| &nbsp;&nbsp;Proceeds from warrants exercised | 16175 |  |
| Net cash provided by financing activities | 176175 | 78270 |
| Change in cash | (1303100) | (1610378) |
| Cash, beginning of period | 9336892 | 2862023 |
| Cash, end of period | 8033792 | 1251645 |

---

Supplemental cash flow information (Note 10)

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Condensed Interim Consolidated Financial Statements<br>Three Months Ended March 31, 2025 and 2024<br>(Expressed in Canadian dollars)<br>(unaudited)

**1. NATURE OF OPERATIONS** 

BTQ Technologies Corp. (formerly Sonora Gold & Silver Corp.) ("the Company") was incorporated on November 23, 1983 under the Business Corporations Act (British Columbia). The principal activity of the Company is the development of computer-based technology related to post-quantum cryptography, particularly as it applies to blockchain and related technologies, and their protection from the emerging security risk of quantum computing. The Company's head office is located at 16-104 555 Burrard Street, Vancouver, BC, Canada. The Company's common shares trade on Cboe Canada under the ticker symbol "BTQ".

On February 17, 2023, the Company acquired all of the issued and outstanding shares of BTQ AG in exchange for 92,000,000 common shares. This transaction constituted a reverse takeover of the Company by BTQ AG with BTQ AG being identified as the accounting acquirer. As a result, these consolidated financial statements are a continuation of BTQ AG. The Company's results of operations are included from February 17, 2023 onwards, except for share capital which was retroactively adjusted to reflect the capital of the Company.

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICY INFORMATION**

**Statement of Compliance**

These condensed interim consolidated financial statements have been prepared in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") applicable to interim financial information, as outlined in International Accounting Standard ("IAS") 34, "Interim Financial Reporting" and using the accounting policies consistent with those in the audited financial statements as at and for the year ended December 31, 2024 except as detailed below.

The condensed interim consolidated financial statements of the Company have been prepared on an accrual basis and are based on historical cost, except for certain financial assets and liabilities that are measured at fair value.

**Basis of Presentation**

These consolidated financial statements have been prepared on a historical cost basis except for certain financial assets and liabilities, which are measured at fair value, as specified by IFRS for each type of asset, liability, income, and expense as set out in the accounting policies below.

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, BTQ AG, a company incorporated in the Principality of Liechtenstein, and BTQ Technologies Australia Pty Ltd., a company incorporated in Australia.

These consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances are eliminated on consolidation. Control exists where the parent entity has power over the investee and is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Subsidiaries are included in the financial statements from the date control commences until the date control ceases.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Condensed Interim Consolidated Financial Statements<br>Three Months Ended March 31, 2025 and 2024<br>(Expressed in Canadian dollars)<br>(unaudited)

**2. BASIS OF PRESENTATION AND MATERIAL ACCOUNTING POLICY INFORMATION** (continued)

**Accounting Standards Issued But Not Yet Effective**

A number of new standards, and amendments to standards and interpretations, are not yet effective for the year ended December 31, 2024, and have not been early adopted in preparing these consolidated financial statements.

*IFRS 18 Presentation and Disclosure in Financial Statements*

In April 2024, the IASB issued IFRS 18 - Presentation and Disclosure in Financial Statements which will replace IAS 1, Presentation of Financial Statements. The key new concepts introduced in IFRS 18 relate to the structure of the statement of earnings (loss), required disclosures in the financial statements for certain earnings or loss performance measures that are reported outside an entity's financial statements and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general. IFRS 18 will apply for reporting periods beginning on or after January 1, 2027, and also applies to comparative information. The Company is still in the process of assessing the impact of this standard on its consolidated financial statements.

Other accounting standards or amendments to existing accounting standards that have been issued but have future effective dates and are not expected to have a significant impact on the Company's consolidated financial statements.

**3. INVESTMENTS**

---

| | |
|:---|:---|
|  | $|
| &nbsp;&nbsp;Balance, December 31, 2024 and March 31, 2025 | 77229 |

---

During the year ended December 31, 2022, the BTQ AG invested $63,915 (US$50,000) in the form of a Simple Agreement for Future Equity ("SAFE") in the Holonym Foundation ("Holonym"), which is a public benefit corporation. The investment is not traded in an active market.

On January 11, 2023, BTQ AG invested $13,314 (US$10,000) in the form of a SAFE into Cysic Inc. The investment is not traded in an active market.

The Company estimated the fair value of these investments and concluded that the carrying value approximates the fair value of the investments as at December 31, 2024 and March 31, 2025.

**4. SHARE CAPITAL**

Authorized: Unlimited number of common shares without par value

Share transactions during the three months ended March 31, 2025:

* During the three months ended March 31, 2025, the Company issued 395,000 common shares for proceeds of $160,000 pursuant to the exercise of stock options. The fair value of stock options exercised of $154,765 was transferred from options reserve to share capital.

* During the three months ended March 31, 2025, the Company issued 40,437 common shares for proceeds of $16,175 pursuant to the exercise of share purchase warrants. The fair value of share purchase warrants exercised of $12,794 was transferred from warrants reserve to share capital.

* During the three months ended March 31, 2025, the Company issued 172,500 common shares pursuant to the conversion of vested RSUs.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Condensed Interim Consolidated Financial Statements<br>Three Months Ended March 31, 2025 and 2024<br>(Expressed in Canadian dollars)<br>(unaudited)

**4. SHARE CAPITAL** (continued)

Share transactions during the three months ended March 31, 2024:

* During the three months ended March 31, 2024, the Company issued 260,000 common shares for proceeds of $104,000 pursuant to the exercise of stock options. The fair value of stock options exercised of $67,808 was transferred from options reserve to share capital.

* On March 5, 2024, the Company issued 750,000 common shares pursuant to the conversion of vested RSUs.

<u>Escrowed shares</u>

On completion of the Transaction, certain principals of the Company entered into a NP 46-201 Escrow Agreement with the NEO Exchange and Computershare Trust Company of Canada, as escrow agent, in respect of 45,250,000 common shares. Under the terms of the Escrow Agreement, 25% of such escrowed securities were released upon closing (February 17, 2023) with subsequent 25% releases occurring 6, 12, and 18 months from closing. These escrow shares will be released as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp; Date of automatic timed release | &nbsp;&nbsp; Amount of escrow shares released |
| &nbsp;&nbsp; On the date that the Company's common shares were listed on the NEO, February 17, 2023 | &nbsp;&nbsp; 1/4 of the escrowed shares |
| &nbsp;&nbsp; 6 months after the listing date (August 17, 2023) | &nbsp;&nbsp; 1/4 of the escrowed shares |
| &nbsp;&nbsp; 12 months after the listing date (February 17, 2024) | &nbsp;&nbsp; 1/4 of the escrowed shares |
| &nbsp;&nbsp; 18 months after the listing date (August 17, 2024) | &nbsp;&nbsp; The remainder of the escrowed shares |

---

As at December 31, 2024 and March 31, 2025, 20,362,500 common shares remained in escrow.

**5. STOCK OPTIONS**

The Company has a stock option plan (the "Plan") for directors, officers, employees, and consultants of the Company. Stock options are exercisable for periods of up to five years, as determined by the Board of Directors of the Company, to purchase common shares of the Company at a price not less than the discounted market price on the date of the grant. The maximum number of shares which may be issuable under the Plan cannot exceed 10% of the total number of issued and outstanding common shares on a non-diluted basis.

The following table summarizes the continuity of the Company's stock options:

---

| | | |
|:---|:---|:---|
|  | Number of<br>stock options | Weighted<br>average<br>exercise<br>price<br>$|
| Outstanding, December 31, 2024 | 4675000 | 0.41 |
| &nbsp;&nbsp;Exercised | (395000) | 0.41 |
| &nbsp;&nbsp;Expired | (400000) | 0.40 |
| &nbsp;&nbsp;Cancelled | (15000) | 0.40 |
| Outstanding, March 31, 2025 | 3865000 | 0.43 |
| Exercisable, March 31, 2025 | 1751250 | 0.43 |

---

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Condensed Interim Consolidated Financial Statements<br>Three Months Ended March 31, 2025 and 2024<br>(Expressed in Canadian dollars)<br>(unaudited)

**5. STOCK OPTIONS** (continued)

Additional information regarding stock options outstanding as at March 31, 2025, is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Outstanding | Outstanding | Outstanding | Exercisable | Exercisable |
| Range of<br> exercise prices<br> $ | Number of <br>stock options | Weighted <br>average <br>remaining <br>contractual <br>life (years) | Weighted <br>average<br> exercise price<br> $ | Number of <br>stock options | Weighted <br>average<br> exercise price<br> $ |
| 0.27 | 300000 | 2.7 | 0.27 | - | - |
| 0.35 | 125000 | 2.5 | 0.35 | 25000 | 0.35 |
| 0.40 to 0.45 | 2830000 | 2.5 | 0.41 | 1471250 | 0.41 |
| 0.485 to 0.50 | 400000 | 3.2 | 0.49 | 175000 | 0.49 |
| 0.64 to 0.65 | 160000 | 2.8 | 0.64 | 80000 | 0.64 |
| 1.51 | 50000 | 3.7 | 1.51 | - | - |
|  | 3865000 | 2.6 | 0.43 | 1751250 | 0.43 |

---

The fair value for stock options granted have been estimated using the Black-Scholes option pricing model assuming no expected dividends or forfeitures and the following weighted average assumptions:

---

| |
|:---|
| Risk-free interest rate – 3.50% |
| Expected life (in years) – 4.3 |
| Expected volatility – 209% |

---

During the three months ended March 31, 2025, the Company recognized share-based compensation expense of $101,223 (2024 - $93,500), with a corresponding increase to options reserve. The weighted average fair value of the stock options granted during the three months ended March 31, 2025 was $nil (2024 - $0.46) per option. The weighted average fair value of shares at the time of the stock option exercises during the three months ended March 31, 2025 was $3.24 (2024 - $0.56) per common share.

**6. SHARE PURCHASE WARRANTS**

The following table summarizes the continuity of share purchase warrants:

---

| | | |
|:---|:---|:---|
|  | Number of<br>warrants | Weighted<br>average <br>exercise<br>price<br>$|
| Outstanding, December 31, 2024 | 266616 | 2.72 |
| &nbsp;&nbsp;Exercised | (40437) | 0.40 |
| &nbsp;&nbsp;Expired | (58394) | 0.40 |
| Outstanding, March 31, 2025 | 167785 | 4.09 |

---

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Condensed Interim Consolidated Financial Statements<br>Three Months Ended March 31, 2025 and 2024<br>(Expressed in Canadian dollars)<br>(unaudited)

**6. SHARE PURCHASE WARRANTS** (continued)

As at March 31, 2025, the following share purchase warrants were outstanding and exercisable:

---

| | | |
|:---|:---|:---|
| Number of <br>warrants <br>outstanding | Exercise <br>price<br>$| &nbsp;&nbsp; <br>Expiry date |
| 167785 | 4.09 | &nbsp;&nbsp;December 19, 2029 |

---

**7. RESTRICTED SHARE UNITS**

A summary of the changes in RSUs is presented below:

---

| | |
|:---|:---|
|  | Number of<br>RSUs |
| Balance, December 31, 2024 | 1945000 |
| &nbsp;&nbsp;Granted | 300000 |
| &nbsp;&nbsp;Converted to shares | (172500) |
| Balance, March 31, 2025 | 2072500 |
| Unvested | 972500 |
| Vested, March 31, 2025 | 1100000 |

---

During the three months ended March 31, 2025, the Company recognized share-based compensation expense of $505,785 (2024 - recovery of $151,770) with a corresponding increase (2024 - decrease) to RSU reserve and $279,125 (2024 - $456,000) was transferred to share capital upon the vesting of 172,500 (2024 - 750,000) RSUs.

**8. RELATED PARTY TRANSACTIONS**

Key management personnel are persons responsible for planning, directing, and controlling the activities of an entity, and include all officers and directors of the Company. Key management personnel compensation during the three months ended March 31, 2025 and 2024 was comprised of the following:

---

| | | |
|:---|:---|:---|
|  | Three months<br>ended<br>March 31,<br>2025<br>$| Three months<br>ended<br>March 31,<br>2024<br>$|
| Consulting fees |  | 24279 |
| Business development, marketing and promotion | 25834 | 24279 |
| Professional fees | 21000 | 21000 |
| Research and development |  | 73467 |
| Wages and benefits | 43322 | 73974 |
| Total short-term benefits | 90156 | 216999 |
| Share-based payments | 18461 | 79388 |
|  | 108617 | 296387 |

---

As at March 31, 2025, the Company owed $124,223 (December 31, 2024 - $124,247) to the CEO of the Company, of which $97,075 (December 31, 2024 - $97,075) is included in accounts payable and accrued liabilities. The amounts owed are non-interest bearing, unsecured, and due on demand.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Condensed Interim Consolidated Financial Statements<br>Three Months Ended March 31, 2025 and 2024<br>(Expressed in Canadian dollars)<br>(unaudited)

**8. RELATED PARTY TRANSACTIONS** (continued)

As at March 31, 2025, the Company was owed $129,486 (December 31, 2024 - $137,369) from the Chief Operating Officer ("COO") of the Company, which is included in other receivables.

As at March 31, 2025, the Company owed $7,350 (December 31, 2024 - $7,350) to a firm where the Chief Financial Officer of the Company is a partner, which is included in accounts payable and accrued liabilities, which is non-interest bearing, unsecured, and due on demand.

As at March 31, 2025, the Company owed $9,747 (December 31, 2024 - $15,020) to the Head of Corporate Development of the Company, which is included in accounts payable and accrued liabilities, which is non-interest bearing, unsecured, and due on demand.

**9. REVENUE**

During the three months ended March 31, 2025, the Company earned license revenue of $250,000 (2024 - $nil) from a company controlled by the COO. As at March 31, 2025, the Company has deferred revenue of $65,497 (December 31, 2024 - $315,497) for this company. All revenue recognized during the three months ended March 31, 2025 was recorded as deferred revenue as at December 31, 2024.

A breakdown of the revenue is presented below:

---

| | | |
|:---|:---|:---|
|  | Three months<br>ended<br>March 31,<br>2025<br>$| Three months <br>ended<br>March 31,<br>2024<br>$|
| &nbsp;&nbsp;<u>Major goods/service lines</u> |  |  |
| &nbsp;&nbsp;Software license and related consulting services | 250000 | - |
| &nbsp;&nbsp;<u>Timing of revenue recognition</u> |  |  |
| &nbsp;&nbsp;Software license and services transferred over time | 250000 | - |

---

**10. SUPPLEMENTAL CASH FLOW INFORMATION**

---

| | | |
|:---|:---|:---|
|  | Three months <br>ended<br>March 31,<br>2025<br>$| Three months <br>ended<br>March 31,<br>2024<br>$|
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;Fair value of stock options exercised transferred from options reserve to share capital | 154765 | 67808 |
| &nbsp;&nbsp;Fair value of warrants exercised transferred from warrants reserve to share capital | 12794 |  |
| &nbsp;&nbsp;Shares issued for vested RSUs | 279125 | 456000 |

---

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Condensed Interim Consolidated Financial Statements<br>Three Months Ended March 31, 2025 and 2024<br>(Expressed in Canadian dollars)<br>(unaudited)

**11. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fair Values

<u>Fair value hierarchy</u>

The following provides a description of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

* Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

* Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

* Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at March 31, 2025 and December 31, 2024 as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in <br>active markets <br>for identical <br>instruments<br>(Level 1)<br>$| Significant <br>other <br>observable <br>inputs<br>(Level 2)<br>$| Significant <br>unobservable <br>inputs<br>(Level 3)<br>$| <br>Balance,<br>March 31,<br>2025<br>$|
| Investments | - | - | 77229 | 77229 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in <br>active markets <br>for identical <br>instruments<br>(Level 1)<br>$| Significant<br>other <br>observable <br>inputs<br>(Level 2)<br>$| Significant<br>unobservable <br>inputs<br>(Level 3)<br>$| <br>Balance,<br>December 31,<br>2024<br>$|
| Investments | - | - | 77229 | 77229 |

---

The fair values of the Company's other financial instruments, which include cash, other receivables, accounts payable and accrued liabilities, and due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Credit Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Condensed Interim Consolidated Financial Statements<br>Three Months Ended March 31, 2025 and 2024<br>(Expressed in Canadian dollars)<br>(unaudited)

**11. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT** (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Foreign Exchange Rate Risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency.

The following tables indicate the impact of foreign currency exchange risk on net working capital as at March 31, 2025 and December 31, 2024. The tables below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the tables below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as at March 31, 2025 and December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| As at March 31, 2025 | TWD | HK$ | AU$ | US$ |
| Cash | 529096 |  |  | 103385 |
| Other receivables (except GST) |  |  |  | 117390 |
| Accounts payable and accrued liabilities | (78842) | (320000) | (44818) | (238537) |
| Total foreign currency financial assets and liabilities | 450254 | (320000) | (44818) | (17762) |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 45025 | (32000) | (4482) | (1776) |

---

---

| | | |
|:---|:---|:---|
| As at December 31, 2024 | TWD | US$ |
| Cash | 82993 | (1249) |
| Other receivables (except GST) |  | 106489 |
| Accounts payable and accrued liabilities | (6337488) | (237069) |
| Total foreign currency financial assets and liabilities | (6254495) | (131829) |
| Impact of a 10% strengthening or weakening of foreign exchange rate | (625450) | (13183) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner.

The following amounts are the contractual maturities of financial liabilities as at March 31, 2025 and December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
| As at March 31, 2025<br>| Total<br>$| Within<br>1 year<br>$| Within<br>2-5 years<br>$|
| Accounts payable and accrued liabilities | 1494671 | 1494671 |  |
| Due to related parties | 27148 | 27148 |  |
|  | 1521819 | 1521819 | - |

---

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Condensed Interim Consolidated Financial Statements<br>Three Months Ended March 31, 2025 and 2024<br>(Expressed in Canadian dollars)<br>(unaudited)

**11. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT** (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Liquidity Risk (continued)

---

| | | | |
|:---|:---|:---|:---|
| As at December 31, 2024<br>| Total<br>$| Within<br>1 year<br>$| Within<br>2-5 years<br>$|
| Accounts payable and accrued liabilities | 1357502 | 1357502 |  |
| Due to related parties | 27172 | 27172 |  |
|  | 1384674 | 1384674 | - |

---

**12. CAPITAL MANAGEMENT**

The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders. The capital structure of the Company consists of cash and equity comprised of issued share capital, share-based payment reserve, and warrant reserve.

The Company manages its capital structure and makes adjustments to it in light of economic conditions. The Company, upon approval from its Board of Directors, will balance its overall capital structure through new share issuances or by undertaking other activities as deemed appropriate under the specific circumstances.

The Company is not subject to externally imposed capital requirements and the Company's overall strategy with respect to capital risk management remains unchanged from the year ended December 31, 2024.

**13. SEGMENTED INFORMATION**

The Company has one operating segment, the research and development of computer-based technology related to post-quantum cryptography. The Company's head office is in Canada and operations are in Canada and Taiwan. Geographic information for non-current assets other than financial instruments is as follows:

---

| | | | |
|:---|:---|:---|:---|
| March 31, 2025 | Canada<br>$| Australia<br>$| Total<br>$|
| Non-current assets |  |  |  |
| &nbsp;&nbsp;Deposits | - | 10770 | 10770 |
| Revenue | 250000 | - | 250000 |

---

---

| | | | |
|:---|:---|:---|:---|
| December 31, 2024 | Canada<br>$| Australia<br>$| Total<br>$|
| Non-current assets |  |  |  |
| &nbsp;&nbsp;Deposits | 18902 | 10703 | 29605 |
| Revenue | 666667 | - | 666667 |

---

------

**BTQ TECHNOLOGIES CORP.**<br>Notes to the Condensed Interim Consolidated Financial Statements<br>Three Months Ended March 31, 2025 and 2024<br>(Expressed in Canadian dollars)<br>(unaudited)

**14. GENERAL AND ADMINISTRATIVE EXPENSES**

The following is a breakdown of general and administrative expenses for the three months ended March 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | Three months ended<br>March 31,<br>2025<br>$| Three months ended<br>March 31,<br>2024<br>$|
| Insurance | 18171 | 16560 |
| IT and communications | 4371 | 66224 |
| Office and miscellaneous | 32694 | 33634 |
| Rent | 36233 | 46391 |
| Travel | 5879 | 93744 |
|  | 97348 | 256553 |

---

------

## Exhibit 99.71

------

---

| |
|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

---

This Management's Discussion and Analysis ("MD&A") of BTQ Technologies Corp. ("BTQ" or the "Company") is for the quarter ended March 31, 2025 and is dated May 15, 2025. The MD&A should be read in conjunction with the Company's unaudited condensed interim consolidated financial statements and related notes for the quarter ended March 31, 2025. The unaudited condensed interim consolidated financial statements are prepared in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and all monetary amounts are expressed in Canadian dollars. The following comments may contain management estimates of anticipated future trends, activities, or results. These are not a guarantee of future performance since actual results could change based on other factors and variables beyond management control.

The management of the Company is responsible for the preparation and integrity of the consolidated financial statements, including the maintenance of appropriate information systems, procedures, and internal controls and to ensure that information used internally or disclosed externally, including the consolidated financial statements and MD&A, is complete and reliable. The Company's board of directors (the "Board") follows recommended corporate governance guidelines for public companies to ensure transparency and accountability to shareholders. The Board's audit committee meets with management quarterly to review the financial statements including the MD&A and to discuss other financial, operating, and internal control matters.

Additional information relating to the Company is available under the Company's profile on SEDAR+ at www.sedarplus.ca.

**DESCRIPTION OF BUSINESS AND OVERVIEW**

The current business of BTQ was founded by a group of experienced post-quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the Bitcoin network. Bitcoin's store of value thesis - one that supports a crypto ecosystem of over $1 trillion in market capitalization - has several potential quantum attack vectors that could compromise the network. This paradigm shift requires a new direction in cryptography and blockchain design. BTQ is building a portfolio of intellectual property to safeguard the crypto asset class with energy efficient quantum processes and currently holds several patent applications for generating quantum algorithms.

Quantum computers can take a very large integer and find out its prime factor extremely rapidly by using Shor's algorithm. Theoretically, a universal large scale quantum computer could be used to disrupt cryptocurrencies, break into digital wallets, and access and decrypt confidential communications. Ethereum and Algor, two of the most technologically advanced cryptocurrencies, announced plans to transition to post-quantum standards.

BTQ is listed on Cboe Canada under the symbol "BTQ", the OTCQB under the symbol "BTQQF", and the Frankfurt Stock Exchange under the symbol "NG3".

<u>Acquisition</u>

On December 31, 2021 (as amended on April 29, 2022, July 30, 2022, and November 29, 2022), the Company entered into a share exchange agreement with BTQ AG (the "Acquisition"). BTQ AG was incorporated in the Principality of Liechtenstein on March 26, 2021 by a group of experienced post-quantum cryptographers with an interest in addressing the urgent security threat that a large-scale universal quantum computer poses to the Bitcoin network.

In connection with the Acquisition, the Company completed a private placement (the "Offering") of 18,001,250 subscription receipts at a price of $0.40 per subscription receipt, for gross proceeds of $7,200,500, with each subscription receipt automatically converting with no additional consideration into one post-Consolidation Share (each as defined below) concurrent with the closing of the Acquisition.

------

---

| |
|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

---

On February 17, 2023, the Company closed the Acquisition resulting in the issuance of 92,000,000 post-Consolidation Shares to the BTQ AG shareholders. Concurrent with the closing, the Company changed its name from Sonora Gold & Silver Corp. to BTQ Technologies Corp. and completed a consolidation (the "Consolidation") of its common shares on the basis of ten pre-Consolidation shares to one post-Consolidation share (each, a "Share"). Immediately following the Consolidation, and excluding those Shares issued pursuant to the Acquisition or the Offering, the former securityholders of Sonora Gold and Silver Corp. ("SOC") held an aggregate of 8,747,629 Shares and 350,000 stock options in the Company. All Share amounts have been retroactively restated to reflect the Consolidation for all periods presented.

On closing of the Acquisition, the gross proceeds of $7,200,500 from the Offering were released from escrow and each subscription receipt was converted into one Share. In connection with the Acquisition, the Company issued 2,500,000 Shares with a fair value of $1,000,000 to a finder as a success fee. In connection with the Offering, the Company also paid $93,175 in finders' fees and issued 232,936 finders' warrants exercisable at an exercise price of $0.40 per Share for a period of two years.

As a condition of the Acquisition, the Company voluntarily delisted its Shares from the TSX-V and the Shares commenced trading on Cboe Canada (formerly NEO Exchange) on February 21, 2023 under the symbol "BTQ".

**DISCUSSION OF OPERATIONS**

The following are operational highlights for the year ended December 31, 2024 and events subsequent up until the date of this MD&A.

<u>Product Updates</u>

On March 2, 2023, the Company announced the alpha release of Keelung, a domain-specific language designed for fast, private, and secure application development. Based on research in the field of post-quantum zero-knowledge cryptography, Keelung will empower developers to create secure and reliable post-quantum zero-knowledge proofs without the need for specialized cryptography skills. Both Keelung and its compiler have been implemented in Haskell, enabling developers to produce high-level zero-knowledge proofs protected by Haskell's type system while leveraging Haskell's extensive ecosystem and tooling. Keelung will be 100% open-source, allowing for transparency, collaboration, and community-driven development.

Keelung is now live and open-sourced. The release information can be found here: https://github.com/btq-ag/keelung/releases. The steps to complete over the coming year are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Language Extensions (v0.19.0 - v0.20.0): Added support for user-defined datatypes, unsigned integer comparisons, and optimizations to the constraint system and compiler.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Optimization and Stability (v0.21.0): Introduced a more precise method for reference counting on unsigned integers, renaming of primitive datatype conversions, and numerous bug fixes and stability improvements for the compiler.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Upcoming Optimizations (v0.22.0+): Planned optimizations include operators for slicing and joining unsigned integers, improved polynomial representation, faster polynomial insertion, standard library optimizations (e.g., AES, Blake2), and constraint reduction for faster proof generation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Developer Experience (Ongoing): Refinements to the DSL syntax, performance improvements for common data types, benchmarking in the CI/CD pipeline, and expanded documentation and tutorials to improve the developer experience.

------

---

| |
|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Ecosystem Integration (Future): Planned integration with popular ZK toolchains like Snarkjs/Circom, support for PLONK-based proving systems, and quantitative information flow analysis for privacy leakage detection.

On June 5, 2023, the Company published a research paper on proof-of-work consensus by quantum sampling. The paper presents a novel approach that has the potential to revolutionize blockchain consensus algorithms.

On June 26, 2023, the Company announced that it had received approval from the USPTO for its patent application, "A system and method for quantum-safe authentication, encryption, and decryption of information". The patent relates to methods for generating a private cryptographic key for use in a secure cryptogram for transmission between entities, enabling quantum-safe encryption.

