# EDGAR Filing Document

**Accession Number:** 0002106613
**File Stem:** 0001176256-26-000009
**Filing Date:** 2026-1
**Character Count:** 562598
**Document Hash:** 6fe6bb22e4c1ad077e9665dc912bbca4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001176256-26-000009.hdr.sgml**: 20260122

**ACCESSION NUMBER**: 0001176256-26-000009

**CONFORMED SUBMISSION TYPE**: 40FR12B

**PUBLIC DOCUMENT COUNT**: 49

**FILED AS OF DATE**: 20260122

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Quantum eMotion Corp
- **CENTRAL INDEX KEY:** 0002106613

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A8
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 40FR12B
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-43068
- **FILM NUMBER:** 26549866

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 2300 ALFRED NOBEL
- **CITY:** MONTREAL
- **PROVINCE COUNTRY:** A8
- **ZIP:** H4S 2A4
- **BUSINESS PHONE:** 514-956-2525

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 2300 ALFRED NOBEL
- **CITY:** MONTREAL
- **PROVINCE COUNTRY:** A8
- **ZIP:** H4S 2A4

**UNITED STATES**

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

**FORM 40-F**

**☒** **Registration statement pursuant to Section 12 of the Securities Exchange Act of 1934** 

**or**

**☐** **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>Quantum eMotion Corp.</u>**

**(Exact name of registrant as specified in its charter)**

**<u>Ontario</u>**

**(Province or Other Jurisdiction of Incorporation or Organization)**

**<u>7372</u>**

**(Primary Standard Industrial Classification Code Number)**

**<u>Not applicable</u>**

**(I.R.S. Employer Identification Number)**

**2300 Alfred Nobel**

**Montreal, Québec** 

**Canada H4S 2A4**

**<u>(514) 956-2525</u>**

**(Address and telephone number of Registrant's principal executive offices)**

**REGISTERED AGENT SOLUTIONS, INC.**

**99 Washington Avenue**

**Suite 1008**

**Albany, NY 12260**

**Telephone: (888) 211-7106**

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

**Securities registered or to be registered pursuant to Section 12(b) of the Securities Exchange Act of 1934 ("Exchange Act"): Not applicable**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; **Title of each class** | &nbsp;&nbsp;**Trading Symbol(s)** | &nbsp;&nbsp;**Name of each exchange on which registered** |
| &nbsp;&nbsp;**Common Shares, no par value** |  | &nbsp;&nbsp;NYSE American |

---

**Securities registered or to be registered pursuant to Section 12(g) of the Exchange Act:**

**Common Shares, without par value**

**(Title of Class)**

**Securities for which there is a reporting obligation pursuant to Section 15(d) of the Exchange Act:**

**None**

**(Title of Class)**

**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. Not applicable

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. Not applicable

Yes ☐ 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). Not applicable

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 ☒

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 Exchange 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**

Quantum eMotion 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", "expectations", "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 99.1 and in the Management's Discussion and Analysis of Quantum eMotion Corp. for the years ended December 31, 2024 and 2023 ("MD&A") attached hereto as Exhibit 99.3 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**

Quantum eMotion Corp. ("QeM" or the "Company") is a Canadian issuer whose common shares are listed on (i) the TSX Venture Exchange ("TSXV") under the symbol "QNC"; (ii) the OTCQB Market under the symbol "ONCCF"; and (iii) the Frankfurt Stock Exchange under the symbol "34Q0"

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 attached to this registration statement as Exhibits, in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and those financial statements are subject to Canadian auditing standards. Therefore, those financial statements are not comparable in all respects to the financial statements of issuers that prepare their financial statements in accordance with United States generally accepted accounting principles and that are subject to United States auditing standards.

**Corporate Governance - Home Country Practices Disclosure**

The Company is a foreign private issuer within the meaning of Rule 3b-4 under the Securities Exchange Act of 1934, as amended, and is listed on the TSX Venture Exchange. In connection with its listing on NYSE American LLC ("NYSE American"), the Company has elected to follow certain corporate governance practices of its home country, Canada, in lieu of certain corporate governance requirements applicable to U.S. domestic issuers listed on NYSE American, as permitted by Section 110 of the NYSE American Company Guide.

As a result, the Company's corporate governance practices differ in certain respects from those that would otherwise be required for U.S. domestic issuers listed on NYSE American.

● The Company does not maintain a board of directors composed of a majority of independent directors as defined under NYSE American standards, and instead follows applicable Canadian law and TSX Venture Exchange requirements.

● The Company does not maintain separate nominating or compensation committees composed entirely of independent directors, nor written charters for such committees. These matters may be overseen by the full board in accordance with Canadian law.

● The Company follows Canadian law and TSX Venture Exchange requirements with respect to shareholder approval matters, including equity compensation plans and securities issuances.

● The Company follows Canadian law and its governing documents with respect to annual meetings, quorum requirements, and voting standards.

Notwithstanding the foregoing, the Company complies with the requirements of Rule 10A-3 under the Securities Exchange Act of 1934 relating to audit committees, as well as all other applicable U.S. federal securities laws.

**PRINCIPAL DOCUMENTS**

In accordance with General Instruction B.(1) of Form 40-F, the Registrant hereby incorporates by reference Exhibits 99.1 through 99.39 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 the consent attached hereto as Exhibit 99.9 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*" on page 18 of the Registrant's AIF, attached hereto as Exhibit 99.1.

**CURRENCY**

Unless otherwise indicated, all dollar amounts in this registration statement on Form 40-F are in Canadian dollars.

**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 heading "Note 11 Financial Instruments" of the annual consolidated financial statements for the year ended December 31, 2024 attached hereto as Exhibit 99.3 to this Registration Statement.

**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**

Concurrently with the filing of the Registration Statement on Form 40-F, the Registrant will file with the Commission a written irrevocable consent and power of attorney on Form F-X. 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.

**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.

---

| | | |
|:---|:---|:---|
|  | By: | **QUANTUM EMOTION CORP.**<br>/s/ Francis Bellido |
|  |  | Name: Francis Bellido |
| Date: January 22, 2026 |  | Title: President, Chief Executive Officer and Director |

---

**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 | [Annual Information Form of Quantum eMotion Corp. for the year ended December 31, 2024](ea027031401ex99-1_quantum.htm) |
| 99.2 | [Management's Discussion and Analysis of Quantum eMotion Corp. for the years ended December 31, 2024 and 2023](ea027031401ex99-2_quantum.htm) |
| 99.3 | [Consolidated Financial Statements of Quantum eMotion Corp. for the years ended December 31, 2024 and 2023](ea027031401ex99-3_quantum.htm) |
| 99.4 | [Management's Discussion and Analysis of Quantum eMotion Corp. for the interim periods ended September 30, 2025 and 2024](ea027031401ex99-4_quantum.htm) |
| 99.5 | [Management's Discussion and Analysis of Quantum eMotion Corp. for the interim periods ended June 30, 2025 and 2024](ea027031401ex99-5_quantum.htm) |
| 99.6 | [Management's Discussion and Analysis of Quantum eMotion Corp. for the interim periods ended March 31, 2025 and 2024](ea027031401ex99-6_quantum.htm) |
| 99.7 | [Interim Condensed Consolidated Financial Statements of Quantum eMotion Corp. for the three and six months ended June 30, 2025 and 2024 (Unaudited)](ea027031401ex99-7_quantum.htm) |
| 99.8 | [Interim Condensed Consolidated Financial Statements of Quantum eMotion Corp. for the three and nine months ended September 30, 2025 and 2024 (Unaudited)](ea027031401ex99-8_quantum.htm) |
| 99.9 | [Consent of Independent Registered Public Accounting Firm](ea027031401ex99-9_quantum.htm) |
| 99.10 | [News Release dated January 25, 2023](ea027031401ex99-10_quantum.htm) |
| 99.11 | [News Release dated March 13, 2023](ea027031401ex99-11_quantum.htm) |
| 99.12 | [News Release dated April 12, 2023](ea027031401ex99-12_quantum.htm) |
| 99.13 | [News Release dated June 1, 2023](ea027031401ex99-13_quantum.htm) |
| 99.14 | [News Release dated July 21, 2023](ea027031401ex99-14_quantum.htm) |
| 99.15 | [News Release dated August 21, 2023](ea027031401ex99-15_quantum.htm) |
| 99.16 | [News Release dated November 21, 2023](ea027031401ex99-16_quantum.htm) |
| 99.17 | [News Release dated January 10, 2024](ea027031401ex99-17_quantum.htm) |
| 99.18 | [News Release dated January 16, 2024](ea027031401ex99-18_quantum.htm) |
| 99.19 | [News Release dated February 21, 2024](ea027031401ex99-19_quantum.htm) |
| 99.20 | [News Release dated March 18, 2024](ea027031401ex99-20_quantum.htm) |
| 99.21 | [News Release dated March 28, 2024](ea027031401ex99-21_quantum.htm) |
| 99.22 | [News Release dated April 8, 2024](ea027031401ex99-22_quantum.htm) |
| 99.23 | [News Release dated May 17, 2024](ea027031401ex99-23_quantum.htm) |
| 99.24 | [News Release dated July 3, 2024](ea027031401ex99-24_quantum.htm) |
| 99.25 | [News Release dated July 11, 2024](ea027031401ex99-25_quantum.htm) |
| 99.26 | [News Release dated July 22, 2024](ea027031401ex99-26_quantum.htm) |
| 99.27 | [News Release dated August 7, 2024](ea027031401ex99-27_quantum.htm) |
| 99.28 | [News Release dated August 27, 2024](ea027031401ex99-28_quantum.htm) |
| 99.29 | [News Release dated November 15, 2024](ea027031401ex99-29_quantum.htm) |
| 99.30 | [News Release dated December 5, 2024](ea027031401ex99-30_quantum.htm) |
| 99.31 | [News Release dated December 23, 2024](ea027031401ex99-31_quantum.htm) |
| 99.32 | [News Release dated December 30, 2024](ea027031401ex99-32_quantum.htm) |
| 99.33 | [News Release dated February 21, 2025](ea027031401ex99-33_quantum.htm) |
| 99.34 | [News Release dated May 30, 2025](ea027031401ex99-34_quantum.htm) |
| 99.35 | [Audit Committee Charter](ea027031401ex99-35_quantum.htm) |
| 99.36 | [Corporate Governance Policy dated June 26, 2025](ea027031401ex99-36_quantum.htm) |
| 99.37 | [Form 51-102F3 Material Change Report dated February 27, 2025](ea027031401ex99-37_quantum.htm) |
| 99.38 | [Form 51-102F3 Material Change Report dated June 2, 2025](ea027031401ex99-38_quantum.htm) |
| 99.39 | [Code of Conduct](ea027031401ex99-39_quantum.htm) |

---

## Exhibit 99.1

**Exhibit 99.1**

![](ex99-1_001.jpg)

**Quantum eMotion Corp.**

**ANNUAL INFORMATION FORM**

**Dated November 28, 2025**

**FOR THE YEAR ENDED DECEMBER 31, 2024**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| ***GENERAL*** | ***1*** |
| ***CURRENCY AND EXCHANGE RATE INFORMATION*** | ***1*** |
| ***STATEMENT REGARDING FORWARD LOOKING INFORMATION*** | ***1*** |
| ***CORPORATE STRUCTURE*** | ***2*** |
| &nbsp;&nbsp;Name, Address and Incorporation | 2 |
| &nbsp;&nbsp;Corporate Structure | 3 |
| ***GENERAL DEVELOPMENT OF THE BUSINESS*** | ***3*** |
| &nbsp;&nbsp;Historical | 3 |
| &nbsp;&nbsp;Latest Three-Year History | 3 |
| &nbsp;&nbsp;Significant Acquisitions | 7 |
| ***DESCRIPTION OF BUSINESS*** | ***7*** |
| &nbsp;&nbsp;General | 7 |
| &nbsp;&nbsp;Principal Products or Services | 8 |
| &nbsp;&nbsp;QeM - Principal Products or Services | 9 |
| &nbsp;&nbsp;Intellectual Property | 10 |
| &nbsp;&nbsp;Cycles | 12 |
| &nbsp;&nbsp;Economic Dependence | 12 |
| &nbsp;&nbsp;Changes to Contracts | 12 |
| &nbsp;&nbsp;Employees | 12 |
| &nbsp;&nbsp;Foreign Operations | 12 |
| &nbsp;&nbsp;Lending and Grants | 12 |
| &nbsp;&nbsp;Bankruptcy and Similar Proceedings | 12 |
| ***RISK FACTORS*** | ***13*** |
| &nbsp;&nbsp;General Risks | 13 |
| &nbsp;&nbsp;Business and Industry Risks | 16 |
| ***DIVIDENDS*** | ***17*** |
| ***DESCRIPTION OF CAPITAL STRUCTURE*** | ***18*** |
| ***MARKET FOR SECURITIES*** | ***18*** |
| &nbsp;&nbsp;Trading Price and Volume | 18 |
| &nbsp;&nbsp;Prior Sales | 19 |
| ***ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL RESTRICTIONS ON TRANSFER*** | ***19*** |

---

---

| | |
|:---|:---|
| ***DIRECTORS AND OFFICERS*** | ***19*** |
| &nbsp;&nbsp;Name, Occupation and Security Holdings | 20 |
| &nbsp;&nbsp;Biographies | 20 |
| &nbsp;&nbsp;Cease Trade Orders, Bankruptcies, Penalties or Sanctions | 22 |
| &nbsp;&nbsp;Conflicts of Interest | 23 |
| ***AUDIT COMMITTEE DISCLOSURE*** **** | ***23*** |
| &nbsp;&nbsp;Audit Committee | 23 |
| &nbsp;&nbsp;Audit Committee Oversight | 23 |
| &nbsp;&nbsp;Pre-Approval Policies and Procedures | 23 |
| ***PROMOTERS*** | ***24*** |
| ***INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS*** | ***24*** |
| ***LEGAL PROCEEDINGS AND REGULATORY ACTIONS*** | ***24*** |
| ***AUDITORS, TRANSFER AGENT AND REGISTRAR*** | ***25*** |
| ***MATERIAL CONTRACTS*** | ***25*** |
| ***INTEREST OF EXPERTS*** | ***25*** |
| ***ADDITIONAL INFORMATION*** | ***25*** |
| **APPENDIX "A" -** **AUDIT COMMITTEE CHARTER** |  |

---

**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 |
| This Annual Information Form of the Company for the year ended December 31, 2025 |
| The board of directors of the Company |
| Chief Executive Officer |
| Chief Financial Officer |
| Common shares without par value in the capital of the Company |
| Quantum eMotion Corp. |
| Computershare Truest Company of Canada |
| Entropy as a Service |
| École de technologie supérieure |
| 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. |
| National Institute of Standards and Technology |
| National Instrument 51-102 – Continuous Disclosure Obligations |
| Any individual, firm, partnership, joint venture, venture capital fund, association, trust, 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. |
| A person who: |

---

&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) 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 |
| i) | as underwriting commissions, or |
| ii) | in consideration for property, and |
| d) | does not otherwise take part in founding, organizing or substantially reorganizing the business |

---

---

| | |
|:---|:---|
| **QeM** | Quantum eMotion Corp. |
| **QEMA** | Quantum eMotion America Inc. |
| **QRNG** | Quantum random number generator |
| **Quantum eHealth** | Quantum eHealth Technologies Inc. |
| **SDK** | System Development Kit |
| **SOCPRA** | *Société de Commercialisations des Produits de la recherche appliquée SOCPRA Sciences et Génie S.E.C.* |
| **Stock Option Plan** | The stock option equity incentive plan of the Company dated December 15, 2020, the date on which this plan was approved by the Board, as amended on February 1, 2021, April 22, 2021, and May 16, 2025. |
| **TSXV** | TSX Venture Exchange |

---

**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", "QeM", "we", "us", "our" and similar words refer to Quantum eMotion 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", "expectations", "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;

Page 1 of 28 <br>

● 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 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**

The Company was incorporated under the *Business Corporations Act* (Ontario) by virtue of its Certificate of Incorporation dated July 19, 2007, and continued under the *Canada Business Corporations Act* on August 28, 2012. The Company's name was changed to Active Growth Capital Inc. on October 26, 2007. The Company then changed its name to Quantum Numbers Corp. on December 1, 2016, and then changed its name to Quantum eMotion Corp. (QeM) on May 27, 2021.

The corporate office, principal address and records office of the Company are located at 2300 Alfred Nobel, Montreal, Québec, H4S 2A4.

On June 28, 2024, the Company established a wholly owned subsidiary, Quantum eHealth Technologies Inc. ("**Quantum eHealth**") located at the same address.

On April 10, 2025, the Company established a wholly owned subsidiary, Quantum eMotion America Inc. ("**QEMA**"), incorporated under the laws of the State of California, USA. QEMA's principal address is 5270 California Avenue, Irvine, California 92617, USA..

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**Corporate Structure**

The corporate organization chart below sets out the Company's structure, as of the date of this AIF:

![](ex99-1_002.jpg)

**GENERAL DEVELOPMENT OF THE BUSINESS**

**Historical**

On August 3, 2016, the Company entered into an intellectual assignment with *Societé de Commercialisations des Produits de la recherche appliquée SOCPRA Sciences et Génie S.E.C.* ("**SOCPRA**"), Until the expiry of the last patent rights, which is expected in May 2035, the Company will pay to SOCPRA a royalty of 5% calculated on the net sales price of products sold by the Company. The Company may have to buy back the royalties in the future at terms and conditions to be agreed upon by both parties.

**Latest Three-Year History**

**Technology**

Our primary objective is to make our cryptographic solutions technology accessible as rapidly as possible to potential clients and partners, secure its effectiveness and ensure that the intellectual property is well protected. In order to stay focused on this objective, we are working closely with our partners to maximize the potential and security of our technology. The Company is developing complementary metal greater competitiveness.

Early in 2022, QeM secured Mitacs funding in collaboration with Dr. Kaiwen Zhang at *École de technologie supérieure*, Montréal, Canada ("**ETS**") for Blockchain applications of its quantum random number generator ("**QRNG**") technology in three projects:

1. Evaluate and develop the use of the QRNG2 device to harden the cryptographic mechanisms of hardware cryptocurrency wallets;

2. Evaluate and develop the use of QRNG as a verifiable randomness beacon for blockchain oracle;

3. Evaluate and develop the use of QRNG as an alternative leader selection protocol for blockchain consensus.

On March 22, 2022, QeM announced the launch of its QRNG2, a new QRNG that delivers pure entropy at 1.5 Gb/s, the highest throughput available today in a marketable QRNG. QeM develops the next generation of QRNG solutions, based on electron quantum tunneling. The Company has several core patents that have

Page 3 of 28 <br>

been registered in Canada, USA, China and internationally. Our first product meets all requirements of National Institute of Standards and Technology ("**NIST**") and Dieharder tests.

On August 15, 2022, the Company announced the completion of the design of its first blockchain application of QRNG technology developed in collaboration with ETS. The Company is working in expanding its collaboration with the Quebec Government.

On June 1, 2023, the Company announced the introduction of Entropy as a Service ("**EaaS**") through their QxEAAS system, enhancing data security. EaaS offers on-demand randomness, vital for cryptography. Using QRNG2, which employs quantum electron tunneling, truly unpredictable random numbers are generated. This system reinforces QeM's Sentry-Q cryptography platform against cyberattacks. EaaS distributes secure keys and strings with patented quantum-based entropy sources. Rigorous tests, like NIST Statistical Test Suite, validate the quality of generated entropy. The integration of EaaS and QeM's cryptography library, with NIST-approved quantum-safe primitives, ensures cutting-edge security for data communication and authentication.

On January 16, 2024, QeM announce the beta release of its AI-Powered Automation System, named QodeAI, a new development tool, designed to accelerate the deployment of QeM's main products and accelerate the deployment and adoption among customers and partners.

On February 21, 2024, QeM announced a breakthrough in developing its first QRNG on a chip, a significant advancement in quantum communication technology. This development compactly integrates QRNG into a single chip, potentially less than 1 cm², revolutionizing quantum-based security designs. This innovation allows the sale of design cores, enabling integrated circuits vendors like Texas Instruments, Intel, and IBM to embed QRNG functionality directly into their products, expanding the reach and impact of quantum security technologies.

On March 18, 2024, QeM announced a strategic partnership with the Platform for Digital and Quantum Innovation ("**PINQ²**"), an NPO established by the Ministry of Economy, Innovation and Energy of Quebec and Université de Sherbrooke. This collaboration aims to enhance the resilience of QeM's security platform against advanced threats, including simulated quantum computer attacks using IBM's Qiskit platform. PINQ², the exclusive operator of Canada's first 127-qubit IBM Quantum System One at IBM Bromont, will work with QeM to rigorously test and evaluate their Kyber algorithm and QRNG. This project will assess the security system's performance under simulated adversarial conditions, focusing on identifying strengths, weaknesses, and vulnerabilities, and ensuring alignment with strategic goals. The partnership leverages simulation tools like Qiskit to execute quantum attack simulations, thoroughly testing the security solution's robustness.

On March 28, 2024, QeM announced that the project "Quantum random number generation for highly secure cryptography applications" will receive a $1.2 million grant from the Alliance Quantum program, managed by NSERC. Led by ÉTS in partnership with QeM, the project under Professor Ghyslain Gagnon, with co-grantee Prof. K. Zhang and contributors like Prof. B. Reulet from Université de Sherbrooke, focuses on developing scalable QRNG technologies. These innovations aim to bolster secure communications, integrate into Internet of Things (IoT) devices, and enhance security in DeFi ecosystems. The collaboration seeks to address challenges in QRNG commercialization, focusing on reducing energy consumption while leveraging quantum tunneling encryption for top-tier security.

On July 3, 2024, QeM announced the development of an advanced hardware wallet technology tailored for the cryptocurrency industry. This cutting-edge solution offers a low footprint and competitive cost, incorporating its QRNG and intelligent key generation scheme selection technologies into new commercial applications. QeM's new hardware wallet technology aims to enhance the efficiency and cost-effectiveness of hierarchical deterministic (HD) wallets. Traditional HD wallets require separate hardware devices for generating parent (master) and child keys. However, the innovative approach developed by QeM reuses the

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same hardware components for both tasks, significantly reducing costs, circuit complexity, and footprint. This method of resetting and reusing hardware devices allows for efficient and repeated key generation. Additionally, the master private key can be regenerated by resetting the memory systems and using a new quantum random number, ensuring high robust security.

On July 11, 2024, QeM announced that it has obtained the prestigious ISO/IEC 27001:2022 certification, a significant milestone underscoring QeM's commitment to information security and operational excellence. ISO 27001 cybersecurity certification is one of the most widely recognized, rigorous, and internationally accepted information security standards. The scope of this certification encompasses QeM's security management of applications and systems for its quantum-based cybersecurity software and hardware solutions, including cryptographic solutions.

On December 5, 2024, QeM announced progress in its mission to deliver state-of-the-art quantum cybersecurity solutions. Bolstered by ISO 27001 certification and breakthroughs across blockchain, telemedicine, and advanced QRNG chip development, QeM is setting new standards for digital security.

QeM's recent achievement of ISO/IEC 27001:2022 certification (announced on July 11, 2024) underscores its leadership in implementing world-class cybersecurity standards. This globally recognized certification strengthens its ability to meet rigorous compliance requirements and significantly enhances its market credibility. With this milestone, QeM is well-positioned to expand its presence in industries where trust and data protection are paramount, including finance, healthcare, blockchain, and government networks.

Blockchain & Cryptocurrency: Transforming Digital Asset Security The synergies between QeM's QRNG technology and blockchain applications are reshaping cryptocurrency security. The company's proprietary Quantum crypto wallet offers unmatched protection for digital assets by combining true quantum randomness with post-quantum encryption. This innovation ensures secure storage and transactions, addressing emerging threats posed by quantum computing.

Secure Key Generation: QRNG-based entropy delivers unparalleled randomness for cryptographic operations, mitigating vulnerabilities inherent in traditional pseudo-random number generators.

Enhanced Security Architecture: By incorporating post-quantum encryption, QeM has fortified its wallet against quantum attacks, future-proofing digital asset management systems.

Intellectual Property Leadership: With robust patents on QRNG for blockchain, QeM is establishing itself as a pioneer in securing tokenized ecosystems.

Telemedicine & Digital Therapeutics: Securing Healthcare Innovation. As digital therapeutics (DTx) become integral to healthcare, safeguarding patient data is critical. QeM's Sentry-Q platform integrates QRNG and post-quantum cryptography to secure data flow across devices, ensuring compliance with regulations like HIPAA and GDPR.

Use Case Highlights: The platform is demonstrating its efficacy in securing patient data during clinical interactions, offering peace of mind to both patients and providers.

Project PINQ² Sentry-Q: Pioneering Post-Quantum Simulations Through a strategic partnership with PINQ², QeM's Sentry-Q platform is undergoing rigorous testing against simulated quantum attacks using IBM's Qiskit framework.

Project Scope: Evaluation of the Kyber algorithm alongside QRNG technology in adversarial scenarios. This initiative marks a critical step toward creating an open-source test bed for post-quantum security solutions. Miniaturized CMOS QRNG Chip: Revolutionizing IoT Security. QeM has developed a working prototype of a miniaturized QRNG chip for IoT devices, mobile applications, and cloud systems. Manufactured in collaboration with leading partners, the new version prototype is now undergoing extensive testing to validate readiness for integration. Innovative Design: Incorporates advanced tunnel

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junctions and digital signal processing units using CMOS technology. Broad Applicability: The chip is poised to deliver scalable security for industries ranging from consumer electronics to automotive systems.

On June 26, 2025, QeM announced that the benchmarking project, conducted in collaboration with PINQ², utilized IBM's Qiskit quantum computing framework to simulate Grover's algorithm—a quantum search algorithm known for its theoretical ability to speed up brute-force attacks on symmetric encryption schemes. The analysis focused on evaluating the relative complexity of attacking symmetric encryption algorithms when enhanced with entropy from QeM's proprietary QRNG

**Business Development**

On January 25, 2023, Quantum announced the launch of Sentry-Q, its Quantum-safe messenger platform, designed for the secure communication of large and complex messages, including entire database structures. It has the potential to perform as a cloud-based solution or as a physical hardware device. The platform is versatile and flexible enough to be used in a multitude of applications, as a whole or in part.

On February 4, 2023, the Company entered into a commercial and technical agreement with Greybox Solutions. As part of the agreement, the third party will award a contract to the Company for the development of Sentry-Q technology. Moreover, the Company will receive royalties on all sales completed by the third party in which the Company's technology will be used.

On August 22, 2023, QeM announced that the innovative Digital Therapeutics (DTx) platform developed by Greybox Solutions has been selected to be implemented in the Quebec healthcare system. Greybox was chosen on the base of its ability to meet technical and cybersecurity requirements, showcasing their tailored patient-focused solutions.

On January 10, 2024, QeM launched Quantum eHealth, a subsidiary focused on healthcare applications for its advanced cybersecurity technology. By spinning off its Digital Healthcare Cybersecurity Activities into this new entity, QeM aims to capitalize on the growing digital healthcare security market. Quantum eHealth will hold an exclusive license to use QeM's intellectual property in the healthcare sector. Meanwhile, QeM will continue developing and marketing various iterations of its QRNG across other sectors, including financial services, blockchain, military, information technology and others.

On April 8, 2024, CSR5 GLOBAL Inc. and QeM announced a landmark partnership aimed at redefining the landscape of cybersecurity. This strategic alliance positions QeM as the exclusive provider of cutting-edge, post-quantum cryptography and cloud-based security solutions to CSR5, marking a significant leap forward in our shared commitment to reducing risk through enhanced response, resilience, and recovery capabilities. Through this partnership, QeM's state-of-the-art technology will become a cornerstone of CSR5's comprehensive security solutions, designed to tackle the challenges of today's digital age head-on.

On December 16, 2024, QeM and Krown Technologies Ltd, a leading innovator in Blockchain, FinTech, and Artificial Intelligence infrastructure, a leader in classical and quantum cybersecurity solutions, announced a strategic alliance. This partnership, formalized through a Memorandum of Understanding (MOU), represents a significant milestone in advancing security, functionality, and efficiency within the blockchain ecosystem.

On December 23, 2024, QeM announced a major milestone in the commercialization of its cloud-based Sentry-Q platform, designed to address critical, unmet cybersecurity challenges in modern telemedicine and digital healthcare. QeM's partner, GreyBox Solutions entered a strategic commercial alliance with Becton Dickinson (BD), a global powerhouse in the medical device and diagnostics industry with over $20 billion in annual sales. This partnership centers on advancing remote patient monitoring to improve the quality of life for patients with chronic diseases while empowering clinicians to monitor multiple patients efficiently. The initiative will launch in Canada, expand to the USA, and potentially scale to global markets.

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On December 30, 2024, QeM announced that its technology fully meets the latest U.S. healthcare cybersecurity recommendations. Its Sentry-Q platform harnesses the power of pure EaaS, generated by its advanced QRNG2 technology, seamlessly integrated with classical and post-quantum cryptography (PQC). This robust approach ensures the secure transmission of sensitive healthcare data, providing real-time protection and safeguarding confidentiality against both current and emerging quantum threats.

**Financing**

On March 20, 2024, the Company completed a non-brokered private placement, issuing a total of 15,000,000 units at a price of $0.05 per unit for gross proceeds of $750,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.15 for a period of 12 months following the closing of the private placement.

On March 28, 2024, QeM announced the reception of a significant research grant awarded by the Alliance-Quantum grants program, overseen by the Natural Sciences and Engineering Research Council of Canada (NSERC). This grant supports the project "Quantum random number generation for highly secure cryptography applications," a collaborative initiative led by ÉTS, in partnership with QeM.

On November 15, 2024, the Company completed a non-brokered private placement, issuing a total of 7,500,000 units at a price of $0.10 per unit for gross proceeds of $750,000. Each unit is comprised of one common share and one warrant. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.20 for a period of 24 months following the closing of the private placement.

**Outlook**

On February 24, 2025, the Company completed a brokered financing, issuing a total of 13,333,333 units at a price of $0.75 per unit for gross proceeds of $10,000,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.10 for a period of 3 years following the closing of the date of issuance.

On June 2, 2025, the Company completed a brokered financing, issuing a total of 8,000,000 units at a price of $1.50 per unit for gross proceeds of $12,000,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.82 for a period of 3 years following the closing of the date of issuance.

**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**

The Company's vision is to become a world leader in Traditional & Quantum safe Cryptography, with a special focus on SME challenges. QeM is pioneering next generation solutions relying on Quantum-based technologies: Quantum Random Number Generator (QRNG) & Quantum-safe Encryption. QRNGs are genuinely disruptive devices that exploit the built-in unpredictability of quantum mechanics. Their purpose is to create pure randomness (unpredictability) which is an essential cornerstone of cybersecurity. Much of the technology surrounding QRNG QeM was developed from the groundbreaking research of Professor Bertrand Reulet, one of the world's foremost quantum physicists, at the Université de Sherbrooke. His pioneering work in quantum noise and electron tunneling, phenomena where particles can unpredictably pass through barriers, sparked a breakthrough: the ability to generate true, unpredictable randomness at unprecedented speeds. This is particularly important with the impending reality of quantum computers which are now on the horizon.

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QeM's research and development programs have resulted in a strong patent portfolio which is described in this AIF. The Company will continue to invest in R&D to build additional patentable products in the future. QeM is also active to ensure it complies with all regulatory requirements and in the past year successfully obtained the prestigious ISO/IEC 27001:2022 certification.

The Company intends to continue to invest and build its business internally as well as through investments in promising companies and products as it has with Greybox and Krown Technologies. The Company's target markets include cybersecurity, Internet of Things, datacenters, Blockchain, and cryptocurrencies and cover the following industries: healthcare, medical device and pharma, manufacturing, finance and government, and military.

QeM intends to focus on commercialization in the upcoming year with revenues planned through royalties and direct sales.

**Principal Products or Services**

QeM has two principal areas of focus: hardware and software. Currently, QeM has commercially ready software products, while its hardware products are in various stages of being developed. An exception is our entropy generator, that is deployed in the sense of it being used to generate entropy, which is distributed to customers over the internet, while the physical device itself is not ready for commercialization. QeM currently expects the entropy generator hardware to be commercialization-ready by the end of 2025.

**Research and Development Activities related to Software Products and Services**

Research and Development directed towards software products takes many forms including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Broadening the Scope of Application as well as Ease of Adoption of the System Development Kit ()"**SDK** ")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Specialized applications – which in 2024 included Blockchain and AI assisted development

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Work on "post-quantum cryptography", which includes
FIPS 203, 204 and 205 realizations.

Specifically:

FIPS 203 covers secure exchange of keys

FIPS 204 covers signing data with "quantum resistant algorithms"

FIPS 205 is an alternative scheme to FIPS 204

**Research and Development Activities related to Hardware Products and Services**

Following proof-of-concept work done in 2023, QeM was engaged in two main areas:

&nbsp;&nbsp;&nbsp;&nbsp;a) Creating prototypes of high sensitivity, high frequency analog integrated circuits targeted to amplification
of very low analog signals containing entropy information in the presence of noise sources.

&nbsp;&nbsp;&nbsp;&nbsp;b) Creating prototypes of high frequency mixed signal integrated circuits, targeted to the processing of
analog signals, transforming these into signals suitable for cryptography. Such mixed signal circuitry involves both pdf shaping and interfaces
to external system and includes self-test and interfaces to external digital controllers.

&nbsp;&nbsp;&nbsp;&nbsp;c) Research into new types of quantum tunneling devices – their miniaturization as well as their resistance
to external (environmental) disturbances – including those found in space applications.

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**QeM - Principal Products or Services**

QeM has two principal areas of focus: hardware and software.

Currently, QeM has commercially ready software products, while its hardware products are in various stages of being developed. An exception is our entropy generator, that is deployed in the sense of it being used to generate entropy, which is distributed to customers over the internet, while the physical device itself is not ready for commercialization. QeM currently expects the entropy generator hardware to be commercialization-ready before the end of 2025.

**Software Products**

QeM has two principal software products, namely an Entropy distribution system, able to distribute Entropy as a Service (dubbed EAAS) and a SDK, designed to enable the efficient creation of highly secure digital communications.

**QeM's Entropy-as-a-Service (EaaS) System**

**EAAS** is a cybersecurity technology that provides organizations with access to true, quantum-generated randomness — the foundation of all secure cryptography. Unlike traditional pseudo-random number generators that rely on deterministic algorithms, QeM's EaaS harnesses the inherent unpredictability of quantum mechanics to produce genuine entropy, ensuring the strongest possible cryptographic keys and data protection

Delivered as a cloud-based or on-premises service, EaaS integrates seamlessly into existing IT infrastructures, enabling secure key generation, encryption, authentication, and digital signing across diverse applications. By offloading the complexity of entropy generation to a dedicated quantum source, QeM empowers enterprises, government institutions, and IoT ecosystems to eliminate one of the most common vulnerabilities in cybersecurity — weak randomness.

QeM's EaaS platform is built for scalability and compliance, offering API-based integration for developers and system architects. It ensures that every cryptographic operation starts with truly unpredictable input, dramatically reducing exposure to attacks such as key prediction, data breaches, and compromised communications.

In an era of increasing quantum threats, QeM's EaaS represents a future-proof solution for securing digital infrastructure. It combines the precision of quantum physics with the flexibility of modern cloud delivery, making next-generation entropy accessible to any organization. Whether used to enhance enterprise encryption systems, strengthen blockchain protocols, or secure edge devices, QeM's Entropy-as-a-Service establishes a new gold standard in randomness generation and cryptographic trust.

**QeM's Quantum Random Number Generator (QRNG)**

QeM's QRNG, able to generate high frequency entropy, whose underlying technology uses the Quantum Tunneling Effect. The QRNG uses patented technology and high frequency circuits to create Entropy of extreme high quality, reliability and at hereto unprecedented speed.

This is a state-of-the-art device that produces truly random numbers using the fundamental principles of quantum mechanics. Unlike conventional pseudo-random generators that rely on algorithms and can be predicted or reproduced, QeM's QRNG harnesses the inherent randomness of quantum phenomena—specifically the behavior of photons—to generate pure, unpredictable entropy.

The QRNG operates in real time, delivering high-speed, verifiable randomness ideal for applications in cryptography, secure communications, financial systems, and defense technologies. It can be deployed as a standalone hardware module or integrated into cloud and embedded systems through APIs, ensuring flexibility and scalability. By providing a reliable quantum source of entropy, QeM's QRNG guarantees the

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integrity of encryption keys, authentication processes, and data protection mechanisms. It forms the foundation of QeM's Entropy-as-a-Service platform, securing the digital world with quantum-grade randomness and uncompromising trust.

**QeM's System Development Kit (SDK)**

The SDK contains an extensive library of functions, encompassing Symmetric and Asymmetric cryptography, the so-called "Quantum-Safe" Key Management (Distribution) as well as a wide variety of "helper primitives" encompassing "Hashing", Packaging, Memory Management and much more. This library of functions is constantly being enhanced to broaden the Agility and Ease of Adoption of the SDK, thereby reducing the specialized knowledge necessary to apply it.

QeM's Software Development Kit (SDK) provides developers and system integrators with a powerful, flexible interface to access and utilize quantum-grade randomness within their applications. Designed to work seamlessly with QeM's QRNG and EaaS platform, the SDK allows easy integration of true quantum entropy into cryptographic, IoT, fintech, and enterprise security systems.

The SDK supports multiple programming languages and operating environments, making it ideal for both cloud-based and on-premises deployments. Through simple APIs, developers can generate quantum-secure random numbers, initialize encryption keys, seed pseudo-random generators, and enhance security protocols with minimal effort.

QeM's SDK emphasizes performance, security, and compliance. It includes built-in entropy validation, ensuring that data derived from quantum sources meets the highest statistical standards of unpredictability. Moreover, the SDK provides robust documentation, sample code, and test tools, enabling rapid integration and prototyping.

By embedding quantum entropy directly into software workflows, QeM's SDK bridges the gap between cutting-edge quantum physics and real-world cybersecurity needs. It empowers developers to create applications resilient against classical and emerging quantum attacks—delivering next-generation protection for sensitive data, digital identities, and network communications.

**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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**Status of patents**

***First Patent Family*:**

 **Method for generating random numbers and associated random number generator** 

 

*The 1st generation technology is the revolutionary technology which is at the origin of QeM. Several patents protect the exclusivity of this technology. In particular, two patents were obtained in the United States to fully cover the technology, and patents were also obtained in Australia, Brazil, Canada, China, Germany, Spain, Finland, France, Great Britain, Italy, India, South Korea, the Netherlands, Russia, Sweden and Thailand. QeM mandated a law firm to perform a very exhaustive novelty verification, including independent professional patent searches in three different jurisdictions, which provides an extraordinary level of confidence in the strength of these patents*

---

| | |
|:---|:---|
| **Country** | &nbsp;&nbsp;**Status** |
| United States | &nbsp;&nbsp;Two patents were granted in the United States, including a first one granted on August 7, 2018, and a second granted on October 8, 2019. |
| European Patent Office | &nbsp;&nbsp;EPO granted the patent on February 19, 2020. The European Patent has been validated in several countries: Germany, Spain, Finland, France, Great-Britain, Italy, Sweden and the Netherlands. |
| Australia, Brazil, Canada, China, India, Republic of Korea, Russia, Thailand | &nbsp;&nbsp;Patent granted |

---

***Second Patent Family*:** 

**Method and system for generating a random bit sample** 

 

*The 2nd generation technology has a particular synergy with the 1st generation technology. Indeed, in practical applications, electronic elements such as amplifiers may impart classical noise into the quantum signal, which may make the signal not truly quantum, and thus not truly random. The 2nd generation technology provides means of extracting a purely random quantum signal as a quantum number source independently of the presence of classical noise. Several patents protect the exclusivity of this technology. In particular, two patents were obtained in the United States to fully cover the technology, and patents were also obtained in Australia, Germany, Spain, Finland, France, Great Britain, Indonesia, Italy, Japan, the Netherlands, Russia, Canada, China, India, South Korea and Sweden, and the patent application remains pending in Brazil and Thailand.*

---

| | |
|:---|:---|
| **Country** | &nbsp;&nbsp;**Status** |
| European Patent Office | &nbsp;&nbsp;EPO granted the patent on October 23, 2019. The European Patent has been validated in Germany, Spain, United Kingdom, Finland, France, Italy, Sweden and the Netherlands. |
| United States | &nbsp;&nbsp;Two patents were granted. |
| Brazil, Thailand | &nbsp;&nbsp;Patent pending |
| Australia, Russia, Indonesia, Canada, China, India, Japan, South Korea | &nbsp;&nbsp;Granted |

---

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***Third Patent Family*:**

**System and Method for Generating a Random Number, and circuit for communicating an analog random signal** 

 

*3rd generation technology harnesses the commercial availability and low costs of consumer electronics, such as audio processing hardware in particular, in quantum number generation, further democratizing the availability of truly random numbers.*

---

| | |
|:---|:---|
| **Country** | **Status** |
| United States | Patent pending |

---

Note: \* All expiry dates are subject to payment of periodic patent annuity fees

**Cycles**

QeM 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, QeM does not possess any contracts upon which its business is substantially dependent. The Company's primary focus continues to lie in research and development and the exploration and advancement of innovative solutions. As such, there are no contracts in place for the sale of the 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.

**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 period.

**Environmental Protection**

In the current financial year and for the foreseeable future years, the Company anticipates no significant financial or operational effects stemming from environmental protection requirements. As QeM's primary focus will continue to be on the development of hardware and software solutions, its operations are not expected to be subject to substantial environmental compliance obligations. The Company will remain vigilant to ensure that it complies with all environmental laws that affect its operations.

**Employees**

As of QeM's most recent financial year end, it has a total of 5 employees or equivalent.

**Foreign Operations**

QeM established a subsidiary, QEMA, in California on April 10, 2025. In addition, the Company engages several consultants in Canada, Taiwan and the Philippines.

**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 within the three most recently completed financial years.

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**Reorganizations**

QeM has not undergone any reorganization in its last three years.

**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**

*Operational Reliance on Third-Party Providers and Partners*

 

The Company relies upon independent third-party services providers. The Company's operations could be interrupted or impaired if these third-party service providers or partners 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 or partners could entail significant delays, expense, and disruption of service. As a result, if the third-party service providers or partners 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 may have significantly more 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 its 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

Page 13 of 28 <br>

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.

*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 QeM.

*Limited Operating History*

 

QeM has a limited history of operations and is in the early stage of development of its current product line. As such, QeM could 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 QeM will achieve its operating goals. There is no assurance that QeM 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 QeM 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 QeM 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 QeM 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 QeM 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 QeM to obtain additional capital and to pursue business opportunities.

*Litigation*

 

QeM may be subject to litigation arising out of, or related to, its operations including defending its intellectual property rights. Damages claimed under such litigation may be material, and the outcome of such litigation may materially impact QeM's operations and the value of its Common Shares. While QeM 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 and human resources to such defenses. In addition, the adverse publicity surrounding such claims may have a material adverse effect on QeM's operations and its Common Shares.

*Dependence on Key Personnel*

 

The success of QeM 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 QeM. There can be no assurance that these individuals will continue to be employed by, or remain involved with, QeM for a particular period of time.

Page 14 of 28 <br>

The Company will rely on a limited number of key employees, consultants, and members of senior management and there is no guarantee that QeM 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 QeM's business, financial condition and prospects.

*Ability to Generate Profits*

 

There can be no assurance that QeM will generate net profits in future periods. Further, there can be no assurance that QeM will be cash flow positive in future periods. If QeM fails to achieve profitability in future periods, the value of its Common Shares may decline. In addition, if QeM is unable to achieve or maintain positive cash flows, QeM 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.

*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 QeM's reputation, financial condition and valuation, and the value of its Common Shares.

*Market Risk for Securities*

 

There can be no assurance that an active trading market for QeM'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 QeM's securities. The stock market has on occasion 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 QeM to secure investors 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 in 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, but does purchase products and services in other currencies, particularly the US dollar. 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.

*Investment Risk*

 

There is no assurance that QeM 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.

Page 15 of 28 <br>

 

*Management of Growth*

 

The Company has recently raised additional capital and expects to hire additional personnel. This growth would result in increased responsibility for QeM's existing management, which will need to implement and improve its operational, financial and management information systems. There can be no assurance that QeM will be able to manage such growth effectively or that its management, personnel or systems will be adequate to support QeM's operations.

*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 QeM being subject to additional taxation or which could otherwise have a material adverse effect on QeM's results from operations and financial condition.

*Dividends*

 

QeM 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 QeM's 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 QeM that the QeM Board deems relevant. Shareholders of QeM may not receive funds without selling their Common Shares.

**Business and Industry Risks**

*Reliance on Internally & Externally Built Software, Data and Intellectual Property*

 

QeM's business is dependent on internal 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.

Page 16 of 28 <br>

 

*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 QeM's business operations.

The activities of the Company may be subject to regulation by governmental authorities. Achievement of the Company's business objectives is 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.

*Insurance*

 

QeM 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 QeM, 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 QeM.

*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 QeM 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.

**DIVIDENDS**

The Company has not declared or paid any cash dividends on its securities to date. 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 common 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.

Page 17 of 28 <br>

**DESCRIPTION OF CAPITAL STRUCTURE**

The Company is authorized to issue an unlimited number of Common Shares, of which there are 215,538,670 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. Common Shares are not subject to future calls of assessments. The Corporation may issue additional Common Shares and options therefore from time to time on terms and conditions acceptable to the directors.

**MARKET FOR SECURITIES**

**Trading Price and Volume**

The Common Shares are listed and posted for trading on (i) the TSX Venture Exchange ("**TSXV**") under the symbol "QNC"; (ii) the OTCQB Market under the symbol "ONCCF"; and (iii) the Frankfurt Stock Exchange under the symbol "34Q0".

The following table sets forth the reported closing high and low prices and the aggregate volume of trading of Common Shares on the TSXV for each month of the most recently completed financial year:

*Share Price in C$*

 

---

| | | | |
|:---|:---|:---|:---|
| **Date** | **High** | **Low** | **Average Daily Volume** |
| January 2024 | 0.07 | 0.05 | 165752 |
| February 2024 | 0.07 | 0.05 | 540060 |
| March 2024 | 0.14 | 0.09 | 463950 |
| April 2024 | 0.15 | 0.13 | 278495 |
| May 2024 | 0.14 | 0.14 | 177345 |
| June 2024 | 0.13 | 0.11 | 141030 |
| July 2024 | 0.14 | 0.11 | 282591 |
| August 2024 | 0.14 | 0.11 | 215057 |
| September 2024 | 0.13 | 0.12 | 129370 |
| October 2024 | 0.13 | 0.11 | 232670 |
| November 2024 | 0.12 | 0.11 | 857610 |
| December 2024 | 1.78 | 0.17 | 6837558 |

---

Page 18 of 28 <br>

**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:

---

| | | | |
|:---|:---|:---|:---|
| **Date of Issuance** | **Security** | &nbsp;&nbsp;&nbsp;**Number of<br> Securities Issued** | **Exercise Price Per Security ($)** |
| March 20, 2024 | Purchase Warrants | 15000000 | 0.15 |
| June 20, 2024 | Stock Options | 900000 | 0.15 |
| November 15, 2024 | Purchase Warrants | 7500000 | 0.20 |

---

**ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL**

**RESTRICTIONS ON TRANSFER**

The Company does not have any Common Shares that are subject to escrow or contractual restrictions.