On July 27, 2023, the Company announced that its Quantum-Secure Signature Technology "Preon" had been selected by the National Institute of Standards and Technology (NIST) for consideration in their Post-Quantum Cryptography (PQC) standardization process. Preon is a robust and efficient post-quantum signature scheme, showcasing distinctive features including small key size, rapid key generation, minimal assumptions, and flexible functionality. These attributes make it resistant to potential threats from both classical and quantum computers. The co-authors of this submission include Hon Hai Research Institute, the research arm of global leader Hon Hai Precision Industry Co., Ltd. (Foxconn).

On October 4, 2023, BTQ announced the advancement of its collaboration with ITRI to develop a security chip that utilizes QCIM (Quantum Computation in Memory) technology. This chip will be used for the computation of Kyber, a standardized algorithm by the National Institute of Standards and Technology (NIST). In 2022, BTQ entered a multi-year collaboration agreement with ITRI to develop energy-efficient post-quantum hardware solutions for applications in blockchain, telecom, and other industries with a need for long-term data security. In the first phase of collaboration, BTQ and ITRI successfully validated the proof of concept of applying computation-in-memory in an ASIC chip. To further the collaboration, BTQ is entering into this new phase of the project with ITRI.

*Cryptographically Agile Secure Hardware ("CASH")*

CASH is a Post-Quantum Cryptography Accelerator product that is compact, energy-efficient, and powerful enough to fit into low-power devices like smart cards. The technology can handle both new PQC methods and traditional encryption methods (like AES and RSA). This means fewer chips are needed, which saves space, reduces power consumption, and cuts costs. CASH Technology is being developed by building on the patents that were acquired from Radical Semiconductor ("Radical"). Key members of the Radical team are working on the technology within BTQ with the first proof of concept expected in the first half of 2026.

<u>Corporate Activities</u>

On November 29, 2023, BTQ and Hon Hai Research Institute announced a Research and Collaboration Agreement aiming to support the academic community by promoting the standardization of post-quantum cryptography. BTQ and Hon Hai first in their submission of Preon, a post-quantum signature scheme submitted as part of the NIST "Call for Additional Digital Signature Schemes for the Post-Quantum Cryptography Standardization Process".

On May 3, 2024, the Company entered into a software license agreement with ZKP Corp. ("ZKP"), a Delaware corporation controlled by Nicolas Roussy Newton, the Chief Operating Officer of the Company, for which the Company received $1,000,000 for the use of its proprietary software for a period of one year.

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|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

---

On September 9, 2024, the Company issued convertible debt for proceeds of $1,000,000. The convertible debt is non-interest bearing and due on September 9, 2026. At the election of the lender, the principal amount of the debt is convertible into common shares at $0.40 per share.

On July 23, 2024, BTQ entered into an agreement for the acquisition of Radical Semiconductor's Processing-in-Memory Technology Portfolio, advancing its Post-Quantum Cryptography capabilities. The integration of Radical's cutting-edge technology is set to enhance BTQ's quantum-secure communications infrastructure and provide substantial growth opportunities in emerging markets such as IoT, financial services, blockchain, and government sectors.

On November 8, 2024, the Company issued convertible debt for proceeds of $500,000. The convertible debt is non-interest bearing and due on November 14, 2026. At the election of the lender, the principal amount of the debt is convertible into common shares at $0.40 per share.

On December 19, 2024, the Company issued 3,355,704 common shares at $2.98 per share for gross proceeds of $10,000,000 pursuant to a brokered listed issuer financing exemption ("LIFE") offering. In connection with the financing, the Company incurred share issuance costs of $860,833 and issued 167,785 finder's warrants exercisable at $4.09 per common share expiring on December 19, 2029.

On December 24, 2024, the Company issued 3,750,000 common shares pursuant to the conversion of $1,500,000 in convertible debt.

On January 3, 2025, the Company entered into an agreement to for the acquisition of intellectual property from Cimtech Technology Co., Ltd., an innovator in memory technology and computing-in memory ("CIM") solutions. This strategic acquisition enhances the Company's capabilities in post-quantum cryptography and quantum-secure communication technologies.

**Trends**

<u>Quantum Computing</u>

According to McKinsey & Company, the quantum technology market will be valued at over $106 billion by 2040<sup>1</sup>, with the bulk of the value projected to come from quantum computing as opposed to quantum sensing and quantum communications. The quantum security industry sits within quantum computing and is a rapidly growing field that focuses on developing secure cryptographic solutions for the age of quantum computing. As quantum computers become more powerful, they will become increasingly capable of breaking traditional cryptographic systems, creating a need for even more robust and advanced quantum-resistant solutions. Traditional cryptographic methods are at risk of being broken, which will have serious implications for national security, financial institutions, and other industries that rely on secure communication and data storage. Estimates of when a commercial quantum computer will hit the market vary, however, last year, IBM unveiled the Osprey (433 qubits) and updated its road map to develop a 4,000+ qubit processor in 2025<sup>2</sup>, indicating that these super computers will be available in the near future. In addition to private sector funding, Government bodies around the world are also investing large sums of capital into quantum technologies. At $15.3 billion, China leads the way in publicly announced quantum funding initiatives, followed by the EU at $8.4 billion, USA at $3.7 billion, Japan at $1.8 billion, UK at $1.3 billion, Canada at $1.1 billion, and several others between $0.1 billion and $1.0 billion<sup>3</sup>.

_____________________________________________<br><sup>1</sup> <u>https://www.mckinsey.com/featured-insights/the-rise-of-quantum-computing</u> <br><sup>2</sup> <u>https://newsroom.ibm.com/2022-11-09-IBM-Unveils-400-Qubit-Plus-Quantum-Processor-and-Next-Generation-IBM-Quantum-System-Two</u> <br><sup>3</sup> <u>https://www.mckinsey.com/~/media/mckinsey/business%20functions/mckinsey%20digital/our%20insights/quantum%20technology%20sees%20record%20investments%20progress%20on%20talent%20gap/quantum-technology-monitor-april-2023.pdf</u>

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|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

---

Overall, the quantum security industry is a rapidly evolving field that will continue to see significant growth and development in the coming years. As businesses and organizations seek to protect their data from the threat of quantum computing, the need for effective and innovative quantum-resistant security solutions will only continue to increase. Investors are recognizing this with about two-thirds, or 68 percent, of all Quantum Technology startup investments since 2001 having occurred in 2021 and 2022<sup>4</sup>.

<u>Post-Quantum Cryptography</u>

One of the main trends in the quantum security industry is the development of post-quantum cryptography ("PQC") algorithms. PQC algorithms are designed to be resistant to attacks from quantum computers, making them a crucial component of quantum-resistant security systems. Many organizations, including government agencies and financial institutions, are already investing in PQC research and development to ensure the security of their sensitive data.

A key driver in the development of the PQC industry is The National Institute of Standards and Technology ("NIST"), a U.S. Department of Commerce agency which sets the standards for businesses and other organizations to secure sensitive data and protect critical infrastructure<sup>5</sup>. NIST compliance standards must be met by anyone who processes, stores, or transmits sensitive information for the Department of Defense, General Services Administration, NASA, and other government agencies, and is largely seen as the de facto standard body to make cryptographic standards for the entire world.

In 2016, NIST initiated a process to solicit, evaluate, and standardize one or more quantum-resistant public-key cryptographic algorithms. These new cryptography standards will specify additional digital signature and public-key encryption algorithm(s) which are capable of protecting sensitive information well into the foreseeable future, including after the advent of quantum computers. In 2022, NIST officially announced the standardized algorithms from Round 3 of this PQC competition. This was a landmark milestone as government agencies and businesses had been waiting nearly six years for a clear direction as to which algorithms are trustworthy. PQC algorithms are much larger than their classical counterparts. For example, even the smallest NIST-approved digital signature algorithm is over 10x larger than the current Elliptic Curve Digital Signature Algorithm<sup>6</sup>. This is particularly problematic for distributed ledgers where each full node keeps an entire record of all activities on the ledger. If a blockchain like Bitcoin and Ethereum were to adopt the newly standardized PQC algorithms today, the size of both chains would have to be increased to an unmanageable extent.

<u>Competition and Market Participants</u>

Generally, BTQ differentiates itself from its competitors with its work at the intersection of post-quantum cryptography and blockchain. The Company works on developing next-generation cryptographic primitives like zero-knowledge cryptography to achieve advanced security and efficiency, which is novel in the industry.

_____________________________________________<br><sup>4</sup> <u>https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/quantum-technology-sees-record-investments-progress-on-talent-gap</u> <br><sup>5</sup> <u>https://www.btq.com/en/blog/blockchain-security</u> <br><sup>6</sup> <u>https://falcon-sign.info/</u> <br>

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|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

---

Large publicly traded quantum companies exist in the space, including: D-Wave Systems (NYSE: QBTS), IONQ (NYSE: IONQ), Arqit Quantum (NASDAQ: ARQQ). However, these companies are not direct competitors as their main goal is to build a commercial quantum computer with real-world useability. These companies are capital intensive and well-funded by both institutional investors and governments and their valuations range from approximately US$200 million to over US$8 billion.

With a surge in funding and general investor interest and excitement in the industry, several companies are emerging in the post-quantum security space. There are various companies that try to tackle the same global problem as BTQ: getting today's infrastructure secured for the quantum revolution, however, the approaches vary widely based on cryptographic techniques, as well as end uses served and therefore is not a winner takes all market. In fact, other companies operating directly in the space may offer potential collaboration opportunities. Below is a non-exhaustive list of indirect competitors to BTQ:

PQ Shield, for example, describes itself as a PQC company contributing to the global standards and core technologies to power the future security layer of the world's leading organizations. Its quantum-secure cryptographic solutions work with companies' legacy systems to protect sensitive data now and for years to come. The company mainly serves the defense & infrastructure, IoT and OEM markets. PQ Shield raised $20 million as part of their Series A round in January 2022<sup>7</sup>.

Additionally, Isara provides security solutions specializing in cryptographic risk management and in creating crypto-agile and quantum-safe security solutions for today's information technology ecosystems. The company broadly targets enterprises and governments. Isara raised over $10 million in 2018 to fund its R&D efforts<sup>8</sup>.

In the blockchain space, large technology companies are building their own secured blockchains. For example, IBM offers blockchain services that help secure multiple aspects of critical industries like supply chains, banking, healthcare, and government. The goal of these blockchains is usually to streamline and scale processes in a secure manner<sup>9</sup>.

SandboxAQ, an enterprise SaaS company stemming from Alphabet (previously Google), is another key player in the space. Sandbox provides solutions at the nexus of AI and Quantum technology to address some of the world's most challenging problems. The company's core team and inspiration formed at Alphabet Inc., emerging as an independent, growth-capital-backed company in 2022. The company aims to protect the public sector, life sciences & healthcare, financial services, cybersecurity, material science & manufacturing, and global navigation<sup>10</sup>.

**RESULTS OF OPERATIONS**

**For the three months ended March 31, 2025**

The net loss for the three ended March 31, 2025 was $1,811,980 (2024: $1,834,372). The main categories are listed below:

<u>Revenue of $250,000 (2024: $nil)</u>

The Company entered into a revenue licensing agreement in May 2024.

_____________________________________________<br><sup>7</sup><u>https://www.prnewswire.com/news-releases/pqshield-collaborates-with-nccoe-and-industry-to-ease-the-real-world-implementation-of-quantum-resistant-cryptography-301794688.html</u><br> <sup>8</sup> <u>https://www.isara.com/company/newsroom/shasta-ventures-investment.html</u> <br><sup>9</sup> <u>https://www.ibm.com/blockchain</u> <br><sup>10</sup> <u>https://www.sandboxaq.com/solutions/security-suite</u> <br>

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|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

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<u>Business development, marketing, and promotion of $176,532 (2024: $283,686)</u>

The decrease is due to terminated marketing agreements during the third quarter of 2024.

<u>General and administrative of $97,348 (2024: $256,553)</u>

The decrease is mainly due to the closure of the Company's Taiwan branch office in October 2024.

<u>Professional fees of $646,258 (2024: $312,943)</u>

The increase is mainly due to higher legal fees incurred relating to the base shelf prospectus and Nasdaq listing application/Form 40-F preparation. The Company also incurred fees for internal control advisory services in the current quarter.

<u>Research and development of $293,541 (2024: $809,486)</u>

The decrease is mainly due to the termination of research and development employees located in Taiwan prior to the fourth quarter of 2024.

<u>Share-based compensation of $607,008 (2024: recovery of $58,270)</u>

The increase in share-based compensation was due to stock options and RSUs issued during the period. In addition, there were no forfeited options and RSUs during the period as in the comparative period.

<u>Transfer agent and regulatory fees of $102,265 (2024: $4,720)</u>

The increase is mainly due to the base shelf prospectus filing.

<u>Wages and benefits of $66,953 (2024: $146,674)</u>

The decrease is mainly due to the termination of employees and closure of the Taiwan branch office in 2024.

**USE OF AVAILABLE FUNDS**

In connection with the brokered LIFE offering which closed on December 19, 2024, below is a reconciliation of the expected use of available funds against the actual use of such funds as at March 31, 2025:

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| | | |
|:---|:---|:---|
| **Item** | <br>Use of Available Funds<br>$| Actual Use of Available<br>Proceeds as at<br>March 31, 2025<br>$|
| Quantum Computation in Memory Product | 3810000 | 153304 |
| General and administrative | 1400000 | 1299140 |
| Ongoing operations - other R&D | 1500000 | 480483 |
| Working capital | 1499164 |  |
| **Total** | **8209164** | **1932927** |

---

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|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

---

**SUMMARY OF QUARTERLY RESULTS**

The following table sets out financial information for the past eight quarters:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) |
|  | <br>March 31,<br>2025 | <br>December 31,<br>2024 | <br>September 30, <br>2024 | <br>June 30,<br>2024 |
| Total revenues | 250000 | 250000 | 326094 | 90573 |
| Net loss | (1811980) | (1517826) | (1029346) | (1695192) |
| Net loss per share, basic and diluted | (0.01) | (0.01) | (0.01) | (0.01) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) | Three Months Ended ($) |
|  | <br>March 31,<br>2024 | <br>December 31,<br>2023 | <br>September 30,<br>2023 | <br>June 30,<br>2023 |
| Total revenues |  |  |  |  |
| Net loss | (1834372) | (3500699) | (2418203) | (2822927) |
| Net loss per share, basic and diluted | (0.01) | (0.02) | (0.02) | (0.02) |

---

The net loss for the quarter ended March 31, 2025 includes share-based compensation of $607,008 related to the issuance of stock options and restricted share units.

The net loss for the quarter ended December 31, 2023 includes share-based compensation of $1,259,207 related to the issuance of stock options and restricted share units.

The net loss for the quarter ended September 30, 2023 includes share-based compensation of $755,390 related to the issuance of stock options and restricted share units.

The net loss for the quarter ended June 30, 2023 includes share-based compensation of $1,623,513 related to the issuance of stock options and restricted share units.

**LIQUIDITY AND CAPITAL RESOURCES** 

As at March 31, 2025 the Company had cash of $8,033,792 and working capital of $6,821,761 compared to cash of $9,336,892 and working capital of $7,831,723 as at December 31, 2024.

The Company's operations used cash of $1,485,026 (2024: $1,691,523) during the three months ended March 31, 2025. The Company's investing activities provided cash of $5,751 (2024: 2,875). The cash requirements during the three months ended March 31, 2025 were funded from the net proceeds from share issuances of $176,175 (2024: $78,270).

The Company's aggregate operating, investing, and financing activities during the three months ended March 31, 2025 resulted in a decrease in its cash balance of $1,303,100 (2024: $1,610,378).

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|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

---

**OFF BALANCE SHEET ARRANGEMENTS**

There are no off-balance sheet arrangements to which the Company is committed.

**RELATED PARTY TRANSACTIONS**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

Key management personnel are persons responsible for planning, directing, and controlling the activities of an entity, and include all officers and directors of the Company. Key management personnel compensation during the three months ended March 31, 2025 and 2024 was comprised of the following:

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| | | |
|:---|:---|:---|
|  | Three months<br>ended<br>March 31,<br>2025<br>$| Three months<br>ended<br>March 31,<br>2024<br>$|
| &nbsp;&nbsp;Consulting fees incurred to Ming-Yang Chih, former Chief Strategic Officer |  | 24279 |
| &nbsp;&nbsp;Business development, marketing and promotion incurred to Mathiew Gauthier, Head of Corporate Development | 25834 | 24279 |
| &nbsp;&nbsp;Professional fees incurred to Saturna Group Chartered Professional Accountants LLP, a firm where the CFO, Lonny Wong, is a partner | 21000 | 21000 |
| &nbsp;&nbsp;Research and development incurred to Po-Chun Ko (former Chief Technology Officer and Chen-Mou Cheng (former Chief Cryptographer) |  | 73467 |
| &nbsp;&nbsp;Wages and benefits incurred to Nicolas Roussy Newton (COO) and Peter Lavelle (former Chief Legal Officer) | 43322 | 73974 |
| Total short-term benefits | 90156 | 216999 |
| Share-based payments | 18461 | 79388 |
|  | 108617 | 296387 |

---

As at March 31, 2025, the Company owed $124,223 (December 31, 2024 - $124,247) for expenses paid on behalf of the Company to Olivier Roussy Newton, the Chief Executive Officer of the Company, of which $97,075 (December 31, 2024 - $97,075) is included in accounts payable and accrued liabilities. The amounts owed are non-interest bearing, unsecured, and due on demand.

As at March 31, 2025, the Company was owed $129,486 (December 31, 2024 - $137,369) from Nicolas Roussy Newton, the Chief Operating Officer ("COO") of the Company, which is included in other receivables.

As at March 31, 2025, the Company owed $7,350 (December 31, 2024 - $7,350) for professional fees to Saturna Group Chartered Professional Accountants LLP, a firm where the Chief Financial Officer of the Company, Lonny Wong, is a partner, which is included in accounts payable and accrued liabilities, which is non-interest bearing, unsecured, and due on demand.

As at March 31, 2025, the Company owed $9,747 (December 31, 2024 - $15,020) for consulting fees to Mathieu Gauthier, the Head of Corporate Development of the Company, which is included in accounts payable and accrued liabilities, which is non-interest bearing, unsecured, and due on demand.

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|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

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During the three months ended March 31, 2025, the Company earned license revenue of $250,000 (2024 - $nil) from a ZKP Corp. ("ZKP"), a company controlled by the COO. As at March 31, 2025, the Company has deferred revenue of $65,497 (December 31, 2024 - $315,497) for this company. The license agreement relates to certain non-core technology of the Company that is not of a near-term focus for development, and the licensing of such technology to ZKP provided the Company with near-term revenue stream and enabled ZKP to access certain U.S. focused funding sources for the development of a related product.

**ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE**

A number of new standards, and amendments to standards and interpretations, are not yet effective for the period ended March 31, 2025, and have not been early adopted in preparing the consolidated financial statements.

In April 2024, the IASB issued IFRS 18 - Presentation and Disclosure in Financial Statements which will replace IAS 1, Presentation of Financial Statements. The key new concepts introduced in IFRS 18 relate to the structure of the statement of earnings (loss), required disclosures in the financial statements for certain earnings or loss performance measures that are reported outside an entity's financial statements and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general. IFRS 18 will apply for reporting periods beginning on or after January 1, 2027, and also applies to comparative information. The Company is in the process of assessing the impact of this standard on its consolidated financial statements.

Other accounting standards or amendments to existing accounting standards that have been issued but have future effective dates and are not expected to have a significant impact on the Company's consolidated financial statements.

**CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS**

<u>Use of estimates</u>

The preparation of consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from our company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

<u>Research and development costs</u>

Research costs are recognized as an expense when incurred but development costs may be capitalized as intangible assets if certain conditions are met as described in IAS 38 *Intangible Assets*. Management has determined that development costs do not meet the conditions for capitalization under IAS 38 and all research and development costs have been expensed.

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|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

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<u>Fair values of stock options</u>

Fair values of stock options are determined using the Black-Scholes option pricing model. Estimating fair value requires determining the most appropriate valuation model for a grant of equity instruments, which is dependent on the terms and conditions of the grant. Option-pricing models require the use of highly subjective estimates and assumptions including the expected stock price volatility. Changes in the underlying assumptions can materially affect the fair value estimates and, therefore, existing models do not necessarily provide reliable measurement of the fair value of the Company's stock options and performance warrants.

<u>*Deferred income taxes*</u>

The determination of income tax expense and the composition of deferred income tax assets and liabilities involves judgment and estimates as to the future taxable earnings, expected timing of reversals of deferred income tax assets and liabilities, and interpretations of tax laws. The Company is subject to assessments by tax authorities who may interpret the tax law differently. Changes in these interpretations, judgments, and estimates may materially affect the final amount of current and deferred income tax provisions, deferred income tax assets and liabilities, and results of operations.

<u>*Going concern presentation*</u>

The consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The assessment of the Company's ability to source future operations and continue as a going concern involves judgement. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. If the going concern assumption is not appropriate for the financial statements, then adjustments would be necessary in the carrying value of the assets and liabilities, the reported revenue and the expenses and the statement of financial position classifications used.

**FINANCIAL INSTRUMENTS AND RISK MANAGEMENT**

**Fair Values**

The following provides a description of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

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|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

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Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at March 31, 2025 and December 31, 2024 as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair value measurements using | Fair value measurements using | Fair value measurements using |  |
|  | Quoted prices in<br>active markets<br>for identical<br>instruments<br>(Level 1)<br>$| Significant other<br>observable<br>inputs<br>(Level 2)<br>$| Significant<br>unobservable<br>inputs<br>(Level 3)<br>$| <br>Balance,<br>March 31, 2025<br>and December<br>31, 2024<br>$|
| Investments | - | - | 77229 | 77229 |

---

The fair values of the Company's other financial instruments, which include cash, other receivables, accounts payable and accrued liabilities, and due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

**Credit Risk**

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit loss by placing its cash and cash equivalents with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

**Foreign Exchange Rate Risk**

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency.

The following tables indicate the impact of foreign currency exchange risk on net working capital as at March 31, 2025 and December 31, 2024. The tables below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the tables below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as at March 31, 2025 and December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| As at March 31, 2025 | TWD | HK$ | AU$ | US$ |
| Cash | 529096 |  |  | 103385 |
| Other receivables (except GST) |  |  |  | 117390 |
| Accounts payable and accrued liabilities | (78842) | (320000) | (44818) | (238537) |
| Total foreign currency financial assets and liabilities | 450254 | (320000) | (44818) | (17762) |
| Impact of a 10% strengthening or weakening of foreign exchange rate | 45025 | (32000) | (4482) | (1776) |

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|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

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| | | |
|:---|:---|:---|
| 2024 | TWD | US$ |
| Cash | 82993 | (1249) |
| Other receivables (except GST) |  | 106489 |
| Accounts payable and accrued liabilities | (6337488) | (237069) |
| Total foreign currency financial assets and liabilities | (6254495) | (131829) |
| Impact of a 10% strengthening or weakening of foreign exchange rate | (625450) | (13183) |

---

**Interest Rate Risk**

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

**Liquidity Risk**

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner. Refer to going concern disclosure under Liquidity and Capital Resources.

The following amounts are the contractual maturities of financial liabilities as at March 31, 2025 and December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
| As at March 31, 2025<br>| Total<br>$| Within<br>1 year<br>$| Within<br>2-5 years<br>$|
| Accounts payable and accrued liabilities | 1494671 | 1494671 |  |
| Due to related parties | 27148 | 27148 |  |
|  | 1521819 | 1521819 | - |

---

---

| | | | |
|:---|:---|:---|:---|
| As at December 31, 2024<br>| Total<br>$| Within<br>1 year<br>$| Within<br>2-5 years<br>$|
| Accounts payable and accrued liabilities | 1357502 | 1357502 |  |
| Due to related parties | 27172 | 27172 |  |
|  | 1384674 | 1384674 | - |

---

**DISCLOSURE OF OUTSTANDING SHARE DATA**

The authorized capital of the Company consists of an unlimited number of common shares without par value.

As of the date of this report, the Company had 132,441,625 common shares, 167,785 share purchase warrants outstanding, 3,865,000 stock options outstanding and 2,072,500 RSUs outstanding.

------

---

| |
|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

---

**DISCLOSURE CONTROLS AND PROCEDURES** 

The CEO and the CFO have designed, or caused to be designed under their supervision, the Company's disclosure controls and procedures ("DCP") to provide reasonable assurance that material information relating to the Company and its consolidated subsidiaries has been recorded, processed, summarized and disclosed in a timely manner in accordance with regulatory requirements and good business practices and that the Company's DCP will enable the Company to meet its ongoing disclosure requirements.

The CEO and CFO have evaluated the effectiveness of the Company's disclosure controls and procedures and have concluded that based on this evaluation, our disclosure controls and procedures are effective.

**INTERNAL CONTROL OVER FINANCIAL REPORTING**

The CEO and the CFO have designed, or caused to be designed under their supervision, the Company's internal controls over financial reporting ("ICFR") in order to provide reasonable assurance regarding the reliability of the Company's financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.

A material weakness is a control deficiency, or combination of control deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement in the annual or interim financial statements will not be prevented or detected on a timely basis.

The CEO and CFO conducted an evaluation the effectiveness of the Company's ICFR as at March 31, 2025 based on *Internal Control-Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") for the Company as a whole. Based on this evaluation, management concluded that no material weaknesses existed as at March 31, 2025.

**LIMITATION OF CONTROLS AND PROCEDURES**

The Company's management, including its CEO and CFO, believe that any DCP and ICFR, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override to the control. The design of any control system also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any control system will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost effective, control system, misstatements due to error or fraud may occur and not be detected.

**CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING**

There have been no changes to our internal control over financial reporting for the three months ended March 31, 2025, that could have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

------

---

| |
|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

---

**RISK FACTORS**

The following is a summary of certain risk factors relating to the business. The risks presented below should not be considered exhaustive and may not be all of that the Company may face.

***General Risks***

*The Company has a limited operating history*

The Company has a limited history of operations and is in the early stage of development. As such, the Company will be subject to many risks common to early-stage enterprises, including undercapitalization, cash shortages, limitations with respect to personnel, financial and other resources, and limited revenue. There is no assurance that the Company will achieve its operating goals. There is no assurance that the Company will be successful in achieving a return on shareholders' investment and the likelihood of success must be considered in light of its early stage of operations. There can be no assurance that the Company will be able to earn material revenue or that any of its activities will generate positive cash flow.

*The Company is subject to competition from other post-quantum encryption companies*

The Company will compete with other post-quantum cryptography and technology businesses, including other businesses focused on applying post-quantum cryptography to blockchain.

*The Company's compliance and risk management programs may not be effective* 

The Company's ability to comply with applicable laws and rules will be largely dependent on the establishment and maintenance of compliance, review, and reporting systems, as well as the ability to attract and retain qualified compliance and other risk-management personnel, as needed. The Company cannot provide any assurance that its compliance policies and procedures will be effective or that it will be successful in monitoring or evaluating its risks. If there is any alleged non-compliance with applicable laws or regulations, The Company could be subject to investigations and judicial or administrative proceedings that may result in substantial penalties or civil lawsuits for damages, restitution or other remedies, which could be significant. Any of these outcomes, individually or together, may materially and adversely affect the Company's reputation, financial condition and valuation, and the value of its shares.