Page 19 of 28 <br>

**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.

---

| | | |
|:---|:---|:---|
| <br> **Name, Province and Country of Residence<br> and Position Held** | **Date Elected or Appointed** | **Principal Occupations During Last <br> Five Years** |
| &nbsp;&nbsp; **Francis Bellido**<sup>(1)</sup><br> Quebec, Canada<br> President & Chief Executive Officer and Director | December, 2020 | &nbsp;&nbsp; Aurakle Research Capital;<br> CEO of Soundbite Medical Solutions; |
| &nbsp;&nbsp; **Edward Lawrence Moore** <br> Quebec, Canada<br> Chief Technical Officer and Director | January, 2021 | President and CEO of Baystream Corporation |
| &nbsp;&nbsp; **Tullio Panarello**<br> Quebec, Canada<br> Director | February, 2022 | &nbsp;&nbsp; VP and General Manager,<br> Smiths Interconnect |
| &nbsp;&nbsp; **David Wayne Teeple**<sup>(1)</sup><br> Ontario, Canada<br> Director | February, 2022 | Cybersecurity advisor, Phirelight |
| &nbsp;&nbsp; **John Young**<sup>(1)</sup><br> California, United States of America<br> Chief Operating Officer of Quantum eMotion America Inc. and Director | June, 2024 | &nbsp;&nbsp; Cybersecurity Expert, IBM Cloud Division,<br> Los Angeles, CA,<br> and Candle Corp |
| &nbsp;&nbsp; **Marc Rousseau**<br> Quebec, Canada<br> Chief Financial Officer | January, 2021 | President, LVR Capital Inc. |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Member of the Audit Committee.

As of the date of this AIF, all directors and executive officers of QeM, as a group, beneficially own, directly or indirectly, or exercise control or direction over, 7,365,250 Common Shares, representing 3.42% of all outstanding Common Shares.

*Biographies*

 

*Francis Bellido – Chief Executive Officer and Director.* Dr. Bellido has over 35 years of international experience in Cybersecurity, Healthcare and Financial industries. He was the CEO of SoundBite Medical from 2018 to 2020 after serving as CFO from 2015 to 2018. From 2007 to 2014, he held several top executive positions in large, medium-sized and start-up companies. From 1999 to 2006, he managed a $300M life science investment fund (SGF-Santé) and contributed to the success of major companies such

Page 20 of 28 <br>

as Cryocath, IDI-GeneOhm, Draxis, Medicago, Atrium and Axcan Pharma. He also occupied several executive positions with Eli Lilly in the United States and Europe, including Strategic Asset Director, Global Business Unit Manager and Head of Regulatory Affairs. In addition to his corporate roles, he was Director of the Chair of Management in Bioindustry at the University of Quebec in Montreal, where he held the position of Invited Professor at the School of Management for 15 years. Dr. Bellido has served as Board Member and Director in more than 20 private and public companies. He currently sits on the boards of Diagnos (ADK.V), Magneceuticals (USA) and RegenLab (CH). He is also a former board member of DSM Biologics Company Inc., one of the world's leading biopharmaceutical CMOs. He holds an MBA, an MSc in Pharmaceutical Sciences and a PhD in Sciences from the University of Geneva, Switzerland. He has also published over 40 original manuscripts and communications in peer-reviewed scientific journals.

 

*Edward Larry Moore – Chief Technology Officer and Director*. Dr. Moore brings relevant business knowledge and a significant network, developed during his 40-year tenure in the software, semiconductor and cybersecurity industries. Early in his career, Dr. Moore founded ANACAD, which developed software technology for integrated circuit (IC) design. ANACAD's products were adopted globally for their application in IC design and utilized by major corporations such as Daimler, Toshiba, and SGS Thomson. The company was eventually sold to Mentor Graphics. Dr. Moore is currently President of Baystream, a company specializing in process automation and cloud-based solutions. Recently, Baystream developed automation solutions to deploy security-hardened systems to the Cloud that are focused on availability and compliance, strengthening its process automation offering and its key position in the market.

 

*Tullio Panarello – Director*. Mr. Panarello has served in several senior leadership roles over the past 25 years in many high-tech companies across the telecom, military, semiconductor, space, and sensor industries. His technical and market knowledge extends to the fields of lasers, optics, semiconductors, and quantum-based technologies. He is currently Vice President and General Manager at Smiths Interconnect in Montreal, Quebec, which acquired ReflexPhotonics, the company where he served as Executive President. Earlier in his career, he worked as Business Development Manager for PerkinElmer Canada before co-founding PyroPhotonics Lasers Inc., a company specializing in pulsed laser technology for material processing applications. He became CEO of PyroPhotonics until its sale to Electro Scientific Industries (ESI), where he later served as Divisional General Manager for the Laser Business Division.

 

*David Wayne Teeple – Director*. Mr. Teeple brings relevant technical and business knowledge and a significant network, which he developed during his 30-year tenure in telecommunications, information technology/management (IT or IM), and information security systems. During his years in the Canadian Military, as a Communications & Electronics Program/Project Management Officer, and in the Information Technology industry, he acquired experience in a wide variety of executive positions. He was the founder and CEO of Phirelight Security Solutions Inc., which was acquired in December 2018 by a large international company offering space and security engineering services and technologies. He is currently one of their Cybersecurity Advisors. He holds a degree in computer science from the University of Ottawa.

 

*John Young – Director.* Ever see the movie Catch Me If You Can? As a teenager, for three years John Young and his expert telecommunications systems mentor, the late D.F. Rooney, successfully hacked the AT&T network—until the FBI scared him straight into a 40-year cybersecurity career. The former network director of McDonnell Douglas's $41 billion C-17 program, John later retired after decades at IBM and then became one of only 11 cybersecurity experts worldwide to earn all nine ISC2 certifications. Named to the board of directors at QeM in June 2024.

 

*Marc Rousseau – Chief Financial Officer.* Mr. Rousseau is the President of LVR Capital Inc. He began his professional career with Crédit Ford of Canada, where he acted as Director of Operations. In 2001, he joined

Page 21 of 28 <br>

the Business Development Bank of Canada as a Senior Business Development Manager, a position he held until LVR Capital was founded in September 2005. LVR is a consultation investment bank providing direct counsel to firms in their financing needs, mostly for debt financing. Since 2005, it has been instrumental in providing close to $200M to numerous companies, as well as being responsible for the restructuring and turnaround of several firms. At the same time, he pursued a military career from 1981 to 2004 as an infantry officer with the Canadian Forces. He commanded the Mount Royal Fusilliers Regiment from 1996 to 1999 and served in Bosnia as a Plans and Policy Team Leader at NATO Headquarters in Sarajevo. Mr. Rousseau has been a director of the National Film Board of Canada and of Iscope Corporation and has chaired the board of the Quebec Society for Disabled Children. He serves on the advising committee of Pilote Groupe Conseil and of RealByFake, and counsels other firms on their financial strategies. He is the President of La Fondation Les Fusiliers Mont-Royal and a member of Corporate Connections. He holds a Bachelor of Arts, Economics, from Concordia University.

**Cease Trade Orders, Bankruptcies, Penalties or Sanctions**

*Cease Trade Orders*

 

To the Company's knowledge, no director or executive officer 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:

(a) was the subject of a cease trade or similar order or an order that denied the relevant company access to any exemption under securities legislation, for a period of more than 30 consecutive days while that person was acting in that capacity, or

(b) was subject to a cease trade or similar order or an order that denied the relevant company access to any exemption under securities legislation, for a period of more than 30 consecutive days that was issued after that person cease to act in such capacity but which resulted from an event that occurred while that person was acting in such capacity

*Bankruptcies*

 

To the Company's knowledge, no director or executive officer of the Company or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company is, at the date of this AIF, or has been, within 10 years before the date of the AIF, a director or executive officer of any 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.

In addition, to the Company's knowledge, no director or executive officer of the Company or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Corporation has, within the 10 years before the date of this AIF, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director, executive officer or shareholder.

*Penalties or Sanctions*

 

Furthermore, to the knowledge of the Company, no director or executive officer 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 a 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 that would likely be considered important to a reasonable investor in making an investment decision

Page 22 of 28 <br>

**Conflicts of Interest**

There may from time to time be potential conflicts of interest to which some of the directors or officers 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.

**AUDIT COMMITTEE DISCLOSURE**

**Audit Committee**

The Audit Committee is composed of three members: David Wayne Teeple, Francis Bellido and John Young. Each member is currently a director of the Corporation. All members of the Audit Committee are financially literate. A majority of the members are independent within the meaning of *Regulation 52-110 respecting Audit Committees* ("**Regulation 52-110**"). Francis Bellido, Chief Executive Officer of the Corporation, is not independent.

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.

**Relevant Education and Experience**

Please refer to the biographies reported under "Directors and Officers – Name, Occupation and Security Holdings" in this AIF.

**Reliance on Certain Exemptions**

At no time since the commencement of the Corporation's most recently completed financial year has the Corporation relied on exemptions in section 2.4 of Regulation 52-110 in relation to "De Minimis Non-Audit Services", or an exemption from Regulation 52-110, in whole or in part, granted under Parts 6 and 8 of Regulation 52-110, other than the exemption granted under Section 6.1 of Regulation 52-110, which exempts venture issuers from the requirements of Part 3 (Composition of Audit Committee) and Part 5 (Reporting Obligations).

**Audit Committee Oversight**

At no time since the commencement of the Company's most recently completed financial year was there 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.

Page 23 of 28 <br>

**External Auditor Service Fees**

The aggregate fees billed by the Company's external auditors in each of the last two fiscal years are as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;**2023 Fiscal Year ($)** | &nbsp;&nbsp;**2024 Fiscal Year ($)** |
| &nbsp;&nbsp;Audit fees | &nbsp;&nbsp;64200.00 | &nbsp;&nbsp;85000 |
| &nbsp;&nbsp;Audit-related fees <sup>(1)</sup> | &nbsp;&nbsp;- | &nbsp;&nbsp;6300 |
| &nbsp;&nbsp;Tax fees <sup>(2)</sup> | &nbsp;&nbsp;9613.95 | &nbsp;&nbsp;5000 |
| &nbsp;&nbsp;Other fees | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Total | &nbsp;&nbsp;73813.95 | &nbsp;&nbsp;96300 |

---

Notes:

(1) These fees include the fees and disbursements for services reasonably related to the performance of the
audit of the Company's financial statements not reported under "Audit Fees".

(2) These fees represent the aggregate fees and disbursements for the service related to tax compliance and
tax advice.

**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**

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.

**LEGAL PROCEEDINGS AND REGULATORY ACTIONS**

**Legal Proceedings**

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.

**Regulatory Actions**

During the fiscal year ended December 31, 2024 and as of the date hereof, there have been no penalties or sanctions imposed against the Company (a) by a court relating to securities legislation or by a securities regulatory authority or (b) by a court or regulatory body that would likely be considered important to a reasonable investor making an investment decision in the Company.

Page 24 of 28 <br>

The Company has not entered into any settlement agreements with a court relating to securities legislation or with a securities regulatory authority during the fiscal year ended December 31, 2024 and as of the date hereof.

**AUDITORS, TRANSFER AGENT AND REGISTRAR**

The auditor of the Company is Richter S.E.N.C.R.L./L.L.P.

The Company's register and transfer agent is Computershare Investor Services Inc. at its office located at 650 Boulevard De Maisonneuve Ouest, 7e étage Montréal (Québec) H3A 3T2.

**MATERIAL CONTRACTS**

Other than those contracts entered into in the ordinary course of business, the Company has not entered into any material contract since the beginning of the last financial year ended December 31, 2024 or entered into prior to such date, but which are still in effect and which are required to be filed under NI 51-102.

**INTEREST OF EXPERTS**

The Company's external auditor for the year ended December 31, 2024 was Richter S.E.N.C.R.L. /L.L.P. which 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 Quebec.

**ADDITIONAL INFORMATION**

Additional information relating to the Company may be found under the Company's profile on SEDAR+ at www.sedarplus.ca

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.

Page 25 of 28 <br>

**APPENDIX "A"**

**Quantum eMotion Corp.**

**(the "Corporation")**

**AUDIT COMMITTEE CHARTER**

The following charter is adopted in compliance with *Regulation 52-110 respecting Audit Committees* ("**52-110**").

**1.** **COMPOSITION** 

The Committee shall be comprised of at least three directors as determined by the Board. The majority of the members of the Committee shall be independent, within the meaning of 52-110.

At least one member of the Committee shall have accounting or related financial management expertise. All members of the Committee shall be financially literate.

For the purposes of this charter, the definition of "financially literate" is 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 presumably be expected to be raised by the Corporation's financial statements.

The appointment of members to the Committee shall take place annually at the first meeting of the Board after a meeting of shareholders at which directors are elected. If the appointment of members of the Committee is not so made, the directors who are then serving as members of the Committee shall continue to serve as members until their successors are validly appointed. The Board may appoint a member to fill a vacancy that occurs in the Committee between annual elections of directors.

Unless a chairman is appointed by the Board, the members of the Committee may designate a chairman by a majority vote of all Committee members.

**2.** **MEETINGS AND PROCEDURES** 

The Committee shall meet at least annually, or more frequently if required.

At all meetings of the Committee, every item brought to resolution shall be decided by a majority of the votes cast. In the case of an equality of votes, the chairman shall not be entitled to a second vote.

Quorum for meetings of the Committee shall be a majority of its members and the rules for calling, holding, conducting and adjourning meetings of the Committee shall be the same as those governing meetings of the Board.

The powers of the Committee may be exercised at a meeting at which a quorum of the Committee is present in person or by telephone or other electronic means or by a resolution signed by all members entitled to vote on that resolution at a meeting of the Committee.

Each member (including the chairman of the Committee) is entitled to one vote in Committee proceedings.

The Committee may meet separately with senior management and may request that any member of the Corporation's senior management or the Corporation's outside counsel or independent auditors to attend meetings of the Committee or other meetings with any members of, or advisors to, the Committee.

Furthermore, the Committee has the authority to hire the services of outside advisors, from time to time, when it is necessary to do so for carrying out its mandate.

The Committee shall, at the meeting of the Board following its own meeting, report to the directors on its work, activities and recommendations.

Page 26 of 28 <br>

**3.** **DUTIES AND RESPONSIBILITIES** 

The following are the general duties and responsibilities of the Committee:

**3.1**  **<u>Financial Statements and Disclosure Matters</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;3.1.1 Review the Corporation's financial statements, management's discussion and analysis and any
press releases regarding annual and interim (as required by the Board) profit or loss, before the Corporation publicly discloses such
information;

**3.2**  **<u>Independent Auditors</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;3.2.1 recommend to the Board the selection and, where applicable, the replacement of the independent auditors
to be appointed annually as well the compensation of such independent auditors;

&nbsp;&nbsp;&nbsp;&nbsp;3.2.2 determine that the independent auditors appointed are a Public Accounting Firm that has entered into a
Participation Agreement as such terms are defined in *Regulation 52-108 respecting Auditor Oversight* and that at the time of their
report on the annual financial statements of the Corporation, they are in compliance with any restrictions or sanctions imposed by the
Canadian Public Accountability Board;

&nbsp;&nbsp;&nbsp;&nbsp;3.2.3 oversee the work and review annually the performance and independence of the independent auditors;

&nbsp;&nbsp;&nbsp;&nbsp;3.2.4 on an annual basis, review and discuss with the independent auditors all significant relationships they may have with the Corporation that may impact their objectivity and independence;

&nbsp;&nbsp;&nbsp;&nbsp;3.2.5 consult with the independent auditors about the quality of the Corporation's accounting principles,
internal controls and the completeness and accuracy of the Corporation's financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;3.2.6 review and approve the Corporation's hiring policies regarding partners, employees and former partners
and employees of the present and former independent auditors of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;3.2.7 review the audit plan for the year-end financial statements and intended template for such statements;

&nbsp;&nbsp;&nbsp;&nbsp;3.2.8 review and pre-approve all audit and audit-related services and the fees and other compensations related
thereto, as well as any non-audit services provided by the independent auditors to the Corporation or its subsidiary entities. The pre-approval
requirement is satisfied with respect to the provision of non-audit services if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.8.1 the aggregate amount of all such non-audit services provided to the Corporation constitutes no more
 than 10% of the total amount of fees paid by the Corporation and its subsidiary entities to its independent auditors during the
 fiscal year in which the non-audit services are provided;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.8.2 such services were not recognized by the Corporation or its subsidiary entities as non-audited
 services at the time of the engagement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.8.3 such services are promptly brought to the attention of the Committee by the Corporation and
 approved, prior to the completion of the audit, by the Committee or by one or more of its members to whom authority to grant such
 approvals has been delegated by the Committee.

Page 27 of 28 <br>

&nbsp;&nbsp;&nbsp;&nbsp;3.2.9 The Committee may delegate to one or more independent members of the Committee the aforementioned authority
to pre-approve non-audited services, provided the pre-approval of the non-audit services is presented to the Committee at its first scheduled
meeting following such approval.

**3.3**  **<u>Financial Reporting Processes</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;3.3.1 review with management, in consultation with the independent auditors, the integrity of the Corporation's
financial reporting process, both internal and external;

&nbsp;&nbsp;&nbsp;&nbsp;3.3.2 consider the independent auditor's judgments about the quality and appropriateness of the Corporation's
accounting principles as applied in its financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;3.3.3 consider and report to the Board changes to the Corporation's auditing and accounting principles
and practices as suggested by the independent auditors and management;

&nbsp;&nbsp;&nbsp;&nbsp;3.3.4 review any significant disagreement among management and the independent auditors in connection with the
preparation of the financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;3.3.5 review, with the independent auditors and management, the extent to which changes and improvements in
financial or accounting practices have been implemented;

&nbsp;&nbsp;&nbsp;&nbsp;3.3.6 establish procedures for the confidential, anonymous submission by employees of the Corporation of concerns
regarding questionable accounting or auditing matters and the receipt, retention and treatment of complaints received by the Corporation
regarding accounting, internal accounting controls or auditing matters.

&nbsp;&nbsp;&nbsp;&nbsp;3.4  **<u>Risk Management</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;3.4.1 oversee the identification, prioritisation and management of the risks faced by the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;3.4.2 direct the facilitation of risk assessments and measurement to determine the material risks to which the
Corporation may be exposed and to evaluate the strategy for managing those risks;

&nbsp;&nbsp;&nbsp;&nbsp;3.4.3 monitor the changes in the internal and external environment and the emergence of new risks;

&nbsp;&nbsp;&nbsp;&nbsp;3.4.4 review the adequacy of insurance coverage;

&nbsp;&nbsp;&nbsp;&nbsp;3.4.5 monitor the procedures to deal with and review disclosure of information to third parties insofar as these
disclosure represent a risk for the Corporation.

Page 28 of 28 <br>

## Exhibit 99.2

**Exhibit 99.2**

QUANTUM eMOTION CORP.

**Management's Discussion and Analysis**

**Years ended December 31, 2024 and 2023**

**April 30, 2025**

**QUANTUM eMOTION CORP.**

The following management's discussion and analysis ("MD&A") of the financial position and results of the operations and cash flows of Quantum eMotion Corp. (the "Company", "QeM" or "Quantum") constitutes management's review of the factors that affected the Company's financial and operating performance for the year ended December 31, 2024, compared to the same period of the prior year which have been prepared in accordance with International Financial Reporting Standards (IFRS.)

Further information regarding the Company and its operations are filed electronically on the System for Electronic Document Analysis and Retrieval + ("SEDAR+") in Canada and can be obtained from www.sedarplus.ca.

1.1 <u>FORWARD LOOKING STATEMENTS</u> 

The sections of this MD&A on the Company's strategy and action plan, its intellectual properties, development and financial reporting reflecting management's current expectations contain "forward-looking statements." Such statements should be understood in context, particularly statements that reflect the Company's opinions, estimates and expectations about future events or results. Such forward-looking statements are subject to certain factors and involve some risks and uncertainties. There can be no assurance that such statements will prove to be accurate. Factors that could cause future results, activities and events to differ materially from those expressed or implied by such forward-looking statements include, but not limited to, securing future financing inclusive of exercise of stock options and warrants, the possibility that additional research and development will not result in the timely achievement of additional patents, risks inherent in the Hi-Tech industry, and the time it will take for the industry to be ready to move to quantic solutions. These risks and uncertainties are described in this MD&A and in the annual information form filed on SEDAR+.

1.2 <u>INCORPORATION AND NATURE OF OPERATIONS</u> 

Quantum eMotion Corp. was incorporated under the *Business Corporations Act* of Ontario on July 19, 2007.

The head office, principal address and records office of the Company are located at 2300 Alfred Nobel, Montreal, Qc, H4S 2A4. The Company is a developer of a new generation of quantum-based cryptographic solutions pursuant to the development of intellectual property and commercialization of cybersecurity solutions. (See 1.6 patent summary).

1.3 <u>SENIOR MANAGEMENT CHANGES</u> 

N/A

**QUANTUM eMOTION CORP.**

1.4 <u>COMPANY OVERVIEW AND STRATEGY</u> 

**RESEARCH AND DEVELOPMENT ACTIVITIES**

**Technology**

Our primary objective is to make our cryptographic solutions technology accessible as rapidly as possible to potential clients and partners, secure its effectiveness and ensure that the intellectual property is well protected. In order to stay focused on this objective, we are working closely with our partners to maximize the potential and security of our technology. The Company is developing complementary metal-oxide semiconductor ("CMOS") implementations with l'École de Technologie Supérieure ("ETS") to ensure greater competitiveness.

On June 1, 2023, the company announced the introduction of Entropy as a Service (EaaS) through their QxEAAS system, enhancing data security. EaaS offers on-demand randomness, vital for cryptography. Using QRNG2, which employs quantum electron tunneling, truly unpredictable random numbers are generated. This system reinforces QeM's Sentry-Q cryptography platform against cyberattacks. EaaS distributes secure keys and strings with patented quantum-based entropy sources. Rigorous tests, like NIST Statistical Test Suite, validate the quality of generated entropy. The integration of EaaS and QeM's cryptography library, with NIST-approved quantum-safe primitives, ensures cutting-edge security for data communication and authentication.

On January 10, 2024, QeM launched Quantum eHealth Inc., a subsidiary focused on healthcare applications for its advanced cybersecurity technology. By spinning off its Digital Healthcare Cybersecurity Activities into this new entity, QeM aims to capitalize on the growing digital healthcare security market. Quantum eHealth Inc. will hold an exclusive license to use QeM's intellectual property in the healthcare sector. Meanwhile, QeM will continue developing and marketing various iterations of its Quantum Random Number Generator (QRNG) across other sectors, including financial services, blockchain, military, information technology and others.

On February 21, 2024, QeM announced a breakthrough in developing its first Quantum Random Number Generator (QRNG) on a chip, a significant advancement in quantum communication technology. This development compactly integrates QRNG into a single chip, potentially less than 1 cm², revolutionizing quantum-based security designs. This innovation allows the sale of design cores, enabling integrated circuits vendors like Texas Instruments, Intel, and IBM to embed QRNG functionality directly into their products, expanding the reach and impact of quantum security technologies.

On March 18, 2024, QeM announced a strategic partnership with the Platform for Digital and Quantum Innovation (PINQ²), an NPO established by the Ministry of Economy, Innovation and Energy of Quebec and Université de Sherbrooke. This collaboration aims to enhance the resilience of QeM's security platform against advanced threats, including simulated quantum computer attacks using IBM's Qiskit platform. PINQ², the exclusive operator of Canada's first 127-qubit IBM Quantum System One at IBM Bromont, will work with QeM to rigorously test and evaluate their Kyber algorithm and QRNG. This project will assess the security system's performance under simulated adversarial conditions, focusing on identifying strengths, weaknesses, and vulnerabilities, and ensuring alignment with strategic goals. The partnership leverages simulation tools like Qiskit to execute quantum attack simulations, thoroughly testing the security solution's robustness.