*Unexpected market disruptions may cause major losses for the Company*

The Company may incur major losses in the event of disrupted markets and other extraordinary events in which market behavior diverges significantly from historically recognized patterns. The risk of loss in such events may be compounded by the fact that, in disrupted markets, many positions may become illiquid, making it difficult or impossible to close out positions against which markets are moving. Market disruptions caused by unexpected political, military and terrorist events, or other factors, may from time to time cause dramatic losses for the Company.

*The Company will be reliant on attracting and retaining skilled management and directors*

The success of the Company will, in part, be dependent upon the skill, judgment, industry relationships and expertise of the Board and management. The loss of a director or key management personnel may materially and adversely affect the business of the Company. There can be no assurance that these individuals will continue to be employed by, or remain involved with, the Company for a particular period of time.

------

---

| |
|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

---

*Market risk for securities* 

There can be no assurance that an active trading market for the Company's shares will be sustained. The market price for the Company's Shares may be subject to wide fluctuations. Factors such as government regulation, price fluctuations, share price movements of peer companies and competitors, as well as overall market movements, may have a significant impact on the market price of the Company's securities. The stock market has from time to time experienced extreme price and volume fluctuations, which have often been unrelated to the operating performance of particular companies. Market forces may render it difficult or impossible for the Company to secure purchasers to purchase its securities at a price which will not lead to severe dilution to existing shareholders, or at all. In addition, shareholders may realize less than the original amount invested on dispositions of their shares during periods of such market price decline.

*Foreign exchange risk*

The Company is a Canadian company, and most of its expenses and fundraising is done in Canadian dollars, however, its operations are predominantly denominated in U.S. dollars and Taiwan dollars. As a result, the Company is subject to foreign exchange risks relating to the relative value of the U.S. dollar and Taiwan dollar as compared to the Canadian dollar. A decline in the U.S. dollar or Taiwan dollar could result in a decrease in the real value of the Company's revenues and adversely impact financial performance.

*Tax* 

No assurance can be given that new taxation rules will not be enacted or existing rules will not be applied in a manner which could result in the Company being subject to additional taxation or which could otherwise have a material adverse effect on the Company's results from operations and financial condition.

*The Company may be subject to litigation*

The Company may be subject to litigation arising out of, or related to, its operations. Damages claimed under such litigation may be material, and the outcome of such litigation may materially impact the Company's operations and the value of its shares. While the Company expects to assess the merits of any lawsuits and defend such lawsuits accordingly, it may be required to incur significant expense or devote significant financial resources to such defenses. In addition, the adverse publicity surrounding such claims may have a material adverse effect on the Company's operations.

*Investment Risk* 

There is no assurance that the Company will achieve its investment objective. An investment may not earn any positive return and may result in the loss of some or all of the capital invested.

*Ability to generate profits*

There can be no assurance that the Company will generate net profits in future periods. Further, there can be no assurance that the Company will be cash flow positive in future periods. In the event that the Company fails to achieve profitability in future periods, the value of the Company's shares may decline. In addition, if the Company is unable to achieve or maintain positive cash flows, the Company would be required to seek additional funding, which may not be available on favorable terms, if at all.

*Management of growth*

The Company has recently experienced, and may continue to experience, growth in the scope of its operations. This growth has resulted in increased responsibilities for the Company's existing personnel, the hiring of additional personnel and, in general, higher levels of operating expenses. In order to manage its current operations and any future growth effectively, the Company will need to continue to implement and improve its operational, financial and management information systems, as well as hire, manage and retain its employees and maintain its corporate culture including technical and customer service standards. There can be no assurance that the Resulting Issuer will be able to manage such growth effectively or that its management, personnel or systems will be adequate to support the Company's operations.

------

---

| |
|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

---

*Reliance on key personnel*

The Company's future growth and its ability to develop depend, to a significant extent, on its ability to attract and retain highly qualified personnel. The Company will rely on a limited number of key employees, consultants and members of senior management and there is no assurance that the Company will be able to retain such key employees, consultants and senior management. The loss of one or more of such key employees, consultants or members of senior management, if not replaced, could have a material adverse effect on the Company's business, financial condition and prospects.

*The Company has no immediate plans to pay regular dividends on the Company, so shareholders of the Company may not receive funds without selling their Company Shares.*

The Company does not currently have plans to pay regular dividends on Company Shares. Any declaration and payment of future dividends to holders of Company Shares will be at the sole discretion of the Board and will depend on many factors, including the financial condition, earnings, capital requirements, level of indebtedness, statutory and contractual restrictions applying to the payment of dividends and other considerations of the Company that the Company's Board deems relevant.

***Business and Industry Risks***

*Regulatory changes or actions may alter the nature of an investment in the Company or restrict the use of digital assets in a manner that adversely affects the Company's operations*

Due to their global nature, blockchain-related technologies and encryption-related technologies are subject to regulatory fragmentation due to different treatment depending on jurisdiction. Certain governments have categorized certain blockchain technologies as illegal, while others have embraced their utility and have approved them for trade. Ongoing and/or future regulatory actions may have a substantial impact on the Company's business operations.

*The Company relies upon the use of internally/externally built proprietary software, data and intellectual property that may be subject to substantial risk*

The Company's liquidity contribution strategy is dependent on internally and externally developed software, data and intellectual property. Its operations may be severely and adversely affected by the malfunction of technology.

*Banks may not provide banking services, or may cut-off banking services, to businesses that provide services related to blockchain-based technologies*

A number of companies that provide blockchain-related services have been unable to find banks that are willing to provide them with bank accounts and banking services. Similarly, a number of such companies have had their existing bank accounts closed by their banks. Banks may refuse to provide bank accounts and other banking services to blockchain-related companies, or companies that accept digital assets, for a number of reasons, such as perceived compliance risks or costs.

------

---

| |
|:---|
| ![](exhibit99-71x001.jpg) |
| **MANAGEMENT'S DISCUSSION AND ANALYSIS**<br> **FOR THE QUARTER ENDED MARCH 31, 2025** |

---

*The Company may be unable to obtain adequate insurance to insure its operations*

The Company intends to insure its operations in accordance with technology industry practice. However, given the novelty of digital assets and associated businesses, such insurance may not be available, may

be uneconomical for the Company, or the nature or level may be insufficient to provide adequate insurance cover. The occurrence of an event that is not covered or fully covered by insurance could have a material adverse effect on the Company.

*The business of the Company will be exposed to cybersecurity risks*

Cyber incidents can result from deliberate attacks or unintentional events, and may arise from internal sources (e.g., employees, contractors, service providers, suppliers and operational risks) or external sources (e.g., nation states, terrorists, hacktivists, competitors and acts of nature). Cyber incidents include unauthorized access to information systems and data (e.g., through hacking or malicious software) for purposes of misappropriating or corrupting data or causing operational disruption. Cyber incidents also may be caused in a manner that does not require unauthorized access, such as causing denial-of-service attacks on websites (e.g., efforts to make network services unavailable to intended users). A cyber incident that affects the Company might cause disruptions and adversely affect its business operations, and might also result in violations of applicable law (e.g., personal information protection laws), each of which might result in potentially significant financial losses and liabilities, regulatory fines and penalties, reputational harm, and reimbursement and other compensation costs. In addition, substantial costs might be incurred to investigate, remediate and prevent cyber incidents.

**FORWARD-LOOKING STATEMENTS**

*This MD&A includes certain statements that may be deemed "forward-looking statements" concerning the future performance of the Company's business, its operations, its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All statements in this report that do not directly and exclusively relate to historical facts, constitute forward- looking statements. These statements represent the Company's intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements. The Company disclaims any intention or obligation to update or revise such forward-looking statements, as a result of new information, future events or otherwise. Factors that may cause actual results to vary from forward looking statements include, but are not limited to, the Company's ability to access capital, competitive risks and reliance on key personnel, as described in more detail in this document under "Risk Factors". Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.*

------

## Exhibit 99.72

------

**Form 52-109F2**

***Certification of Interim Filings***

***Full Certificate***

I, Lonny Wong, Chief Financial Officer of BTQ Technologies Corp., certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A, (together, the "interim filings") of BTQ Technologies Corp. (the "issuer") for the interim period ended March 31, 2025.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. ***Responsibility:*** The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the end of the period covered by the interim filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework.

------

5.2 N/A

<br>5.3 N/A

6. ***Reporting changes in ICFR:*** The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on January 1, 2025 and ended on March 31, 2025 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: May 15, 2025

(signed) "Lonny Wong"

______________________________

Lonny Wong

Chief Financial Officer

------

## Exhibit 99.73

------

**Form 52-109F2**

***Certification of Interim Filings***

***Full Certificate***

I, Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies Corp., certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A, (together, the "interim filings") of BTQ Technologies Corp. (the "issuer") for the interim period ended March 31, 2025.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. ***Responsibility:*** The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings*, for the issuer.

5. ***Design:*** Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the end of the period covered by the interim filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 ***Control framework:*** The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework.

------

5.2 N/A

<br>5.3 N/A

6. ***Reporting changes in ICFR:*** The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on January 1, 2025 and ended on March 31, 2025 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: May 15, 2025

(signed) "Olivier Roussy Newton

______________________________

Olivier Roussy Newton

Chief Executive Officer

------

## Exhibit 99.74

------

![](exhibit99-74x001.jpg)

**BTQ Technologies Unveils Breakthrough Performance of** **CASH Architecture, Paving the Way for the Future of** **Quantum-Secure Devices**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **BTQ's CASH architecture delivers industry-leading cryptographic performance**, processing up to 1 million digital signatures per second and executing encryption tasks up to 5x faster than competing solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **CASH is compact, energy-efficient, and post-quantum ready**, supporting both today's standard encryption and next-generation quantum-safe algorithms in a single, integrated system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **With applications across payments, IoT, identity, and telecom**, CASH positions BTQ Technologies at the forefront of securing global infrastructure against emerging quantum threats.

**Vancouver, British Columbia, June 2, 2025 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce new performance benchmarks for its proprietary **CASH** (*Cryptographically Agile Secure Hardware*) architecture-demonstrating world-class speed, energy efficiency, and readiness for mass-market adoption in the era of quantum-secure technology.

CASH is a **revolutionary cryptographic architecture** that brings together the core elements of secure hardware-memory, encryption, and digital signatures-into a unified, compact, and energy-efficient system. It's designed to protect digital devices and systems from both today's cyber threats and the rapidly approaching risks posed by quantum computing.

![](exhibit99-74x003.jpg)

------

![](exhibit99-74x001.jpg)

**Performance That Sets a New Standard**

Recent performance tests of the CASH architecture reveal significant advantages over traditional solutions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Up to 5x faster** encryption processing (AES) compared to leading secure hardware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **1 million digital signatures per second**, making it ideal for real-time verification and authentication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Ultra-low power consumption**-less than a microjoule per cryptographic operation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Compact design**, enabling integration into constrained environments like smart cards, IoT devices, and hardware wallets.

![](exhibit99-74xu001.jpg)

"CASH is built for the future-faster, leaner, and capable of securing the world's data in a post-quantum world," said Olivier Roussy Newton, CEO of BTQ Technologies. "We've proven that top-tier cryptographic performance can be delivered in an architecture compact and efficient enough for widespread deployment."

The rise of quantum computing poses a real and growing threat to traditional encryption. Enterprises and governments are already seeking quantum-resilient solutions-and BTQ's CASH architecture is engineered to meet this demand.

CASH supports both today's widely used cryptographic standards (like AES and RSA) and next- generation post-quantum algorithms (such as those shortlisted by NIST). This dual capability makes it an ideal foundation for modern secure systems that need to operate safely both now and in the quantum future.

------

![](exhibit99-74x001.jpg)

**Unlocking Market Opportunities**

CASH's performance opens new doors for BTQ Technologies across industries where security, speed, and efficiency are critical, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Financial services and payments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Telecom and 5G infrastructure

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Healthcare and identity authentication

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● IoT and embedded devices

As global interest in quantum-safe infrastructure accelerates, BTQ's innovations position it as a leader in one of the most critical technology transitions of our time.

![](exhibit99-74x005.jpg)

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

------

![](exhibit99-74x001.jpg)

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

<u>E:</u> <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward- looking information, except in accordance with applicable securities laws.*

------

![](exhibit99-74x002.jpg)

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## Exhibit 99.75

------

![](exhibit99-75x001.jpg)

**BTQ Technologies Signs MOU with Quandela to Advance** **Quantum Proof-of-Work Protocols**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **BTQ and Quandela MOU:** BTQ Technologies and Quandela have signed a Memorandum of Understanding (MOU) to jointly explore how photonic quantum computing can advance energy-efficient blockchain validation through BTQ's Quantum

Sampling Proof-of-Work (QSPoW) protocol.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Future Proofing Bitcoin:** QSPoW is a Bitcoin-inspired quantum-secure and energy- efficient alternative to traditional PoW mining, aimed at preserving the integrity of the world's largest digital asset in the face of advancing quantum threats.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Quantum Meets Blockchain:** The collaboration focuses on leveraging Quandela's real and simulated boson-sampling data to test QSPoW's performance, with the goal of reducing the computational and energy demands of traditional Proof-of-Work systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Path to Commercialization:** If performance benchmarks are met, the companies will explore commercialization opportunities, including the potential integration of Quandela's Belenos quantum processor into future quantum-secure blockchain systems.

**Vancouver, British Columbia, May 22, 2025 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce the signing of a Memorandum of Understanding (MOU) with Quandela SAS ("Quandela"), a pioneering French quantum computing company renowned for its NISQ-era photonic quantum computing platform.

This collaboration marks a strategic step forward in evaluating how emerging quantum technologies can enhance blockchain systems. The partnership will center on BTQ's Quantum Sampling Proof-of-Work (QSPoW) protocol-a novel approach to blockchain validation that aims to significantly reduce energy usage while strengthening cryptographic security.

Under the MOU, BTQ and Quandela will jointly explore several strategic areas. These include investigating real-world use cases for Quandela's photonic quantum computing platform, working together on the use of Quandela's boson-sampling technology-both simulated and real-through its Perceval cloud platform, and analyzing how this data performs in BTQ's Quantum Sampling Proof-of-Work (QSPoW) testnet. Based on the outcomes of this analysis, the two companies will also evaluate potential pathways for commercialization.

Proof-of-Work (PoW) systems-like those used by Bitcoin-rely on massive computing power to validate transactions. BTQ's QSPoW replaces this with boson sampling, a quantum process where light particles (photons) pass through an optical network to generate hard-to-predict outcomes. These outcomes can serve as a quantum secure and energy-efficient alternative to traditional PoW, and because this problem is hard to solve on non-quantum computers, the protocol is resistant to power hungry ASIC devices. QSPoW also creates a path towards creating a quantum-safe store of value by incorporating properties of quantum mechanics into the PoW consensus algorithm, ensuring no quantum adversary will be able to control the network. This approach directly addresses the growing threat quantum technologies pose to digital assets like Bitcoin, a concern recently highlighted in BlackRock's amendment to its risk disclosure in its S-1 filing.

------

![](exhibit99-75x002.jpg)

*"While various actors in the Bitcoin community are taking steps to enable the uses of cryptographic algorithms that would be resistant to advanced quantum computers, there is no guarantee that new quantum-proof architectures will be built and appropriate transitions will be implemented across the network at scale in a timely manner; any such changes could require the achievement of broad consensus within the Bitcoin network community and a fork (or multiple forks), and there can be no assurance that such consensus would be achieved or the changes implemented successfully." - BlackRock, Inc. (2025). S-1 Registration Statement: iShares® Bitcoin Trust ETF. SEC.gov.* <u>https://www.sec.gov/Archives/edgar/data/1980994/000143774925015853/bit20250418_posam. htm</u>

As quantum computers become more powerful, the security of Bitcoin comes under increasing threat. Today, Bitcoin relies on traditional cryptographic frameworks and Proof-of-Work to keep the network secure-approaches that future quantum machines may be able to break. BTQ's Quantum Sampling Proof-of-Work (QSPoW) is being developed as a next-generation solution that could help protect Bitcoin from these emerging risks, while also using far less energy than current mining methods.

As part of the collaboration, Quandela will deliver datasets tailored to BTQ's technical requirements, which will include both simulated quantum data and experimental results where feasible. BTQ will use this data to conduct tests on its QSPoW testnet and will share its performance analysis with Quandela. Together, the two companies will also explore techniques to reduce errors in quantum processes and will assess how Quandela's Belenos quantum processor could be integrated into future versions of the QSPoW protocol.

"This MOU reflects our shared ambition to advance real-world applications for quantum hardware and software," said Olivier Roussy Newton, CEO of BTQ Technologies. "We're excited to work with Quandela to rigorously test our QSPoW protocol and set the foundation for a new generation of blockchain security."

Niccolo Somaschi, CEO of Quandela, added: "Partnering with BTQ highlights the versatility and promise of our photonic quantum platform. This collaboration is a great opportunity to demonstrate how quantum technologies can be used for emerging cryptographic protocols."

The MOU outlines a framework for ongoing cooperation, information sharing, and public announcements of any meaningful scientific or commercial outcomes.

**About Quandela**<br> Founded in 2017, Quandela is a world leader in full-stack photonic quantum computing developing and commercializing quantum computers and software solutions. The quantum computing systems integrate a dedicated software stack to connect to high-performance computing centres and cloud platforms, to access a range of industrial applications, including energy, cybersecurity, and finance, showcasing the versatility of our unique technology. Featuring a modular, scalable, upgradeable, and energy efficient architecture, Quandela's mission is to deliver the first useful quantum computer to drive the quantum transformation to industry and society. For more information please visit <u>https://www.quandela.com/</u>

------

![](exhibit99-75x003.jpg)

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

<u>E:</u> <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

------

![](exhibit99-75x004.jpg)

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward- looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.76

------

![](exhibit99-76x1x1.jpg)

**BTQ Technologies Appointed Chair of Global Quantum** **Communications Standards Group as Its Quantum Proof-of-** **Work Protocol Becomes Official QuINSA Initiative**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● BTQ Appointed Chair of Global Standards Group: BTQ has been named Chair of**

QuINSA's Quantum Communications Working Group, providing direct influence over the global standards shaping quantum-secure communications and blockchain infrastructure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **QPoW Officially Adopted:** BTQ's proprietary Quantum Proof-of-Work (QPoW) protocol was formally adopted as a key QuINSA initiative, reinforcing BTQ's leadership in developing quantum-secure blockchain solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **First-Mover Advantage in Quantum Security:** As governments and industries accelerate quantum adoption, BTQ's leadership role within QuINSA positions the company to shape global standards, expand its competitive moat, and create long-term shareholder value.

**Vancouver, British Columbia, June 27, 2025 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce that it has been appointed Chair of the newly formed Quantum Communications Working Group under QuINSA (Quantum Information Science and Technology Standardization Alliance). This appointment solidifies BTQ's leadership in the global effort to set the foundational standards for quantum-secure communications and blockchain systems.

QuINSA, launched in 2024, is the world's first private consortium dedicated to establishing industry-driven, de facto standards across quantum computing, communication, and sensing. The inaugural General Assembly, held this week in Seoul, brought together more than 100 experts from 17 countries, representing government, academia, and leading quantum technology firms.

BTQ was formally recognized as a founding member of QuINSA and achieved a significant milestone with the official adoption of its proprietary Quantum Proof-of-Work (QPoW) protocol as a key initiative within the Quantum Communications Coordination Group. QPoW introduces a quantum-secure mechanism for blockchain consensus, designed to future-proof digital infrastructure as quantum capabilities evolve.

**Leadership and First-Mover Advantage**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Global Standards Influence:** BTQ's appointment as Chair provides direct influence over the technical frameworks and protocols expected to underpin quantum communications and blockchain security worldwide - positioning the company at the forefront of an industry set to reshape global cybersecurity.

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![](exhibit99-76x2x1.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Validation of Proprietary Technology:** The endorsement of BTQ's QPoW as an official

QuINSA initiative demonstrates both technical credibility and market relevance, strengthening BTQ's competitive moat in the emerging quantum security landscape.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Strategic Alignment with Global Policy:** With governments and industries accelerating quantum strategies - including Korea's Quantum Science and Technology Industry Act and new U.S. and EU standards - BTQ is aligned to benefit from the push toward interoperable, secure quantum infrastructure.

"Quantum security is no longer a distant concept - it's a strategic priority for nations, industries, and investors," said Olivier Roussy Newton, CEO of BTQ Technologies. "Our leadership role within QuINSA, combined with the adoption of our Quantum Proof-of-Work protocol, underscores BTQ's position as a key architect of the quantum-secure future. We are committed to translating this influence into long-term value for our shareholders."

The General Assembly also featured participation from leading global entities such as SK Telecom, KT, LG Electronics, LIG Nex1, and senior representatives from the U.S., EU, Japan, and Korea. Key discussions focused on accelerating the standardization of quantum communication protocols, quantum-safe networks, and resilient digital infrastructure.

As quantum technologies move beyond research and into commercial application, BTQ is uniquely positioned to capitalize on this inflection point by shaping the global standards that will govern next-generation cybersecurity, digital identity, and blockchain infrastructure.

**About QuINSA**

As nations around the world strive to unlock the transformative potential of quantum computing, communication, and sensing, the need for harmonized, practical, and industry-driven standards has never been more urgent. QuINSA was founded to meet this demand-by bringing together experts from industry, academia, and government to identify priority areas for de facto standardization and to develop frameworks that enable global interoperability.

At QuINSA, we promote the discovery of emerging standardization needs, facilitate expert engagement, and support testing and certification that reflect real-world applications. We believe that open collaboration, mutual recognition, and inclusive participation are vital to building a resilient and trusted global quantum ecosystem.

Our mission is to serve as a neutral and reliable platform for stakeholders worldwide, shaping practical and widely accepted standards across the quantum landscape. For more information **please visit** **<u>https://www.quinsa-standards.org/niabbs5/</u>**

**About BTQ**

BTQ Technologies Corp. (Cboe CA: BTQ \| FSE: NG3 \| OTCQX: BTQQF) is a vertically integrated quantum company accelerating the transition from classical networks to the quantum internet.

------

![](exhibit99-76x3x1.jpg)

Backed by a broad patent portfolio, BTQ pioneered the industry's first commercially significant quantum advantage and now delivers a full-stack, neutral-atom quantum computing platform with end-to-end hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u> \| <u>X/Twitter</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

<u>E:</u> <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

------

![](exhibit99-76x4x1.jpg)

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward- looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.77

------

![](exhibit99-77x1x1.jpg)

**BTQ Technologies Unveils Quantum Stablecoin Settlement** **Network (QSSN)**

**Demonstrates How Quantum-Secure Stablecoin Models for JPMorgan, Tether,** **Circle, and Others Enter The Quantum future**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Quantum-Safe Stablecoin Infrastructure:** BTQ unveils the Quantum Stablecoin Settlement Network (QSSN), a next-generation framework in development to help banks, payment providers, and digital asset platforms issue and manage stablecoins with built-in protection against quantum-era cybersecurity threats.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Demonstration of JPMorgan Use Case:** BTQ demonstrates how QSSN could enable a quantum-secure version of JPMorgan's proposed USD deposit token (JPMD), allowing privileged minting, burning, and administrative controls to meet U.S. federal quantum- resilience mandates without altering existing token standards or user workflows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Market Opportunity and BTQ Positioning:** With global stablecoin adoption surpassing $225 billion and regulatory timelines accelerating for quantum-proof financial infrastructure, QSSN positions BTQ as a critical technology provider for secure, scalable stablecoin and tokenized asset markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Policy Leadership:** With the GENIUS Act advancing toward federal approval, digitized money is poised to become a formal part of the financial system. BTQ will leverage its decade of collaboration with NIST to propose technical standards that ensure stablecoins and digital currencies are quantum-secure by design and mandated by law.

**Vancouver, British Columbia, June 24, 2025 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to introduce the Quantum Stablecoin Settlement Network (QSSN), a next-generation framework designed to protect stablecoin platforms from emerging cybersecurity risks driven by quantum computing.

QSSN will provide banks, payment companies, and digital asset platforms with the tools to issue and manage stablecoins in alignment with evolving regulatory and national security standards. The framework is designed to support a broad range of stablecoin models, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● JPMorgan Chase's proposed USD deposit token (JPMD)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Leading fiat-backed stablecoins like Circle and Tether USD

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Regulated, bank-issued stablecoins such as the forthcoming Fire Labs Stablecoin, which has commenced to power wallets in Kraken and <u>Blockchain.com</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Real-world asset tokens and other next-generation digital payment products

------

![](exhibit99-77x2x1.jpg)

**Supporting the Next Phase of Stablecoin Market Growth**

The stablecoin sector has rapidly expanded into a $225 billion market, with growing institutional demand, real-world applications, and regulatory clarity accelerating adoption. As stablecoins become more embedded in global financial infrastructure, governments and regulators are introducing new requirements to ensure their long-term security, particularly in response to the growing capabilities of quantum computing, which threaten to undermine legacy encryption systems.

In the U.S., recent federal mandates call for quantum-safe technology across critical infrastructure, including digital assets and tokenized financial products. BTQ's QSSN is designed to help stablecoin issuers meet these requirements by adding a secure, future-proof layer to the most sensitive aspects of stablecoin platforms, without changing how businesses, institutions, or users interact with these digital currencies.

**Demonstrating a Quantum-Secure JPMorgan Stablecoin**

BTQ's QSSN provides a clear pathway to future-proof the proposed JPMorgan Chase USD deposit token (JPMD) in line with U.S. federal cybersecurity standards. Recent policies, including National Security Memorandum-10 and the NSA's Commercial National Security Algorithm Suite 2.0, require critical financial systems to migrate to quantum-resistant cryptography before 2030, with many standards already in effect.

BTQ's solution would allow JPMorgan-or any issuer of tokenized deposits-to secure their stablecoin platform by upgrading only the core functions used by the bank's treasury or designated operator, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Minting and burning tokens

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Administrative controls, such as pauses or upgrades

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Initial contract deployment

Using BTQ's proprietary CASH hardware and QSSN framework, these privileged transactions will be cryptographically signed with both standard ECDSA keys and quantum-safe Falcon-512 signatures. This allows for compliance with emerging quantum security mandates while preserving all existing token logic, KYC processes, allow-list requirements, and user workflows.

The broader stablecoin ecosystem remains unchanged, meaning:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Institutional and retail holders interact with the token as they do today

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Existing wallets, reconciliation processes, and regulatory reporting remain intact

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Only the issuer's authentication path adopts quantum-safe protections

This approach offers improved security with reduced disruption, which will allow major financial institutions to comply with U.S. quantum-resilience policies without overhauling their operational infrastructure.

------

![](exhibit99-77x2x1.jpg)

![](exhibit99-77xu001.jpg)

**A Market-Ready, Scalable Solution**

The QSSN framework will enhance security for core stablecoin functions while maintaining full compatibility with existing payment systems and compliance processes. It will enable seamless adoption for both new and existing stablecoin issuers, positioning BTQ as a critical technology provider for secure, scalable digital finance.