On March 28, 2024, QeM announced that the project "Quantum random number generation for highly secure cryptography applications" will receive a $1.2 million grant from the Alliance Quantum program, managed by NSERC. Led by ÉTS in partnership with QeM, the project under Professor Ghyslain Gagnon, with co-grantee Prof. K. Zhang and contributors like Prof. B. Reulet from Université de Sherbrooke, focuses on developing scalable QRNG technologies. These innovations aim to bolster secure communications, integrate into Internet of Things (IoT) devices, and enhance security in DeFi ecosystems. The collaboration seeks to address challenges in QRNG commercialization, focusing on reducing energy consumption while leveraging quantum tunneling encryption for top-tier security.

**QUANTUM eMOTION CORP.**

On January 22, 2025, QeM announced groundbreaking results for its state-of-the-art quantum-based hardware wallet, designed to revolutionize security in blockchain and cryptocurrency transactions. Recent studies highlight that this innovative solution reduces the risk of monetary loss by up to 98% compared to conventional hierarchical deterministic (HD) wallets. Announced last July, the wallet leverages Quantum eMotion's proprietary Quantum Random Number Generation (QRNG) technology and an intelligent key generation scheme, ensuring optimal performance for commercial blockchain applications. It provides a cost-effective and compact solution by reusing hardware components for generating both parent and child keys, thus reducing costs and complexity.

**Patents**

As of today, the Company owns two patent families which have been filed in several countries, and which have led to the issuance of several patents.

The first patent family stems from work performed at Sherbrooke University, by the team of Professor Bertrand Reulet, and was acquired by the Company.

As the Company required its patent to pass the introduction level with potential clients, it was then decided to work with the Company's patent agent to assess the patentability of our technology. The Company received the final report that indicates that it should continue the National/Regional Phase as planned. By working diligently at the stage of the patentability report, the Company was able to respond rapidly to objections which were raised at the national/regional level, such as objections raised by the European Patent Office ("EPO") examiner. The general scope of the first patent family is related to the use of a monitored flow of electrons across a quantum tunnelling barrier as a quantum random signal source which is then used to produce random numbers.

The second patent family stems from work performed internally by the family and generally concerns technology which was developed to eliminate non-quantum noise from the quantum signal and therefore allow ensuring that the random numbers are purely random and entirely based on quantum processes.

In September 2021, the Company filed for a third patent family covering a minimalistic circuit which utilizes the computer's hardware to both power an on-chip quantum entropy source and turn the resulting entropy signal into random numbers of quantum origin on the go. The product will eventually be a plug-and-play ultraportable QRNG module that provides easy-to-use hardware protection for consumer electronics.

On April 12, 2023, Quantum announced the recent patent application for a fourth family of patent applications pertaining to a new method to operate a Blockchain Wallet that benefits from the protection provided by the QeM Quantum Random Number Generator (QRNG2). The market for hardware wallets has grown significantly in recent years due to the increasing demand for secure cryptocurrency storage solutions. According to a recent report by Markets and Markets, the global hardware wallet market is expected to grow from $1.0 billion in 2020 to $1.9 billion by 2025, at a compound annual growth rate (CAGR) of 13.5% during the forecast period. The growth of the hardware wallet market can be attributed to several factors, including the continuous adoption of cryptocurrencies after their recent volatility. QeM Quantum crypto-Wallet will eventually be considered one of the safest ways to store and manage cryptocurrencies, and they will become indispensable for anyone who wants to keep their digital assets highly secure.

On June 19, 2024, Quantum announced the filing of a patent application for a fifth family of patent applications pertaining to, yet another technology associated to the cryptocurrency industry. More specifically, we have developed our own hardware wallet technology which has a low footprint and competitive cost, while allowing us to leverage several of its other core technologies, such as the QRNG and its intelligent key generation scheme selection technologies, in new commercial applications. A combination of a patent application and industrial secret for the hardware wallet technology will target international intellectual property protection.

**QUANTUM eMOTION CORP.**

**Patents (cont'd)**

---

| | |
|:---|:---|
| **Status of patents** | **Status of patents** |
| ***First Patent Family*:**<br> **Method for generating random numbers and associated random number generator** | ***First Patent Family*:**<br> **Method for generating random numbers and associated random number generator** |
| **Country** | **Status** |
| United States | Two patents were granted in the United States, including a first one granted on August 7, 2018, and a second granted on October 8, 2019. |
| Russia | Patent granted |
| <br> European Patent Office | EPO granted the patent on February 19, 2020. The European Patent has been validated in several countries: Germany, Spain, Finland, France, Great-Britain, Italy and the Netherlands. |
| Thailand, India | Patent pending |
| Australia | Patent granted |
| China | Patent granted |
| Brazil | Patent granted |
| Canada | Patent granted |
| Republic of Korea | Patent granted |
| ***Second Patent Family*:**<br> **Method and system for generating a random bit sample** | ***Second Patent Family*:**<br> **Method and system for generating a random bit sample** |
| **Country** | **Status** |
| European Patent Office | EPO granted the patent on October 23, 2019. The European Patent has been validated in Germany, Spain, United Kingdom, Finland, France, Italy, Sweden and the Netherlands. |
| United States | Two patents were granted. |
| Brazil, Canada, China, India, Japan, South Korea, Thailand | Patent pending |
| Australia, Russia, Indonesia | Granted |
| ***Third Patent Family*:**<br> **System and Method for Generating a Random Number, and circuit for communicating an analog random signal** | ***Third Patent Family*:**<br> **System and Method for Generating a Random Number, and circuit for communicating an analog random signal** |
| **Country** | **Status** |
| United States | Pending |

---

**QUANTUM eMOTION CORP.**

**1.4**  **<u>COMPANY OVERVIEW AND STRATEGY</u> (cont'd)** 

**<u>BUSINESS DEVELOPMENT ACTIVITIES</u>**

On December 23rd, 2024, QeM announced a major milestone in the commercialization of its cloud-based Sentry-Q platform, designed to address critical, unmet cybersecurity challenges in modern telemedicine and digital healthcare. QeM's partner, GreyBox Solutions entered a strategic commercial alliance with Becton Dickinson (BD), a global powerhouse in the medical device and diagnostics industry with over $20 billion in annual sales. This partnership centers on advancing remote patient monitoring to improve the quality of life for patients with chronic diseases while empowering clinicians to monitor multiple patients efficiently. The initiative will launch in Canada, expand to the USA, and potentially scale to global markets.

On February 19, 2025, QeM announced a non-exclusive licensing agreement with Quantolio, a leading provider of AI-driven financial solutions. This strategic partnership grants Quantolio access to QeM's proprietary Entropy-as-a-Service (EaaS) technology, enabling groundbreaking advancements in financial applications and quantum artificial intelligence (Quantum AI). Under the terms of the agreement, Quantolio will integrate QeM's quantum-based technology into its AI-powered financial platforms. QeM's EaaS technology provides robust, high-entropy quantum randomness, ensuring enhanced security and performance in sensitive financial computations and AI-driven decision-making processes. For instance, EaaS can synergize AI-powered financial forecasting platforms by guaranteeing truly unpredictable stochastic processes. QRNG technology enhances Monte Carlo simulations, optimizes risk management models, and improves market prediction capabilities. Quantolio receives a non-exclusive, worldwide license to leverage QeM's proprietary EaaS technology within finance, FinTech, and Quantum AI applications. In exchange, Once the Quantum-powered financial platforms are commercially available, Quantolio will pay QeM an annual licensing fee of $1.0 million, with additional revenue-sharing terms.

On April 2, 2025, QeM announced the official launch of its U.S. subsidiary, Quantum eMotion America (QeMA), headquartered in Irvine, California. This strategic expansion marks a significant milestone in QeM's international growth, designed to accelerate sales, forge new partnerships, and drive business development across the U.S. cybersecurity sector. California was selected for QeM's first American office due to its vibrant technology ecosystem, access to top-tier talent, strategic global connectivity, and strong support for innovative enterprises. Irvine, in particular, offers proximity to major defense, enterprise, and academic hubs, positioning QeMA for sustained growth and market leadership.

As part of this expansion, QeM is pleased to announce the appointment of John Young, MBA, as Chief Operating Officer of Quantum eMotion America. In addition, Farrah Khan has been named Senior Vice President of Business Development, and Helen Woo has been appointed Vice President of Business Development, strengthening the company's leadership team and reinforcing its commitment to growth in the U.S. market.

**QUANTUM eMOTION CORP.**

1.5 <u>SELECTED PERIODIC INFORMATION</u> 

---

| | | | |
|:---|:---|:---|:---|
| **Year ended December 31** | **Year ended December 31** | **Year ended December 31** | **Year ended December 31** |
|  | **2024**<br> **$** | 2023<br> $ | 2022<br> $ |
| Net loss and comprehensive loss | **(2968738)** | (2386775) | (2804570) |
| Basic and diluted loss per share | **(0.020)** | (0.018) | (0.021) |
| Net working capital | **$1054806** | $1107242 | $3286177 |

---

---

| | | |
|:---|:---|:---|
| **Balance as at** | **Balance as at** | **Balance as at** |
|  | **December 31, 2024**<br> **$** | December 31, 2023<br> $ |
| Cash | &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;**1359406** | 315626 |
| Total assets | &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;**1857449** | &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;1645749 |
| Total liabilities | &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;**519606** | 226811 |
| Equity | &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;**1337843** | &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;1418938 |

---

**1.6**  **<u>INTELLECTUAL PROPERTY</u>** 

The carrying amount of the intellectual property consists of:

---

| | | | |
|:---|:---|:---|:---|
| | **Licenses** | **Rights on royalties** | **Total** |
| | **$** | **$** | **$** |
| &nbsp;&nbsp;**Cost** |  |  |  |
| &nbsp;&nbsp;December 31, 2023 | 446112 | 350000 | 796112 |
| &nbsp;&nbsp;Additions | - | - | - |
| &nbsp;&nbsp;**December 31, 2024** | **446112** | **350000** | **796112** |
| **Accumulated amortization, impairment and loss on derecognition** |  |  |  |
| &nbsp;&nbsp;December 31, 2023 | 94416 | 350000 | 444416 |
| &nbsp;&nbsp;Amortization | 22307 | - | 22307 |
| &nbsp;&nbsp;**December 31, 2024** | **116723** | **350000** | **466723** |
| &nbsp;&nbsp;**Net book value** |  |  |  |
| &nbsp;&nbsp;**December 31, 2024** | **329389** | - | **329389** |

---

On August 3, 2016, the Company entered into an intellectual assignment agreement ("IP agreement") with Société de commercialisation des produits de la recherche appliquée SOCPRA Sciences et Génie S.E.C. ("SOCPRA") and its investors. Until the expiry of the last patent rights, which is expected in May 2035, the Company will pay SOCPRA a royalty of 5% calculated on the net sales price of products sold by the Company.

The Company may have an option to buy back the royalties in the future at terms and conditions to be agreed upon by both parties.

On February 4, 2023, the Company entered into a commercial and technical agreement with a third party. As part of the agreement, the third party will award a contract to the Company for the development of the Sentry-Q technology. Moreover, the Company will receive royalties on all sales completed by the third party in which the Company's technology will be used.

Rights on royalties are not amortized as they have an indefinite life and are subject to an annual impairment test.

**QUANTUM eMOTION CORP.**

The Company performed its annual impairment test for its rights on royalties' intangible assets through the assessment of the recoverable amount of the asset.

The recoverable amount of the asset was determined based on the higher of its value-in-use and fair value less costs of disposal. The value-in-use, which was determined to be of an approximately equal amount with the fair value less costs of disposal, was determined using discounted cash flow model, taking into consideration management's best estimates of future royalty revenues and discount rates.

The Company determined that the recoverable amount of the rights on royalties' intangible asset using a discount rate of 50% was approximately nil and therefore recognized an impairment charge of $350,000. The recoverable amount reflects the Company's inability to demonstrate, in the foreseeable future, that the asset will generate future royalty revenues, primarily due to the third party's delays in securing contracts.

1.7 <u>SELECTED FINANCIAL INFORMATION AND OPERATING RESULTS</u> 

---

| | | | |
|:---|:---|:---|:---|
| **Year ended December 31** | **Year ended December 31** | **Year ended December 31** | **Year ended December 31** |
|  | **2024** | 2023 | Variance |
|  | **$** | $| $|
| &nbsp;&nbsp;**Expenses** |  |  |  |
| &nbsp;&nbsp;Research and development | **709379** | 577108 | 152271 |
| &nbsp;&nbsp;General and administrative | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1644357** | 1142557 | 501800 |
| &nbsp;&nbsp;Marketing | **183341** | 229008 | (45667) |
| &nbsp;&nbsp;Share-based payments | **399843** | 145533 | 254310 |
| &nbsp;&nbsp;Impairment of intangible assets | **-** | 350000 | (350000) |
| &nbsp;&nbsp;**Other items** |  |  |  |
| &nbsp;&nbsp;Amortization | **22307** | 22307 | - |
| &nbsp;&nbsp;Net financial expense (income) | **9511** | (59738) | 69249 |
| &nbsp;&nbsp;**Net loss and comprehensive loss for the year** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2968738** | 2386775 | 581963 |
| &nbsp;&nbsp;**Basic and diluted loss per share** | **0.020** | 0.018 | 0.02 |
| &nbsp;&nbsp;**Weighted average number of common shares outstanding** | &nbsp;&nbsp;&nbsp;**148428317** | 135502838 | 12925479 |

---

The net loss and comprehensive loss for the year ended December 31, 2024, increased to $2,968,738 from a net loss and comprehensive loss of $2,386,775 in 2023. The increase in R&D of $132,271 relates primarily to higher research contracts with two third-party suppliers. The increase in G&A of $501,800 relates primarily to higher consulting fees; higher compensation costs; higher IT related costs; higher professional fees and higher investor relations expenses. The decrease in marketing expenses of $45,667 relates primarily to lower website costs. The increase in share-based, non-cash costs of $254,310 relates to the issuance of additional stock options. These were partially offset by the impairment charges of $350,000 which were incurred in 2023.

**QUANTUM eMOTION CORP.**

1.8 <u>SUMMARY OF QUARTERLY RESULTS</u> 

The following table sets forth selected quarterly financial information for each of the twelve most recently completed quarters.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Three-month period ended** | **Net loss and comprehensive loss <br> for the period** | **Basic and diluted loss per share** |
|  | $| $|
| &nbsp;&nbsp;**December 31, 2024** | **(1151251)** | **(0.008)** |
| &nbsp;&nbsp;**September 30, 2024** | **(597403)** | **(0.004)** |
| &nbsp;&nbsp;**June 30, 2024** | **(727891)** | **(0.005)** |
| &nbsp;&nbsp;**March 31, 2024** | **(492193)** | **(0.004)** |
| &nbsp;&nbsp;December 31, 2023 | (792952) | (0.006) |
| &nbsp;&nbsp;September 30, 2023 | (556376) | (0.004) |
| &nbsp;&nbsp;June 30, 2023 | (532956) | (0.004) |
| &nbsp;&nbsp;March 31, 2023 | (504492) | (0.004) |
| &nbsp;&nbsp;December 31, 2022 | (1053975) | (0.008) |
| &nbsp;&nbsp;September 30, 2022 | (517750) | (0.004) |
| &nbsp;&nbsp;June 30, 2022 | (541048) | (0.004) |
| &nbsp;&nbsp;March 31, 2022 | (691801) | (0.005) |
| &nbsp;&nbsp;December 31, 2021 | (270993) | (0.002) |

---

1.9 <u>LIQUIDITY</u> 

As at December 31, 2024, the Company had net working capital (current assets in excess of current liabilities) of $1,054,806 compared to a net working capital of $1,107,242 as at December 31, 2023.

1.10 <u>CASH FLOWS</u> 

For the year ended December 31, 2024:

The Company's operating activities used $2,112,508 for the year ended December 31, 2024, compared to $2,081,622 in 2023. The increase of $30,886 in cash flow used is mainly related to changes in non-cash working capital items.

The Company's investing activities provided $668,488 for the year ended December 31, 2024, compared to $196,803 used in 2023. The increase in cash flow provided is related to a net increase in sales of investments of $756,364 and a decrease in investments of $241,073 and a decrease in the additions to intangible assets of $350,000.

The Company's financing activities provided $2,487,800 for the year ended December 31, compared to nil in 2023.

On March 20, 2024, the Company completed a non-brokered private placement, issuing a total of 15,000,000 units at a price of $0.05 per unit for gross proceeds of $750,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.15 for a period of 12 months following the closing of the private placement. The securities issued in the private placement are subject to a four-month and one day hold period expiring on July 22, 2024.

Unit issuance costs of $1,000 were recorded and paid in the first quarter of 2024.

On November 15, 2024, the Company completed a non-brokered private placement, issuing a total of 7,500,000 units at a price of $0.10 per unit for gross proceeds of $750,000. Each unit is comprised of one common share and one warrant. Each warrant entitles its holder to acquire one common share of the

**QUANTUM eMOTION CORP.**

Company at a price of $0.20 for a period of 24 months following the closing of the private placement. The securities issued in the private placement are subject to a four-month and one day hold period expiring on March 16, 2025.

Unit issuance costs of $100 were recorded and paid in the fourth quarter of 2024.

During the year ended December 31, 2024, 6,400,000 common shares were issued, and 50,000 units are to be issued by the Company as of December 31, 2024, for a total amount of $967,500 following the exercise of 6,450,000 warrants at an exercise price of $0.15.

**Subsequent Financing**

On February 25, 2025, the Company completed a brokered listed issuer financing exemption (LIFE) financing for total gross proceeds of $10,000,000 at a price of $0.75 per unit. Each unit consists of 1 (one) common share in the capital of the company (a Share) and one common share purchase warrant (a Warrant). Each Warrant entitles its holder to acquire one additional common share (a 'Warrant Share) of the Company at a price of C$1.10 for a period of 3 years from the date of issuance.

Subject to compliance with applicable regulatory requirements and in accordance with NI 45-106, the securities issues pursuant to the LIFE Exemption are expected to be immediately freely tradeable and will not be subject to a hold period under applicable Canadian securities laws.

1.11 <u>STOCK OPTIONS</u> 

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** |
| | **Number<br> of options** | Number of<br> options | Weighted<br> average <br> exercise price |
|  | | $— | $|
| Balance outstanding, beginning of year | **9139737** | **10930000** | 0.13 |
| Granted | **1850000** | **1959737** | 0.07 |
| Exercised | **(250000)** | - | - |
| Expired | **(250000)** | **(3450000** | 0.11 |
| Forfeited | **(37500)** | **(300000)** | 0.08 |
| Balance outstanding, end of year | **10452237** | **9139737** | 0.13 |
| Balance exercisable, end of year | **8291612** | **6271612** | 0.14 |

---

The weighted average remaining contractual life for options outstanding as at December 31, 2024, is 4.64 (December 31, 2023 – 2.22) years.

Share-based compensation recognized under this plan amounted to $399,843 for the year ended December 31, 2024 (2023 - $145,534) related to officers, employees and consultants mainly related to general and administrative expenses.

1.12 <u>OFF-BALANCE SHEET ARRANGEMENTS</u> 

The Company does not have any off-balance sheet arrangements.

**QUANTUM eMOTION CORP.**

1.13 <u>FINANCIAL INSTRUMENTS</u> 

All financial instruments are recognized when the Company becomes a party to the contractual provisions of the financial instrument and are initially measured at fair value plus transaction costs, except for financial assets and financial liabilities carried at fair value through profit or loss, which are measured initially at fair value. Financial assets are derecognized when the contractual right to the cash flows from the financial assets expires, or when the financial asset and all substantial risks and rewards are transferred. Refer to Note 11 of the annual consolidated financial statements for the year ended December 31, 2024, for additional information on the Company's financial instruments.

1.14 <u>FINANCIAL RISK MANAGEMENT</u> 

In the normal course of operations, the Company is exposed to various financial risks. Refer to Note 11 of the annual consolidated financial statements for the year ended December 31, 2024, for additional information on the Company's main financial risks.

**1.15** **MANAGEMENT OF CAPITAL** 

The capital structure of the Company consists of equity attributable to common shareholders, comprising issued share capital, reserves and deficit. The Company's objectives when managing capital are to: (i) preserve capital; (ii) obtain the best available net return; and (iii) maintain liquidity.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares. There were no changes to the Company's approach to capital management during the year ended December 31, 2024.

The Company is not subject to externally imposed capital requirements.

1.16 <u>RELATED PARTY TRANSACTIONS</u> 

The Company's related parties include companies owned by key management. The Company paid Management fees to key management through their management companies as follows:

&nbsp;&nbsp;&nbsp;&nbsp;· Management fees of $72,000 to LVR Capital, a company owned
by the Chief Financial Officer. As at December 31, 2024, $6,000 (2023 – $5,000) was due to that company.

&nbsp;&nbsp;&nbsp;&nbsp;· Management fees of $431,231 to Aurakle Research, a company
owned by the Chief Executive Officer. As at December 31, 2024, $161,306 (2023 – $25,000) was due to that company.

&nbsp;&nbsp;&nbsp;&nbsp;· Management fees of $30,000 and other fees of $154,936 to
Baystream Corporation, a company owned by a Director. As at December 31, 2024, $17,680 (2023 – $5,374) was due to that company.

&nbsp;&nbsp;&nbsp;&nbsp;· Management fees of $30,000 to Red River Solutions, a company
owned by a Director. As at December 31, 2024, $7,875 (2023 – nil) was due to that company.

&nbsp;&nbsp;&nbsp;&nbsp;· Management fees of $22,500 to SLT Solutions, a company owned
by a Director. As at December 31, 2024, $7,500 (2023 – $7,500) was due to that company.

&nbsp;&nbsp;&nbsp;&nbsp;· Management fees of $14,167 to a Director. As at December
31, 2024, nil (2023 – $7,500) was due to that company.

&nbsp;&nbsp;&nbsp;&nbsp;· Management fees of $24,671 to CyberDef LLC, a company owned
by a Director. As at December 31, 2024, $10,790 (2023 – nil) was due to that company.

&nbsp;&nbsp;&nbsp;&nbsp;· Research and development costs of $434,609 to Fileglobal,
a company owned by a Director. As at December 31, 2024, $25,775 (2023 – $27,844) was due to that company.

**QUANTUM eMOTION CORP.**

1.16 <u>RELATED PARTY TRANSACTIONS</u> (cont'd)

**Transactions with key management**

The key management of the Company are the members of senior management and the Board. The remuneration and other expenses for the year ended December 31, 2024, for key management (including the amounts above) are as follows:

---

| | | |
|:---|:---|:---|
| | **2024** | **2023** |
| | **$** | $|
| **Research and development** | **434609** | 347036 |
| **Share-based payments** | **367855** | 72311 |
| **General and administrative:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Management fees | **624569** | 478719 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other fees | **154936** | 39305 |
|  | **1581969** | 937371 |

---

1.17 <u>CRITICAL ACCOUNTING ESTIMATE AND JUDGEMENTS</u> 

The critical accounting estimates and judgements are described in Note 2 of the annual consolidated financial statements for the year ended December 31, 2024.

1.18 <u>CHANGES IN MATERIAL ACCOUNTING POLICIES</u> 

The accounting policies used are those described in the Company's annual consolidated financial statements in Note 3 for the year ended December 31, 2024, and are the same policies as those applied in 2023 annual consolidated financial statements unless otherwise stated.

1.19 <u>OTHER</u> 

Disclosure of Outstanding Securities as at December 31, 2024.

Outstanding common shares: 164,652,838

Outstanding options: 10,452,237

Outstanding share purchase warrants: 16,050,000

Of the 16,050,000 share purchase warrants:

---

| |
|:---|
| 9,850,000 have been exercised in the first quarter of 2025 for proceeds of $1,542,500; and |
| 6,200,000 can be exercised at $0.20 per warrant until November 15, 2025, with potential additional proceeds of up to $1,240,000 |

---

(s) Francis Bellido, Chief Executive Officer

(s) Marc Rousseau, Chief Financial Officer <br>Montreal (Quebec), April 30, 2025

## Exhibit 99.3

**Exhibit 99.3**

Consolidated financial statements of

**QUANTUM eMOTION CORP.**

For the years ended December 31, 2024 and 2023

(in Canadian dollars)

**QUANTUM eMOTION CORP.**

**Table of Contents**

---

| | |
|:---|:---|
|  | **Page** |
| **Independent Auditor's Report** | **1 - 3** |
| **Consolidated financial statements** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Financial Position | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Loss and Comprehensive Loss | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Changes in Shareholders' Equity | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Cash Flows | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes to the consolidated financial statements | 8 - 23 |

---

![](ex99-3_001.jpg)

**Independent Auditor's Report**

To the Shareholders of

**Quantum eMotion Corp.**

*Opinion*

 

We have audited the consolidated financial statements of Quantum eMotion Corp. (the Company), which comprise the consolidated statement of financial position as at December 31, 2024, and the consolidated statement of loss and comprehensive loss, consolidated statement of changes in shareholders' equity, and consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of material accounting policies (hereinafter referred to as the "financial statements").

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 its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards ("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 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 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.

 

*Other matter*

 

The financial statements for the year ended December 31, 2023 were audited by another auditor who expressed an unmodified opinion on those statements on May 1, 2024.

*Key Audit Matters*

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current year. These matters were addressed in the context of our audit of the 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 are no key audit matters to communicate in our auditor's report.

---

| | | |
|:---|:---|:---|
| MONTRÉAL | TORONTO | CHICAGO |
| <u> </u> | <u> </u> | <u> </u> |
| 1981 McGill College | 181 Bay St., #3510 | 200 South Wacker Dr., #3100 |
| Montréal QC H3A 0G6 | Bay Wellington Tower | Chicago, IL 60606 |
| 514.934.3400 | Toronto ON M5J 2T3 | 312.828.0800 |
|  | 416.488.2345 |  |

---

RICHTER.CA

RICHTER BUREAU FAMILIAL \| D'AFFAIRES <br> RICHTER BUSINESS \| FAMILY OFFICE

*Information Other than the Financial Statements and Auditor's Report Thereon*

 

Management is responsible for the other information. The other information comprises the information, other than the financial statements and our auditor's report thereon, in Management's Discussion and Analysis filed with the relevant Canadian Securities Commissions.

Our opinion on the 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 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 financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We obtained Management's Discussion and Analysis of Financial Condition and Operations 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.

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

 

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

In preparing the 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 Financial Statements*

 

Our objectives are to obtain reasonable assurance about whether the 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 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.

RICHTER BUREAU FAMILIAL \| D'AFFAIRES <br> RICHTER BUSINESS \| FAMILY OFFICE

We also:

&nbsp;&nbsp;&nbsp;&nbsp;· Identify and assess the risks of material misstatement of the 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.

&nbsp;&nbsp;&nbsp;&nbsp;· 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.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.

&nbsp;&nbsp;&nbsp;&nbsp;· 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 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.

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

&nbsp;&nbsp;&nbsp;&nbsp;· Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the 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.

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

![](ex99-3_002.jpg)

Montréal, Québec

April 30, 2025

<sup>1</sup>CPA auditor, public accountancy permit No. A125745

**QUANTUM eMOTION CORP.**

**Consolidated Statements of Financial Position**

**As at December 31, 2024 and 2023**

**(in Canadian dollars)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Notes** | **2024** | 2023 |
|  |  | **$** | $|
| &nbsp;&nbsp;**Assets** |  |  |  |
| &nbsp;&nbsp;Current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash |  | **1359406** | 315626 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable |  | **-** | 53850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes receivable |  | **46677** | 105566 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other |  | **34642** | 53153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments | 4 | **87335** | 765858 |
|  |  | **1528060** | 1294053 |
| &nbsp;&nbsp;Non-current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets | 5 | **329389** | 351696 |
| &nbsp;&nbsp;**Total assets** | &nbsp;&nbsp;**Total assets** | **1857449** | 1645749 |
| &nbsp;&nbsp;**Liabilities and Shareholders' Equity** |  |  |  |
| &nbsp;&nbsp;Current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities |  | **473254** | 186811 |
| &nbsp;&nbsp;**Total current liabilities** |  | **473254** | 186811 |
| &nbsp;&nbsp;Non-current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan payable | 7 | **46352** | 40000 |
| &nbsp;&nbsp;**Total liabilities** | &nbsp;&nbsp;**Total liabilities** | **519606** | 226811 |
| &nbsp;&nbsp;**Shareholders' Equity** |  |  |  |
| &nbsp;&nbsp;Share capital | 8 | **15462594** | 13413478 |
| &nbsp;&nbsp;Units to be issued | 8 | **8688** |  |
| &nbsp;&nbsp;Warrants | 8 | **454877** |  |
| &nbsp;&nbsp;Contributed surplus | 8 | **1540107** | 1165145 |
| &nbsp;&nbsp;Deficit |  | **(16128423)** | (13159685) |
|  |  | **1337843** | 1418938 |
| &nbsp;&nbsp;**Total liabilities and Shareholders' equity** | &nbsp;&nbsp;**Total liabilities and Shareholders' equity** | **1857449** | 1645749 |

---

See accompanying notes to consolidated financial statements.

Approved on behalf of the Board:

---

| | |
|:---|:---|
| *"Francis Bellido"* |  |
| Francis Bellido | CEO |
| *"Marc Rousseau"* |  |
| Marc Rousseau | CFO |

---

**QUANTUM eMOTION CORP.**

**Consolidated Statements of Loss and Comprehensive Loss**

**As at December 31, 2024 and 2023**

**(in Canadian dollars)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Notes** | **2024** | 2023 |
|  |  | **$** | $|
| &nbsp;&nbsp;**Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 9 | **709379** | 557108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 9 | **1644357** | 1142557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing |  | **183341** | 229008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based payments | 89 | **399843** | 145533 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of intangible assets | 5 | **-** | 350000 |
|  |  | **2936920** | 2424206 |
| &nbsp;&nbsp;**Other items** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 4 | **22307** | 22307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net financial (income) expense | 10 | **9511** | (59738) |
|  |  | **31818** | (37431) |
| &nbsp;&nbsp;**Net loss and comprehensive loss** |  | **2968738** | 2386775 |
| &nbsp;&nbsp;**Basic and diluted loss per share** |  | **0.020** | 0.018 |
| &nbsp;&nbsp;**Weighted average number of common shares outstanding** |  | **148428317** | 135502838 |

---

See accompanying notes to consolidated financial statements.

**QUANTUM eMOTION CORP.**

**Consolidated Statements of Changes in Shareholders' Equity**

**As at December 31, 2024 and 2023**

**(in Canadian dollars)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Notes** | **Number of<br> shares** | &nbsp;&nbsp;&nbsp;**Number of<br> shares to be<br> issued** | **Units to be<br> issued** | **Warrants** | **Contributed<br> surplus** | **Deficit** | **Total <br> equity** |
|  |  |  |  | $— | **$** | **$** | **$** | **$** |
| &nbsp;&nbsp;**Balance as of December 31, 2023** |  | **135502838** | **-** |  | **-** | **1165145** | **(13159685)** | **1418938** |
| &nbsp;&nbsp;Units issuance | 8 | **22500000** | **-** | **-** | **608107** | **-** | **-** | **1500000** |
| &nbsp;&nbsp;Units issuance costs | 8 | **-** | **-** | **-** | **-** | **-** | **-** | **(1200)** |
| &nbsp;&nbsp;Share-based payments | 8 | **-** | **-** | **-** | **-** | **399843** | **-** | **399843** |
| &nbsp;&nbsp;Exercise of options | 8 | **250000** | **-** | **-** | **-** | **(24881)** | **-** | **21500** |
| &nbsp;&nbsp;Exercise of warrants | 8 | **6400000** | **50000** | **8688** | **(153230)** | **-** | **-** | **967500** |
| &nbsp;&nbsp;Net loss |  | **-** | **-** | **-** | **-** | **-** | **(2968738)** | **(2968738)** |
| &nbsp;&nbsp;**Balance as of December 31, 2024** |  | **164652838** | **50000** | **8688** | **454877** | **1540107** | **(16128423)** | **1337843** |
| &nbsp;&nbsp;**Balance as of December 31, 2022** |  | 135502838 |  |  |  | 1019612 | (10772910) | 3660180 |
| &nbsp;&nbsp;Share-based payments | 8 |  |  |  |  | 145533 |  | 145533 |
| &nbsp;&nbsp;Net loss |  | - | - | - | - | - | (2386775) | (2386775) |
| &nbsp;&nbsp;**Balance as of December 31, 2023** |  | 135502838 | - | - | - | 1165145 | (13159685) | 1418938 |

---

See accompanying notes to consolidated financial statements.

**QUANTUM eMOTION CORP.**

**Consolidated Statements of Cash Flows**

**As at December 31, 2024 and 2023**

**(in Canadian dollars)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Notes** | **2024** | 2023 |
|  |  | **$** | $|
| &nbsp;&nbsp;**Operating Activities** |  |  |  |
| &nbsp;&nbsp;Net loss |  | **(2968738)** | (2386775) |
| &nbsp;&nbsp;**Adjustments to net loss for non-cash items** |  |  |  |
| &nbsp;&nbsp;Share-based payments | 8 | **399843** | 145533 |
| &nbsp;&nbsp;Amortization | 5 | **22307** | 22307 |
| &nbsp;&nbsp;Accretion expense | 7 | **6352** |  |
| &nbsp;&nbsp;Impairment of intangible assets | 5 | **-** | 350000 |
| &nbsp;&nbsp;Change in fair value of investments | 410 | **10035** | (3914) |
| &nbsp;&nbsp;**Net changes in non-cash working capital items** |  |  |  |
| &nbsp;&nbsp;Taxes receivable |  | **58889** | 13325 |
| &nbsp;&nbsp;Accounts receivable |  | **53850** | (53850) |
| &nbsp;&nbsp;Prepaid expenses and other |  | **18511** | (17305) |
| &nbsp;&nbsp;Accounts payable and accrued liabilities |  | **286443** | (150943) |
|  |  | **(2112508)** | (2081622) |
| &nbsp;&nbsp;**Investing Activities** |  |  |  |
| &nbsp;&nbsp;Additions to intangible assets | 5 | **-** | (350000) |
| &nbsp;&nbsp;Acquisition of investments | 4 | **(577491)** | (336418) |
| &nbsp;&nbsp;Proceeds from sale of investments | 4 | **1245979** | 489615 |
|  |  | **668488** | (196803) |
| &nbsp;&nbsp;**Financing Activities** |  |  |  |
| &nbsp;&nbsp;Proceeds from issuance of units | 8 | **891893** |  |
| &nbsp;&nbsp;Proceeds from issuance of warrants | 8 | **608107** |  |
| &nbsp;&nbsp;Share issuance costs | 8 | **(1200)** |  |
| &nbsp;&nbsp;Exercise of options | 8 | **21500** |  |
| &nbsp;&nbsp;Exercise of warrants | 8 | **967500** | - |
|  |  | **2487800** | - |
| &nbsp;&nbsp;Increase (decrease) in cash |  | **1043780** | (2278425) |
| &nbsp;&nbsp;Cash, beginning of period |  | **315626** | 2594051 |
| &nbsp;&nbsp;**Cash, end of period** |  | **1359406** | 315626 |

---

See accompanying notes to consolidated financial statements.

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Nature of operations

Quantum eMotion Corp. (the "Company") was incorporated under the *Business Corporations Act* of Ontario on July 19, 2007.

The head office, principal address and records office of the Company are located at 2300 Alfred Nobel, bureau 209, Montreal, Qc, H4S 2A4. The Company is a developer of a new generation of quantum-based cryptographic solutions pursuant to the development of intellectual property and subsequent commercialization of cybersecurity solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Basis of preparation

These Consolidated financial statements have been prepared in accordance with IFRS Accounting Standards ("IFRS") on a going-concern basis, which contemplates that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the next year.

 

*Statement of compliance*

These financial statements have been prepared in accordance with IFRS, as issued by the International Accounting Standards Board ("IASB").

The Board of Directors approved and authorized these financial statements on April 30, 2025.

 

*Basis of measurement*

These financial statements have been prepared on a historical cost basis, except for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Investments which are measured at fair value; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stock-based compensation, which is measured at fair value at grant date pursuant to IFRS 2, Share-Based
Payment.

 

*Use of judgments and estimates*

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and judgments 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. Accounting estimates will, by definition, seldom equal the actual results. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Key sources of estimation-uncertainty include impairment of intangible assets which require significant assumptions as discussed in note 5, accounting for share-based payments and valuation of warrants, which require determining the most appropriate inputs to the valuation model as discussed in note 8 (b) and (c).

While management believes that these estimates and judgments are reasonable, actual results could differ from those estimates and could impact future results of operations and cash flows.

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Summary of material accounting policies

 

*Presentation of the consolidated financial statements*

The consolidated financial statements include the accounts of the Company and its subsidiary as at December 31, 2024.

---

| | | |
|:---|:---|:---|
| **<u>Name</u>** | &nbsp;&nbsp;&nbsp;**<u>Description</u>** | &nbsp;&nbsp;**<u>Participation</u>** |
| Quantum eHealth Inc. | &nbsp;&nbsp;&nbsp;Development and commercialization of healthcare applications | &nbsp;&nbsp;100% |

---

 

*Principal accounting policies*

The Company's principal accounting policies are outlined below and have been applied consistently to all periods presented.

&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) Foreign currency*

The Company's functional currency is the Canadian dollar. Transactions in foreign currencies are translated into the functional currency of the Company at exchange rates prevailing at the transaction dates (spot exchange rates). Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate as at December 31.

Non-monetary items that are measured at historical cost are translated using the exchange rate at the date of the transaction. Translation gains and losses are recognized in the statement of net loss.

&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) Share-based payments*

The Company grants stock options to employees and non-employees to exercise common shares of the Company. The Board of Directors grants such options for periods of up to ten years, with vesting periods determined at its sole discretion and at prices equal to or greater than the closing market price on the day preceding the date the options were granted.

The fair value of the options granted to employees is measured at grant date, using the Black-Scholes option pricing model, and is recognized over the vesting period. The fair value of both employee and non-employee options is recognized as an expense with a corresponding increase in contributed surplus. The amount recognized as expense is adjusted to reflect the number of share options expected to vest. When options are exercised, the related amount in contributed surplus is transferred to share capital.

The fair value of options granted to non-employees is recognized and measured at the date the goods and services are received based on the fair value of such goods and services. If it is determined that such goods and services received cannot be reliably measured, the share-based payment is measured at the fair value of the equity instruments using the Black-Scholes option pricing model.

&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) Intangible assets*

Intangible assets acquired separately are measured on initial recognition at fair value. Following initial recognition, intangible assets with finite useful lives are carried at cost less any accumulated amortization and accumulated impairment losses, if any. The Company amortizes its intangible assets on a straight-line basis over the life of the patent which is 20 years.

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

At each reporting date, the Company assesses whether there is an indication that the intangible assets are impaired. Intangible assets with indefinite useful lives or those not yet available for use are reviewed for impairment at least annually or more frequently if circumstances such as significant declines in expected sales, earnings or cash flows indicate that it is more likely than not that the asset might be impaired.

An impairment is recognized when the carrying amount of an asset, or its cash generating unit ("CGU"), exceeds its recoverable amount. The recoverable amount is the greater of the asset's/CGU's fair value less costs of disposal and value in use. The carrying amount of the intangible assets are reduced by this amount. Impairment losses are reversed in subsequent periods only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, had no impairment loss been recognized. Intangible assets are derecognized at disposal or when no future economic benefits are expected from their use or disposal.

&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) Research and development expenditures*

 

Development activities involve a plan or design for the production of new or substantially improved products and processes. Development costs are capitalized only if the expenditure 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. Expenditures that are capitalized may include the cost of materials and services, direct labour and overhead costs that are directly attributable to preparing the asset for its intended use. Other development expenditures are recognized in the statement of loss as incurred.

Expenditures on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, are recognized in profit or loss when incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(e) Loss per share*

Basic loss per share is computed by dividing the net loss available to common shareholders by the weighted average number of shares outstanding during the reporting period. Diluted loss per share is computed similar to basic loss per share using the treasury stock method whereby the weighted average number of shares outstanding is increased to include additional shares for the assumed exercise of stock options and warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options and warrants were exercised and that the proceeds from such exercises were used to acquire common stock at the average market price during the reporting periods. The diluted loss per share is equal to the basic loss per share where the effect of stock options and warrants is antidilutive as it would decrease loss per share.

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(f) Financial instruments*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Classification

The following table shows the classification and measurement bases of the Company's financial instruments under IFRS 9:

---

| | |
|:---|:---|
| &nbsp;&nbsp;Financial Assets/Liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Classification and Measurement |
| &nbsp;&nbsp;Cash | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assets at amortized cost |
| &nbsp;&nbsp;Accounts receivable | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial assets at amortized cost |
| &nbsp;&nbsp;Investments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value through profit and loss ("FVTPL") |
| &nbsp;&nbsp;Accounts payable and accrued liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities at amortized cost |
| &nbsp;&nbsp;Loan payable | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities at amortized cost |

---

The Company determines the classification of financial assets at initial recognition. The classification of its instruments is driven by the Company's business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading (including all equity derivative instruments) are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them at fair value through other comprehensive income ("FVTOCI"). Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has opted to measure them at FVTPL.

ii) Measurement

*Financial assets and liabilities at FVTPL*

Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the statements of loss and comprehensive loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the statements of loss and comprehensive loss in the period in which they arise. Fair value of the investments is determined based on prices on the stock exchange on the relevant valuation date. Where the Company has opted to recognize a financial liability at FVTPL, any changes associated with the Company's own credit risk will be recognized in other comprehensive loss.

iii) Impairment of financial assets at amortized cost

The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to twelve months' expected credit losses. The Company recognizes in the statements of loss and comprehensive loss, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss-allowance at the reporting date to the amount that is required to be recognized.

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

iv) Fair value hierarchy

IFRS 7 Financial Instruments: Disclosures require classification of fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The levels of the fair value hierarchy are defined as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs for assets or liabilities that are not based on observable market data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(g) Equity*

 

Proceeds from unit placements are allocated between share capital and warrants issued. The fair value of the warrants is determined using the Black-Scholes pricing model.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(h) Changes in accounting policies*

There are no changes in accounting policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)* *Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Company* 

 

In April 2024, the IASB issued IFRS 18, which replaces IAS 1 Presentation of Financial Statements, and consequential amendments to several other standards. IFRS 18 introduces new requirements for presentation within the statement of profit or loss, including specified totals and subtotals. Entities are required to classify all income and expenses within the statement of profit or loss into one of five categories: operating, investing, financing, income taxes and discontinued operations, with prescribed subtotals for each new category. It also requires disclosure of management-defined performance measures which will now form part of the audited financial statements.

IFRS 18, and the amendments to the other standards, is effective for reporting periods beginning on or after January 1, 2027, but earlier application is permitted and must be disclosed. IFRS 18 will apply retrospectively. The Company is currently working to identify any impact the amendments will have on the consolidated financial statements and notes to the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Investments

---

| | | |
|:---|:---|:---|
|  | **2024** | 2023 |
|  | **$** | $|
| &nbsp;&nbsp;Balance, beginning of period | **765858** | 915141 |
| &nbsp;&nbsp;Additions | **577491** | 336418 |
| &nbsp;&nbsp;Dispositions | **(1245979)** | (489615) |
| &nbsp;&nbsp;Change in fair value | **(10035)** | 3914 |
| &nbsp;&nbsp;Balance, end of period | **87335** | 765858 |

---

As at December 31, 2024, the Company holds 100% in Canadian equity listed companies and fixed-income Canadian assets.

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

As at December 31, 2023, the Company held 65% in Canadian equity listed companies and fixed-income Canadian assets, and 35% in foreign equity listed companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Intangible assets

---

| | | | |
|:---|:---|:---|:---|
| | **Licenses <sup>(1)</sup>** | **Rights on<br> royalties <sup>(2)</sup>** | **Total** |
|  | **$** | **$** | **$** |
| **<u>Cost</u>** |  |  |  |
| December 31, 2023 | 446112 | 350000 | 796112 |
| Additions | - | **-** | **-** |
| **December 31, 2024** | **446112** | **350000** | **796112** |
| **<u>Accumulated amortization and impairment</u>** |  |  |  |
| December 31, 2023 | 94416 | 350000 | 444416 |
| Amortization | **22307** | **-** | **22307** |
| **December 31, 2024** | **116723** | **350000** | **466723** |
| **<u>Net book value</u>** |  |  |  |
| December 31, 2023 | 351696 |  | 351696 |
| **December 31, 2024** | **329389** | **-** | **329389** |

---

<sup>(1)</sup> On August 3, 2016, the Company entered into an intellectual assignment agreement ("IP agreement") with Société de commercialisation des produits de la recherche appliquée SOCPRA Sciences et Génie S.E.C. ("SOCPRA") and its investors. Until the expiry of the last patent rights, which is expected in May 2035, the Company will pay SOCPRA a royalty of 5% calculated on the net sales price of products sold by the Company. The Company may have an option to buy back the royalties in the future at terms and conditions to be agreed upon by both parties.

<sup>(2)</sup> On February 4, 2023, the Company entered into a commercial and technical agreement with a third party. As part of the agreement, the third party will award a contract to the Company for the development of Sentry-Q technology. Moreover, the Company will receive royalties on all sales completed by the third party in which the Company's technology will be used.

Rights on royalties are not amortized as they have an indefinite life and are subject to an annual impairment test.

On December 31, 2023, the Company performed its annual impairment test for its rights on royalties intangible asset through the assessment of the recoverable amount of the asset.

The recoverable amount of the asset was determined based on the higher of its value-in-use and fair value less costs of disposal. The value-in-use, which was determined to be of an approximately equal amount with the fair value less costs of disposal, was determined using discounted cash flow model, taking into consideration management's best estimates of future royalty revenues and discount rates.