*"The growth of stablecoins is reshaping global payments and financial markets, but these platforms must be built on secure foundations," said Olivier Roussy Newton, CEO and Chairman of BTQ Technologies. "QSSN positions BTQ at the forefront of this transformation, will enable banks, institutions, and innovators to meet emerging regulatory expectations for quantum security, without disrupting user experience or market functionality."*

*Roussy Newton added: "Quantum technologies will be first and foremost widely deployed in digital currencies-and BTQ is positioned to lead the market."*

**Capitalizing on Market Growth and Regulatory Tailwinds**

Stablecoins have become a critical part of the digital asset economy, powering real-world asset tokenization, payments, cross-border settlement, and yield-generating financial products. At the same time, governments are accelerating timelines for quantum-proofing national infrastructure, presenting both a challenge and a significant market opportunity for technology providers.

In the United States, the pending GENIUS Act-a bipartisan bill advancing through Congress- seeks to establish comprehensive federal guidelines for fiat-backed stablecoins, further reinforcing the need for secure, compliant, and resilient digital currency infrastructure. With the introduction of the GENIUS Act and its anticipated approval, there will come a time-sooner rather than later-when digitized money becomes mandated by law.

------

![](exhibit99-77x4x1.jpg)

BTQ, having collaborated with NIST and other standards bodies for over a decade, is committed to shaping that future. The Company intends to actively propose technical legislation and standards to ensure that digital currencies, including stablecoins, are built on quantum-secure foundations.

With QSSN, BTQ will offer a scalable, revenue-generating platform to support secure stablecoin issuance and management, enabling banks, payment providers, and digital asset companies to confidently meet both market demand and regulatory expectations in the years ahead.

For more information about QSSN please visit <u>https://www.qssn.money/</u>.

Blog: <u>Future-Proofing</u> <u>Stablecoins: How BTQ's QSSN Secures Digital Money for the Quantum Era</u>

**About BTQ**

BTQ Technologies Corp. (Cboe CA: BTQ \| FSE: NG3 \| OTCQX: BTQQF) is a vertically integrated quantum company accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio, BTQ pioneered the industry's first commercially significant quantum advantage and now delivers a full-stack, neutral-atom quantum computing platform with end-to-end hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u> \| <u>X/Twitter</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

<u>E:</u> <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to: the business plans of the Company, the development of the QSSN; the QSSN enabling a quantum-secure version of JPMorgan's proposed USD deposit coin, Tether, Circle and others and the results therefrom; the QSSN positioning BTQ as a critical technology provide for secure, scalable stablecoin and tokenized asset markets; BTQ's ability to secure mission-critical networks; the QSSN providing banks, payment companies, and digital assets with tools to issue and manage stable coins in alignment with evolving regulatory and national security standards; the QSSN's ability to support stablecoins models; Fire Labs Stablecoin and its powering of wallets in Kraken and Blockchain.com; stablecoins becoming more embedded in global financial infrastructure; governments and regulators introducing new requirements to ensure their long-term security; the growing capabilities of quantum computing; the QSSN adding a secure, future-proof layer to the most sensitive aspect of stablecoin platforms without changing how business, institutions, or users interact with these digital currencies; the upgrades an issuer of tokenized deposited would be required to make to utilize the QSSN and secure their stablecoin platform; the cryptographical signature mechanics of certain privileged transactions using BTQ's proprietary CASH hardware and the QSSN framework and its ability to allow for compliance with emerging quantum security mandates while preserving certain characteristics and processes; BTQ's proprietary CASH hardware and the QSSN frameworks ability to allow major financial institutions to comply with U.S. quantum-resilience policies without overhauling their operational infrastructure or disrupting user experience of market functionality; the QSSN enhancing security for core stablecoin functions while maintaining full compatibility with existing payment systems and compliance processes; the QSSN framework enabling seamless adoption for both new and existing stablecoin issuers; quantum technologies being deploying in digital currencies; governments accelerating timelines for quantum-proofing national infrastructure; and BTQ offering, through the QSSN, a scalable, revenue-generating platform which supports secure stablecoin issuance and management. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "will", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

------

![](exhibit99-77x5x1.jpg)

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions; the development of post-quantum algorithms and quantum vulnerabilities; the successful development and commercialization of the QSSN; and the future of stablecoins, the QSSN, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post- quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post- quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

------

![](exhibit99-77x6x1.jpg)

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## Exhibit 99.78

------

![](exhibit99-78x1x1.jpg)

**BTQ Technologies and ICTK Sign Memorandum of Understanding to Advance Quantum-Secure Hardware Solutions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **BTQ Technologies and ICTK Sign MOU**: The companies will explore joint development of quantum-secure hardware solutions, combining BTQ's cryptographic expertise with ICTK's secure chip technologies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Focus Areas Include Cold Wallets and Embedded Security**: Collaboration will assess the co-creation of secure cold wallets, integration of BTQ's CASH architecture, and applications in digital identity and IoT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Strengthening Hardware Against Quantum Threats**: By combining post-quantum cryptography with hardware-based protections like PUF, the partnership aims to deliver advanced security for devices in a post-quantum world.

**Vancouver, British Columbia, May 27, 2025 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce the signing of a Memorandum of Understanding (MOU) with ICTK Co., Ltd. ("ICTK"), a South Korea-based pioneer in hardware- level security technologies. Through this strategic collaboration, the two companies will explore the joint development of next-generation hardware systems designed to be secure in the age of quantum computing.

The agreement outlines plans to explore cold wallet and embedded device security solutions that bring together BTQ's deep expertise in post-quantum cryptography (PQC) with ICTK's experience in secure chip technologies, including Physical Unclonable Functions (PUF) and PQC integration at the hardware level.

**Strengthening the Future of Device Security**

The collaboration will focus on combining complementary strengths in cryptography and hardware design, centered around three key areas of innovation:

**Post-Quantum Cryptography(PQC)**

As quantum computing advances, many of today's encryption methods will become vulnerable. PQC is a new class of cryptographic algorithms designed to remain secure even against quantum- level attacks. BTQ is a specialist in this field, and ICTK is exploring how to bring these protections directly into hardware to help ensure secure communications, data storage, and transactions well into the future.

**Physical Unclonable Functions (PUF)**

PUF technology turns every silicon chip into a unique, unreplicable fingerprint by leveraging tiny, random variations from the manufacturing process. This identity can be used to verify devices and generate cryptographic keys without ever storing them-greatly reducing the risk of hacking.

------

![](exhibit99-78x2x1.jpg)

ICTK applies this technology to secure chips used in finance, digital ID, and Internet-of-Things (IoT) devices.

**BTQ's CASH Architecture**

CASH is BTQ's proprietary cryptographic accelerator, purpose-built to handle complex, quantum- safe algorithms quickly and efficiently. The companies will explore integrating this architecture into ICTK's hardware platforms to enhance both security and performance.

**Areas of Collaboration**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Co-developing a quantum-secure cold wallet for storing digital assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Embedding BTQ's CASH architecture into ICTK's secure chipsets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Exploring opportunities across digital identity, IoT security, and quantum-resilient financial infrastructure.

"Our partnership with ICTK is a significant step toward delivering secure, scalable, and future-proof hardware," said *Olivier Roussy Newton*, CEO of BTQ Technologies. "Together, we aim to build the backbone of quantum-secure systems across industries that rely on trusted devices."

"This is an important step toward building a quantum-secure future," said *Jungwon Lee*, CEO of ICTK. "Together with BTQ, we look forward to combining our innovations to bring new security solutions to market."

**About ICTK Co., Ltd.**

ICTK is a South Korea-based semiconductor security company specializing in hardware-based authentication and cryptographic solutions. The company is known for its implementation of Physical Unclonable Function (PUF) technology and integration of post-quantum cryptographic standards into secure chip designs. ICTK's solutions are deployed across sectors including finance, digital identity, mobility, and IoT, enabling secure and scalable infrastructure for a digitally connected future.

<u>http://en.ictk.com/</u>

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

------

![](exhibit99-78x3x1.jpg)

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

<u>E:</u> <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward- looking information, except in accordance with applicable securities laws.*

------

![](exhibit99-78x4x1.jpg)

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## Exhibit 99.79

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![](exhibit99-79x1x1.jpg)

**BTQ Technologies Announces Strategic Partnership with** **QPerfect to Achieve Quantum Advantage Using Neutral Atom** **Quantum Processors**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **BTQ Technologies and QPerfect have entered a strategic partnership to co- develop quantum-secure applications using neutral atom quantum computers**, coinciding with QPerfect CEO Philippe Blot's participation in the France Quantum roundtable *"How Emulators Can Accelerate Your Quantum Technology Adoption?"*, held under the High Patronage of President Emmanuel Macron and in the presence of French Minister for the Armed Forces, Sébastien Lecornu.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **The partnership merges BTQ's cryptographic and quantum algorithms expertise with QPerfect's advanced emulation and error correction capabilities**, aiming to deliver fault-tolerant quantum algorithms for quantum-secure transactions, one-shot signatures, smart contracts, decentralized identity, quantum money, and secure communications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **QPerfect will provide research resources and emulation tools, while BTQ will lead the quantum algorithm design and implementation of quantum-safe cryptographic protocols**, with a formal implementation roadmap targeted by June 30, 2025.

The collaboration combines BTQ's expertise in post-quantum cryptography and quantum algorithms with QPerfect's **Quantum Logic Unit (QLU)**-an accelerator for quantum error correction that translates high-level quantum circuits into highly optimized machine code tailored for neutral atom quantum processors.

QPerfect is a pioneering quantum computing startup specializing in quantum emulation, quantum software, and quantum error correction, with a focus on neutral atom architectures. By harnessing its modular QLU, QPerfect bridges the gap between quantum algorithm design and real hardware execution, empowering researchers, developers, and end-users to accelerate the realization of industry-transforming quantum applications. The company's flagship product, **MIMIQ**, is a cutting- edge emulation platform that delivers unmatched speed, accuracy, and flexibility for testing quantum algorithms, surpassing the capabilities of both traditional quantum simulators and today's quantum computers.

BTQ has pioneered research into **quantum one-shot signatures**- a quantum cryptographic primitive that will form the bedrock underlying secure quantum communication systems and the quantum internet. BTQ's work addresses critical vulnerabilities in digital transactions and blockchain systems by developing protocols that leverage self-destructing quantum keys and post-quantum secure verification mechanisms. The company's research team, comprising leading post-quantum cryptographers, has demonstrated practical applications of one-shot signatures in financial transactions, smart contracts, and decentralized identity management systems.

------

![](exhibit99-79x2x1.jpg)

**Key objectives of the collaboration include:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Joint design, development, and testing of practical quantum algorithms for quantum one- shot signatures, with a focus on efficient implementation on neutral atom hardware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Co-development of fault-tolerant, hardware-specific approaches to quantum one-shot signatures and associated applications that prioritize minimal use of quantum resources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Delivery of a blueprint and prototype for quantum one-shot signatures compatible with next-generation neutral atom quantum computers.

**DefinedRoles**

Under the agreement, QPerfect will assemble a dedicated team of researchers and provide access to its leading quantum emulation tools, while BTQ will translate advanced cryptographic concepts into implementable quantum algorithms. Both parties will collaborate on project planning, patent applications, and scientific dissemination.

**Leadership Commentary <br>Olivier Roussy Newton,** CEO of BTQ Technologies, commented:

"We are thrilled to join forces to accelerate the development of quantum advantage using neutral atom quantum processors. By combining BTQ's strengths in post-quantum cryptography and one- shot signature technology with QPerfect's world-class expertise in quantum software and hardware, we are marking a key milestone to achieve quantum advantage, opening the door to a new generation of applications, including quantum-secure transactions, advanced crypto and e- money solutions, and the next-generation quantum communications. This partnership marks a significant step forward in our mission to deliver practical, industry-transforming quantum solutions for the digital era.."

**Philippe Blot,** CEO of QPerfect, added:<br>"Formalizing our partnership with BTQ marks a turning point in applied quantum cryptography. This collaboration reflects QPerfect's commitment to enabling powerful real-world quantum applications through modular, fault-tolerant architectures-tailored here for BTQ's unique vision."

Both parties aim to negotiate further implementation agreements by **June 30, 2025**.

**About QPerfect**

**QPerfect** is a French quantum computing company based in Strasbourg, specializing in quantum computing and quantum design automation. Founded in 2023, the deeptech company has received the **i-Lab Grand Prix** and provides powerful technology to enable researchers, developers, and manufacturers to realize the full potential of quantum computers.

------

![](exhibit99-79x3x1.jpg)

At the core of QPerfect's innovation is the **Quantum Logical Unit (QLU)**, a multi-layered framework designed to accelerate quantum development. Its flagship product, **MIMIQ**, forms the first layer of the QLU and offers a cutting-edge platform that executes quantum algorithms with unmatched speed, accuracy, and flexibility, surpassing existing simulators and current quantum computers. For more information, please visit <u>https://qperfect.io</u>

**About BTQ**

BTQ was founded by a group of post-quantum cryptographers with an interest in addressing the urgent security threat posed by large-scale universal quantum computers. With the support of leading research institutes and universities, BTQ is combining software and hardware to safeguard critical networks using unique post-quantum services and solutions.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

<u>E:</u> <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

------

![](exhibit99-79x4x1.jpg)

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward- looking information, except in accordance with applicable securities laws.*

------

## Exhibit 99.80

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![](exhibit99-80x1x1.jpg)

**BTQ Appoints Dr. Sean Kwak, Korea's Foremost Expert in Applied Quantum Technology, as Strategic Advisor to Accelerate Global Commercialization**

**Vancouver, Canada and Seoul, Korea July 3, 2025 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce the appointment of Dr. **Sean Kwak** as a Strategic Advisor to the Company.

Dr. Sean Kwak is among Korea's most recognized leaders in applied quantum technology. In 2011, he established Korea's first private quantum research lab at SK Telecom, Korea's largest mobile operator, marking a pivotal milestone in the country's quantum technology development. During his time at SK Telecom, Kwak scaled the quantum research lab into the country's premier telco quantum-security programme. In 2016 his team switched on the world's first operator-grade QKD-protected LTE backbone, later extending quantum encryption across 330 kilometers of 5G fibre routes linking Seoul, Daejon and Daegu. Over the past decade, he has led the development and commercialization of SK Telecom's portfolio of quantum products - spanning quantum random-number generators (QRNG) and high-assurance cryptographic hardware - which continues to generate solid seven-figure annual revenue.

Kwak previously served as Executive Vice President at ID Quantique (Switzerland), where he helped expand the company's global footprint, and as a former member of the Presidential Advisory Council on Science and Technology in Korea. He is currently the CEO of Genesis Quantum Inc., a Korean startup focused on commercializing quantum key distribution (QKD) technologies for secure communications. He also received personal commendations from Korea's Ministry of Science and ICT and Ministry of National Defense for his contributions to national quantum infrastructure and cybersecurity readiness.

As BTQ accelerates its efforts to bring post-quantum cryptography (PQC) and quantum communications to real-world deployments, Kwak's appointment reinforces the Company's commercial credibility and strategic depth globally. Kwak's mandate at BTQ will include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Spearheading BTQ Korea's market operations** and anchor partnerships with leading telecom and defense organizations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Representing BTQ in global and regional standardization bodies** with his nearly two decades of committee leadership experience

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● Advise on the rapid rollout of BTQ's post-quantum cryptography and quantum communication products across Asia-Pacific**

"We are grateful and excited to welcome Dr. Kwak to the BTQ team," said Olivier Roussy Newton, CEO of BTQ Technologies. "His unique expertise in quantum R&D and commercialization strengthens our ability to scale both current and future products. As we push forward globally, his addition reinforces our mission to accelerate quantum advantage."

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![](exhibit99-80x2x1.jpg)

"With over a decade of experience since 2011 in developing and commercializing quantum technologies, I look forward to supporting BTQ's real-world deployments and contributing to their strategic growth globally," said Dr. Sean Kwak.

**About BTQ**

BTQ Technologies Corp. (Cboe CA: BTQ \| FSE: NG3 \| OTCQX: BTQQF) is a vertically integrated quantum company accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio, BTQ pioneered the industry's first commercially significant quantum advantage and now delivers a full-stack, neutral-atom quantum computing platform with end-to-end hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u> \| <u>X/Twitter</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

<u>E:</u> <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

------

![](exhibit99-80x3x1.jpg)

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

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## Exhibit 99.81

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![](exhibit99-81x1x1.jpg)

**BTQ Launches World's First Quantum Proof-of-Work** **Simulator, Delivering the First Commercial Demonstration of** **Quantum Advantage in Blockchain Consensus**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **BTQ Quantum Proof-of-Work (QPoW)** Simulator offers a live, interactive platform to demonstrate quantum-native consensus mechanisms that remain compatible with existing blockchain infrastructure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● QPoW delivers measurable quantum advantage while eliminating vulnerabilities to quantum attacks**, offering energy-efficient, post-quantum secure alternatives to legacy proof-of-work systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **The release follows BTQ's leadership role in global standards development**, with QPoW adopted as the first consensus work-item by Quantum Industrial Standard Association (QuINSA) and positioned to help future-proof digital assets, CBDCs, and high-value payment networks.

**Vancouver, British Columbia, July 8, 2025 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, today unveiled its **Quantum Proof-of-Work Simulator**, the first publicly accessible platform that showcases a fully quantum-native mining algorithm that remains verifiable on classical hardware. The release marks a milestone in securing digital assets, offering a quantum analogue to Bitcoin's SHA-256 proof-of-work and creating a path to future-proof digital assets against emerging quantum threats.

This achievement follows the QuINSA standards organization adopting QPoW as the first consensus work-item in its baseline specification and appointing BTQ to chair of the alliance's quantum communications working group, positioning QPoW as a leading contender for the forthcoming ISO-style standards for quantum-secure blockchain technologies.

"Quantum Proof-of-Work shows that quantum hardware can secure, not threaten, the next generation of digital money," said Olivier Roussy Newton, CEO of BTQ Technologies. "Our simulator offers researchers, developers, and miners a first-hand look at how quantum machines can reinforce consensus while preserving compatibility with today's classical infrastructure."

"This advancement further solidifies our continued commitment to delivering a demonstrable, practical quantum advantage to the market," added Roussy Newton. "For the first time, the digital-asset ecosystem can interact with a quantum-secure, energy-efficient consensus mechanism-one that aligns with global regulatory momentum and keeps critical infrastructure resilient in the quantum era."

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![](exhibit99-81x2x1.jpg)

**Key Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Live, real-time mining cycles** demonstrate measurable quantum advantage using coarse-grained boson sampling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Adjustable parameters**-photon count, optical modes, measurement bins-let users explore security-performance trade-offs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Interactive analytics** compare miner outputs, visualize network statistics, and validate submissions through total-variation-distance (TVD) and peak-bin-percentage (PBP) checks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Energy-efficient design** decouples difficulty from power consumption, relying on photonic hardware quality rather than brute-force hashing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Post-quantum resilience** eliminates vulnerabilities to Grover-style attacks by shifting the work function from hash inversion to provably hard quantum sampling.

**Implications for Digital Assets**

Current proof-of-work systems face two converging pressures; escalating energy demands from ASIC mining and looming quantum attacks capable of quadratic speed-ups. BTQ's QPoW replaces the hash puzzle with a boson sampling task that runs on today's small photonic quantum devices. Network operators can raise or lower the difficulty by changing the photon count and optical modes, which improves security against quantum adversaries without driving up power consumption. As the difficulty of the boson sampling problem increases, quantum devices will gain a larger advantage in creating valid samples, but since the task is quantum in nature, no single quantum device will have an outsized advantage in producing blocks over other quantum devices. QPoW therefore gives digital-asset networks a simple and practical way to stay efficient and secure in the quantum era.

**Regulatory Urgency**

Policy makers are moving in lock-step toward mandatory quantum resilience. The European Commission's <u>Coordinated Implementation Roadmap for the Transition to</u> <u>Post-Quantum</u> <u>Cryptography</u>, issued on 23 June 2025, directs all EU Member States to begin PQC migration by 2026 and to secure critical infrastructure by 2030. In the United States, NIST's March 2025 selection of the HQC algorithm as a fifth post-quantum standard signalled the transition from guidance to implementation. Together these milestones underscore the need for consensus layers, such as BTQ's QPoW, whose security assumptions remain intact in a quantum era.

**Central-Bank Perspective**

The systemic importance of quantum-secure settlement was highlighted at the Bank for International Settlements' <u>Quantum-Readiness</u> <u>for Central Banks and Supervisors</u> conference earlier this year, where 39 central banks agreed that next-generation ledgers must be robust against quantum attacks. QPoW's classically verifiable yet quantum-native design aligns with the BIS mandate and offers a practical path for wholesale CBDC pilots and other high-value payment rails to achieve quantum-readiness without replacing existing node infrastructure.

------

![](exhibit99-81x3x1.jpg)

**Ecosystem Momentum**

QPoW is part of BTQ's wider execution roadmap. Last month, BTQ unveiled the Quantum Stablecoin Settlement Network (QSSN) to extend quantum security to tokenised dollars and entered a strategic partnership with QPerfect to validate QPoW on neutral-atom quantum processors. These milestones advance BTQ's core mission of bringing practical quantum advantage to market through a full-stack platform. These initiatives position the company to accelerate the commercial adoption of quantum-secure finance and other quantum-grade quantum solutions. The QPoW simulator is live today at **<u>https://www.qpow.dev/</u>**

Blog: <u>https://www.btq.com/blog/quantum-proof-of-work-qpow-simulator-now-live</u>

**About BTQ**

BTQ Technologies Corp. (Cboe CA: BTQ \| FSE: NG3 \| OTCQX: BTQQF) is a vertically integrated quantum company accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio, BTQ pioneered the industry's first commercially significant quantum advantage and now delivers a full-stack, neutral-atom quantum computing platform with end-to-end hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u> \| <u>X/Twitter</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

<u>E:</u> <u>bill@btq.com</u>

KCSA Strategic Communications

Public Relations

E: btq@kcsa.com

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

------

![](exhibit99-81x4x1.jpg)

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

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## Exhibit 99.82

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**BTQ Technologies Corp. Announces Brokered LIFE Financing of C$40 Million**

***NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES***

VANCOUVER, BC and SEOUL, Korea, July 8, 2025, BTQ Technologies Corp. (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks is pleased to announce a best efforts private placement, of 5,555,555 common shares of the Company ("Common Shares") at a price of C$7.20 per Common Share, for aggregate gross proceeds of C$40,000,000 (the "Offering").

A.G.P. Canada Investments ULC ("Agent") is acting as the sole bookrunner and agent for the Offering and A.G.P./Alliance Global Partners is acting as sole U.S. placement agent for the Offering.

The Company plans to use the net proceeds for general corporate purposes, working capital and to accelerate the development of both hardware and software products and potential acquisitions. The Offering is scheduled to close on or about July 10, 2025 ("Closing Date"), and is subject to certain conditions customary for transactions of this nature, including, but not limited to, the receipt of all necessary approvals, including of Cboe Canada Inc. The Company has agreed to pay the Agent a cash fee equal to 7% of the gross proceeds from the Offering. In addition, upon closing of the Offering, the Company has agreed to issue the Agent non-transferable broker warrants (each, a "Broker Warrant") equal to 2.5% of the total number of Common Shares sold pursuant to the Offering. Each Broker Warrant will be exercisable for one Common Share at a price of C$12.60 per Broker Warrant and is exercisable for a period of 60 months following the completion of the Offering.

The Common Shares to be issued under the Offering will be offered to purchasers pursuant to the listed issuer financing exemption ("LIFE Exemption") under Part 5A of National Instrument 45-106 - *Prospectus Exemptions* ("NI 45-106"), in the provinces of British Columbia, Alberta and Ontario. The Common Shares offered under the LIFE Exemption will not be subject to resale restrictions pursuant to applicable Canadian securities laws. The Common Shares may also be offered to persons in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act")) pursuant to exemptions from the registration requirements under the and all applicable U.S. state securities laws, as well as outside Canada and the United States on a basis which does not require the qualification or registration of any of the Company's securities or require the Company to be subject to any ongoing disclosure requirements under any domestic securities laws.

There is an offering document related to the LIFE Exemption portion of the Offering that can be accessed under the Company's profile on SEDAR+ at www.sedarplus.ca and on the Company's website at <u>https://www.btq.com</u>. Prospective investors should read this offering document before making an investment decision.

The securities to be offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act or under any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, a "U.S. person" absent registration or any applicable exemption from the registration requirements under the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

------

News Release \| Page 2

**About BTQ**

BTQ Technologies Corp. (Cboe CA: BTQ \| FSE: NG3 \| OTCQX: BTQQF) is a vertically integrated quantum company accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio, BTQ pioneered the industry's first commercially significant quantum advantage and now delivers a full-stack, neutral-atom quantum computing platform with end-to-end hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

**Forward-Looking Statements:**

Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the timing of the closing of the Offering, the use of proceeds from the Offering, business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares and its use of proceeds from the Offering. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.

The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.

Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward- looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

***The CBOE Canada does not accept responsibility for the adequacy or accuracy of the content of this Press Release.***

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## Exhibit 99.83

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![](exhibit99-83x1x1.jpg)

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

**BTQ Technologies Corp. Execution of Definitive Agreements** **for C$40 Million Previously Announced Offering**

**Vancouver, British Columbia, July 10, 2025 - BTQ Technologies Corp.** (the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce that its previously disclosed C$40 million financing (the "Offering") is fully subscribed, with definitive agreements executed by all participating investors.

To accommodate strong investor demand and streamline the regulatory process, the Offering is now being conducted pursuant to a prospectus supplement to the Company's final short form base shelf prospectus dated April 29, 2025, which is to be filed in accordance with applicable Canadian securities laws and available under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

Issuance of the Shares is subject to a number of conditions, including receipt of customary CBOE Canada approvals and is expected to be completed in the near term. An update will be provided upon formal closing.

As previously announced, BTQ intends to use the net proceeds from the Offering to support general corporate purposes, working capital needs, acceleration of product development across both hardware and software, and potential strategic acquisitions.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy Shares in the United States, nor shall there be any sale of the Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or under any securities laws of any State of the United States, and may not be offered or sold in the United States or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and all applicable state securities laws.

**About BTQ**

BTQ Technologies Corp. (Cboe CA: BTQ \| FSE: NG3 \| OTCQX: BTQQF) is a vertically integrated quantum company accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio, BTQ pioneered the industry's first commercially significant quantum advantage and now delivers a full-stack, neutral-atom quantum computing platform with end-to-end hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

------

![](exhibit99-83x2x1.jpg)

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u> \| <u>X/Twitter</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

<u>E:</u> <u>bill@btq.com</u>

KCSA Strategic Communications

Public Relations

E: btq@kcsa.com

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the intended closing of the Offering and use of net proceeds in relation thereto, business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

------

![](exhibit99-83x3x1.jpg)

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

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## Exhibit 99.84

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**BTQ Technologies Corp. Announces Closing of C$40 Million Prospectus Offering Led by a New**

**Fundamental Long-Term Investor**

***NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES***

VANCOUVER, BC and TAIPEI, TAIWAN, July 11, 2025, BTQ Technologies Corp. ("**BTQ**" or the "**Company**") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks is pleased to announce the closing of its public offering (the "**Offering**") pursuant to a prospectus supplement dated July 9, 2025 ("**Prospectus Supplement**") to the Company's short form base shelf prospectus dated April 29, 2025 ("**Base Shelf**"). The Offering was led by a new fundamental, long-term institutional investor, alongside participation from existing shareholders and new high-quality institutional investors. The Offering was completed on a best-efforts agency basis pursuant to an agency agreement (the "**Agency Agreement**") between the Company and A.G.P. Canada Investments ULC (the "**Agent**") dated July 9, 2025. Pursuant to the Offering, the Company has issued 5,555,555 common shares of the Company ("**Common Shares**") at a price of C$7.20 per Common Share, for aggregate gross proceeds of approximately C$40,000,000.

The Agent acted as the sole bookrunner and agent for the Offering and A.G.P./Alliance Global Partners acted as sole U.S. placement agent for the Offering.

The Company intends to use the net proceeds from the Offering for general corporate purposes, working capital and to accelerate the development of both hardware and software products and potential acquisitions. Pursuant to the terms of the Agency Agreement, the Company paid the Agent a cash fee equal to 7% of the gross proceeds from the Offering and issued to the Agent non-transferable broker warrants (the "**Broker Warrants**") equal to 2.5% of the total number of Common Shares sold pursuant to the Offering. Each Broker Warrant will be exercisable for one Common Share at a price of C$12.60 per Broker Warrant and is exercisable for a period of 60 months following the completion of the Offering.

The Prospectus Supplement, Base Shelf and continuous disclosure documents are available on SEDAR+ at <u>https://sedarplus.ca</u> and contain important information about the Offering and the Company.

The securities to be offered pursuant to the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**") or under any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S under the U.S. Securities Act) absent registration or any applicable exemption from the registration requirements under the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

**About BTQ**

BTQ Technologies Corp. (Cboe CA: BTQ \| FSE: NG3 \| OTCQX: BTQQF) is a vertically integrated quantum company accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio, BTQ pioneered the industry's first commercially significant quantum advantage and now delivers a full-stack, neutral-atom quantum computing platform with end-to-end hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

------

News Release \| Page 2

**Forward-Looking Information:**

Certain statements or information contained in this news release may constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws (collectively, "**forward-looking information**"). Such forward-looking information includes but is not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, its development of hardware and software products, its potential acquisitions, and its use of proceeds from the Offering. Forward-looking information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking information.

The Company has made numerous assumptions including, without limitation, assumptions about: general business and economic conditions; that net proceeds from the Offering will accelerate the development of both hardware and software products and potential acquisitions; the nature of investors who participated in the Offering; and the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.

Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward- looking information herein will prove to be accurate. Forward-looking information is based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post- quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. More information about the risks and uncertainties affecting the Company's business can be found in the "*Risk Factors*" section of its Annual Information Form for the year ended December 31, 2024 and in the Company's most recently filed management's discussion and analysis, copies of which are available under the Company's profile on SEDAR+ at <u>https://sedarplus.ca</u>. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

***Cboe Canada does not accept responsibility for the adequacy or accuracy of the content of this News Release.***

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## Exhibit 99.85

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![](exhibit99-85x1x1.jpg)

**Form 51-102F3**

**MATERIAL CHANGE REPORT**

**Item 1 Name and Address of Company**

BTQ Technologies Corp. (the "**Company**")

16-113 555 Burrard Street, Vancouver,

British Columbia, Canada, V7X 1M8

**Item 2 Date of Material Change**

July 11, 2025

**Item 3 News Release**

On July 11, 2025, the Company issued a news release reporting the material change through CNW (Canada NewsWire).

**Item 4 Summary of Material Change**

On July 11, 2025, the Company closed its public offering (the "**Offering**") pursuant to a prospectus supplement dated July 9, 2025 ("**Prospectus Supplement**") to the Company's short form base shelf prospectus dated April 29, 2025 ("**Base Shelf**"). The Offering was completed on a best-efforts agency basis pursuant to an agency agreement (the "**Agency Agreement**") between the Company and A.G.P. Canada Investments ULC (the "**Agent**") dated July 9, 2025. Pursuant to the Offering, the Company has issued 5,555,555 common shares of the Company ("**Common Shares**") at a price of C$7.20 per Common Share, for aggregate gross proceeds of approximately C$40,000,000.

**Item 5 Full Description of Material Change**

**5.1 Full Description of Material Change**

On July 11, 2025, the Company closed the Offering pursuant to a Prospectus Supplement dated July 9, 2025, to the Company's Base Shelf. The Offering was completed on a best-efforts agency basis pursuant to the Agency Agreement between the Company and the Agent dated July 9, 2025. Pursuant to the Offering, the Company has issued 5,555,555 Common Shares at a price of C$7.20 per Common Share, for aggregate gross proceeds of approximately C$40,000,000.

------

The Agent acted as the sole bookrunner and agent for the Offering and A.G.P./Alliance Global Partners acted as sole U.S. placement agent for the Offering.

Pursuant to the terms of the Agency Agreement, the Company paid the Agent a cash fee equal to 7% of the gross proceeds from the Offering and issued to the Agent non-transferable broker warrants (the "**Broker Warrants**") equal to 2.5% of the total number of Common Shares sold pursuant to the Offering. Each Broker Warrant will be exercisable for one Common Share at a price of C$12.60 per Broker Warrant and is exercisable for a period of 60 months following the completion of the Offering.

The securities to be offered pursuant to the Offering were not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**") or under any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S under the U.S. Securities Act) absent registration or any applicable exemption from the registration requirements under the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

**Item 6 Reliance on subsection 7.1(2) of National Instrument 51-102**

Not applicable.

**Item 7 Omitted Information**

No significant facts otherwise required to be disclosed in this report have been omitted.

------

**Item 8 Executive Officer**

The following executive officer of the Company is knowledgeable about the material change and may be contacted respecting the change:

Olivier Roussy Newton

Chief Executive Officer

Email: desk@btq.com

**Item 9 Date of Report**

July 14, 2025

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## Exhibit 99.86

------

![](exhibit99-86x1x1.jpg)

**BTQ Technologies Unveils Léonne: Quantum-Secure <br>Consensus Framework for Scalable and Decentralized <br>Blockchain Networks**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **L** **é** **onne is the first framework to unify** trust modeling, network analysis, and quantum- resistant cryptography **into a single, modular, and** **production-ready** **system.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Léonne facilitates the scalability, security, and decentralization trade-offs** inherent in existing models like Proof-of-Work and Proof-of-Stake.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Introduces a trust-based, topologically structured consensus model**, leveraging advanced mathematics and quantum technologies to enable efficient, secure, and decentralized network partitioning at scale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Designed with modularity and post-quantum resilience**, Léonne positions BTQ at the forefront of quantum-secure infrastructure, offering a foundational platform for the future of blockchain and distributed systems.

**Vancouver, British Columbia, July 23, 2025 -** **<u>BTQ Technologies Corp.</u>** ("BTQ" or the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, announced the launch of **<u>Léonne</u>**, a novel blockchain consensus framework designed to overcome the core limitations of existing distributed ledger technologies. Built on advanced mathematical structures and quantum- enhanced security, Léonne addresses the longstanding trade-offs between scalability, security, and decentralization - often referred to as the "blockchain trilemma."

Léonne introduces a new model called **Topological Consensus Networks**, which replaces energy-intensive Proof-of-Work (PoW) and centralization-prone Proof-of-Stake (PoS) with a mathematically rigorous, trust-based partitioning system known as **Proof-of-Consensus**. This approach enables high throughput, efficient energy use, and decentralized decision-making-all while maintaining resilience against quantum-era threats.

"As blockchain infrastructure becomes increasingly mission-critical-for finance, supply chains, healthcare, and more-networks must be efficient, secure, and resilient. **Léonne directly addresses these demands** while anticipating future risks posed by quantum computing and centralization trends," said **Olivier Roussy Newton**, CEO of BTQ Technologies. "We believe this is a foundational technology for the post-quantum future-where speed, scale, and security must coexist. This innovation enhances BTQ's position as a leader in quantum-safe infrastructure."

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![](exhibit99-86x2x1.jpg)

**Key Features of Léonne:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Trust-Based Partitioning:** Dynamically restructures blockchain networks based on mathematically defined trust relationships between nodes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Topological Modeling:** Uses advanced network theory and persistent homology to optimize long-term network stability and detect emerging threats.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Quantum Enhancements:** Integrates Quantum Random Number Generation (QRNG), Quantum Key Distribution (QKD), and quantum-enhanced trust matrices to ensure information-theoretic security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Scalability and Efficiency:** Linear algorithmic complexity enables real-time consensus across millions of nodes with minimal computational overhead.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Modular Architecture:** Designed for integration with both existing blockchain platforms and emerging quantum hardware.

This innovation builds on BTQ's broader strategy to develop infrastructure that safeguards digital systems from current and future cyber threats. As institutional and government interest in blockchain accelerates-particularly in finance, healthcare, and supply chain-Léonne offers a scalable solution that meets the rigorous security demands of tomorrow's distributed systems.

BTQ Technologies will be engaging with key industry partners, academic collaborators, and select clients to deploy Léonne across test environments and pilot programs in the second half of 2025.

<u>Read the full blog post and explore Léonne</u>

To explore Léonne's technical documentation and implementation details, visit our research repository and development resources <u>https://github.com/btq-ag/Leonne</u>

**About BTQ**

BTQ Technologies Corp. (Cboe CA: BTQ \| FSE: NG3 \| OTCQX: BTQQF) is a vertically integrated quantum company accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio, BTQ pioneered the industry's first commercially significant quantum advantage and now delivers a full-stack, neutral-atom quantum computing platform with end-to-end hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u> \| <u>X/Twitter</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

<u>E:</u> <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

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![](exhibit99-86x3x1.jpg)

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward- looking information, except in accordance with applicable securities laws.*

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## Exhibit 99.87

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![](exhibit99-87x1x1.jpg)

**MANAGEMENT INFORMATION CIRCULAR**

(Containing information as at July 24, 2025 unless indicated otherwise)

This Management Information Circular (the "**Circular**") is furnished in connection with the solicitation of proxies by the management of BTQ Technologies Corp. (the "**Company**") for use at the annual general meeting (the "**Meeting**") of its shareholders to be held at the offices of Farris LLP, 25th floor, 700 West Georgia Street, British Columbia, V7Y 1B3 on August 26, 2025 at the time and place and for the purposes set forth in the accompanying notice of the Meeting.

In this Circular, references to "the Company", "we" and "our" refer to BTQ Technologies Corp., "common shares" means common shares without par value in the capital of the Company. "Beneficial Shareholders" means shareholders who do not hold common shares in their own name and "intermediaries" refers to brokers, investment firms, clearing houses and similar entities that own securities on behalf of Beneficial Shareholders.

**GENERAL PROXY INFORMATION**

**Solicitation of Proxies**

The solicitation of proxies will be primarily by mail, but proxies may be solicited personally or by telephone by directors, officers and regular employees of the Company. The Company will bear all costs of this solicitation. We have arranged for intermediaries to forward the meeting materials to beneficial owners of common shares held as of record by those intermediaries and we may reimburse the intermediaries for their reasonable fees and disbursements in that regard.

**Appointment of Proxyholders**

The individuals named in the accompanying form of proxy (the "**Proxy**") are officers and directors of the Company. **If you are a shareholder entitled to vote at the Meeting, you have the right to appoint a person or company other than either of the persons designated in the Proxy, who need not be a shareholder, to attend and act for you on your behalf at the Meeting. You may do so either by inserting the name of that other person in the blank space provided in the Proxy or by completing and delivering another suitable form of proxy.**

The only methods by which you may appoint a person as proxy are submitting a Proxy by mail, hand delivery or fax.

**Voting by Proxyholder**

The persons named in the Proxy will vote or withhold from voting the common shares represented thereby in accordance with your instructions on any ballot that may be called for. If you specify a choice with respect to any matter to be acted upon, your common shares will be voted accordingly. The Proxy confers discretionary authority on persons named therein with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each matter or group of matters identified therein for which a choice is not specified, other than the appointment of an auditor and the election of directors,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any amendment to or variation of any matter identified therein, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any other matter that properly comes before the Meeting.

**In respect of a matter for which a choice is not specified in the Proxy, or where both choices have been specified, in favour or all matters described herein, the persons named in the Proxy will vote the common shares represented by the Proxy for the approval of such matter.**

**Notice and Access**

The Company is not sending this Circular to registered or beneficial shareholders using "notice-and-access" as defined under National Instrument 54-101 ("**NI 54-101**").

**Registered Shareholders**

If you are a Registered Shareholder and wish to have your common shares voted at the Meeting, you will be required to submit your vote by proxy. Registered Shareholders electing to submit a proxy may do so by completing, dating and signing the Proxy and returning it to the Company's transfer agent, Computershare Investor Services Inc. ("**Computershare**"), in accordance with the instructions on the Proxy. Alternatively, Registered Shareholders may vote their common shares via the internet or by telephone as per the instructions provided on the Proxy.

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**In all cases you should ensure that the Proxy is received at least 48 hours (excluding Saturdays, Sundays and holidays) before the Meeting or the adjournment thereof at which the Proxy is to be used.**

Registered Shareholders electing to submit a Proxy may do so by:

(a) **Internet**. Vote online at <u>www.investorvote.com</u> using the Proxy control number found in the enclosed Proxy.

(b) **Telephone**. Using a touch-tone phone to transmit voting choices to the toll-free number given in the Proxy. Registered Shareholders who choose this option must follow the instructions of the voice response system and refer to the enclosed Proxy for the toll-free number, the holder's account number and the Proxy Control Number.

(c) **Mail**. Completing, dating and signing the enclosed Proxy and returning it to Computershare, by fax within North

America at 1-866-249-7775, or by mail or hand delivery at 320 Bay Street, 14th Floor, Toronto, ON M5H 4A6.

In all cases ensuring that the Proxy is received at least 48 hours (excluding Saturdays, Sundays and holidays) before the Meeting or the adjournment thereof at which the Proxy is to be used.

Should you wish to contact Computershare, please refer to the following:

**General Shareholder Inquiries:**

---

| | |
|:---|:---|
| By phone: | 1-800-564-6253 |
| By fax: | 1-866-249-7775 |
| By email: | <u>service@computershare.com</u> |
| By regular mail: | Computershare Investor Services Inc. |
|  | 320 Bay Street, 14th Floor |
|  | Toronto, ON M5H 4A6 |

---

**Beneficial Shareholders**

The following information is of significant importance to shareholders who do not hold common shares in their own name. Beneficial Shareholders should note that the only proxies that can be recognized and acted upon at the Meeting are those deposited by Registered Shareholders (those whose names appear on the records of the Company as the registered holders of common shares).

These securityholder materials are being sent to both registered and non-registered owners of the securities of the Company. If you are a non-registered owner, and the Company or its agent has sent these materials directly to you, your name and address and information about your holdings of securities, have been obtained in accordance with applicable securities regulatory requirements from the intermediary holding on your behalf. By choosing to send these materials to you directly, the Company (and not the intermediary holding on your behalf) has assumed responsibility for (i) delivering these materials to you, and (ii) executing your proper voting instructions. Please return your voting instructions as specified in your request for voting instructions.

If common shares are listed in an account statement provided to a shareholder by a broker, then in almost all cases those common shares will not be registered in the shareholder's name on the records of the Company. Such common shares will more likely be registered under the names of the shareholder's broker or an agent of that broker. In the United States, the vast majority of such common shares are registered under the name of Cede & Co. as nominee for The Depository Trust Company (which acts as depositary for many U.S. brokerage firms and custodian banks), and in Canada, under the name of CDS & Co. (the registration name for The Canadian Depository for Securities Limited, which acts as nominee for many Canadian brokerage firms).

There are two kinds of beneficial owners - those who object to their name being made known to the issuers of securities which they own (called "**OBOs**" for "**Objecting Beneficial Owners**") and those who do not object to the issuers of the securities they own knowing who they are (called "**NOBOs**" for "**Non-Objecting Beneficial Owners**").

Pursuant to National Instrument 54-101 of the Canadian Securities Administrators, the Company is sending proxy-related materials directly to NOBOs, which materials will include a scannable Voting Instruction Form (a "**VIF**"). These VIFs are to be completed and returned to Computershare in the envelope provided or by facsimile. In addition, Computershare provides both telephone voting and Internet voting as described on the VIF itself which contain complete instructions. Computershare will tabulate the results of the VIFs received from NOBOs and will provide appropriate instructions at the Meeting with respect to the common shares represented by the VIFs they receive.

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Management of the Company does not intend to pay for intermediaries to forward to OBOs under National Instrument 54- 101 the proxy-related materials and Form 54-101F7 *Request for Voting Instructions Made by Intermediary*, and, in the case of an OBO, the OBO will not receive the materials unless the OBO's intermediary assumes the cost of delivery.

Every intermediary that mails proxy-related materials to Beneficial Shareholders has its own mailing procedures and provides its own return instructions to clients. Beneficial Shareholders should follow the instructions of their intermediary carefully to ensure that their common shares are voted at the Meeting.

Most brokers now delegate responsibility for obtaining instructions from clients to Broadridge Financial Solutions, Inc. ("**Broadridge**") in the United States and in Canada. Broadridge mails a voting instruction form (the "**Broadridge VIF**") which will be similar to the Proxy provided to Registered Shareholders by the Company. However, its purpose is limited to instructing the intermediary on how to vote on your behalf. The Broadridge VIF will appoint the same persons as the Company's Proxy to represent you at the Meeting. You have the right to appoint a person (who need not be a shareholder of the Company), other than the persons designated in the Broadridge VIF, to represent you at the Meeting. To exercise this right, you should insert the name of the desired representative in the blank space provided in the Broadridge VIF. The completed Broadridge VIF must then be returned to Broadridge by mail or facsimile or given to Broadridge by phone or over the internet, in accordance with Broadridge's instructions. Broadridge then tabulates the results of all instructions received and provides appropriate instructions respecting the voting of common shares to be represented at the Meeting. **If you receive a Broadridge VIF, you cannot use it to vote common shares directly at the Meeting - the Broadridge VIF must be completed and returned to Broadridge, in accordance with its instructions, well in advance of the Meeting in order to have the common shares voted.**

Although as a Beneficial Shareholder you may not be recognized directly at the Meeting for the purpose of voting common shares registered in the name of your broker, you, or a person designated by you, may attend at the Meeting as proxyholder for your broker and vote your common shares in that capacity. **If you wish to attend the Meeting and indirectly vote your common shares as proxyholder for your broker, or have a person designated by you do so, you should enter your own name, or the name of the person you wish to designate, in the blank space on the voting instruction form provided to you and return the same to your broker in accordance with the instructions provided by such broker, well in advance of the Meeting.**

Alternatively, you can request in writing that your broker send you a legal Proxy which would enable you, or a person designated by you, to attend at the Meeting and vote your common shares.

**Revocation of Proxies**

In addition to revocation in any other manner permitted by law, a Registered Shareholder who has given a Proxy may revoke it by:

(a) executing a Proxy bearing a later date or by executing a valid notice of revocation, either of the foregoing to be executed by the Registered Shareholder or the Registered Shareholder's authorized attorney in writing, or, if the shareholder is a corporation, under its corporate seal by an officer or attorney duly authorized, and by delivering the Proxy bearing a later date to Computershare at any time up to 10:00 a.m. (Vancouver time) on August 22, 2025 or, if the Meeting is adjourned, 10:00 a.m. (Vancouver time) on the second business day that precedes any reconvening thereof, or to the chairman of the Meeting on the day of the Meeting or any reconvening thereof, or in any other manner provided by law; or

(b) personally attending the Meeting and voting the Registered Shareholder's common shares.

A revocation of a Proxy will not affect a matter on which a vote is taken before the revocation.

**INTEREST OF CERTAIN PERSONS OR COMPANIES IN MATTERS TO BE ACTED UPON**

No director or executive officer of the Company, nor any person who has held such a position since the beginning of the last completed financial year end of the Company, nor any proposed nominee for election as a director of the Company, nor any associate or affiliate of the foregoing persons, has any substantial or material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted on at the Meeting other than the election of directors, the appointment of the auditor and as set out herein.

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**VOTING SECURITIES AND PRINCIPAL HOLDERS OF VOTING SECURITIES**

The board of directors (the "**Board**") of the Company has fixed July 18, 2025 as the record date (the "**Record Date**") for determination of persons entitled to receive notice of the Meeting. Only shareholders of record at the close of business on the Record Date who either attend the Meeting personally or complete, sign and deliver a form of Proxy in the manner and subject to the provisions described above will be entitled to vote or to have their common shares voted at the Meeting.

As at the Record Date, there were 138,334,680 common shares issued and outstanding, each carrying the right to one vote.

On a show of hands, every individual who is present and is entitled to vote as a shareholder or as a representative of one or more corporate shareholders will have one vote, and on a poll every shareholder present in person or represented by a Proxy and every person who is a representative of one or more corporate shareholders, will have one vote for each common share registered in that shareholder's name on the list of shareholders as at the Record Date, which is available for inspection during normal business hours at Computershare and will be available at the Meeting.

To the knowledge of the directors and executive officers of the Company, the only person that beneficially owns, directly or indirectly, or exercised control or direction over, common shares carrying 10% or more of the voting rights attached to all outstanding common shares of the Company as at the Record Date as follows:

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| | | |
|:---|:---|:---|
| **Name of Shareholder** | **Number of Shares Held** | **Percentage** |
| Olivier Roussy Newton | 42,567,500 Shares | 30.77% |

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**VOTES NECESSARY TO PASS RESOLUTIONS**

A simple majority of affirmative votes cast at the Meeting is required to pass the resolutions described herein. If there are more nominees for election as directors or appointment of the Company's auditor than there are vacancies to fill, those nominees receiving the greatest number of votes will be elected or appointed, as the case may be, until all such vacancies have been filled. If the number of nominees for election or appointment is equal to the number of vacancies to be filled, all such nominees will be declared elected or appointed by acclamation.

**SETTING NUMBER OF DIRECTORS**

The persons named in the enclosed Proxy intend to vote in favour of fixing the number of directors at five (5). The Board proposes that the number of directors be fixed at five (5). Shareholders will therefore be asked to approve an ordinary resolution that the number of directors elected be fixed at five (5).

**ELECTION OF DIRECTORS**

The term of office of each of the current directors expires at the conclusion of the Meeting. Unless the director's office is earlier vacated in accordance with the provisions of the *Business Corporations Act (*British Columbia), each director elected will hold office until the conclusion of the next annual general meeting of the Company, or if no director is then elected, until a successor is elected.

The following table sets out the names of management's nominees for election as a director (a "proposed director"), the province and country in which he is ordinarily resident, all major offices and positions with the Company and any of its significant affiliates each now holds, each nominee's principal occupation, business or employment for the five preceding years for new director nominees, the period of time during which each has been a director of the Company and the number of common shares of the Company beneficially owned by each, directly or indirectly, or over which each exercised control or direction, as at the Record Date.

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name of Nominee, Province and<br>Country of Ordinary Residence<br>and Positions Held with the<br>Company** | &nbsp;&nbsp;**Principal Occupation, Business or<br>Employment<sup>(1)</sup>** | &nbsp;&nbsp;**Director of the<br>Company Since** | &nbsp;&nbsp;**Common Shares<br>Beneficially Owned<br>or Controlled, or<br>Directed, Directly or<br>Indirectly<sup>(1)</sup>** |
| &nbsp;&nbsp;**Olivier Roussy Newton**<br> Zug, Switzerland<br>*Director and CEO*****  | &nbsp;&nbsp;Entrepreneur; President of EV Technology Group; Founder of Latent Capital; Co-Founder of DEFI Technologies Inc.; former director of Hive Blockchain Technologies Ltd. | &nbsp;&nbsp;February 17, 2023 | &nbsp;&nbsp;42567500 |

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- 5 - <br>

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name of Nominee, Province and<br>Country of Ordinary Residence<br>and Positions Held with the<br>Company** | &nbsp;&nbsp;**Principal Occupation, Business or<br>Employment<sup>(1)</sup>** | &nbsp;&nbsp;**Director of the<br>Company Since** | &nbsp;&nbsp;**Common Shares<br>Beneficially Owned<br>or Controlled, or<br>Directed, Directly or<br>Indirectly<sup>(1)</sup>** |
| &nbsp;&nbsp;**Christopher Tam**<br>British Columbia, Canada<br>*Head of Product* | &nbsp;&nbsp;Co-Founder & CEO of Zero Computing, Head of Product at BTQ, formerly Head of Partnerships at BTQ, formerly Product Manager at BTQ, formerly Data Engineer (Internship) at EQ Works, formerly Research and Teaching Assistant at Western University, formerly Machine Learning Researcher at AvocadoCore | &nbsp;&nbsp;N/A | &nbsp;&nbsp;300000 |
| &nbsp;&nbsp;**Manfred Knof<sup>(2) (3) (4)</sup>**<br>Cologne, Germany | &nbsp;&nbsp;CEO of Leon Invest AG, formerly CEO of Commerzbank AG, formerly head of Private Bank Germany at Deutsche Bank AG | &nbsp;&nbsp;N/A | &nbsp;&nbsp;135700 |
| &nbsp;&nbsp; **Philippe Lucet<sup>(2) (3) (4)**<br></sup>Switzerland | &nbsp;&nbsp;General Counsel of Valour, formerly General Counsel of SITA, formerly VP and General Counsel for R&D and Intellectual Property at Nestlé's global headquarters | &nbsp;&nbsp;N/A | &nbsp;&nbsp;Nil |
| &nbsp;&nbsp;**Mansour Al Suwaidi**<sup>**(2) (3) (4)</sup>**<br>Mexico | &nbsp;&nbsp;Formerly COO of Bin Jadr group | &nbsp;&nbsp;N/A | &nbsp;&nbsp;800000 |

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Notes:

(1) The information as to principal occupation, business or employment and common shares beneficially owned or controlled is not within the knowledge of the management of the Company and has been furnished by the respective nominees. Each nominee has held the same or a similar principal occupation with the organization indicated or a predecessor thereof for the last five years.

(2) Denotes a proposed member of the audit committee of the Company.

(3) Denotes a proposed member of the compensation committee of the Company.

(4) Denotes a proposed member of the nomination and governance committee of the Company.

None of the proposed directors of the Company is to be elected under any arrangement or understanding between the proposed director and any other person or company, except the directors and officers of the Company acting solely in such capacity. Each of the directors attended all Board meetings since the beginning of the Company's most recently completed financial year.

Biographical information for each of the nominated directors are set out below:

<u>Olivier Roussy Newton</u>

Mr. Roussy Newton is the Chief Executive Officer of the Company. He is a technology entrepreneur who has made significant contributions to the fields of FinTech, Quantum Computing and Capital Markets. Mr. Roussy Newton founded and served as president of HIVE Blockchain Technologies, which made history by becoming the first crypto mining company to go public in 2017 and has also been involved in a number of other highly successful ventures. Mr. Roussy Newton also serves as the Chief Executive Officer and Director of Defi Technologies Inc.

<u>Christopher Tam</u>

Mr. Tam is a software engineer and co-founder of Zero Computing, where he leads the development of specialized cloud infrastructure for computational niches. With deep expertise spanning artificial intelligence, quantum computing, and cloud technologies, Mr. Tam operates at the intersection of emerging technologies and business strategy. Prior to founding Zero Computing in 2024, he served as Head of Partnerships at BTQ, a quantum computing company focused on post-quantum cryptography solutions for blockchain applications, where he drove strategic alliances and product innovation. Mr. Tam holds a Master of Engineering Science in Software Engineering (M.E.Sc.) with an AI specialization from Western University (GPA 3.9), where he was awarded the Western Graduate Research Scholarship, and a Bachelor of Science (B.Sc.) in Computer Science.