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

The Company determined that the recoverable amount of the rights on royalties' intangible asset using a discount rate of 50% was approximately nil and therefore recognized an impairment charge of $350,000. The recoverable amount reflects the Company's inability to demonstrate, in the foreseeable future, that the asset will generate future royalty revenues, primarily due to the third party's delays in securing contracts. The uncertainties surrounding the deployment and initial sales of its product, in the context of a market which is not readily responsive and of financial difficulties, increase the risks of the third-party generating future sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Income taxes

The income tax expense differs from the amounts computed by applying the combined federal and provincial statutory income tax rate to the loss before income taxes due to the following:

---

| | | |
|:---|:---|:---|
|  | **2024** | 2023 |
|  | **$** | $|
| Loss before income taxes | &nbsp;&nbsp;**(2968738)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2386775) |
| Statutory tax rate | **26.5%** | 26.5% |
| Expected income tax recovery | &nbsp;&nbsp;&nbsp;&nbsp;**(786716)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(632496) |
| Share-based payments | **105958** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38566 |
| Items not deductible (taxable) for income tax purposes | **10891** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;94736 |
| Non-taxable change in fair value of investments | **(2474)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5288) |
| Unrecognized benefit of deferred tax assets | **672341** | 504482 |
| Income tax recovery | **-** | - |

---

The Company's deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consist of the following amounts:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | 2023 | 2023 |
|  | **Federal** | **Quebec** | Federal | Quebec |
|  | **$** | **$** | $| $|
| Intangible assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1035303** | &nbsp;&nbsp;**1035303** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;655270 | 655270 |
| Share issue costs | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15222** | **15222** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28684 | 28864 |
| Non-capital losses carried forward | **12944882** | **13014588** | 9838135 | 9982345 |
| Cumulative Canadian development expense | **366991** | **256894** | 524273 | 366991 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14362398** | **14322007** | &nbsp;&nbsp;&nbsp;&nbsp;11046362 | 11033470 |

---

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

The Company's unrecognized non-capital tax losses have the following expiry dates:

---

| | | |
|:---|:---|:---|
|  | **Federal** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Quebec** |
|  | $| $|
| &nbsp;&nbsp;2029 | 426995 | 426995 |
| &nbsp;&nbsp;2030 | 104746 | 104746 |
| &nbsp;&nbsp;2031 | 478770 | 478770 |
| &nbsp;&nbsp;2032 | 239462 | 239462 |
| &nbsp;&nbsp;2033 | 116890 | 116890 |
| &nbsp;&nbsp;2034 | 81539 | 81539 |
| &nbsp;&nbsp;2035 | 83953 | 83953 |
| &nbsp;&nbsp;2036 | 172967 | 172967 |
| &nbsp;&nbsp;2037 | 950030 | 950026 |
| &nbsp;&nbsp;2038 | 677480 | 677480 |
| &nbsp;&nbsp;2039 | 638211 | 638211 |
| &nbsp;&nbsp;2040 | 669043 | 665594 |
| &nbsp;&nbsp;2041 | 1282492 | 1609748 |
| &nbsp;&nbsp;2042 | 1903915 | 1791728 |
| &nbsp;&nbsp;2043 | 2440570 | 2370071 |
| &nbsp;&nbsp;2044 | 2677819 | 2606408 |
|  | **12944882** | **13014588** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Loan payable

On February 12, 2021, and April 29, 2020, the Company received respectively a $20,000 and $40,000 loan from the Canada Emergency Business Account ("CEBA Loan"). The CEBA Loan beared 0% interest until January 18, 2024. As the balance was not paid by January 18, 2024, the remaining balance was converted to a 3-year term loan at 5% annual interest paid monthly, effective January 19, 2024. The full balance must be repaid by no later than December 31, 2026.

As at December 31, 2023, since the Company had no intention to repay the loan payable by January 18, 2024, the loan payable was remeasured to consider the new terms and conditions. On the date of modification, the fair value of the loan payable was estimated at $40,000 based on a 12.7% market discount rate. The difference between the carrying value of the existing loan and the new loan of $20,000 with the carrying value at that date was recorded in the statements of loss under Net financial (income) expense (note 10).

For the year ended December 31, 2024, accretion expense included in financing expense on the statement of loss and comprehensive loss was $6,352.

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Share capital

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *Authorized* 

The Company is authorized to issue an unlimited number of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• voting Class A preferred shares

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• voting Class B preferred shares

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• voting Class C preferred shares

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• voting Class D preferred shares

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• special shares (non-voting)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• common shares (voting)

without nominal or par value.

Class A preferred shares are ranked senior to Class B preferred shares, Class B preferred shares are ranked senior to Class C preferred shares, Class C preferred shares are ranked senior to Class D preferred shares, Class D preferred shares are ranked senior to special shares, and special shares are ranked senior to common shares in priority of receiving dividends declared by the Company.

Holders of special shares and common shares shall be entitled to receive pro-rata for the remaining property of the Company after distribution to the holders of Class A, Class B, Class C and Class D preferred shares, on a pro-rata basis.

Dividends for Class A, Class B, Class C and Class D preferred shares are preferential and non-cumulative and are declared in accordance with their respective priority. Dividend rate per share for Class B, Class C and Class D preferred shares is 7% per annum. Dividends are declared at the discretion of the Company's Board of Directors.

No Class A, Class B, Class C or Class D preferred shares and special shares were issued by the Company as at December 31, 2024 (2023 – nil).

As at December 31, 2024, no dividends were declared or unpaid (2023 – nil).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *Issued and outstanding* 

 

On March 20, 2024, the Company completed a non-brokered private placement, issuing a total of 15,000,000 units at a price of $0.05 per unit for gross proceeds of $750,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.15 for a period of 12 months following the closing of the private placement. The securities issued in the private placement are subject to a four-month and one day hold period expiring on July 22, 2024.

Unit issuance costs of $1,100 were recorded and paid in the first quarter of 2024.

On November 15, 2024, the Company completed a non-brokered private placement, issuing a total of 7,500,000 units at a price of $0.10 per unit for gross proceeds of $750,000. Each unit is comprised of one common share and one warrant. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.20 for a period of 24 months following the closing of the private placement. The securities issued in the private placement are subject to a four-month and one day hold period expiring on March 16, 2025.

Unit issuance costs of $100 were recorded and paid in the fourth quarter of 2024.

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

Common shares and warrants were valued based on their relative fair values. The fair value of the common shares was determined by the closing price on the date of the transaction. The fair value of the warrants was determined using the Black-Scholes pricing model and based on the following assumptions:

---

| | |
|:---|:---|
|  | **2024** |
| Share price | **$0.11** |
| Expected volatility | **125,79%** |
| Risk-free interest rate | **3.81%** |
| Expected average life | **1.33** |
| Exercise price | **$0.17** |

---

The underlying expected volatility was determined by reference to historical data of the Company. Black-Scholes pricing model requires the input of highly subjective assumptions including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate.

During the year ended December 31, 2024, 6,400,000 common shares were issued, and 50,000 units are to be issued by the Company as of December 31, 2024, for a total amount of $967,500 following the exercise of 6,450,000 warrants at an exercise price of $0.15.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(c)* *Stock options* 

 

The Company has adopted an incentive stock option plan in accordance with the policies of the TSX Venture Exchange (the "Exchange"), which provides for the Board of Directors of the Company to grant to directors, officers, employees and consultants of the Company non-transferrable stock options to purchase common shares, provided the number of shares reserved for issuance under the stock option plan shall not exceed 2%, for consultants and investor relations and 10% for insiders of the issued and outstanding common shares, exercisable for a period of up to ten years from the date of grant up to a maximum of 15,000,000 shares. The Board of Directors determines the price per common share and the number of common shares that may be allotted to directors, officers, employees and consultants of the Company and all other terms and conditions of the stock option, subject to the rules of the Exchange.

The option exercise price is set by the Board of Directors at the time the option is allocated and cannot be less than the discounted market price. The options are exercisable over a maximum period of ten years. In the absence of a vesting schedule, the options shall vest immediately. Amongst the outstanding options, none are subject to an escrow agreement.

All share-based payments will be settled in equity. The Company has no legal or constructive obligation to repurchase or settle the options.

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

The Company's share options are as follows for the reporting periods presented:

---

| | | | |
|:---|:---|:---|:---|
|  | **2024** | 2023 | 2023 |
|  | **Number<br> of options** | Number of<br> options | Weighted<br> average <br> exercise price |
|  |  | $— | $|
| Balance outstanding, beginning of period | **9139737** | **10930000** | 0.13 |
| Granted | **1850000** | **1959737** | 0.07 |
| Exercised | **(250000)** | **-** |  |
| Expired | **(250000)** | **(3450000)** | 0.11 |
| Forfeited | **(37500)** | **(300000)** | 0.08 |
| Balance outstanding, end of period | **10452237** | **9139737** | 0.13 |
| Balance exercisable, end of period | **8791612** | **6271612** | 0.14 |

---

The weighted average share price at date of exercise for options exercised during the year ended December 31, 2024 is 0.46 (2023 – nil).

Share-based compensation recognized under this plan amounted to $399,843 for the year ended December 31, 2024 (2023 - $145,533) related to officers, employees and consultants mainly related to general and administrative expenses.

The weighted average remaining contractual life for options outstanding as at December 31, 2024, is 4.64 (2023 – 2.22) years.

The weighted average fair value of the granted options was determined using the Black-Scholes option pricing model and based on the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | **2024** | 2023 |
| Average share price at date of grant | **$0.20** | $0.07 |
| Expected dividends | **-** |  |
| Expected volatility | **145.38%** | 140.26% |
| Risk-free interest rate | **3.25%** | 3.50% |
| Expected average life | **7.39** | 6.37 |
| Average exercise price at date of grant | **$0.20** | $0.08 |
| Average fair value at measurement date | **$0.18** | $0.06 |

---

The underlying expected volatility was determined by reference to historical data of the Company. No special features inherent to the options granted were incorporated into measurement of fair value.

Companies are required to utilize an estimated forfeiture rate when calculating the expense for the reporting period. Based on the best estimate, management applied the estimated forfeiture rate of 0% (2023 - 0%) in determining the share-based expense recorded in the statements of loss. Option pricing models require the input of highly subjective assumptions including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate.

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

Outstanding and exercisable options are as follows:

---

| | | |
|:---|:---|:---|
| | **2024** | **2024** |
| <br>Expiry date | **Outstanding** | **Exercisable** |
|  | $— |  |
| January 25, 2025 | 300000 | 300000 |
| March 31, 2025 | 150000 | 150000 |
| March 31, 2025 | 50000 | 50000 |
| March 31, 2025 | 650000 | 609375 |
| September 30, 2025 | 150000 | 150000 |
| March 31, 2026 | 300000 |  |
| June 30, 2026 | 300000 | 250000 |
| January 27, 2028 | 500000 | 500000 |
| March 12, 2028 | 400000 | 275000 |
| July 21, 2028 | 350000 | 350000 |
| August 23, 2028 | 500000 | 375000 |
| October 25, 2028 | 80000 | 60000 |
| February 14, 2029 | 500000 | 250000 |
| June 20, 2029 | 100000 | 100000 |
| December 17, 2030 | 300000 | 300000 |
| December 23, 2030 | 750000 | 750000 |
| February 2, 2031 | 2500000 | 2500000 |
| June 20, 2031 | 500000 |  |
| March 16, 2033 | 12500 | 12500 |
| July 21, 2033 | 1109737 | 859737 |
| December 13, 2034 | 950000 | 950000 |
|  | **10452237** | **8791612** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(d)* *Share purchase warrants* 

The Company's warrants movement for year ended December 31, 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of**<br> **warrants** | **Weighted <br> average exercise**<br> **price** |
|  |  | **$** |
| Balance outstanding, beginning of period |  |  |
| Granted | **22500000** | **0.17** |
| Exercised | **(6450000)** | **0.15** |
| Balance outstanding, end of period | **16050000** | **0.17** |

---

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Related party transactions

The Company's related parties include companies owned by key management. The Company paid Management fees to key management through their management companies as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Management fees of $72,000 to LVR Capital, a company owned by the Chief Financial
Officer. As at December 31, 2024, $6,000 (2023 – $5,000) was due to that company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Management fees of $431,231 to Aurakle Research, a company owned by the Chief Executive
Officer. As at December 31, 2024, $161,306 (2023 – $25,000) was due to that company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Management fees of $30,000 and other fees of $154,936 to Baystream Corporation,
a company owned by a Director. As at December 31, 2024, $17,680 (2023 – $5,374) was due to that company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Management fees of $30,000 to Red River Solutions a company owned by a Director.
As at December 31, 2024, $7,875 (2023 – $Nil) was due to that company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Management fees of $22,500 to SLT Solutions, a company owned by a Director. As
at December 31, 2024, $7,500 (2023 – $7,500) was due to that company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Management fees of $14,167 to a Director. As at December 31, 2024, $Nil (2023 –
$7,500) was due to that company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Management fees of $24,671 to CyberDef LLC, a company owned by a Director. As
at December 31, 2024, $10,790 (2023 – $Nil) was due to that company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Research and development costs of $434,609 to Fileglobal, a company owned by a
Director. As at December 31, 2024, $25,775 (2023 – $27,844) was due to that company.

**Transactions with key management**

The key management of the Company are the members of senior management and the Board. The remuneration and other expenses for the period of key management (including the amounts above) is as follows:

---

| | | |
|:---|:---|:---|
|  | **2024** | 2023 |
|  | **$** | $|
| Research and development | **434609** | 347036 |
| Share-based payments | **367855** | 72311 |
| General and administrative: |  |  |
| &nbsp;&nbsp;&nbsp;Management fees | **624569** | 478719 |
| &nbsp;&nbsp;&nbsp;Other fees | **154936** | 39305 |
|  | **1581969** | 937371 |

---

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Net financial (income) expense

---

| | | |
|:---|:---|:---|
|  | **2024** | 2023 |
|  | **$** | $|
| Financial income | **(19746)** | (70429) |
| Change in fair value of investments (note 4) | **10035** | (3914) |
| Financial expense | **15351** | 12044 |
| Foreign currency loss | **3871** | 2561 |
|  | **9511** | (59738) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Financial instruments and risk management** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *Management of capital* 

The capital structure of the Company consists of equity attributable to shareholders, comprising issued share capital, contributed surplus and deficit. The Company's objectives when managing capital are to: (i) preserve capital; (ii) obtain the best available net return; and (iii) maintain liquidity.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares. There were no changes to the Company's approach to capital management during the year ended December 31, 2024.

The Company is not subject to externally imposed capital requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *Fair value of financial instruments* 

The classification of financial instruments as well as their carrying amounts are presented in the table below:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Amortized**<br> **cost**<br> **$** | **FVTPL**<br> **$** | **Total**<br> **$** |
| <br> Financial assets |  |  |  |
| Cash | **1359406** | **—** | **1359406** |
| Investments | **—** | **87335** | **87335** |
| Current financial assets<sup>1</sup> | **1359406** | **87335** | **1446741** |
| <br> Financial liabilities |  |  |  |
| Accounts payable and accrued liabilities | **473254** | **—** | **473254** |
| Loan payable | **46352** | **—** | **46352** |
| Total | **519606** | **—** | **519606** |
| Current | **473254** | **—** | **473254** |
| Non-current | **46352** | **—** | **46352** |

---

<sup>1</sup> Excludes taxes receivable, as these amounts do not represent a contractual right to receive cash or another financial asset.

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

Financial assets and liabilities measured at fair value through profit or loss are presented in accordance with the fair value hierarchy. This hierarchy groups financial assets and liabilities into three levels based on the significance of inputs used in measuring the fair value of the financial assets and liabilities as defined in Note 3.

The level within which the financial asset or liability is classified is determined based on the lowest level of significant input to the fair value measurement. The fair value of the investments is measured under Level 1.

There have been no transfers between levels in the reporting periods.

The techniques and evaluation methods used to measure fair value were not changed compared to previous years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(c)* *Credit risk* 

 

Credit risk is the risk of a loss if a counter-party to a financial instrument fails to meet its contractual obligations. The Company's exposure to credit risk is limited to its cash balance and accounts receivable. Cash is maintained with high-credit quality Canadian financial institutions. Management considers the risk of non-performance related to cash to be minimal.

As at December 31, 2024, there are no accounts receivable (2023 – balance receivable from one client represents 100% of accounts receivable).

An impairment analysis is performed at each reporting date on an individual basis for major items. Generally, the Company does not require collateral or other security from customers for trade accounts receivable; credit is extended following an evaluation of creditworthiness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(d)* *Liquidity risk* 

 

The Company attempts to manage liquidity risk by maintaining sufficient cash balances. Liquidity requirements are managed based on expected cash flows to ensure that there is sufficient capital to meet short-term obligations. As at December 31, 2024, the Company had a cash balance of $1,359,406 (2023 - $315,626) and investments of $87,335 (2023 - $765,858) to settle current liabilities of $473,254 (2023 - $186,811).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(d)* *Price risk* 

The Company is exposed to the risk of changes in share prices due to its investments in other companies. Investments are affected by various underlying factors. Based on the investments held by the Company as at December 31, 2024, a 5% increase (decrease) in the share price of these investments would have increased (decreased) net loss by $4,367 for the year ended December 31, 2024 (2023 - $35,801).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(e)* *Currency risk* 

Exposure to currency exchange rates arises from cash and investments in foreign currencies. The Company does not have cash or investments held directly in foreign currencies as at December 31, 2024 and 2023. The Company is therefore not exposed directly to currency risk.

**QUANTUM eMOTION CORP.**

**Notes to the consolidated financial statements**

**Years ended December 31, 2024 and 2023**

**(in Canadian dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Segmented reporting

The Company operates in one segment, technology development. As at December 31, 2024, and 2023, all of the Company's long-term assets are located in Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Subsequent events

 

*Brokered listed issuer financing exemption (LIFE) financing*

 

On February 24, 2025, the Company completed a brokered LIFE financing, issuing a total of 13,333,333 units at a price of $0.75 per unit for gross proceeds of $10,000,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.10 for a period of 3 years following the closing of the date of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Comparative figures

In the statement of loss and comprehensive loss and in the statement of cash flows, some comparative figures for the year ended December 31, 2023, have been reclassed to conform to the presentation adopted for the year ended December 31, 2024.

## Exhibit 99.4

**Exhibit 99.4**

QUANTUM eMOTION CORP.

**Management's Discussion and Analysis**

**Periods ended September 30, 2025, and 2024**

The following management's discussion and analysis ("MD&A") of the financial position and results of the operations and cash flows of Quantum eMotion Corp. (the "Company", "QeM" or "Quantum") constitutes management's review of the factors that affected the Company's financial and operating performance for the quarter ended September 30, 2025, compared to the same period of the prior year which have been prepared in accordance with International Financial Reporting Standards (IFRS.)

Further information regarding the Company and its operations are filed electronically on the System for Electronic Document Analysis and Retrieval + ("SEDAR+") in Canada and can be obtained from www.sedarplus.ca.

1.1 <u>FORWARD LOOKING STATEMENTS</u> 

The sections of this MD&A on the Company's strategy and action plan, its intellectual properties, development and financial reporting reflecting management's current expectations contain "forward-looking statements." Such statements should be understood in context, particularly statements that reflect the Company's opinions, estimates and expectations about future events or results. Such forward-looking statements are subject to certain factors and involve some risks and uncertainties. There can be no assurance that such statements will prove to be accurate. Factors that could cause future results, activities and events to differ materially from those expressed or implied by such forward-looking statements include, but not limited to, securing future financing inclusive of exercise of stock options and warrants, the possibility that additional research and development will not result in the timely achievement of additional patents, risks inherent in the Hi-Tech industry, and the time it will take for the industry to be ready to move to quantic solutions. These risks and uncertainties are described in this MD&A and in the annual information form filed on SEDAR+.

1.2 <u>INCORPORATION AND NATURE OF OPERATIONS</u> 

Quantum eMotion Corp. was incorporated under the *Business Corporations Act* of Ontario on July 19, 2007.

On June 28, 2024, the Company established a wholly owned subsidiary Quantum eHealth Technologies located at the same address; and on April 10, 2025, the Company established a wholly owned subsidiary in Irvine, California.

The head office, principal address and records office of the Company are located at 2300 Alfred Nobel, Montreal, Qc, H4S 2A4. The Company is a developer of a new generation of quantum-based cryptographic solutions pursuant to the development of intellectual property and commercialization of cybersecurity solutions. (See 1.4 patent summary).

1.3 <u>SENIOR MANAGEMENT CHANGES</u> 

The Company appointed Mr. John Young, MBA, as Chief Operating Officer of its newly created subsidiary, Quantum eMotion America, effective April 1, 2025. Mr. Young has over 35 years of experience in cybersecurity and IT operations, having held senior roles at Fortune 50 companies, including IBM and McDonnell Douglas. Notably, he is one of only 11 professionals globally to hold all nine ISC2 cybersecurity certifications. Mr. Young is also a board member of QeM

The Company appointed Ms. Farrah N. Khan, as Senior Vice President of Business Development of its newly created subsidiary, Quantum eMotion America, effective April 1, 2025. Ms. Khan served as Mayor of Irvine-a city recognized as a global innovation hub.. During her tenure, she spearheaded initiatives that attracted substantial investments in emerging technologies including artificial intelligence, quantum

communications, biotechnology, and cybersecurity. Her vision and leadership helped position Irvine as a magnet for high-impact ventures and Fortune 500 partnerships.

The Company appointed Ms. Helen Woo, as Vice President of Business Development of its newly created subsidiary, Quantum eMotion America, effective April 1, 2025. Ms. Woo brings a distinguished track record in corporate development, with deep expertise in navigating complex financial ecosystems and forging high-impact relationships across the public and private sectors. Her accomplishments have been recognized by the U.S. House of Representatives and the California State Senate, underscoring her leadership and civic engagement. In 2023, she was named Ambassador of the Year by the Greater Irvine Chamber of Commerce, and most recently honored as Ambassador of the Month by the Newport Beach Chamber of Commerce in February 2025.

The Company appointed Mr. Klaus Kepper, CPA, as the Controller / Finance Director of the company on February 10, 2025. Mr. Kepper has over 30 years of experience in senior financial positions, mostly in the health care field. He also holds an MBA from Concordia University.

**1.4**  **<u>COMPANY OVERVIEW AND STRATEGY</u>** 

**RESEARCH AND DEVELOPMENT ACTIVITIES**

**Technology**

Our primary objective is to make our cryptographic solutions technology accessible as rapidly as possible to potential clients and partners, secure its effectiveness and ensure that the intellectual property is well protected. In order to stay focused on this objective, we are working closely with our partners to maximize the potential and security of our technology. The Company is developing complementary metal-oxide semiconductor ("CMOS") implementations with l'École de Technologie Supérieure ("ETS") to ensure greater competitiveness.

On October 16, 2025, QeM along with Energy Plug Technologies and SEETEL New Energy Co. Ltd. announced a strategic alliance to co-develop and commercialize a 261-kilowatt-hour (kWh) fully integrated AC plug-and-play Battery Energy Storage System (BESS) engineered for Arctic and high-resilience environments worldwide.

On October 14, 2025, QeM announced a joint agreement with Energy Plug Technologies Corp. and Malahat Battery Technology Corp. to develop and commercialize quantum—secured energy storage and defence systems for critical infrastructure. This partnership integrates Quantum eMotion's patented technologies with Energy Plug and MBT's advanced Battery Energy Storage Systems (BESS) and Energy Management Platforms (EMS/PMS) to deliver cyber-resilient, quantum-safe power systems capable of protecting national and industrial energy assets from emerging cyber and post-quantum threats.

On October 6, 2025, announced that QeM has signed a contract with Lightship Security Inc. to conduct FIPS 140-3 validation of its Quantum Crypto Module, a key milestone toward NIST certification.

On September 29, 2025, announced a strategic alliance with Jmem Technology Co., Ltd (Jmem Tek), a Taiwanese IC design company to co-develop a quantum resilient System-on – Chip (SoC). The unique platform generated by this alliance is to integrate three essential layers of protection into a single SoC: QeM's Quantum Random Number Generator (ORNG); Jmem's Physical Unclonable Function (PUF); and Nist-aligned Post-Quantum Cryptography (POC) Module.

On September 22, 2025, QeM along with its partner Krown Technologies announced the successful completion of the Qastle Quantum-Safe Hot Wallet. This milestone represents a breakthrough in securing cryptocurrencies and digital assets against both today's advanced cyber threats and the looming risks of quantum computing.

On July 2, 2025, Krown Technologies LLC, in collaboration with QeM announced that significant progress has been made in the development of two groundbreaking quantum-secure cryptocurrency wallets: the Qastle Quantum Hot Wallet and the Excalibur Quantum Cold Wallet. These advancements mark a pivotal step in safeguarding digital assets against the emerging threats of quantum computing.

On June 26, 2025, QeM announced the completion of an internal quantum simulation project assessing aspects of its cryptographic architecture. The benchmarking project, conducted in collaboration with PINQ², utilized IBM's Qiskit quantum computing framework to simulate Grover's algorithm—a quantum search algorithm known for its theoretical ability to speed up brute-force attacks on symmetric encryption schemes. The analysis focused on evaluating the relative complexity of attacking symmetric encryption algorithms when enhanced with entropy from QeM's proprietary Quantum Random Number Generator (QRNG).