<u>Manfred Knof</u>

Mr. Knof is the CEO of Leon Invest and the former Chairman of the Board of Managing Directors (CEO) of Commerzbank AG, where he led a comprehensive transformation that returned the bank to profitability and strengthened its position among Europe's leading financial institutions. His previous roles include CEO of Allianz Deutschland AG and senior leadership positions at Deutsche Bank and Dresdner Bank. Mr. Knof holds a doctorate in law from the University of Cologne and an MBA from NYU Stern School of Business. During his tenure at Commerzbank, Mr. Knof was responsible for Strategy, Transformation & Sustainability, Audit and Research. He is recognized for his focus on sustainable growth, efficient structures, and value creation for clients, shareholders, and society. His proven track record to drive institutional transformation and resilience will be instrumental in Valour's next phase of growth.

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<u>Philippe Lucet</u>

Mr. Lucet is the General Counsel of Valour, a leading issuer of Exchange Traded Products (ETPs). Before joining Valour, Mr. Lucet served as Group General Counsel at SITA, a global IT company headquartered in Geneva, where he oversaw all legal, regulatory, and compliance matters for the group. Previously, he was Vice President and General Counsel for R&D and Intellectual Property at Nestlé's global headquarters, leading a team responsible for patents, trademarks, digital, legal R&D, and health science, worldwide. Prior to Nestlé, Mr. Lucet was Lead Counsel at Richemont, the Swiss-based global luxury group, and an attorney-at-law at Salans/Dentons, specializing in corporate law, investments, innovation, and intellectual property. Mr. Lucet holds a master's degree in Economics and Finance from Sciences Po Paris, a Master's in International Affairs (Finance and Banking) from Columbia University, and a Master of Laws from Stanford University.

<u>Mansour Al Suwaidi</u>

Mansour Al Suwaidi serves as the COO at the family run Bin Jabr group and reports directly to the chairman and manages the day-to-day operations. He has presided over some of the UAE's most iconic construction projects and has quickly become one of the region's most influential young businessmen. An engineer by training, he currently oversees approximately $4 billion in assets. Mansour is a professional rally driver and is also active in many special causes and philanthropic activities. Mansour was granted the Sheikh Rashid humanitarian award for his support of special care centers in the UAE. In 2017 he was voted the 37<sup>th</sup> most influential personality in the emirate by Arabian Business Dubai 100 and 2019's worlds most powerful Arabs.

**CORPORATE CEASE TRADE ORDERS OR BANKRUPTCIES**

The Company applied for a management cease trade order (an "**MCTO**") under National Policy 12-203 Management Cease Trade Orders ("**NP 12-203**") on March 18, 2024, due to the delayed filing of its consolidated financial statements for the year ended December 31, 2023. The MCTO was lifted after the filing of the Company's annual consolidated financial statements on June 4, 2024. Each of the proposed directors was a director of the Company at the time of the MCTO.

With the exception of the MCTO, as at the date of this Circular, and within the last 10 years before the date of this Circular, no proposed director (or any of their personal holding companies) of the Company was a director, CEO or CFO of any company (including the Company) that:

(a) was subject to a cease trade or similar order or an order denying the relevant company access to any exemptions under securities legislation, for more than 30 consecutive days while that person was acting in the capacity as director, CEO or CFO; or

(b) was the subject of a cease trade or similar order or an order that denied the issuer access to any exemption under securities legislation in each case for a period of 30 consecutive days, that was issued after the person ceased to be a director, CEO or CFO in the company and which resulted from an event that occurred while that person was acting in the capacity as director, CEO or CFO; or

(c) is as at the date of this Circular or has been within 10 years before the date of this Circular, a director or executive officer of any company, including the Company, that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or

(d) has within the 10 years before the date of this Circular, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangements or compromise with creditors, or had a receiver, receiver manager as trustee appointed to hold the assets of that individual.

None of the proposed directors (or any of their personal holding companies) has been subject to:

(1) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or

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(2) any other penalties or sanctions imposed by a court or a regulatory body that would likely be considered important to a reasonable securityholder in deciding whether to vote for a proposed director.

**AUDIT COMMITTEE AND RELATIONSHIP WITH AUDITOR**

The Audit Committee of the Board is responsible for monitoring the Company's systems and procedures for financial reporting and internal control, reviewing certain public disclosure documents and monitoring the performance and independence of the Company's external auditors. The committee is also responsible for reviewing the Company's annual audited financial statements, unaudited quarterly financial statements and management's discussion and analysis of financial results of operations for both annual and interim financial statements and review of related operations prior to their approval by the full Board.

The Company has filed an Annual Information Form (the "**AIF**") for the fiscal year ended December 31, 2024, on SEDAR+ at www.sedarplus.ca, which contains, among other things, all of the financial disclosure (including copies of the Financial Statements and Management's Discussion and Analysis) required under NI 52-110. In particular, the information that is required to be disclosed in Form 52-110F1 of NI 52-110 may be found under the heading "Audit Committee Disclosure" in the AIF.

The members of the Audit Committee are Michael Resendes, Kevin Mulhern, and Johan Wattenstrom. All members are not executive officers of the Company and, therefore, are independent members of the Audit Committee. All members are considered to be financially literate. A member of the audit committee is independent if the member has no direct or indirect material relationship with the Company. A material relationship means a relationship which could, in the view of the Company's Board, reasonably interfere with the exercise of a member's independent judgment. A member of the audit committee is considered financially literate if he or she has the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by the Company.

**CORPORATE GOVERNANCE**

**General**

Corporate governance refers to the policies and structure of the Board of a company whose members are elected by and are accountable to the shareholders of the company. Corporate governance encourages establishing a reasonable degree of independence of the Board from executive management and the adoption of policies to ensure the Board recognizes the principles of good management. The Board is committed to sound corporate governance practices as such practices are both in the interests of shareholders and help to contribute to effective and efficient decision-making.

Effective June 30, 2005, National Instrument 58-101 *Disclosure of Corporate Governance Practices* ("**NI 58-101**") and National Policy 58-201 *Corporate Governance Guidelines* ("**NP 58-201**") were adopted in each of the provinces and territories of Canada. NI 58-101 requires issuers to disclose the corporate governance practices that they have adopted. NP 58- 201 provides guidance on corporate governance practices. This section sets out the Company's approach to corporate governance and addresses the Company's compliance with NI 58-101.

**Board of Directors**

Directors are considered to be independent if they have no direct or indirect material relationship with the Company. A "material relationship" is a relationship which could, in the view of the Company's Board, be reasonably expected to interfere with the exercise of a director's independent judgment.

The Company's Board facilitates its exercise of independent judgement in carrying out its responsibilities by carefully examining issues and consulting with outside counsel and other advisors in appropriate circumstances. The Company's Board requires management to provide complete and accurate information with respect to the Company's activities and to provide relevant information concerning the industry in which the Company operates in order to identify and manage risks. The Company's Board is responsible for monitoring the Company's officers, who in turn are responsible for the maintenance of internal controls and management information systems. The independent directors may meet separately from the non- independent directors, as determined necessary from time to time, in order to facilitate open and candid discussion among the independent directors.

The current independent members of the Board are Michael Resendes, Johan Wattenstrom, and Kevin Mulhern. The non- independent members of the Board are Olivier Roussy Newton, CEO of the Company, and Nicolas Roussy Newton, COO of the Company. The Chairman of the Board is Olivier Roussy Newton. Leadership for the Company's independent directors is provided by establishing committees which are comprised solely of independent members.

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**Mandate**

The Board of Directors is responsible for the stewardship and the general supervision of the management of the business of the Company and is to act in the best interests of the Company and its stakeholders. The Board will discharge its responsibilities directly and through its committees. In addition, the Board may from time to time, appoint such additional committees as it deems necessary and appropriate in order to discharge its duties. A copy of the written mandate of the Board is attached as Schedule "C".

**Position Description**

The Chairman of the Board is responsible for presiding at meetings of the Board and for annually proposing the leadership and membership of the Company's committees.

The Chairman of the Audit Committee is responsible for presiding at meetings of the Audit Committee and for investigating any complaints made against the Company through the whistleblower policy. Any responsibility which is not delegated to senior management or a Board committee remains with the full Board.

The CEO is responsible for the management of the resources and operations of a Company, making major corporate decisions, and acting as the main point of contact between the Board, employees, and the public. The CEO is also responsible for leading and developing key management personnel. There is no explicit written position description for the CEO at the point of this filings.

The COO oversees operations in the company's various offices in Canada, Taiwan, and Australia. The COO is also responsible for establishing general research direction and sourcing partnerships with potential customers and other research companies.

**Directorships**

In addition to his role at BTQ, Olivier Roussy Newton is serving as the executive chairman of Defi Technologies Inc. (CBOE CA: DEFI) (GR: R9B) (OTC: DEFTF), a financial technology company that converges traditional capital markets with the world of decentralized finance.

**Orientation and Continuing Education**

Generally, the nomination and governance committee of the Company (the "**Nomination and Governance Committee**") is responsible for ensuring that new directors are provided with an orientation and education program. When new directors are appointed, they receive an orientation, commensurate with their previous experience, on the Company's properties, business, technology and industry and on the responsibilities of directors.

Board meetings may also include presentations by the Company's management and employees to give the directors additional insight into the Company's business.

**Ethical Business Conduct**

The Board has adopted a code of Ethics (the "**Code**") for its directors, officers and employees. The Board has the responsibility for monitoring compliance with the Code by ensuring all directors, officers, and employees receive and become familiar with the Code and acknowledge their support and understanding of the Code. Any non-compliance with the Code is to be reported to the Chair of the Audit Committee or the Chief Financial Officer.

The Board takes steps to ensure that directors, officers and employees exercise independent judgment in considering transactions and agreements in respect of which a director, officer or employee of the Company has a material interest, which include ensuring that directors, officers and employees are familiar with the Code and, in particular, the rules concerning reporting conflicts of interest and obtaining direction from the Chair of the Audit Committee or the Chief Financial Officer.

The Board encourages and promotes an overall culture of ethical business conduct by promoting compliance with applicable laws, rules and regulations in all jurisdictions in which the Company conducts business; providing guidance to directors, officers and employees to help them recognize and deal with ethical issues; promoting a culture of open communication, honesty and accountability; and ensuring awareness of disciplinary action for violations of ethical business conduct.

A copy of the Code and other corporate governance policies may be found on the Company's website.

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**Nomination of Directors**

The Nomination and Governance Committee is largely responsible for identifying new candidates for nomination to the Board. When considering the number of directors to recommend to the shareholder for election at the annual meeting of the shareholders, the size of the Board is taken into account alongside the number of directors required to carry out the Board's duties effectively and to maintain a diversity of views and experience.

**Compensation**

The Compensation Committee of the Board (the "**Compensation Committee**") is responsible for recommending to the Board the compensation of the directors and the CEO.

**Other Board Committees**

The Board has no other committees other than the Audit Committee, the Compensation Committee, and the Nomination and Governance Committee.

**Majority Voting Policy**

The Company has adopted a majority voting policy in director elections, which applies to any meeting of shareholders where an uncontested election of directors is held. Pursuant to this policy, any nominee who receives a greater number of votes "withheld" from his or her election than votes "for" such election will immediately tender his or her resignation to the Board. The independent directors of the Company (the "**Committee**") shall evaluate the best interests of the Company and its shareholders and shall recommend to the Board the action to be taken with respect to such tendered resignation, following which the Board shall consider the Committee's recommendation and make a determination. The Board shall accept the resignation absent exceptional circumstances. The above procedures shall be completed within ninety (90) days following the shareholder meeting.

In reaching its recommendation, the Committee shall consider all factors it deems relevant, including, without limitation, the effect of the exercise of cumulative voting in the election, if applicable, any stated reasons why shareholders "withheld" votes for the election from such director, the length of service and qualifications of the director whose resignation has been tendered, the director's contributions to the Company, the Company's corporate governance guidelines and whether any special interest groups conducted a campaign involving the election of directors to further the interests of such group, as opposed to the best interests of all shareholders.

In considering the Committee's recommendation, the Board will consider all of the factors considered by the Committee and such additional factors as it deems relevant.

**Defined Term Limits and Board Renewal**

The Company has not adopted director term limits or other mechanisms of Board renewal as their imposition would unduly limit the pool of potential directors available to the Company and risk losing directors who have been able to, over time, develop an insight in the Company and its operations.

**Diversity and Representation of Women on the Board**

The Nomination and Governance Committee is responsible for annually reviewing and assessing the size, composition and operation of the Board. The Board has not adopted a written policy relating to the identification and nomination of women directors. In identifying and recommending qualified candidates for the Board, the Nomination and Governance Committee may consider factors such as independence, skills, qualifications, experience, and diversity. The Nomination and Governance Committee does not specifically consider the level of representation of women on the Board when considering candidates for election or re-election, nor is there a target number or percentage of women on the Board. The Nomination and Governance Committee recommends board nominees by taking into consideration the then current Board composition and the anticipated skills required to round out the capabilities of the Board. The Company is focused on seeking the most qualified individuals with skills and experience that will be of the greatest benefit to the Company, having due regarding to the benefits of diversity and the needs of the Board, and feels a target would unduly limit its ability to do so.

Similarly, the Board does not specifically consider the level of representation of women in executive officer positions when making executive officer appointments nor does it have a target number or percentage of women as executive officers. At the present time, the Company has a very small management team reflective of its current business objectives. The Company is focused on seeking the most qualified individuals with skills and experience that will be of the greatest benefit to the Company, with gender being only one of many factors taken into consideration when evaluating individuals for senior management positions. As such, the Company does not have a target number or percentage of women executive officers, nor does it specifically consider the level of representation of women in executive officer positions when making appointments. This approach is believed to be in the best interests of the Company and its stakeholders.

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As at the date of this Circular, there are no female directors (0%) and no female officers (0%).

**Assessments**

The Board monitors the adequacy of information given to directors, communication between the Board and management and the strategic direction and processes of the Board and committees.

**COMPENSATION COMMITTEE**

The Compensation Committee is comprised of Kevin Mulhern, Michael Resendes, and Johan Wattenstrom. Each of member of the Compensation Committee is independent.

Mr. Mulhern is an entrepreneur who brings a deep background in the financial service industry. He has worked for both large and boutique wealth management firms, and in new media, big data, and web-based services. After witnessing a growing need for marketing automation, Mr. Mulhern brought together a team of like-minded technology and experienced industry experts in 2013 to launch the awardwinning AdvisorStream digital marketing platform, which automates millions of personalised communications each week for Advisors across the US, Canada, and the UK. Mr. Mulhern has a Bachelor's degree from the University of Western Ontario.

Mr. Resendes holds a designation as a Chartered Professional Accountant with CPABC and a bachelor of accounting from the British Columbia Institute of Technology. Mr. Resendes has over 20 years of experience in accounting, primarily in the automotive finance industry as a controller and assistant manager. Since September, 2017, Mr. Resendes has been the Regional Controller at the Dilwari Group of Companies

Mr. Wattenstrom has over 25 years of experience in the financial service industry. He has founded and exited two companies within the digital asset space and also founded and built several businesses within the proprietary trading, market making, financial products and brokerage spaces. He is the current CEO and co-founder of Nortide Capital AG, an investment and proprietary trading firm that is active across all asset classes, and is the COO and co-founder of Valour Inc., a technology company focused on expanding investor access to decentralised technologies. Within the traditional equity space, he has built three proprietary trading businesses, which included trading systems and development of risk systems, as well as establishing prime brokerage setup and best practice accounting and legislative frameworks. Mr. Wattenstrom has a bachelor's degree of business administration and economics with an emphasis on corporate financing and derivatives from Stockholm University.

The objectives of the Compensation Committee are to: (a) assist the Board in reviewing Board compensation; (b) assist the Board in fulfilling its oversight responsibilities (especially for accountability) in respect of the Company's compensation programs, including, executive compensation, and related matters, including assisting the Board to identify, assess and manage the implications of the risks associated with the Company's compensation policies and practices; (c) identify and discuss with the Board succession and resource planning risks facing the Company and to identify ways in which any such risks may be mitigated, including ensuring that executive compensation is adequate to attract, motivate and retain competent executive personnel; and (d) ensure that executive compensation is directly and materially related to operating performance and aligned with the short-term and long-term objectives of the Company and its shareholders.

The responsibilities of the Compensation Committee include: (a) making recommendations to the Board regarding all aspects of executive officer and director compensation and the Company's general compensation philosophy; (b) make recommendations regarding, and oversee the development and administration of, the Company's long term compensation plan; (c) overseeing the Board's evaluation of management.

**NOMINATION AND GOVERNANCE COMMITTEE**

The Nomination and Governance Committee is comprised of Kevin Mulhern, Michael Resendes, and Johan Wattenstrom. Each of member of the Nomination and Governance Committee is independent. Please see page 10 for information concerning of each member of the Nomination and Governance Committee.

The objectives of the Nomination and Governance Committee are (a) to assist the Board in fulfilling its oversight responsibilities in respect of the development, implementation and monitoring of the Company's corporate governance practices, (b) to assist the Board in reviewing and assessing the size and composition of the Board and Board committees and the selection of Board committee chairs; (c) planning for the Board's succession, director education and evaluation, (d) to assist the Board in establishing appropriate risk oversight functions at the Board and Board committee levels; (e) to identify individuals qualified to become Board members; and (f) to facilitate and oversee the periodic performance assessment process for the Board, the other Board committees and management.

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The Nomination and Governance Committees duties and responsibilities include: (a) monitoring corporate governance issues, principles and guidelines and developing and recommending corporate governance guidelines; (b) review the composition of the Board, including its individual members, and recommend any necessary changes; (c) recommend director nominees for each annual general meeting of shareholders and, as required, to fill any vacancies in the Board or committees of the Board; (d) identifying candidates to act as directors of the Company; (e) approving director orientation processes and ongoing development and education of existing directors; establish and foster a healthy governance culture within the Company.

**STATEMENT OF EXECUTIVE COMPENSATION**

**Compensation Discussion and Analysis**

*Compensation, Philosophy and Objectives*

The Company does not have a formal compensation program. The Compensation Committee meets to discuss and determine management compensation, without reference to formal objectives, criteria or analysis. The general objectives of the Company's compensation strategy are to (a) compensate management in a manner that encourages and rewards a high level of performance and outstanding results with a view to increasing long-term shareholder value; (b) align management's interests with the long-term interests of shareholders; (c) provide a compensation package that is commensurate with other junior mineral exploration companies to enable the Company to attract and retain talent; and (d) ensure that the total compensation package is designed in a manner that takes into account the constraints that the Company is under.

The Compensation Committee, and the Board as a whole, ensures that total compensation paid to all NEOs (as defined below), as hereinafter defined, is fair and reasonable. The Board relies on the Compensation Committee and the experience of its members as officers and directors with other junior mining companies in assessing compensation levels.

The Compensation Committee has not conducted a formal evaluation of the implications of the risks associated with the Company's compensation policies. Risk management is a consideration of the Compensation Committee when implementing its compensation policies and the Board do not believe that the Company's compensation policies result in unnecessary or inappropriate risk taking including risks that are likely to have a material adverse effect on the Company.

*Analysis of Elements*

Base salary is used to provide the NEOs a set amount of money during the year with the expectation that each NEO will perform his responsibilities to the best of his ability and in the best interests of the Company.

The Company considers the granting of incentive stock options to be a significant component of executive compensation as it allows the Company to reward each NEO's efforts to increase value for shareholders without requiring the Company to use cash from its treasury. Stock options are generally awarded to executive officers at the commencement of employment and periodically thereafter. The terms and conditions of the Company's stock option grants, including vesting provisions and exercise prices, are governed by the terms of the Company's long-term omnibus equity incentive plan (the "**Omnibus Plan**").

*Long Term Compensation and Option-Based Awards*

The Company has no long-term incentive plans other than the Omnibus Plan. The Omnibus Plan provides flexibility to the Company to grant equity-based incentive awards in the form of the Company's options ("**Options**"), restricted share units ("**RSUs**"), preferred shared units ("**PSUs**") and deferred share units ("**DSUs**"). A summary of the key terms of the Omnibus Plan is set out as follows, capitalized terms not otherwise defined in this summary shall have the meanings ascribed to them in the Omnibus Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the Omnibus Plan provides that the aggregate maximum number of the outstanding common shares of the Company that may be issued upon the exercise or settlement of awards granted under the Omnibus Plan shall not exceed 10% of the issued and outstanding common shares from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the aggregate number of common shares (a) issuable to insiders at any time (under all of the Company's security- based compensation arrangements) cannot exceed 10% of the issued and outstanding common shares and (b) issued to insiders within any one year period (under all of the Company's security-based compensation arrangements) cannot exceed 10% of the issued and outstanding common shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. the Company shall not make grants of awards to non-employee directors if, after giving effect to such grants of awards, the aggregate number of common shares issuable to non-employee directors, at the time of such grant, under all of the Company's security based compensation arrangements would exceed 1% of the issued and outstanding common shares on a non-diluted basis;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. within any one financial year of the Company, (a) the aggregate fair value on the date of grant of all options granted to any one non-employee director shall not exceed $100,000, and (b) the aggregate fair market value on the date of grant of all awards (including, for greater certainty, the fair market value of the Company's options) granted to any one non-employee director under all of the Company's security based compensation arrangements shall not exceed $150,000; provided that such limits shall not apply to awards taken in lieu of any cash retainer or meeting director fees, and a one-time initial grant to anon-employee director upon such non-employee director joining the board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. the Plan Administrator (as defined in the Omnibus Plan) is determined by the board, and is initially the Compensation Committee. The Omnibus Plan may in the future be administered by the board or delegated to a committee of the board. The Plan Administrator determines which directors, officers, consultants and employees are eligible to receive awards under the Omnibus Plan, the time or times at which awards may be granted, the conditions under which awards may be granted or forfeited to the Company, the number of common shares to be covered by any award, the exercise price of any award, whether restrictions or limitations are to be imposed on the common shares issuable pursuant to grants of any award, and the nature of any such restrictions or limitations, any acceleration of exercisability or vesting, or waiver of termination regarding any award, based on such factors as the Plan Administrator may determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. all directors, employees and consultants are eligible to participate in the Omnibus Plan. The extent to which any such individual is entitled to receive a grant of an award pursuant to the Omnibus Plan will be determined in the sole and absolute discretion of the Plan Administrator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. all of the awards are subject to the conditions, limitations, restrictions, exercise price, vesting, settlement and forfeiture provisions determined by the Plan Administrator, in its sole discretion, subject to such limitations provided in the Omnibus Plan, and will generally be evidenced by an award agreement. In addition, subject to the limitations provided in the Omnibus Plan and in accordance with applicable law, the Plan Administrator may accelerate or defer the vesting or payment of awards, cancel or modify outstanding awards, and waive any condition imposed with respect to awards or common shares issued pursuant to awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Awards of Options, RSUs, PSUs and DSUs may be made under the Omnibus Plan. All of the awards described below are subject to the conditions, limitations, restrictions, exercise price, vesting, settlement and forfeiture provisions determined by the Plan Administrator, in its sole discretion, subject to such limitations provided in the Omnibus Plan, and will generally be evidenced by an award agreement. In addition, subject to the limitations provided in the Omnibus Plan and in accordance with applicable law, the Plan Administrator may accelerate or defer the vesting or payment of awards, cancel or modify outstanding awards, and waive any condition imposed with respect to awards or common shares issued pursuant to awards:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Options. An Option entitles a holder thereof to purchase a prescribed number of treasury common shares at an exercise price set at the time of the grant. The Plan Administrator will establish the exercise price at the time each Option is granted, which exercise price must in all cases be not less than the five-day volume weighted average closing price (the "**5-day VWAP**") of the common shares on the applicable stock exchange for the five trading days immediately preceding the date of grant (for the purposes of this section, the "**Market Price**"). Subject to any accelerated termination as set forth in the Omnibus Plan, each Option expires on its respective expiry date. The Plan Administrator will have the authority to determine the vesting terms applicable to grants of Options. Once an Option becomes vested, it shall remain vested and shall be exercisable until expiration or termination of the Option, unless otherwise specified by the Plan Administrator, or as otherwise set forth in any written employment agreement, award agreement or other written agreement between the Company or a subsidiary of the Company and the participant. The Plan Administrator has the right to accelerate the date upon which any Option becomes exercisable. The Plan Administrator may provide at the time of granting an Option that the exercise of that Option is subject to restrictions, in addition to those specified in the Omnibus Plan, such as vesting conditions relating to the attainment of specified performance goals.

Unless otherwise specified by the Plan Administrator at the time of granting a Option and set forth in the particular award agreement, an exercise notice must be accompanied by payment of the exercise price. A participant may, in lieu of exercising an Option pursuant to an exercise notice, elect to surrender such Option to the (a "**Cashless Exercise**") in consideration for an amount from the equal to (i) the Market Price of the Shares issuable on the exercise of such Option (or portion thereof) as of the date such Option (or portion thereof) is exercised, less (ii) the aggregate exercise price of the Option (or portion thereof) surrendered relating to such Shares (the "**In-the-Money Amount**") by written notice to the indicating the number of Options such participant wishes to exercise using the Cashless Exercise, and such other information that the Company may require. Subject to the provisions of the Omnibus Plan, the Company will satisfy payment of the In-the-Money Amount by delivering to the participant such number of common shares having a fair market value equal to the In-the-Money Amount.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Restricted Share Units. An RSU is a unit equivalent in value to a common share credited by means of a bookkeeping entry in the books of the which entitles the holder to receive one common share (or the value thereof) for each RSU after a specified vesting period. The Plan Administrator may, from time to time, subject to the provisions of the Omnibus Plan and such other terms and conditions as the Plan Administrator may prescribe, grant RSUs to any participant in respect of a bonus or similar payment in respect of services rendered by the applicable participant in a taxation year (the "**RSU Service Year**").

The number of RSUs (including fractional RSUs) granted at any particular time under the Omnibus Plan will be calculated by dividing (a) the amount of any bonus or similar payment that is to be paid in RSUs, as determined by the Plan Administrator, by (b) the greater of (i) the Market Price of a common share on the date of grant and (ii) such amount as determined by the Plan Administrator in its sole discretion. The Plan Administrator shall have the authority to determine any vesting terms applicable to the grant of RSUs, provided that the terms comply with Section 409A of the U.S. Internal Revenue Code of 1986, to the extent applicable.

Upon settlement, holders will redeem each vested RSU for the following at the election of such holder but subject to the approval of the Plan Administrator: (a) one fully paid and non-assessable common share in respect of each vested RSU, (b) a cash payment or (c) a combination of common shares and cash. Any such cash payments made by the shall be calculated by multiplying the number of RSUs to be redeemed for cash by the Market Price per common share as at the settlement date. Subject to the provisions of the Omnibus Plan and except as otherwise provided in an award agreement, no settlement date for any RSU shall occur, and no common share shall be issued or cash payment shall be made in respect of any RSU any later than the final business day of the third calendar year following the applicable RSU Service Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Performance Share Units. A PSU is a unit equivalent in value to a common share credited by means of a bookkeeping entry in the books of the which entitles the holder to receive one common share (or the value thereof) for each PSU after specific performance-based vesting criteria determined by the Plan Administrator, in its sole discretion, have been satisfied. The performance goals to be achieved during any performance period, the length of any performance period, the amount of any PSUs granted, the effect of termination of a participant's service and the amount of any payment or transfer to be made pursuant to any PSU will be determined by the Plan Administrator and by the other terms and conditions of any PSU, all as set forth in the applicable award agreement. The Plan Administrator may, from time to time, subject to the provisions of the Omnibus Plan and such other terms and conditions as the Plan Administrator may prescribe, grant PSUs to any participant in respect of a bonus or similar payment in respect of services rendered by the applicable participant in a taxation year (the "**PSU Service Year**").

The Plan Administrator shall have the authority to determine any vesting terms applicable to the grant of PSUs. Upon settlement, holders will redeem each vested PSU for the following at the election of such holder but subject to the approval of the Plan Administrator: (a) one fully paid and non-assessable common share in respect of each vested PSU, (b) a cash payment, or (c) a combination of common shares and cash. Any such cash payments made by the to a participant shall be calculated by multiplying the number of PSUs to be redeemed for cash by the Market Price per common share as at the settlement date. Subject to the provisions of the Omnibus Plan and except as otherwise provided in an award agreement, no settlement date for any PSU shall occur, and no Share shall be issued or cash payment shall be made in respect of any PSU any later than the final business day of the third calendar year following the applicable PSU Service Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Deferred Share Units. A DSU is a unit equivalent in value to a common share credited by means of a bookkeeping entry in the books of the which entitles the holder to receive one common share (or, at the election of the holder and subject to the approval of the Plan Administrator, the cash value thereof) for each DSU on a future date. The Board may fix from time to time a portion of the total compensation (including annual retainer) paid by the Company to a director in a calendar year for service on the Board (the "**Director Fees**") that are to be payable in the form of DSUs. In addition, each director is given, subject to the provisions of the Omnibus Plan, the right to elect to receive a portion of the cash Director Fees owing to them in the form of DSUs.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. except as otherwise determined by the Plan Administrator or as set forth in the particular award agreement, RSUs, PSUs and DSUs shall be credited with dividend equivalents in the form of additional RSUs, PSUs and DSUs, as applicable, as of each dividend payment date in respect of which normal cash dividends are paid on common shares. Dividend equivalents shall vest in proportion to, and settle in the same manner as, the awards to which they relate. Such dividend equivalents shall be computed by dividing: (a) the amount obtained by multiplying the amount of the dividend declared and paid per common share by the number of RSUs, PSUs and DSUs, as applicable, held by the participant on the record date for the payment of such dividend, by (b) the market price at the close of the first business day immediately following the dividend record date, with fractions computed to three decimal places;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. in the event that an award expires, at a time when a scheduled blackout is in place or an undisclosed material change or material fact in the affairs of the Company exists, the expiry of such award will be the date that is 10 business days after which such scheduled blackout terminates or there is no longer such undisclosed material change or material fact;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. awards may not expire beyond 10 years from its date of grant, except where shareholder approval is received or where an expiry date would have fallen within a blackout period of the Company. All awards must vest and settle in accordance with the provisions of the Omnibus Plan and any applicable award agreement, which award agreement may include an expiry date for a specific award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. the Omnibus Plan provides certain exercising conditions and restrictions for any unvested and vested awards due to the impact of certain events upon the participants under the Omnibus Plan, including completion of a transaction in a change of control, termination for cause, resignation, termination without cause, disability, death or retirement, subject, in each case, to the terms of a participant's applicable employment agreement, award agreement or other written agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. awards granted under the Omnibus Plan are non-assignable and non-transferable.

A copy of the Omnibus Plan is available on the Company's SEDAR+ profile at www.sedarplus.com.

*Use of Financial Instruments*

The Company does not have a policy that would prohibit a NEO or director from purchasing financial instruments, including prepaid variable forward contracts, equity swaps, collars or units of exchange funds, that are designed to hedge or offset a decrease in market value of equity securities granted as compensation or held, directly or indirectly, by the NEO or director. However, management is not aware of any NEO or director purchasing such an instrument.

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**Performance Graph**

This chart represents the illustrative value of a $100 investment in BTQ Technologies Corp. at the time of the company completing its RTO transaction vs. an investment in the S&P/TSX Composite Index for the same time period.

![](exhibit99-87xu001.jpg)

**Summary Compensation Table**

In this section, a "Named Executive Officer" ("**NEO**") includes (i) the CEO, (ii) the CFO, (iii) each of the three most highly compensated executive officers, other than the CEO and CFO, who were serving as executive officers as at the end of the most recently completed financial year of December 31, 2024, and whose total compensation was more than $150,000; and (iv) any additional individuals for whom disclosure would have been required except that the individual was not serving as an officer of the Company at the end of the most recently completed financial year.

The following table sets forth compensation paid to the Company's NEOs for the Company's three most recently completed financial years is as set out below:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and<br>principal position** | **Year<sup>(1)</sup>** | **Salary<br>($)<br>(a)** | **Option-<br>based<br>awards<br>($)<sup>(2)</sup><br>(c)** | **Total**<br>**compensation**<br>**($)<sup>(2)<br>**<br></sup> |
| &nbsp;&nbsp;**Olivier Roussy**<br>**Newton**<br>CEO | 2024 | Nil | Nil | Nil |
| &nbsp;&nbsp;**Olivier Roussy**<br>**Newton**<br>CEO | 2023 | Nil | Nil | Nil |
| &nbsp;&nbsp;**Olivier Roussy**<br>**Newton**<br>CEO | 2022 | Nil | Nil | Nil |
| &nbsp;&nbsp;**Lonny Wong**<br>CFO | 2024 | 84000<sup>**(4)</sup>** 24687<sup>**(4)**</sup> | 17674<sup>**(4)**</sup> Nil | 126687<sup>**(4)**</sup> |
| &nbsp;&nbsp;**Lonny Wong**<br>CFO | 2023 | 59661<sup>**(4)**</sup> 81000<sup>**(4)**</sup> | 110575<sup>**(4)**</sup> Nil | 251236<sup>**(4)**</sup> |
| &nbsp;&nbsp;**Lonny Wong**<br>CFO | 2022 | Nil | Nil | Nil |
| &nbsp;&nbsp;**Nicolas Roussy**<br>**Newton**<br>COO | 2024 | 166374 Nil | 56395 Nil | 222769 |
| &nbsp;&nbsp;**Nicolas Roussy**<br>**Newton**<br>COO | 2023 | 162183 Nil | 196843 Nil | 359026 |
| &nbsp;&nbsp;**Nicolas Roussy**<br>**Newton**<br>COO | 2022 | Nil | Nil | Nil |
| &nbsp;&nbsp;**Po-Chun Kuo**<br>Former Chief<br>Technology<br>Officer | 2024 | 208420 Nil | Nil | 208420 |
| &nbsp;&nbsp;**Po-Chun Kuo**<br>Former Chief<br>Technology<br>Officer | 2023 | 128360 Nil | 157474 Nil | 285834 |
| &nbsp;&nbsp;**Po-Chun Kuo**<br>Former Chief<br>Technology<br>Officer | 2022 | Nil | Nil | Nil |

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Notes:

(1) 2024, 2023 and 2022 financial years ended December 31.

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(2) Share-based awards comprise RSUs. Value represents the fair value of the entire award on the grant date which differs from the value reported in the Company's financial statements. For financial statement purposes, the accounting fair value amount is amortized over the service period to obtain the accounting compensation expense.

(3) The value ascribed to option grants represents non-cash consideration and has been estimated using the Black-Scholes option pricing model as at the date of grant as follows: February 17, 2023 - expected volatility - 216%, expected option life - 4.9 years, risk free-rate - 3.33%, dividend rate - 0%, May 18, 2023 - expected volatility - 219%, expected option life - 4.6 years, risk-free rate - 3.28%, dividend rate - 0%. The Company chose the Black-Scholes option pricing model given its prevalence of use in North America. The value represents the fair value of the entire award on the grant date which differs from the value reported in the Company's financial statements. For financial statement purposes, the accounting fair value amount is amortized over the service period to obtain the accounting compensation expense.

(4) Amount paid/awarded to Saturna Group Chartered Professional Accountants LLP where Lonny Wong is a partner.

**INCENTIVE PLAN AWARDS**

**Outstanding Share and Option-based Awards**

The Company has a formal Omnibus Plan, previously approved by the shareholders of the Company. As of December 31, 2024, the following share-based and option-based awards were outstanding for each of the NEOs:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Option-based Awards** | **Option-based Awards** | **Option-based Awards** | **Option-based Awards** | **Share-based Awards** | **Share-based Awards** |
| <br>**Name** | **Number of**<br>**securities**<br>**underlying**<br>**unexercised**<br>**options**<br>**(#)** | **Option**<br>**exercise price**<br>**($)** | **Option**<br>**expiration**<br>**date**<br>**(c)** | **Value of**<br>**unexercised**<br>**in-the-money**<br>**options<sup>(1)(2)</sup>**<br>**($)** | **Number of**<br>**shares or units**<br>**of shares that**<br>**have not**<br>**vested**<br>**(#)** | **Market or**<br>**payout value**<br>**of share-based**<br>**awards that**<br>**have not**<br>**vested<sup>(3)</sup>**<br>**($)** |
| &nbsp;&nbsp;**Olivier Roussy<br>Newton**<br> CEO | Nil | Nil | Nil | Nil | Nil | Nil |
| &nbsp;&nbsp;**Lonny Wong**<br> CFO | 250000 | 0.45 | January 1, 2028 | 872500 | 45000 | 20250 Nil |
| &nbsp;&nbsp;**Nicolas Roussy<br>Newton**<br> COO****  | 500000 | 0.40 | January 1, 2028 | 1770000 | Nil | Nil |
| &nbsp;&nbsp;**Po-Chun Kuo**<br>Former Chief<br>Technology<br>Officer | Nil | Nil | Nil | Nil | Nil | Nil |

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Notes:

(1) Based on the closing market price of $3.94 on December 31, 2024 and subtracting the exercise price of the options.

(2) These options have not been, and may never be, exercised, and actual gains, if any, on exercise will depend on the value of the common shares on the date of exercise.

(3) Share-based awards comprise of RSUs. Value is based on the fair value of the award on the grant date.

**Incentive Plan Awards - Value Vested or Earned during the Most Recently Completed Financial Year**

The following table sets forth details of the value of incentive plan awards that vested or were earned during the most recently completed financial year ended December 31, 2024:

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| | | |
|:---|:---|:---|
| **Name** | **Option-based awards-**<br>**Value vested during**<br>**the year**<br>**($)**<br>**(a)** | **Share-based awards -**<br>**Value vested during**<br>**the year**<br>**($)**<br>**(b)** |
| &nbsp;&nbsp;**Olivier Roussy Newton**<br>CEO | Nil | Nil |
| &nbsp;&nbsp;**Lonny Wong**<br>CFO | 17674 | 24687 Nil |

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- 17 - <br>

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| | |
|:---|:---|
| **Name** | **Option-based awards-**<br>**Value vested during**<br>**the year**<br>**($)**<br>**(a)** |
| &nbsp;&nbsp;**Nicolas Roussy Newton**<br>COO | 56395 Nil |
| &nbsp;&nbsp;**Po-Chun Kuo**<br>Former Chief Technology Officer | Nil |

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**Pension Plans**

The Company does not provide retirement benefits for directors or executive officers.

**Termination of Employment, Changes in Responsibility and Employment Contracts**

There are no employment contracts between the Company and the NEOs, except as referred to under the heading "Management Contracts" below.

The Company has no plans or arrangements in respect to compensation to its executive officers which would result from the resignation, retirement or any other termination of the executive officers' employment with the Company or from a change of control of the Company or a change in the executive officers' responsibilities following a change in control, where in respect of an executive officer the value of such compensation exceeds $100,000.

**Compensation of Directors**

The Company does not pay cash fees to any of its directors. The Company compensates its directors through option grants. NEOs do not receive additional compensation for serving as directors.

***Director Compensation Table***

The following table provides information regarding compensation paid to the non-NEO directors of the Company for the most recently completed financial year.

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| | | |
|:---|:---|:---|
| **Name** | **Option based**<br>**awards<sup>(1)</sup>**<br>**($)** | **Total**<br>**($)** |
| &nbsp;&nbsp;Kevin Mulhern Nil | Nil | Nil |
| &nbsp;&nbsp;Johan Wattenstrom Nil | Nil | Nil |
| &nbsp;&nbsp;Michael Resendes Nil | 5139 Nil | 5139 |

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Notes:

(1) The value ascribed to option grants represents non-cash consideration and has been estimated using the Black-Scholes option pricing model as at the date of grant as follows: October 22, 2024 - expected volatility - 184%, expected option life - 3 years, risk free-rate - 2.91%, dividend rate - 0%. The Company chose the Black-Scholes option pricing model given its prevalence of use in North America. The value represents the fair value of the entire award on the grant date which differs from the value reported in the Company's financial statements. For financial statement purposes, the accounting fair value amount is amortized over the service period to obtain the accounting compensation expense.

**Outstanding Share and Option-based Awards**

The Company has a formal Omnibus Plan, previously approved by the shareholders of the Company. As of December 31, 2024, the following share-based and option-based awards were outstanding stock options for each of the non-NEO directors of the Company:

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- 18 - <br>

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Option-based Awards | Option-based Awards | Option-based Awards | Option-based Awards | Share-based Awards | Share-based Awards | Share-based Awards |
| **Name** | **Number of**<br>**securities**<br>**underlying**<br>**unexercised**<br>**options**<br>**(#)** | **Option**<br>**exercise**<br>**price**<br>**($)** | **Option**<br>**expiration date**<br>**(c)** | **Value of**<br>**unexercised**<br>**in-the-money**<br>**options<sup>(1)(2)</sup>**<br>**($)** | **Number of**<br>**shares or units**<br>**of shares that**<br>**have not**<br>**vested**<br>**(#)** | **Market or**<br>**payout value**<br>**of share-based**<br>**awards that**<br>**have not**<br>**vested**<br>**($)** | **Market or**<br>**payout value**<br>**of vested**<br>**share-based**<br>**awards not**<br>**paid out or**<br>**distributed**<br>**($)** |
| &nbsp;&nbsp;Kevin Mulhern | 300000 | 0.40 | February 17, 2026 | 1062000 | Nil | Nil | Nil |
| &nbsp;&nbsp;Johan Wattenstrom | 300000 | 0.40 | February 17, 2026 | 1062000 | Nil | Nil | Nil |
| &nbsp;&nbsp;Michael Resendes | 50000 | 0.42 | October 22, 2027 | 244800 | Nil | Nil | Nil |
| &nbsp;&nbsp;Michael Resendes | 20000 | 0.50 | March 5, 2025 |  |  |  |  |

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Notes:

(1) Based on the closing market price of $3.94 on December 31, 2024 and subtracting the exercise price of the options.

(2) These options have not been, and may never be, exercised, and actual gains, if any, on exercise will depend on the value of the common shares on the date of exercise.

**Incentive Plan Awards Options - Value Vested or Earned during the Most Recently Completed Financial Year**

The following table sets forth details of the value of incentive plan awards that vested or were earned during the most recently completed financial year ended December 31, 2024 for each of the non-NEO directors of the Company:

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| | |
|:---|:---|
| **Name** | **Option-based awards-**<br>**Value vested during**<br>**the year**<br>**($)**<br>**(a)** |
| &nbsp;&nbsp;Kevin Mulhern | Nil |
| &nbsp;&nbsp;Johan Wattenstrom | Nil |
| &nbsp;&nbsp;Michael Resendes | 5139 Nil |

---

**SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS**

For the financial year ended December 31, 2024, the only equity compensation plan which the Company had in place was the Omnibus Plan which was previously approved by the Board and the shareholders of the Company. The Omnibus Plan was established to provide incentive to qualified parties to increase their proprietary interest in the Company and thereby encourage their continuing association with the Company. The Omnibus Plan is administered by the Board. The Omnibus Plan provides that options will be issued to directors, officers, employees or consultants of the Company or a subsidiary of the Company. The Omnibus Plan provides that the number of common shares issuable under the Omnibus Plan, together with all of the Company's other previously established or proposed share compensation arrangements, may not exceed 10% of the total number of issued and outstanding common shares. All options expire on a date not later than five years after the date of grant of such option.

The following table sets out equity compensation plan information as of December 31, 2024:

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| | | | |
|:---|:---|:---|:---|
| **Plan Category** | **Number of securities to**<br>**be issued upon exercise**<br>**of outstanding options,**<br>**warrants and rights** | **Weighted-average**<br>**exercise price of**<br>**outstanding options,**<br>**warrants and rights** | **Number of securities remaining**<br>**available for future issuance under**<br>**equity compensation plans (excluding**<br>**securities reflected in column (a))** |
| &nbsp;&nbsp;Equity compensation plans approved by securityholders - | 6886616 | $0.55 | 6296752 |
| &nbsp;&nbsp;Equity compensation plans not approved by securityholders | Nil | Nil | Nil |
| &nbsp;&nbsp;**TOTAL:** | 6886616 | $0.55 | 6296752 |

---

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**INDEBTEDNESS OF DIRECTORS AND EXECUTIVE OFFICERS**

At no time during the Company's last completed financial year or as of the Record Date, was any director, executive officer, employee, proposed management nominee for election as a director of the Company nor any associate of any such director, executive officer, or proposed management nominee of the Company or any former director, executive officer or employee of the Company or any of its subsidiaries indebted to the Company or any of its subsidiaries or indebted to another entity where such indebtedness was the subject of a guarantee, support agreement, letter of credit or other similar arrangement or understanding provided by the Company or any of its subsidiaries.

**INTEREST OF INFORMED PERSONS IN MATERIAL TRANSACTIONS**

To the knowledge of management of the Company, no informed person (a director, officer or holder of 10% or more of the common shares) or nominee for election as a director of the Company or any associate or affiliate of any informed person or proposed director had any interest in any transaction which has materially affected or would materially affect the Company or any of its subsidiaries since January 1, 2024 (being the commencement of the Company's last completed financial year), or has any interest in any material transaction in the current year other than as set out herein.

**MANAGEMENT CONTRACTS**

There are no management functions of the Company which are to any substantial degree performed by a person or company other than the directors or executive officers of the Company.

**APPOINTMENT OF AUDITOR**

The Board proposes to appoint MNP LLP of Vancouver, British Columbia as the auditor of the Company. Unless otherwise instructed, the proxies given pursuant to this solicitation will be voted for the appointment of MNP LLP as the auditor of the Company to hold office until the close of the next annual general meeting of the Company. MNP LLP has been the auditor of the Company since November 12, 2024. It is proposed that the remuneration to be paid to the auditor of the Company be fixed by the Board.

As required by section 4.11(5)(c) of National Instrument 51-102 Continuous Disclosure Obligations, included with this Circular as Schedule "B" are copies of the following materials which have been filed with securities regulatory authorities in connection with the change of auditors:

1. Notice of Change of Auditor dated November 12, 2024;

2. Letter from BDO Canada LLP, Chartered Professional Accountants, dated November 12, 2024; and

3. Letter from MNP LLP dated November 12, 2024.

**Management recommends and, unless otherwise directed, the persons named in the enclosed Proxy intend to vote FOR such resolution:**

**"UPON MOTION DULY MADE, IT WAS RESOLVED AS AN ORDINARY RESOLUTION THAT:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. MNP LLP is hereby appointed as the auditor of the Company until the next annual general meeting of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Any one or more of the directors and officers of the Company be authorized to perform all such acts, deeds and things and execute, under seal of the Company or otherwise, all such documents as may be required to give effect to these resolutions."

**ADDITIONAL INFORMATION**

The audited consolidated financial statements of the Company for the year ended December 31, 2024, and the related management's discussion and analysis (the "**Financial Materials**") are available on SEDAR+ at www.sedarplus.ca and will be placed before the Meeting.

Shareholders may request copies of the Financial Materials without charge from the Company by email: <u>investors@btq.com</u>.

**OTHER MATTERS**

The Board is not aware of any other matters which it anticipates will come before the Meeting as of the date of this Circular.

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**SCHEDULE "A"**

**AUDIT COMMITTEE**

**CHARTER**

**I. ROLE AND OBJECTIVES**

The Audit Committee is a committee of the Board of Directors (the "**Board**") of BTQ Technologies Corp (the "**Corporation**") to which the Board has delegated certain oversight responsibilities relating to the Corporation's financial statements, external auditors, risk management, compliance with legal and regulatory requirements and management information technology. In this Charter, the Corporation and all entities controlled by the Corporation are collectively referred to as "**BTQ**".

The objectives of the Audit Committee are to maintain oversight of:

(a) the Corporation's accounting and financial reporting processes;

(b) the audits of the Corporation's financial statements;

(c) the integrity of the Corporation's financial statements, the reporting process and itsinternal control over financial reporting;

(d) the reports, qualifications, independence and performance of the Corporation's external auditor;

(e) the Corporation's risk identification, assessment and management program;

(f) the Corporation's compliance with applicable legal and regulatory requirements;

(g) the Corporation's management of information technology related to financial reporting and financial controls; and

(h) the maintenance of open channels of communication among management of the Corporation, the external auditors and the Board.

**II. MEMBERSHIP AND POLICIES**

The Board, based on recommendation from the Nomination and Governance Committee, will appoint or reappoint members of the Audit Committee. Each member shall serve until his or her successor is appointed unless the member resigns, is removed or ceases to be a director. The Board of Directors may fill a vacancy that occurs in the Committee at any time.

The Audit Committee must be composed of not less than three (3) members of the Board, each of whom must be independent pursuant to the rules and regulations of all applicable stock exchanges and United States and Canadian securities laws and regulations.

No member of the Audit Committee may have participated in the preparation of the financial statements of the Corporation or any of its then-current subsidiaries at any time during the immediately prior three years.

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Each member of the Audit Committee must be financially literate, as determined by the Board, and be able to read and understand fundamental financial statements, including the Corporation's balance sheet, income statement, and cash flow statement. Additionally, at least one member of the Audit Committee must have accounting or related financial management expertise, as determined by the Board. A person who is an "audit committee financial expert" as defined in Item 407(d)(5)(ii) of Regulation S-K may be presumed to have accounting or related financial management expertise.

The Board, in consultation with the Nomination and Governance Committee, will appoint or reappoint the Chair of the Audit Committee from amongst its members.

The Audit Committee may at any time retain outside financial, legal or other advisors as it determines necessary to carry out its duties, at the expense of the Corporation. The Corporationshall provide for appropriate funding, as determined by the Audit Committee in its capacity as a committee of the Board, for payment of: (i) compensation to the external auditor for the purpose of preparing or issuing an audit report or performing other audit, review or attestation services for the Corporation, (ii) compensation to any advisors employed by the Audit Committee, and (iii) ordinary administrative expenses of the Audit Committee that are necessary or appropriatein carrying out its duties.

In discharging its duties under this Charter, the Audit Committee may investigate any matter brought to its attention and will have access to all books, records, facilities and personnel, may conduct meetings or interview any officer or employee, the Corporation's legal counsel, externalauditors and consultants, and may invite any such persons to attend any part of any meeting of the Audit Committee.

The Audit Committee has neither the duty nor the responsibility to conduct audit, accounting or legal reviews, or to ensure that the Corporation's financial statements are complete, accurate and in accordance with International Financial Reporting Standards ("**IFRS**") as issued by the International Accounting Standards Board ("**IASB**"); rather, management is responsible for the financial reporting process, internal review process, and the preparation of the Corporation's financial statements in accordance with IFRS, and the Corporation's external auditor is responsible for auditing those financial statements.

**III. FUNCTIONS**

**A. Financial Statements, the Reporting Process and Internal Controls over Financial Reporting**

The Audit Committee will meet, as applicable, with management and the external auditor to review and discussannual and quarterly financial statements, management's discussion and analyses ("**MD&A**"), any earnings press releases, other financial disclosures and earnings guidance provided to analysts and rating agencies, and determine whether to recommend the approval of such documents to the Board.

(a) In connection with these procedures, the Audit Committee will, as applicable and without limitation establish:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. a procedure for complaints relating to the receipt, retention, and treatment of complaints received by the Corporation regarding accounting, internal accounting controls, or auditing matters; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. the confidential, anonymous submission by the Corporation's employees of concerns regarding questionable or auditing matters.

(b) In connection with these procedures, the Audit Committee will, as applicable and without limitation review and discuss with management and the external auditor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the information to be included in the Corporation's financial statements and other financial disclosures which require approval by the Board including the Corporation's annual and quarterly financial statements, notes thereto, MD&A and any earnings press releases or earnings guidance provided to analysis and rating agencies, paying particular attention to any use of "pro forma", "adjusted" and "non-GAAP" information, and ensuring that adequate procedures are in place for the review of the Corporation's public disclosure of financial information extracted or derived from the financial statements;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. any significant financial reporting issues, including major issues regarding accounting principles and financial statement presentations, identified during the reporting period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. any change in accounting policies, or selection or application of accounting principles, and their impact on the Corporation's financial results and disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. all significant estimates and judgments, significant risks and uncertainties made in connection with the preparation of the Corporation's financial statements that may have a material impact to the financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. any significant deficiencies or material weaknesses identified by management or the external auditor, compensating or mitigating controls and the final assessment and impact of such deficiencies or material weaknesses on disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. any major issues as to the adequacy of the internal controls and any special audit steps adopted in light of material internal control deficiencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. significant adjustments identified by management or the external auditor and the assessment of associated internal control deficiencies, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. any unresolved issues between management and the external auditor that could materially impact the financial statements and other financial disclosures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. any material correspondence with regulators, government agencies, any employee or whistleblower complaints and other reports of non-compliance which raise issues regarding the Corporation's financial statements or accounting policies and significant changes in regulations which may have a material impact on the Corporation's financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. the effect of regulatory and accounting initiatives, as well as any off-balance sheet structures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xi. significant matters of concern respecting audits and financial reporting processes, including any illegal acts, that have been identified in the course of the preparation or audit of the Corporation's financial statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xii. any analyses prepared by management and/or the external auditor setting forth significant financial reporting issues and judgments made in connection with the preparation of financial statements including analyses of the effects of IFRS on the financial statements.

(c) In connection with the annual audit of the Corporation's financial statements, the Audit Committee will review with the external auditor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. prior to commencement of the annual audit, plans, scope, staffing, engagement terms and proposed fees;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. reports or opinions to be rendered in connection with the audit including the external auditor's review or audit findings report including alternative treatment ofsignificant financial information within IFRS that have been discussed with management and the associated impact on disclosure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. the adequacy of internal controls, any audit problems or difficulties, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) any restrictions on the scope of the external auditor's activities or on access to requested information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any significant disagreements with management, and management's response (including discussion among management, the external auditor and, as necessary, internal and external legal counsel);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) any litigation, claim or contingency, including tax assessments and claims, that could have a material impact on the financial position of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) the impact on current or potential future disclosures.