On May 26, 2025, QeM announced the successful completion and validation of its first-generation QRNG chip design. The 65-nm CMOS finalized design has been submitted for fabrication to Taiwan Semiconductor Manufacturing Company (TSMC), a leading global semiconductor foundry. The chip integrates critical components such as an ultra-low-noise wideband amplifier and a high-precision analog-to-digital converter, both successfully prototyped and validated by academic teams at ÉTS Montréal and the Institut Quantique at Université de Sherbrooke. This significant milestone permits QeM to target the global Quantum Random Number Generator (QRNG) chip market was valued at approximately USD 150 million in 2024 and is projected to reach USD 2 billion by 2033, registering a compound annual growth rate (CAGR) of 34.5% from 2026 to 2033

On January 22, 2025, QeM announced groundbreaking results for its state-of-the-art quantum-based hardware wallet, designed to revolutionize security in blockchain and cryptocurrency transactions. Recent studies highlight that this innovative solution reduces the risk of monetary loss by up to 98% compared to conventional hierarchical deterministic (HD) wallets. Announced last July, the wallet leverages Quantum eMotion's proprietary QRNG technology and an intelligent key generation scheme, ensuring optimal performance for commercial blockchain applications. It provides a cost-effective and compact solution by reusing hardware components for generating both parent and child keys, thus reducing costs and complexity.

On March 28, 2024, QeM announced that the project "Quantum random number generation for highly secure cryptography applications" led by ETS that will receive a $1.2 million grant from the Alliance Quantum program, managed by NSERC. Led by ÉTS in partnership with QeM, the project under Professor Ghyslain Gagnon, with co-grantee Prof. K. Zhang and contributors like Prof. B. Reulet from Université de Sherbrooke, focuses on developing scalable QRNG technologies. These innovations aim to bolster secure communications, integrate into Internet of Things (IoT) devices, and enhance security in DeFi ecosystems. The collaboration seeks to address challenges in QRNG commercialization, focusing on reducing energy consumption while leveraging quantum tunneling encryption for top-tier security.

On March 18, 2024, QeM announced a strategic partnership with the Platform for Digital and Quantum Innovation (PINQ²), an NPO established by the Ministry of Economy, Innovation and Energy of Quebec and Université de Sherbrooke. This collaboration aims to enhance the resilience of QeM's security platform against advanced threats, including simulated quantum computer attacks using IBM's Qiskit platform. PINQ², the exclusive operator of Canada's first 127-qubit IBM Quantum System One at IBM Bromont, will work with QeM to rigorously test and evaluate their Kyber algorithm and QRNG. This project will assess the security system's performance under simulated adversarial conditions, focusing on identifying strengths, weaknesses, and vulnerabilities, and ensuring alignment with strategic goals. The partnership leverages simulation tools like Qiskit to execute quantum attack simulations, thoroughly testing the security solution's robustness.

On February 21, 2024, QeM announced a breakthrough in developing its first Quantum Random Number Generator (QRNG) on a chip, a significant advancement in quantum communication technology. This development compactly integrates QRNG into a single chip, potentially less than 1 cm², revolutionizing quantum-based security designs. This innovation allows the sale of design cores, enabling integrated circuits vendors like Texas Instruments, Intel, and IBM to embed QRNG functionality directly into their products, expanding the reach and impact of quantum security technologies.

On January 10, 2024, QeM launched Quantum eHealth Inc., a subsidiary focused on healthcare applications for its advanced cybersecurity technology. By spinning off its Digital Healthcare Cybersecurity Activities into this new entity, QeM aims to capitalize on the growing digital healthcare security market. Quantum eHealth Inc. will hold an exclusive license to use QeM's intellectual property in the healthcare sector. Meanwhile, QeM will continue developing and marketing various iterations of its QRNG across other sectors, including financial services, blockchain, military, information technology and others.

**Patents**

---

| | |
|:---|:---|
| **Status of patents** | **Status of patents** |
| ***First Patent Family*:**<br> **Method for generating random numbers and associated random number generator**<br>*The 1st generation technology is the revolutionary technology which is at the origin of Quantum eMotion. Several patents protect the exclusivity of this technology. In particular, two patents were obtained in the United States to fully cover the technology, and patents were also obtained in Australia, Brazil, Canada, China, Germany, Spain, Finland, France, Great Britain, Italy, India, South Korea, the Netherlands, Russia, Sweden and Thailand. Quantum eMotion mandated a law firm to perform a very exhaustive novelty verification, including independent professional patent searches in three different jurisdictions, which provides an extraordinary level of confidence in the strength of these patents* | ***First Patent Family*:**<br> **Method for generating random numbers and associated random number generator**<br>*The 1st generation technology is the revolutionary technology which is at the origin of Quantum eMotion. Several patents protect the exclusivity of this technology. In particular, two patents were obtained in the United States to fully cover the technology, and patents were also obtained in Australia, Brazil, Canada, China, Germany, Spain, Finland, France, Great Britain, Italy, India, South Korea, the Netherlands, Russia, Sweden and Thailand. Quantum eMotion mandated a law firm to perform a very exhaustive novelty verification, including independent professional patent searches in three different jurisdictions, which provides an extraordinary level of confidence in the strength of these patents* |
| **Country** | **Status** |
| United States | Two patents were granted in the United States, including a first one granted on August 7, 2018, and a second granted on October 8, 2019. |
| European Patent Office | EPO granted the patent on February 19, 2020. The European Patent has been validated in several countries: Germany, Spain, Finland, France, Great-Britain, Italy, Sweden and the Netherlands. |
| Australia, Brazil, Canada, China, India, Republic of Korea, Russia, Thailand | Patent granted |
| ***Second Patent Family*:**<br> **Method and system for generating a random bit sample**<br>*The 2nd generation technology has a particular synergy with the 1st generation technology. Indeed, in practical applications, electronic elements such as amplifiers may impart classical noise into the quantum signal, which may make the signal not truly quantum, and thus not truly random. The 2nd generation technology provides means of extracting a purely random quantum signal as a quantum number source independently of the presence of classical noise. Several patents protect the exclusivity of this technology. In particular, two patents were obtained in the United States to fully cover the technology, and patents were also obtained in Australia, Germany, Spain, Finland, France, Great Britain, Indonesia, Italy, Japan, the Netherlands, Russia, Canada, China, India, South Korea and Sweden, and the patent application remains pending in Brazil and Thailand.* | ***Second Patent Family*:**<br> **Method and system for generating a random bit sample**<br>*The 2nd generation technology has a particular synergy with the 1st generation technology. Indeed, in practical applications, electronic elements such as amplifiers may impart classical noise into the quantum signal, which may make the signal not truly quantum, and thus not truly random. The 2nd generation technology provides means of extracting a purely random quantum signal as a quantum number source independently of the presence of classical noise. Several patents protect the exclusivity of this technology. In particular, two patents were obtained in the United States to fully cover the technology, and patents were also obtained in Australia, Germany, Spain, Finland, France, Great Britain, Indonesia, Italy, Japan, the Netherlands, Russia, Canada, China, India, South Korea and Sweden, and the patent application remains pending in Brazil and Thailand.* |
| **Country** | **Status** |
| &nbsp;&nbsp;European Patent Office | EPO granted the patent on October 23, 2019. The European Patent has been validated in Germany, Spain, United Kingdom, Finland, France, Italy, Sweden and the Netherlands. |
| &nbsp;&nbsp;United States | &nbsp;&nbsp;Two patents were granted. |
| &nbsp;&nbsp;Brazil, Thailand | &nbsp;&nbsp;Patent pending |

---

---

| | |
|:---|:---|
| Australia, Russia, Indonesia, Canada, China, India, Japan, South Korea | Granted |
| ***Third Patent Family*:**<br> **System and Method for Generating a Random Number, and circuit for communicating an analog random signal**<br>*3rd generation technology harnesses the commercial availability and low costs of consumer electronics, such as audio processing hardware in particular, in quantum number generation, further democratizing the availability of truly random numbers.* | ***Third Patent Family*:**<br> **System and Method for Generating a Random Number, and circuit for communicating an analog random signal**<br>*3rd generation technology harnesses the commercial availability and low costs of consumer electronics, such as audio processing hardware in particular, in quantum number generation, further democratizing the availability of truly random numbers.* |
| **Country** | **Status** |
| United States | Patent pending |

---

---

| | |
|:---|:---|
| ***Fourth Patent Family***<br> **Method of Operating A Blockchain Wallet**<br>*Cryptocurrency (e.g., blockchain) wallets make heavy use of large series of numbers referred to as keys. There are different schemes to generate keys, such as ND and HD, and each scheme has its advantages and disadvantages. When providing a blockchain wallet to an unknown user, it is not possible to adapt the key generation scheme to the user's type of use, leading to mismatches between the types of key generation schemes and the users. Quantum eMotion's 4th generation technology alleviates these inconveniences by providing a wallet which intelligently selects the key generation scheme, based on a comparison of cost values of the different key generation schemes. Moreover, by leveraging quantum eMotion's QRNG technologies, a blockchain wallet combining the advantages of true random number generation with intelligent key generation scheme selection can now be made available to consumers, a product of an unparalleled level of functionality.*<br>*Quantum eMotion's 4th generation technology is now patent pending worldwide. More specifically, the patent application was filed under the Patent Cooperation Treaty on March 28, 2024, bearing number PCT/CA2024/050391 and claiming March 30, 2023 as a priority date. The Patent Cooperation Treaty is an international treaty which provides a means of reserving international patent protection in more than 150 member states for a period of 30 months from the priority date. Accordingly, Quantum eMotion's international pendency for the 4th generation technology will last until Sept. 30, 2025, at which point pendency will continue nationally in the countries and regions which will have been ultimately selected.*  | ***Fourth Patent Family***<br> **Method of Operating A Blockchain Wallet**<br>*Cryptocurrency (e.g., blockchain) wallets make heavy use of large series of numbers referred to as keys. There are different schemes to generate keys, such as ND and HD, and each scheme has its advantages and disadvantages. When providing a blockchain wallet to an unknown user, it is not possible to adapt the key generation scheme to the user's type of use, leading to mismatches between the types of key generation schemes and the users. Quantum eMotion's 4th generation technology alleviates these inconveniences by providing a wallet which intelligently selects the key generation scheme, based on a comparison of cost values of the different key generation schemes. Moreover, by leveraging quantum eMotion's QRNG technologies, a blockchain wallet combining the advantages of true random number generation with intelligent key generation scheme selection can now be made available to consumers, a product of an unparalleled level of functionality.*<br>*Quantum eMotion's 4th generation technology is now patent pending worldwide. More specifically, the patent application was filed under the Patent Cooperation Treaty on March 28, 2024, bearing number PCT/CA2024/050391 and claiming March 30, 2023 as a priority date. The Patent Cooperation Treaty is an international treaty which provides a means of reserving international patent protection in more than 150 member states for a period of 30 months from the priority date. Accordingly, Quantum eMotion's international pendency for the 4th generation technology will last until Sept. 30, 2025, at which point pendency will continue nationally in the countries and regions which will have been ultimately selected.*  |
| **Country** | **Status** |
| Patent Cooperation Treaty | Rights reserved in all PCT member states until September 2025 |
| ***Fifth Patent Family***<br> **Hardware Wallet Apparatuses and Method of Generating Cryptographic Keys Using Same**<br>*Quantum eMotion Corp. is proud to announce that it has developed yet another technology associated to the cryptocurrency industry. More specifically, we have developed our own hardware wallet technology which has a low footprint and competitive cost, while allowing to leverage several of its other core technologies, such as the Quantum Random Number Generation (QRNG) and its intelligent key generation scheme selection technologies, in new commercial applications. A combination of a patent application and industrial secret for the hardware wallet technology will target international intellectual property protection*. *Namely, Quantum eMotion's 5th generation technology is now patent pending worldwide. More specifically, the patent application was filed under the Patent Cooperation Treaty. The Patent Cooperation Treaty is an international treaty which provides a means of reserving international patent protection in more than 150 member states until December 2026, at which point pendency will continue nationally in the countries and regions which will have been ultimately selected.* | ***Fifth Patent Family***<br> **Hardware Wallet Apparatuses and Method of Generating Cryptographic Keys Using Same**<br>*Quantum eMotion Corp. is proud to announce that it has developed yet another technology associated to the cryptocurrency industry. More specifically, we have developed our own hardware wallet technology which has a low footprint and competitive cost, while allowing to leverage several of its other core technologies, such as the Quantum Random Number Generation (QRNG) and its intelligent key generation scheme selection technologies, in new commercial applications. A combination of a patent application and industrial secret for the hardware wallet technology will target international intellectual property protection*. *Namely, Quantum eMotion's 5th generation technology is now patent pending worldwide. More specifically, the patent application was filed under the Patent Cooperation Treaty. The Patent Cooperation Treaty is an international treaty which provides a means of reserving international patent protection in more than 150 member states until December 2026, at which point pendency will continue nationally in the countries and regions which will have been ultimately selected.* |

---

---

| | |
|:---|:---|
| **Country** | **Status** |
| Patent Cooperation Treaty | Rights reserved in all PCT member states until December 2026 |

---

**1.4**  **<u>COMPANY OVERVIEW AND STRATEGY</u>** 

**<u>BUSINESS DEVELOPMENT ACTIVITIES</u>**

On November 3, 2025, QeM and its Partner, Krown Technologies, announced the global launch of Qastle, the world's first quantum-secured hot wallet to leverage Quantum Entropy-as-a-Service and Post-Quantum Cryptography to safeguard digital assets against emerging cyber and quantum-based threats. Qastle is now live and available to users worldwide at https://qastlewallet.com.

On October 29, 2025, QeM announced that it's partner, Energy Plug Technologies Inc. has secured a pre-order for 20 units of its next-generation 261-kilowatt-hour (kWh) Battery Energy Storage System (ESS). This new system is being co-developed by QeM, SEETEL New Energy and Malahat Battery Technologies. Energy Plug's 261 kWh ESS is engineered to operate seamlessly alongside diesel generators, creating a hybrid configuration that delivers superior efficiency, reliability, and environmental performance for industries requiring dependable off-grid power.

On October 8, 2025, QeM and its partner Krown Technologies announced the global release of Qastle, the world's first quantum-secured hot wallet designed for everyday use. Following extensive development and successful final testing, Qastle will officially launch on November 1st, 2025.

On September 9, 2025, QeM announced an investment in Krown Technologies, LLC of US $400,000 through a convertible debenture. QeM has the right to convert the debenture into equity which would represent a significant stake in Krown. The rationale is to strengthen the strategic collaboration between the Parties, particularly regarding the booming blockchain and crypto markets.

On July 28, 2025, QeM announced it had entered into a strategic partnership with Kold King's Group Inc. to promote, integrate, and commercialize QeM's cutting-edge Sentry-Q™ quantum cybersecurity platform across critical infrastructure and security-conscious sectors throughout the Philippines.

On June 30, 2025, QeM announced the conversion of $350,000 in an intangible asset into equity and an additional investment of $350,000 in Greybox Solutions Inc., strengthening its position as the second-largest shareholder in that company. This strategic investment, made at an attractive valuation, reflects QeM's strong confidence in Greybox's rapid growth trajectory and unique position in the fast-evolving Remote Care Management and Digital Therapeutics (DTx) sector. Greybox's recent launch of the secure TakeCareTM platform across Quebec leading rehabilitation centers has led to strategic commercial wins, positioning the company as a rising leader in digital health with a scalable, value-based model across Canada and beyond.

On April 2, 2025, QeM announced the official launch of its U.S. subsidiary, Quantum eMotion America (QeMA), headquartered in Irvine, California. This strategic expansion marks a significant milestone in QeM's international growth, designed to accelerate sales, forge new partnerships, and drive business development across the U.S. cybersecurity sector. California was selected for QeM's first American office due to its vibrant technology ecosystem, access to top-tier talent, strategic global connectivity, and strong support for innovative enterprises. Irvine, in particular, offers proximity to major defense, enterprise, and academic hubs, positioning QeMA for sustained growth and market leadership.

including those posed by quantum computing. With its sleek, compact form—no larger than a thumb drive, Excalibur delivers unbreakable cryptographic security to crypto holders worldwide. As part of this partnership, Krown Technologies has secured a five-year, non-exclusive global license to integrate QeM's proprietary QRNG technology into blockchain applications. Both companies will collaborate on the commercialization of Excalibur, operating under a revenue-sharing business model that aligns their mutual commitment to advancing secure digital asset storage.

On February 19, 2025, QeM announced a non-exclusive licensing agreement with Quantolio, a leading provider of AI-driven financial solutions. This strategic partnership grants Quantolio access to QeM's proprietary Entropy-as-a-Service (EaaS) technology, enabling groundbreaking advancements in financial applications and quantum artificial intelligence (Quantum AI). Under the terms of the agreement, Quantolio will integrate QeM's quantum-based technology into its AI-powered financial platforms. QeM's EaaS technology provides robust, high-entropy quantum randomness, ensuring enhanced security and performance in sensitive financial computations and AI-driven decision-making processes. For instance, EaaS can synergize AI-powered financial forecasting platforms by guaranteeing truly unpredictable stochastic processes. QRNG technology enhances Monte Carlo simulations, optimizes risk management models, and improves market prediction capabilities. Quantolio receives a non-exclusive, worldwide license to leverage QeM's proprietary EaaS technology within finance, FinTech, and Quantum AI applications. In exchange, Once the Quantum-powered financial platforms are commercially available, Quantolio will pay QeM an annual licensing fee of $1.0 million, with additional revenue-sharing terms.

On December 23rd, 2024, QeM announced a major milestone in the commercialization of its cloud-based Sentry-Q platform, designed to address critical, unmet cybersecurity challenges in modern telemedicine and digital healthcare. QeM's partner, GreyBox Solutions entered a strategic commercial alliance with Becton Dickinson (BD), a global powerhouse in the medical device and diagnostics industry with over $20 billion in annual sales. This partnership centers on advancing remote patient monitoring to improve the quality of life for patients with chronic diseases while empowering clinicians to monitor multiple patients efficiently. The initiative will launch in Canada, expand to the USA, and potentially scale to global markets.

1.5 <u>SELECTED PERIODIC INFORMATION</u> 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Periods ended September 30** | **Periods ended September 30** | **Periods ended September 30** | **Periods ended September 30** | **Periods ended September 30** |
|  | &nbsp;&nbsp; **2025**<br> **$** | 2024<br> $ | 2024<br> $ | 2023<br> $ |
| Net loss and comprehensive loss | **(6556278)** | (1817985) | (1817985) | (1593681) |
| Basic and diluted loss per share | **(0.036)** | (0.013) | (0.013) | (0.012) |
| <br> **Balance on** | <br> **Balance on** | <br> **Balance on** | <br> **Balance on** | <br> **Balance on** |
|  | **September 30, 2025**<br> **$** | **September 30, 2025**<br> **$** | December 31, 2024<br> $ | December 31, 2024<br> $ |
| Cash and marketable securities | **24712533** | **24712533** | 1446741 | 1446741 |
| Total assets | **26068571** | **26068571** | 1857449 | 1857449 |
| Total liabilities | **494924** | **494924** | 519606 | 519606 |
| Equity | **25573647** | **25573647** | 1337843 | 1337843 |

---

**1.6**  **<u>Licenses and Property, Plant and Equipment</u>** 

The carrying amount of non-current assets on September 30, 2025, is:

---

| | | | |
|:---|:---|:---|:---|
| **PP&E** | **Licenses** | **Rights on royalties** | **Total** |
|  | **$** | **$** | **$** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Cost** | | | | |
| &nbsp;&nbsp;December 31, 2024 | - | 446112 | 350000 | 796112 |
| &nbsp;&nbsp;Additions | **11000** | **-** | **-** | **11000** |
| &nbsp;&nbsp;**September 30, 2025** | **11000** | **446112** | **350000** | **807112** |
| **Accumulated amortization,**<br> **impairment and loss on derecognition** |  |  |  |  |
| &nbsp;&nbsp;December 31, 2024 | - | 116723 | 350000 | 466723 |
| &nbsp;&nbsp;Amortization | **1453** | **16729** | **-** | **18182** |
| &nbsp;&nbsp;**September 30, 2025** | **1453** | **133452** | **350000** | **484905** |
| &nbsp;&nbsp;Netbook value |  |  |  |  |
| &nbsp;&nbsp;December 31, 2024 | - | 329389 | **-** | 329389 |
| &nbsp;&nbsp;**September 30, 2025** | **9547** | **312660** | **-** | **322207** |

---

In relation to the license, the Company will pay a royalty of 5% calculated on the net sales price of products sold by the Company until the expiry of the last patent, which is expected to be in May 2035.

1.7 <u>SELECTED FINANCIAL INFORMATION AND OPERATING RESULTS</u> 

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Periods ended September 30** | &nbsp;&nbsp;**Periods ended September 30** | &nbsp;&nbsp;**Periods ended September 30** | &nbsp;&nbsp;**Periods ended September 30** |
|  | **2025** | 2024 | Variance<br> Inc/(dec) |
|  | **$** | $| $|
| &nbsp;&nbsp;**Expenses** |  |  |  |
| &nbsp;&nbsp;Research and development | **863648** | 655406 | **208452** |
| &nbsp;&nbsp;General and administrative | **1551640** | 1025325 | **526315** |
| &nbsp;&nbsp;Marketing and selling | **624074** | 70107 | **553967** |
| &nbsp;&nbsp;Share-based payments | **3773687** | 59960 | **3713727** |
| &nbsp;&nbsp;Amortization | **18182** | 16699 | **1483** |
| &nbsp;&nbsp;Net financial expense (income) | **(274963)** | (9512) | **(265451)** |
| &nbsp;&nbsp;**Net loss and comprehensive loss for the year** | **6556278** | 1817985 | **4738293** |
| &nbsp;&nbsp;**Basic and diluted loss per share** | **0.036** | 0.013 | **.102** |
| &nbsp;&nbsp;**Weighted average number of common shares outstanding** | **183617509** | 137438064 | **46179445** |

---

Key differences: *Note R&D for 2024 was restated to conform to 2025 reporting with the offset in G&A. The total transfer was $152,167 and related to patents and wages.*

● R&D: increase of $208,242 relates primarily to ramping up R&D .

● G&A: the increase of $526,315 relates primarily to higher audit fees; higher TSX-V listing fees; higher compensation costs primarily relating to new employees in subsidiary; higher legal fees; and higher travel/conference fees.

● Marketing: the increase of $553,967 relates primarily to increased staff and marketing/promotion of our products as there was no such activity in the prior year period

● Share-based payments; the increase of $3.7 million in this non-cash expense relates to the high number of options granted and that approximately 60% of the options vested immediately, bringing most of the related expense into the first year of the award. Additional options were awarded in the second quarter primarily to new employees.

1.8 <u>SUMMARY OF QUARTERLY RESULTS</u> 

The following table sets forth selected quarterly financial information for each of the twelve most recently completed quarters.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Three-month period ended** | **Net loss and comprehensive loss <br> for the period** | **Basic and diluted loss per share** |
|  | $| $|
| &nbsp;&nbsp;**September 30, 2025** | **(1687499)** | **(0.008)** |
| &nbsp;&nbsp;**June 30, 2025** | **(1517433)** | **(0.008)** |
| &nbsp;&nbsp;March 31, 2025 | (3351336) | (0.020) |
| &nbsp;&nbsp;December 31, 2024 | (1151251) | (0.008) |
| &nbsp;&nbsp;September 30, 2024 | (597403) | (0.004) |
| &nbsp;&nbsp;June 30, 2024 | (727891) | (0.005) |
| &nbsp;&nbsp;March 31, 2024 | (492193) | (0.004) |
| &nbsp;&nbsp;December 31, 2023 | (792952) | (0.006) |
| &nbsp;&nbsp;September 30, 2023 | (556376) | (0.004) |
| &nbsp;&nbsp;June 30, 2023 | (532956) | (0.004) |
| &nbsp;&nbsp;March 31, 2023 | (504492) | (0.004) |
| &nbsp;&nbsp;September 30, 2022 | (517750) | (0.004) |

---

1.9 <u>LIQUIDITY</u> 

On September 30, 2025, the Company had net non-cash working capital of ($368,681) compared to a non-cash, net working capital of ($391,935) in the same period in the prior year. The company has no inventory or sales and, as such, non-cash current assets only consist of taxes receivable and prepaids which are offset by accounts payables and accrued liabilities.