In connection with its review of the annual audited financial statements and quarterly financial statements, the Audit Committee will also review any significant concerns raised during the Chief Executive Officer ("**CEO**") and Chief Financial Officer ("**CFO**") certifications with respect to the financial statements and BTQ's disclosure controls and internal controls. In particular, the Audit Committee will review with the CEO, CFO and external auditor: (i) all significant deficiencies, material weaknesses or significant changes in the design or operation of BTQ'sinternal control over financial reporting that could adversely affect the Corporation's ability to record, process, summarize and report financial information required to be disclosed by the Corporation in the reports that it files or submits under applicable securities laws, within the required time periods; and (ii) any fraud, whether or not material, that involves management of BTQ or other employees who have a significant role in BTQ's internal control over financial reporting. In addition, the Audit Committee will review with the CEO and CFO, BTQ's disclosure controls and procedures and periodically will review management's conclusions about the efficacy of disclosure controls and procedures, including any significant deficiencies, material weaknesses or material non-compliance with disclosure controls and procedures.

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**B. The External Auditor**

The Audit Committee, in its capacity as a committee of the Board, is directly responsible for overseeing the relationship, reports, qualifications, independence and performance of the external auditor and audit services by other registered public accounting firms engaged by the Corporation. The Audit Committee has responsibility to take, or recommend that the Board take, appropriate action to oversee the independence of the external auditor. The AuditCommittee shall have the authority and responsibility to recommend the appointment and the revocation of the appointment of the external auditors engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services, and to fix their remuneration.

The external auditor will report directly to the Audit Committee. The Audit Committee's appointment of the external auditor is subject to annual approval by the shareholders.

With respect to the external auditor, the Audit Committee is responsible for:

(a) the appointment, termination, compensation, retention and oversight of the work of the external auditor engaged by the Corporation for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Corporation, including the review and approval of the terms of the external auditor's engagement letter and the proposed fees;

(b) resolution of disagreements or disputes between management and the external auditor regarding financial reporting for audit, review or attestation services;

(c) pre-approval of all audit services and legally permissible non-audit services to be provided by the external auditors considering the potential impact of such services on the independence ofexternal auditors and, subject to any *de minimis* exemption available under applicable laws. Such approval of non-audit services can be given either specifically or pursuant to pre-approval policies and procedures adopted by the committee including the delegation of this ability to oneor more members of the Audit Committee to the extent permitted by applicable law, provided that any pre-approvals granted pursuant to any such delegation may not delegate Audit Committee responsibilities to management of the Corporation, and must be reported to the full Audit Committee at the first scheduled meeting of the Audit Committee following such pre- approval;

(d) obtaining and reviewing, at least annually, a written report by the external auditor describing the external auditor's internal quality-control procedures, any material issues raised by the most recent internal quality-control review, or peer review, of the firm, or byany inquiry or investigation by governmental or professional authorities, within the preceding five years, respecting one or more independent audits carried out by the firm, and any steps taken to deal with any such issues and all relationships between the external auditors and the Corporation;

(e) obtaining a formal written statement delineating all relationships between the auditor andthe Corporation, consistent with The Public Company Accounting Oversight Board Rule 3526, and discussing any disclosed relationships or services with the auditor and how they may impact the objectivity and independence of the auditor;

(f) review of the external auditor which assesses three key factors of audit quality for the Audit Committee to consider and assess including: independence, objectivity and professional skepticism; quality of the engagement team; and quality of communications and interactions with the external auditor. A written comprehensive review of the externalauditor to be considered if required each year and completed at least every five (5) years which will include an:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. assessment of quality of services and sufficiency of resources provided by the external auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. assessment of auditor independence, objectivity and professional skepticism, including the review and evaluation of the lead partner of the external auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. assessment of value of services provided by the external auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. assessment of written input from external auditor summarizing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) background of firm, size, resources, geographical coverage, relevant industry experience, including reputational challenges, systemic audit quality issues identified by Canadian Public Accountability Board ("**CPAB**") and Public Company Accounting Oversight Board ("**PCAOB**") in public reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) industry experience of the audit team and plans for training and development of the team;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) how the external auditor demonstrated objectivity and professional skepticism during the audit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) how the firm and team met all criteria for independence including identification of all relationships that the external auditor has with the Corporation and its affiliates and steps taken to address possible institutional threats;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) involvement of engagement quality reviewer ("**EQR**") partner and significant concerns raised by the EQR partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) matters raised to national office or specialists during the review;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) significant disagreements between management and the external auditors and steps taken to resolve such disagreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) satisfaction with communication and cooperation with management and the Audit Committee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) findings and firm responses to reviews of the Corporation by CPAB and PCAOB;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. communication of the results of the comprehensive review of the external auditor to the Board and recommending that the Board take appropriate action, in response to the review, as required. It is understood that the Audit Committee may recommend tendering the external auditor engagement at their discretion. In addition to rotation of the EQR partner as required by law, the Audit Committee, together with the Board, will also consider whether it is necessary to periodically rotate the external audit firm itself. It will be at the discretion of the Audit Committee if the incumbent external auditor is invited to participate in the tendering process; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. setting clear hiring policies for the Corporation regarding partners and employees and former partners and employees of the present and former external auditor of the Corporation. Before any such partner or employee is offered employment by the Corporation, prior approval from the Chair of the Audit Committee must be received and a one year grace period must pass from the date any work was last completed on an audit engagement before an external auditor employee can be considered for contract or employment by the Corporation.

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**C. Risk Management**

The Audit Committee, in its capacity as a committee of the Board, is directly responsible for overseeing the risk identification, assessment and management program of the Corporation by discussing guidelines and policies to govern the process by which risk is identified, assessed and managed. Periodically, in conjunction with senior management, internal counsel and, as necessary, external counsel the Corporation's external auditors and other advisers, as it deems necessary, the Audit Committee will review the following:

(a) the Corporation's method of reviewing significant risks inherent in BTQ's business, assets, facilities, and strategic directions, including the Corporation's risk management and evaluation process;

(b) discuss guidelines and policies with respect to risk assessment and risk management, including the Corporation's major financial risk exposures and the steps management has taken to monitor and control such exposures. The Audit Committee is not required to be the sole body responsible for risk assessment and management, but, as stated above, the committee must discuss guidelines and policies to govern the process by which risk assessment and management is undertaken.

(c) the major financial risk exposures and steps management has taken to monitor and manage such exposures;

(d) the Corporation's annual insurance report including its risk retention philosophy and resulting uninsured exposure, if any, including corporate liability protection programs for directors and officers;

(e) the Corporation's loss prevention policies, risk management programs, disaster response and recovery programs in the context of operational considerations; and

(f) other risk management matters from time to time as the Audit Committee may consider appropriate or the Board may specifically direct.

**D. Additional Duties and Responsibilities**

The Audit Committee will also:

(a) meet separately, and periodically, with management, the external auditor and, as is appropriate, internal and external legal counsel and independent advisors in respect of issues not elsewhere listed concerning any other audit, finance or risk matter;

(b) review the appointment of the CFO and any other key financial executives who are involved in the financial reporting process;

(c) review the Corporation's information technology practices as they relate to financial reporting;

(d) periodically review Directors' and Officers' Liability Insurance Coverage;

(e) from time to time, discuss staffing levels and competencies of the finance team with the external auditor;

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(f) review incidents, alleged or otherwise, as reported by whistleblowers, management, the external auditor, internal or external counsel or otherwise, of fraud, illegal acts or conflicts of interest and establish procedures for receipt, treatment and retention of records of incident investigations;

(g) facilitate information sharing with other committees of the Board as required to address matters of mutual interest or concern in respect of the Corporation's financial reporting;

(h) assist Board oversight in respect of issues not elsewhere listed concerning the integrity of the Corporation's financial statements, the Corporation's compliance with legal and regulatory requirements, the independent auditor's qualifications and independence, and the performance of the external auditors;

(i) have the authority and responsibility to recommend the appointment and the revocation of the appointment of registered public accounting firms (in addition to the external auditors) engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services, and to fix their remuneration.

In addition, the Audit Committee will perform such other functions as are assigned by law and on the instructions of the Board.

**IV. MEETINGS**

Notice of each meeting of the Audit Committee will be given to each member and, if applicable, to the external auditors. The notice will:

(a) be in writing (which may be communicated by fax or email);

(b) be accompanied by an agenda that states the nature of the business to be transacted at the meeting in reasonable detail;

(c) include copies of documentation to be considered at the meeting and reasonably sufficient time to review documentation; and

(d) be given at least 48 hours preceding the time stipulated for the meeting, unless notice is waived by the Audit Committee members.

A quorum for a meeting of the Audit Committee is a majority of the members present in person, by video conference, webcast or telephone.

If the Chair is not present at a meeting of the Audit Committee, a Chair will be selected from among the members present. The Chair will not have a second or deciding vote in the event of an equality of votes.

At each meeting, the Audit Committee will meet "in-camera", without management or external auditors present, and will periodically, and at least annually, meet in separate sessions with the lead partner of the external auditor at least annually.

The Audit Committee may invite others to attend any part of any meeting of the Audit Committee as it deems appropriate. This includes other directors, members of management, any employee, the Corporation's internal or external legal counsel, external auditors, advisors and consultants.

Minutes will be kept of all meetings of the Audit Committee. The minutes will include copies of all resolutions passed at each meeting, will be maintained with the Corporation's records, and will be available for review by members of the Audit Committee, the Board, and the external auditor.

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**V. OTHER MATTERS**

**A. Review of Charter**

The Audit Committee shall review and reassess the adequacy of this Charter annually, and propose recommended changes to the Nomination and Governance Committee.

**B. Reporting**

The Audit Committee shall report to the Board activities and recommendations of each Audit Committee meeting and review with the Board any issues that arise with respect to the quality or integrity of the Corporation's financial statements, the Corporation's compliance with legal or regulatory requirements, the performance and independence of the Corporation's external auditors, management information technology with respect to financial reporting matters, risk management and communication between the parties identified above.

**C. Evaluation**

The Audit Committee's performance shall be evaluated periodically by the Nomination and Governance Committee and the Board as part of the Board assessment process established by the Nomination and Governance Committee and the Board.

This Charter was last approved by the Board of Directors on January 24, 2025.

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**SCHEDULE "B"**

**NOTICE OF CHANGE OF AUDITOR**

**TO:** British Columbia Securities Commission

Alberta Securities Commission

Ontario Securities Commission

**AND TO:** BDO Canada LLP ("BDO")

MNP LLP ("MNP")

**RE:**Notice Regarding Change of Auditor Pursuant to Section 4.11 of National Instrument 51- 102 - *Continuous Disclosure Obligations* ("NI 51-102")

Notice is hereby given of a change of the auditor of BTQ Technologies Corp. (the "Company") pursuant to section 4.11 of NI 51-102 as follows:

1. The Company has accepted the resignation of its auditor, BDO, effective October 21, 2024.

2. MNP has been appointed as auditor of the Company effective November 12, 2024, to hold office until the next annual general meeting of the Company.

3. The determination to accept the resignation of BDO and the determination to appoint MNP, in each case as the Company's auditor, were considered and approved by both the Company's board of directors and its Audit Committee.

4. BDO did not express a modified opinion for its report on the financial statements of the Company for: (a) the most recently completed fiscal year preceding the date of this Notice; or (b) any period subsequent to the most recently completed fiscal year end ending on December 31, 2023.

4. No "reportable events" (as defined in section 4.11(1) of NI 51 - 102) have occurred.

**DATED** the 12th day of November, 2024.

**BTQ Technologies Corp.**

*/s/ Olivier Roussy Newton*

Per: Olivier Roussy Newton, CEO

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**LETTER FROM BDO CANADA LLP**

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| | | |
|:---|:---|:---|
| ![](exhibit99-87xu002.jpg) | Tel: (604) 688-5421<br>Fax: (604) 688-5132<br>www.bdo.ca | BDO Canada LLP<br>1100 Royal Centre<br>1055 West Georgia Street, P.O. Box 11101<br>Vancouver, British Columbia<br>V6E 3P3 |

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November 12, 2024

British Columbia Securities Commission

Alberta Securities Commission

Ontario Securities Commission

Dear Sirs/Mesdames:

**Re: BTQ Technologies Corp. (the "Company")**

As required under section 4.11 of National Instrument 51-102, we have read the Company's Change of Auditor Notice dated November 12, 2024 ("the Notice").

We confirm our agreement with the information contained in the Notice pertaining to our firm.

Yours very truly,

/s/ "BDO CANADA LLP"

Chartered Professional Accountants

BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

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**LETTER FROM MNP LLP**

![](exhibit99-87xu003.jpg)

November 12, 2024

British Columbia Securities Commission

Alberta Securities Commission

Ontario Securities Commission

Dear Sirs/ Madams:

**Re: BTQ Technologies Corp. (the "Company")**

Pursuant to National Instrument 51-102 Continuous Disclosure Obligations, we have reviewed the information contained in the Notice of Change of Auditor of the Company dated November 12, 2024 ("the Notice") and, based on our knowledge of such information at this time, we agree with the statements made in the Notice pertaining to our firm. We advise that we have no basis to agree or disagree with the comments in the Notice relating to BDO Canada LLP.

Yours truly,

![](exhibit99-46xu002.jpg)

**Chartered Professional Accountants**

**Licensed Public Accountants**

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**SCHEDULE "C"**

![](exhibit99-87x1x1.jpg)

**BOARD MANDATE**

**I. GENERAL**

The Board of Directors (the "**Board**") has the responsibility to supervise the management of the business and affairs of BTQ Technologies Corp. (the "**Corporation**") and all entities controlled by the Corporation other than those controlled entities that have securities listed on a securities exchange and are subject to their own corporate governance standards and policies, (collectively, "**BTQ**") in the best interests of the holders of Corporation's shares (the "**Shareholders**"). A fundamental objective of the Board is to enhance and preserve long-term value to the Corporation, to confirm that BTQ meets its obligations on an ongoing basis and to confirm that BTQ operates in a reliable and safe manner. In performing its functions, the Board will, when required by law, consider the legitimate interests of its other stakeholders (such as employees, service providers and communities).

The Board has responsibility for managing its own affairs and the stewardship of BTQ, including constituting committees of the Board and determining director compensation. The Board will oversee the systems of corporate governance and financial reporting and controls to satisfy itself that the Corporation reports adequate and fair financial information to Shareholders and engages in ethical and legal conduct. The Board will appoint the officers of the Corporation by resolution.

**II. BOARD CHAIR**

The Board may appoint a chair (the "**Board Chair**"), who, if possible and if in the best interests of BTQ, will be a person other than an officer or employee of the Corporation. The Board Chair reports to the Board and provides leadership to the Board in matters relating to the effective execution of all Board responsibilities, and works with the Chief Executive Officer (the "**CEO**") to ensure that the Corporation fulfills its responsibilities to stakeholders including Shareholders, employees, partners, governments and the public.

**III. STRATEGIC PLANNING**

The Board has the responsibility to confirm there are long-term operational and financial goals and a strategic planning process in place for BTQ and to participate with management in developing and approving the strategy by which it proposes to achieve these goals.

**IV. RISK MANAGEMENT**

The Board has the responsibility to understand the primary risks of the business in which BTQ is engaged and verify that BTQ achieves a proper balance between risks incurred and the potential return to the Corporation and its Shareholders. The Board must also confirm that there are systems in place which effectively monitor and manage those risks with a view to the long-term viability of BTQ. The Board will:

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(a) confirm that a management system is in place to identify the principal risks to BTQ and its business and that appropriate procedures are in place to monitor and mitigate those risks;

(b) confirm that management processes are in place to address and comply with applicable regulatory, corporate, securities and other compliance matters; and

(c) review insurance coverage periodically.

**V. FINANCIAL REPORTING AND MANAGEMENT**

The Board will, with the assistance of reports and/or recommendations of the Audit Committee:

(a) approve financial statements and review and oversee compliance with applicable audit, accounting and financial reporting requirements;

(b) approve operating and capital budgets;

(c) approve cash management plans and strategies and all activities relating to cash accounts and cash investment portfolios, including the establishment and maintenance of bank, investment and brokerage accounts;

(d) confirm that the Audit Committee has established a system for the receipt, retention and treatment of complaints regarding accounting, internal accounting controls or auditing matters, including the confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters; and

*(e)* approve significant changes in accounting practices or policies.

**VI. CORPORATE GOVERNANCE**

The Board as a whole is responsible for overseeing and developing the Corporation's approach to corporate governance.

The Board will:

(a) review and approve changes to the Corporation's Corporate Governance Guidelines, which guidelines shall set out the expectations of directors, including basic duties and responsibilities with respect to attendance at Board meetings and advance review of meeting materials;

(b) establish from time-to-time committees so as to assist it in discharging its responsibilities and functions more effectively and so as to comply with all applicable rules and regulations relating to the Corporation, and approve and periodically review their respective charters and limits of authority delegated to each committee;

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(c) if it deems desirable, develop, approve and periodically review written position descriptions for the Board Chair, the CEO and the chair of each committee of the Board, and measure the performance of those acting in such capacities against such position descriptions; and

(d) oversee, either directly or though an appropriate committee, the review of the effectiveness of the Board, its committees and individual directors on a periodic basis.

**VII. CODE OF BUSIN**E**SS CONDUCT AND ETHICS**

The Board has adopted a Code of Ethics that governs the behaviour of directors, officers and employees working for the Corporation. The Board must approve any amendments and waivers and ensure disclosure of any amendments and waivers as required by applicable law or regulation.

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## Exhibit 99.88

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![](exhibit99-88xu003.jpg)

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![](exhibit99-88xu004.jpg)

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## Exhibit 99.89

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![](exhibit99-89x1x1.jpg)

**BTQ Technologies Notice of Annual Meeting and**

**Management Information Circular**

**Vancouver, British Columbia, July 30, 2025 -** **<u>BTQ Technologies Corp.</u>** ("BTQ" or the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, will hold its Annual General Meeting at Farris LLP, 25th Floor, 700 West Georgia Street, British Columbia V7Y 1B3 on August 26, 2025 at 10:00 a.m. (Vancouver Time).

A complete notice and related documents will be available on SEDAR+ at www.sedarplus.ca and BTQ's website at www.btq.com and are being sent to shareholders of record as at 18 July 2025.

**About BTQ**

BTQ Technologies Corp. (Cboe CA: BTQ \| FSE: NG3 \| OTCQX: BTQQF) is a vertically integrated quantum company accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio, BTQ pioneered the industry's first commercially significant quantum advantage and now delivers a full-stack, neutral-atom quantum computing platform with end-to-end hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u> \| <u>X/Twitter</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

E: <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

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![](exhibit99-89x2x1.jpg)

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

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## Exhibit 99.90

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![](exhibit99-90x1x1.jpg)

**BTQ Technologies to Develop World's First Quantum-Secure<br>Custody Treasury for Bitcoin, Ethereum and Other Digital<br>Assets in Collaboration with Qbits**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **BTQ Technologies and Qbits have partnered to develop the world's first quantum-secure custody treasury infrastructure**, leveraging the Quantum Canary Network as a public testnet and development roadmap for post-quantum blockchain security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **The initiative integrates BTQ's proprietary CASH architecture with Qbits' expertise in PQC integration and quantum hardware simulation**, setting a new benchmark for institutional-grade digital asset protection against emerging quantum threats.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Key technical milestones include QPoW integration testing in Q3 2025 and Falcon signature aggregation by Q4 2025**, marking a significant step toward deploying quantum-resilient blockchain infrastructure.

**Vancouver, British Columbia, August 5, 2025 -** **<u>BTQ Technologies Corp.</u>** ("BTQ" or the "Company") (CBOE CA: BTQ) (FSE: NG3) (OTCQX: BTQQF), a global quantum technology company focused on securing mission-critical networks, is pleased to announce the development of the world's first **quantum-secure custody treasury infrastructure** for Bitcoin, Ethereum, and other digital assets. This groundbreaking initiative is being co-developed with **Qbits**, a Saudi-based quantum computing and technology company operating across the GCC region.

At the heart of this initiative is the Quantum Canary Network, a public testnet and development roadmap co-developed by BTQ and Qbits. The network will serve as the proving ground for the world's first quantum-secure treasury infrastructure, establishing the technical foundations for secure post-quantum custody of Bitcoin, Ethereum and other digital assets.

The development roadmap includes technical milestones such as QPoW integration testing in Q3 2025 and Falcon aggregation proof-of-concept development by Q4 2025. BTQ will provide its quantum security technologies through commercial licensing agreements while maintaining focus on technology development and intellectual property creation.

**Key Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● Quantum Canary Network as Treasury Enabler**

BTQ and Qbits are building the Quantum Canary Network, the world's first public testbed for quantum-related Bitcoin Improvement Proposals (BIPs), cryptographic primitives, and consensus mechanisms. The network will form the basis for future quantum-secure treasury solutions.

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![](exhibit99-90x2x1.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● Joint Development and Technical Contributions**

BTQ and Qbits are acting as co-developers and ecosystem enablers. BTQ brings its patented Cryptographically Agile Secure Hardware (CASH) architecture and post-quantum cryptographic IP, while Qbits contributes expertise in PQC module integration, quantum hardware simulation, and crypto-agility acceleration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● Technology Development Timeline**

The development roadmap includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● QPoW (Quantum Proof-of-Work) integration testing - Q3 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● Falcon signature aggregation proof-of-concept - Q4 2025**

"This quantum-secure treasury initiative represents a defining moment in our mission to deliver practical quantum advantage to the market," said Olivier Roussy Newton, CEO and Chairman of BTQ Technologies. "By implementing our proprietary quantum custody technology to protect our own digital asset holdings, we're demonstrating both the commercial readiness of our solutions and our confidence in the future of quantum-secure blockchain infrastructure. Our decision to combine treasury management with technology licensing to partners developing quantum-resistant chains, positions BTQ at the center of the industry's transition to post-quantum security."

"Glad to collaborate with BTQ to advance PQC and quantum-secure infrastructure," said **Eid Al Subaie**, CEO of Qbits. "Brisk will also support this journey with 25-photon boson sampling-exploring over ten duodecillion quantum states and achieving 15,000× classical efficiency, demonstrating real quantum advantage"

**Pioneering Quantum-Secure Custody Technology**

BTQ's quantum-secure custody solution employs the company's proprietary Cryptographically Agile Secure Hardware (CASH) architecture, delivering up to 1 million post-quantum cryptographic operations per second while maintaining ultra-low power consumption. This technology represents the current pinnacle of cryptographic security available in the market, providing protection against both classical and quantum computing threats through implementation of NIST-approved ML-DSA algorithms and NSA CNSA 2.0 standards.

The treasury implementation leverages BTQ's decade of expertise in post-quantum cryptography, establishing a new benchmark for institutional-grade quantum security in digital asset management. This proactive approach ensures protection of treasury holdings as quantum computing capabilities advance rapidly across the industry.

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![](exhibit99-90x3x1.jpg)

**Strategic Vision and Licensing Model**

This initiative represents the first phase of BTQ's broader strategy to enable a quantum-secure transformation of the blockchain ecosystem. As part of this vision, BTQ will license its post-quantum IP-including consensus protocols, custody infrastructure, and hardware innovations-to institutions and networks developing quantum-resistant implementations of Bitcoin, Ethereum, and other major blockchains.

Core innovations include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Quantum Proof-of-Work (QPoW)** - An energy-efficient post-quantum consensus algorithm

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Falcon Aggregation** - A high-speed, lattice-based signature scheme

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Hybrid Quantum-Classical Simulation and PQC Integration** - Led by Qbits to ensure real-world crypto-agility and performance

**Market Opportunity**

The global cryptocurrency market, valued at over $1.7 trillion, faces an existential threat from advancing quantum computing capabilities. Industry experts project that quantum computers capable of breaking current cryptographic standards could emerge within the next decade, creating an urgent need for quantum-secure solutions. BTQ's technology addresses this market opportunity while positioning the company to capture value across the broader digital asset ecosystem.

Together, BTQ and Qbits, are forging a new security paradigm for digital assets - built to withstand the quantum era.

**About Qbits**

Qbits is a technology company based in Saudi Arabia that specializes in the development of quantum technologies. It is focused on accelerating the growth of innovative technologies, including quantum computing and telecommunication, in order to improve people's lives.

Quantum computing and telecommunication are emerging fields that have the potential to revolutionize a wide range of industries, from finance and healthcare to cryptography and machine learning. By providing cutting-edge solutions and services in these areas, Qbits is helping to drive the advancement of these technologies and make them more accessible to businesses and individuals. For more information please visit <u>https://www.Qbitsest.com/</u>

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![](exhibit99-90x4x1.jpg)

**About BTQ**

BTQ Technologies Corp. (Cboe CA: BTQ \| FSE: NG3 \| OTCQX: BTQQF) is a vertically integrated quantum company accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio, BTQ pioneered the industry's first commercially significant quantum advantage and now delivers a full-stack, neutral-atom quantum computing platform with end-to-end hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

Connect with BTQ: <u>Website</u> \| <u>LinkedIn</u> \| <u>X/Twitter</u>

ON BEHALF OF THE BOARD OF DIRECTORS

Olivier Roussy Newton

CEO, Chairman

For further information: E: <u>desk@btq.com</u>

Bill Mitoulas

Investor Relations

T: +1.416.479.9547

<u>E:</u> <u>bill@btq.com</u>

*Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.*

***Forward Looking Information***

*Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as "anticipate", "intend", "expect", "plan" or "may" and the variations of these words are intended to identify forward-looking statements and information.*

*The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.*

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![](exhibit99-90x5x1.jpg)

*Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company's research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.*

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## Exhibit 99.91

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<u>Consent of Independent Registered Public Accounting Firm</u>

We hereby consent to the use of our report dated June 3, 2024, relating to the consolidated financial statements of BTQ Technologies Corp. "the Company" as at December 31, 2023 and for the year then ended, and the related notes to the consolidated financial statements, which is included in this Registration Statement on Form 40-F being filed by the Company with the United States Securities and Exchange Commission. Our report contains an explanatory paragraph regarding the Company's ability to continue as a going concern.

We also consent to the reference to us under the heading "Experts" which appears in the Annual Information Form included in Exhibit 99.10 to this Registration Statement on Form 40-F.

*/s/* BDO Canada LLP

Chartered Professional Accountants

Vancouver, Canada

August 7, 2025

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## Exhibit 99.92

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**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the incorporation by reference in the Registration Statement on Form 40-F (the "Form 40-F") of our auditor's report dated March 24, 2025 relating to the consolidated financial statements of BTQ Technologies Corp. consisting of the consolidated statement of financial position as at December 31, 2024 and the related consolidated statement of operations and comprehensive loss, changes in shareholders' equity and cash flows for the year then ended, which appears as Exhibit 99.64 to the Form 40-F being filed with the United States Securities and Exchange Commission.

We also consent to reference to us under the heading Interests of Experts in the Annual Information Form, filed as Exhibit 99.66 to the Form 40-F.<br>

/s/ MNP LLP

Chartered Professional Accountants

Licensed Public Accountants

Toronto, Canada

August 7, 2025

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| **MNP LLP** |  |
| Suite 1900, 1 Adelaide Street East, Toronto ON, M5C 2V9 | 1.877.251.2922 T: 416.596.1711 F: 416.596.7894 |
| ![](exhibit99-92xu002.jpg) | **MNP.ca** |

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