1.10 <u>CASH FLOWS</u> 

Cash used in operations to September 30, 2025, increased by $1.3 million versus the same period in the prior year reflecting the continued investment in product development and transitioning to commercialization.

The Company generated an increase of $26.2 million more cash flow from financing than compared to the same period in the prior year. The increase relates to the two brokered private placements and the exercise of warrants and options.

On June 2, 2025, the Company completed a brokered LIFE financing, issuing a total of 8,000,000 units at a price of $1.50 per unit for gross proceeds of $12,000,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.82 for a period of 3 years following the closing of the date of issuance. There is no hold period for trading the warrants.

Unit issuance costs, which include a broker fee of 6.0% as well as legal and listing costs, of $857,178 were recorded in the second quarter of 2025. In addition, the Company issued 320,000 warrants representing 4% of the units issued to the Agent that brokered the private placement. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.66 for a period of 2.5 years following the closing of the date of issuance. There is no hold period for trading the warrants.

On February 24, 2025, the Company completed a brokered LIFE financing, issuing a total of 13,333,333 units at a price of $0.75 per unit for gross proceeds of $10,000,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.10 for a period of 3 years following the closing of the date of issuance. There is no hold period for trading the warrants.

Unit issuance costs, which include a broker fee of 6.5% as well as legal and listing costs, of $811,413 were

recorded in the first quarter of 2025. In addition, the Company issued 666,666 warrants representing 5% of the issued units to the Agent that brokered the private placement. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.88 for a period of 2.5 years following the closing of the date of issuance. There is no hold period for trading the warrants.

On November 15, 2024, the Company completed a non-brokered private placement, issuing a total of 7,500,000 units at a price of $0.10 per unit for gross proceeds of $750,000. Each unit is comprised of one common share and one warrant. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.20 for a period of 24 months following the closing of the private placement. The securities issued in the private placement are subject to a four-month and one day hold period expiring on March 16, 2025. Unit issuance costs of $100 were recorded and paid in the fourth quarter of 2024.

On March 20, 2024, the Company completed a non-brokered private placement, issuing a total of 15,000,000 units at a price of $0.05 per unit for gross proceeds of $750,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.15 for a period of 12 months following the closing of the private placement. The securities issued in the private placement are subject to a four-month and one day hold period expiring on July 22, 2024. Unit issuance costs of $1,000 were recorded and paid in the first quarter of 2024.

1.11 <u>STOCK OPTIONS</u> 

---

| | | | |
|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**September 30, 2025** | &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;December 31, 2024 | &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;December 31, 2024 |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Number <br> of options** | Number of<br> options | &nbsp;&nbsp;&nbsp;&nbsp;Weighted average<br> exercise price |
| | | $— | $|
| Balance outstanding, beginning of period | **10452237** | 9139737 | 0.13 |
| Granted | **6645000** | 1850000 | .20 |
| Exercised | **(1812000)** | (250000) | 0.09 |
| Expired / cancelled / Forfeited | **(1300000)** | (250000) | .12 |
| Balance outstanding, end of year | **13984737** | 10452237 | .14 |
| Balance exercisable, end of period | **10854737** | 8791612 | 0.14 |

---

The weighted average remaining contractual life for options outstanding on September 30, 2025, is 6.6 (December 31, 2024 – 4.64) years.

Share-based compensation recognized under this plan amounted to $3,773,687 for the period ended September 30, 2025 (September 30, 2024 - $46,129). Options are awarded to officers, employees, consultants and occasionally to third parties and are recorded to general and administrative expenses.

1.12 <u>OFF-BALANCE SHEET ARRANGEMENTS</u> 

The Company does not have any off-balance sheet arrangements.

1.13 <u>FINANCIAL INSTRUMENTS</u> 

All financial instruments are recognized when the Company becomes a party to the contractual provisions of the financial instrument and are initially measured at fair value plus transaction costs, except for financial assets and financial liabilities carried at fair value through profit or loss, which are measured initially at fair value. Financial assets are derecognized when the contractual right to the cash flows from the financial assets expires, or when the financial asset and all substantial risks and rewards are transferred. Refer to

Note 11 of the annual consolidated financial statements for the year ended December 31, 2024, for additional information on the Company's financial instruments.

1.14 <u>FINANCIAL RISK MANAGEMENT</u> 

In the normal course of operations, the Company is exposed to various financial risks. Refer to Note 11 of the annual consolidated financial statements for the year ending December 31, 2024, for additional information on the Company's main financial risks.

1.15 MANAGEMENT OF CAPITAL

The capital structure of the Company consists of equity attributable to common shareholders, comprising issued share capital, reserves and deficit. The Company's objectives when managing capital are to: (i) preserve capital; (ii) obtain the best available net return; and (iii) maintain liquidity.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares. There were no changes to the Company's approach to capital management during the year ended December 31, 2024.

The Company is not subject to externally imposed capital requirements.

1.16 <u>RELATED PARTY TRANSACTIONS</u> 

The Company's related parties include companies owned by key management. The Company paid Management fees to key management through their management companies as follows

● Management compensation of $54,000 to LVR Capital, a company owned by the Chief Financial Officer. As at September 30, 2025, $6,000 (December 2024 – $6,000) was due to that company.

● Management compensation of $225,000 to Aurakle Research, a company owned by the Chief Executive Officer. As at September 30, 2025, $111,175 (2024 – $161,306) was due to that company.

● Director's fees of $22,500; and IT related fees of $65,968 to Baystream Corporation, a company owned by a director. As at September 30, 2025, $2,500 (2024 – $17,680) was due to that company.

● Director's fees of $22,500 and $28,250 in consulting fees to Red River Solutions a company owned by a director. As at September 30, 2025, $12,785 (2024 – $7,875) was due to that company.

● Director's fees of $22,500 to SLT Solutions, a company owned by a director. As at September 30, 2025, $15,000 (2024 – $7,500) was due to that company.

● Management compensation of US $72,000 and Management fees of US $22,500 to CyberDef LLC, a company owned by a Director. As at September 30, 2025, US $19,500 (2024 – US $7,500) was due to that company.

● Research and development costs of $281,081 to Fileglobal, a company owned by a director. As of September 30, 2025, $27,254 (2024 – $25,775) was due to that company.

**Transactions with key management**

The key management of the Company are the members of senior management and the Board. The remuneration and other expenses for the period ended September 30, 2025, for key management (including the amounts above) are as follows:

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | September 30, 2024 |
|  | **$** | $|
| &nbsp;&nbsp;**Research and development** | **442782** | 350081 |
| &nbsp;&nbsp;**Management salaries** | **378195** | 271898 |
| &nbsp;&nbsp;**Directors' fees** | **127188** | 60000 |
| &nbsp;&nbsp;Other fees | **65968** | 111139 |
| &nbsp;&nbsp;Share based costs | **2407963** | 29132 |
|  | **3422097** | 822250 |

---

1.17 <u>CRITICAL ACCOUNTING ESTIMATE AND JUDGEMENTS</u> 

The critical accounting estimates and judgements are described in Note 3 of the annual consolidated financial statements for the year ended December 31, 2024.

1.18 <u>CHANGES IN MATERIAL ACCOUNTING POLICIES</u> 

The accounting policies used are those described in the Company's annual consolidated financial statements in Note 3 for the year ended December 31, 2024.

1.19 <u>OTHER</u> 

Disclosure of Outstanding Securities as of September 30, 2025.

Outstanding common shares: 203,118,670

Outstanding options: 13,984,737

Outstanding share purchase warrants: 23,100,000

(s) Francis Bellido, Chief Executive Officer

(s) Marc Rousseau, Chief Financial Officer Montreal (Quebec), November 21, 2025

## Exhibit 99.5

**Exhibit 99.5**

QUANTUM eMOTION CORP.

**Management's Discussion and Analysis**

**Periods ended June 30, 2025, and 2024**

The following management's discussion and analysis ("MD&A") of the financial position and results of the operations and cash flows of Quantum eMotion Corp. (the "Company", "QeM" or "Quantum") constitutes management's review of the factors that affected the Company's financial and operating performance for the quarter ended June 30, 2025, compared to the same period of the prior year which have been prepared in accordance with International Financial Reporting Systems (IFRS.)

Further information regarding the Company and its operations are filed electronically on the System for Electronic Document Analysis and Retrieval + ("SEDAR+") in Canada and can be obtained from www.sedarplus.ca.

1.1 <u>FORWARD LOOKING STATEMENTS</u> 

The sections of this MD&A on the Company's strategy and action plan, its intellectual properties, development and financial reporting reflecting management's current expectations contain "forward-looking statements." Such statements should be understood in context, particularly statements that reflect the Company's opinions, estimates and expectations about future events or results. Such forward-looking statements are subject to certain factors and involve some risks and uncertainties. There can be no assurance that such statements will prove to be accurate. Factors that could cause future results, activities and events to differ materially from those expressed or implied by such forward-looking statements include, but not limited to, securing future financing inclusive of exercise of stock options and warrants, the possibility that additional research and development will not result in the timely achievement of additional patents, risks inherent in the Hi-Tech industry, and the time it will take for the industry to be ready to move to quantic solutions. These risks and uncertainties are described in this MD&A and in the annual information form filed on SEDAR+.

1.2 <u>INCORPORATION AND NATURE OF OPERATIONS</u> 

Quantum eMotion Corp. was incorporated under the *Business Corporations Act* of Ontario on July 19, 2007.

On June 28, 2024, the Company established a wholly owned subsidiary Quantum eHealth Technologies located at the same address; and on April 10, 2025 the Company established a wholly owned subsidiary in Irvine California.

The head office, principal address and records office of the Company are located at 2300 Alfred Nobel, Montreal, Qc, H4S 2A4. The Company is a developer of a new generation of quantum-based cryptographic solutions pursuant to the development of intellectual property and commercialization of cybersecurity solutions. (See 1.6 patent summary).

**1.3**  **<u>SENIOR MANAGEMENT CHANGES</u>** 

The Company appointed Mr. John Young, MBA, as Chief Operating Officer of its newly created subsidiary, Quantum eMotion America, effective April 1, 2025. Mr. Young has over 35 years of experience in cybersecurity and IT operations, having held senior roles at Fortune 50 companies, including IBM and McDonnell Douglas. Notably, he is one of only 11 professionals globally to hold all nine ISC2 cybersecurity certifications. Mr. Young is also a board member of Quantum eMotion.

The Company appointed Ms. Farrah N. Khan, as Senior Vice President of Business Development of its newly created subsidiary, Quantum eMotion America, effective April 1, 2025. Ms. Khan served as Mayor of Irvine—a city recognized as a global innovation hub with an estimated GDP ranging between $32 and $50 billion annually. During her tenure, she spearheaded initiatives that attracted substantial investments in emerging technologies including artificial intelligence, quantum communications, biotechnology, and

cybersecurity. Her vision and leadership helped position Irvine as a magnet for high-impact ventures and Fortune 500 partnerships.

The Company appointed Ms. Helen Woo, as Vice President of Business Development of its newly created subsidiary, Quantum eMotion America, effective April 1, 2025. Ms. Woo brings a distinguished track record in corporate development, with deep expertise in navigating complex financial ecosystems and forging high-impact relationships across the public and private sectors. Her accomplishments have been recognized by the U.S. House of Representatives and the California State Senate, underscoring her leadership and civic engagement. In 2023, she was named Ambassador of the Year by the Greater Irvine Chamber of Commerce, and most recently honored as Ambassador of the Month by the Newport Beach Chamber of Commerce in February 2025.

The Company appointed Mr. Klaus Kepper, CPA, as the Controller / Finance Director of the company on February 10, 2025. Mr. Kepper has over 30 years of experience in senior financial positions, mostly in the health care field. He also holds an MBA from Concordia University.

**1.4**  **<u>COMPANY OVERVIEW AND STRATEGY</u>** 

**RESEARCH AND DEVELOPMENT ACTIVITIES**

**Technology**

Our primary objective is to make our cryptographic solutions technology accessible as rapidly as possible to potential clients and partners, secure its effectiveness and ensure that the intellectual property is well protected. In order to stay focused on this objective, we are working closely with our partners to maximize the potential and security of our technology. The Company is developing complementary metal-oxide semiconductor ("CMOS") implementations with l'École de Technologie Supérieure ("ETS") to ensure greater competitiveness.

On July 2, 2025, Krown Technologies LLC, in collaboration with QeM announced that significant progress has been made in the development of two groundbreaking quantum-secure cryptocurrency wallets: the Qastle Quantum Hot Wallet and the Excalibur Quantum Cold Wallet. These advancements mark a pivotal step in safeguarding digital assets against the emerging threats of quantum computing.

On June 26, 2025, QeM announced the completion of an internal quantum simulation project assessing aspects of its cryptographic architecture. The benchmarking project, conducted in collaboration with PINQ², utilized IBM's Qiskit quantum computing framework to simulate Grover's algorithm—a quantum search algorithm known for its theoretical ability to speed up brute-force attacks on symmetric encryption schemes. The analysis focused on evaluating the relative complexity of attacking symmetric encryption algorithms when enhanced with entropy from QeM's proprietary Quantum Random Number Generator (QRNG).

On May 26, 2025, QeM announced the successful completion and validation of its first-generation Quantum Random Number Generator (QRNG) chip design. The 65-nm CMOS finalized design has been submitted for fabrication to Taiwan Semiconductor Manufacturing Company (TSMC), a leading global semiconductor foundry. The chip integrates critical components such as an ultra-low-noise wideband amplifier and a high-precision analog-to-digital converter, both successfully prototyped and validated by academic teams at ÉTS Montréal and the Institut Quantique at Université de Sherbrooke. This significant milestone permits QeM to target the global Quantum Random Number Generator (QRNG) chip market was valued at approximately USD 150 million in 2024 and is projected to reach USD 2 billion by 2033, registering a compound annual growth rate (CAGR) of 34.5% from 2026 to 2033

On January 22, 2025, QeM announced groundbreaking results for its state-of-the-art quantum-based hardware wallet, designed to revolutionize security in blockchain and cryptocurrency transactions. Recent studies highlight that this innovative solution reduces the risk of monetary loss by up to 98% compared to conventional hierarchical deterministic (HD) wallets. Announced last July, the wallet leverages Quantum eMotion's proprietary Quantum Random Number Generation (QRNG) technology and an intelligent key generation scheme, ensuring optimal performance for commercial blockchain applications. It provides a

cost-effective and compact solution by reusing hardware components for generating both parent and child keys, thus reducing costs and complexity.

On March 28, 2024, QeM announced that the project "Quantum random number generation for highly secure cryptography applications" will receive a $1.2 million grant from the Alliance Quantum program, managed by NSERC. Led by ÉTS in partnership with QeM, the project under Professor Ghyslain Gagnon, with co-grantee Prof. K. Zhang and contributors like Prof. B. Reulet from Université de Sherbrooke, focuses on developing scalable QRNG technologies. These innovations aim to bolster secure communications, integrate into Internet of Things (IoT) devices, and enhance security in DeFi ecosystems. The collaboration seeks to address challenges in QRNG commercialization, focusing on reducing energy consumption while leveraging quantum tunneling encryption for top-tier security.

On March 18, 2024, QeM announced a strategic partnership with the Platform for Digital and Quantum Innovation (PINQ²), an NPO established by the Ministry of Economy, Innovation and Energy of Quebec and Université de Sherbrooke. This collaboration aims to enhance the resilience of QeM's security platform against advanced threats, including simulated quantum computer attacks using IBM's Qiskit platform. PINQ², the exclusive operator of Canada's first 127-qubit IBM Quantum System One at IBM Bromont, will work with QeM to rigorously test and evaluate their Kyber algorithm and QRNG. This project will assess the security system's performance under simulated adversarial conditions, focusing on identifying strengths, weaknesses, and vulnerabilities, and ensuring alignment with strategic goals. The partnership leverages simulation tools like Qiskit to execute quantum attack simulations, thoroughly testing the security solution's robustness.

On February 21, 2024, QeM announced a breakthrough in developing its first Quantum Random Number Generator (QRNG) on a chip, a significant advancement in quantum communication technology. This development compactly integrates QRNG into a single chip, potentially less than 1 cm², revolutionizing quantum-based security designs. This innovation allows the sale of design cores, enabling integrated circuits vendors like Texas Instruments, Intel, and IBM to embed QRNG functionality directly into their products, expanding the reach and impact of quantum security technologies.

On January 10, 2024, QeM launched Quantum eHealth Inc., a subsidiary focused on healthcare applications for its advanced cybersecurity technology. By spinning off its Digital Healthcare Cybersecurity Activities into this new entity, QeM aims to capitalize on the growing digital healthcare security market. Quantum eHealth Inc. will hold an exclusive license to use QeM's intellectual property in the healthcare sector. Meanwhile, QeM will continue developing and marketing various iterations of its Quantum Random Number Generator (QRNG) across other sectors, including financial services, blockchain, military, information technology and others.

**Patents**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Status of patents** | &nbsp;&nbsp;**Status of patents** |
| &nbsp;&nbsp; ***First Patent Family*:**<br> **Method for generating random numbers and associated random number generator**<br>*The 1st generation technology is the revolutionary technology which is at the origin of Quantum eMotion. Several patents protect the exclusivity of this technology. In particular, two patents were obtained in the United States to fully cover the technology, and patents were also obtained in Australia, Brazil, Canada, China, Germany, Spain, Finland, France, Great Britain, Italy, India, South Korea, the Netherlands, Russia, Sweden and Thailand. Quantum eMotion mandated a law firm to perform a very exhaustive novelty verification, including independent professional patent searches in three different jurisdictions, which provides an extraordinary level of confidence in the strength of these patents* | &nbsp;&nbsp; ***First Patent Family*:**<br> **Method for generating random numbers and associated random number generator**<br>*The 1st generation technology is the revolutionary technology which is at the origin of Quantum eMotion. Several patents protect the exclusivity of this technology. In particular, two patents were obtained in the United States to fully cover the technology, and patents were also obtained in Australia, Brazil, Canada, China, Germany, Spain, Finland, France, Great Britain, Italy, India, South Korea, the Netherlands, Russia, Sweden and Thailand. Quantum eMotion mandated a law firm to perform a very exhaustive novelty verification, including independent professional patent searches in three different jurisdictions, which provides an extraordinary level of confidence in the strength of these patents* |
| &nbsp;&nbsp;**Country** | &nbsp;&nbsp;**Status** |
| &nbsp;&nbsp;United States | &nbsp;&nbsp;Two patents were granted in the United States, including a first one granted on August 7, 2018, and a second granted on October 8, 2019. |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp; <br> European Patent Office | &nbsp;&nbsp;EPO granted the patent on February 19, 2020. The European Patent has been validated in several countries: Germany, Spain, Finland, France, Great-Britain, Italy, Sweden and the Netherlands. |
| &nbsp;&nbsp;Australia, Brazil, Canada, China, India, Republic of<br> Korea, Russia, Thailand | &nbsp;&nbsp;Patent granted |
| &nbsp;&nbsp; ***Second Patent Family*:**<br> **Method and system for generating a random bit sample**<br>*The 2nd generation technology has a particular synergy with the 1st generation technology. Indeed, in practical applications, electronic elements such as amplifiers may impart classical noise into the quantum signal, which may make the signal not truly quantum, and thus not truly random. The 2nd generation technology provides means of extracting a purely random quantum signal as a quantum number source independently of the presence of classical noise. Several patents protect the exclusivity of this technology. In particular, two patents were obtained in the United States to fully cover the technology, and patents were also obtained in Australia, Germany, Spain, Finland, France, Great Britain, Indonesia, Italy, Japan, the Netherlands, Russia, Canada, China, India, South Korea and Sweden, and the patent application remains pending in Brazil and Thailand.* | &nbsp;&nbsp; ***Second Patent Family*:**<br> **Method and system for generating a random bit sample**<br>*The 2nd generation technology has a particular synergy with the 1st generation technology. Indeed, in practical applications, electronic elements such as amplifiers may impart classical noise into the quantum signal, which may make the signal not truly quantum, and thus not truly random. The 2nd generation technology provides means of extracting a purely random quantum signal as a quantum number source independently of the presence of classical noise. Several patents protect the exclusivity of this technology. In particular, two patents were obtained in the United States to fully cover the technology, and patents were also obtained in Australia, Germany, Spain, Finland, France, Great Britain, Indonesia, Italy, Japan, the Netherlands, Russia, Canada, China, India, South Korea and Sweden, and the patent application remains pending in Brazil and Thailand.* |
| &nbsp;&nbsp;**Country** | &nbsp;&nbsp;**Status** |
| &nbsp;&nbsp;European Patent Office | &nbsp;&nbsp;EPO granted the patent on October 23, 2019. The European Patent has been validated in Germany, Spain, United Kingdom, Finland, France, Italy, Sweden and the Netherlands. |
| &nbsp;&nbsp;United States | &nbsp;&nbsp;Two patents were granted. |
| &nbsp;&nbsp;Brazil, Thailand | &nbsp;&nbsp;Patent pending |
| &nbsp;&nbsp;Australia, Russia, Indonesia, Canada, China, India, Japan, South Korea | &nbsp;&nbsp;Granted |
| &nbsp;&nbsp; ***Third Patent Family*:**<br> **System and Method for Generating a Random Number, and circuit for communicating an analog random signal**<br>*3rd generation technology harnesses the commercial availability and low costs of consumer electronics, such as audio processing hardware in particular, in quantum number generation, further democratizing the availability of truly random numbers.* | &nbsp;&nbsp; ***Third Patent Family*:**<br> **System and Method for Generating a Random Number, and circuit for communicating an analog random signal**<br>*3rd generation technology harnesses the commercial availability and low costs of consumer electronics, such as audio processing hardware in particular, in quantum number generation, further democratizing the availability of truly random numbers.* |
| &nbsp;&nbsp;**Country** | &nbsp;&nbsp;**Status** |
| &nbsp;&nbsp;United States | &nbsp;&nbsp;Patent pending |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp; ***Fourth Patent Family***<br> **Method of Operating A Blockchain Wallet**<br>*Cryptocurrency (e.g., blockchain) wallets make heavy use of large series of numbers referred to as keys. There are different schemes to generate keys, such as ND and HD, and each scheme has its advantages and disadvantages. When providing a blockchain wallet to an unknown user, it is not possible to adapt the key generation scheme to the user's type of use, leading to mismatches between the types of key generation schemes and the users. Quantum eMotion's 4th generation technology alleviates these inconveniences by providing a wallet which intelligently selects the key generation scheme, based on a comparison of cost values of the different key generation schemes. Moreover, by leveraging quantum eMotion's QRNG technologies, a blockchain wallet combining the advantages of true random number generation with intelligent key generation scheme selection can now be made available to consumers, a product of an unparalleled level of functionality.*<br>*Quantum eMotion's 4th generation technology is now patent pending worldwide. More specifically, the patent application was filed under the Patent Cooperation Treaty on March 28, 2024, bearing number PCT/CA2024/050391 and claiming March 30, 2023 as a priority date. The Patent Cooperation Treaty is an international treaty which provides a means of reserving international patent protection in more than 150 member states for a period of 30 months from the priority date. Accordingly, Quantum eMotion's international pendency for the 4th generation technology will last until Sept. 30, 2025, at which point pendency will continue nationally in the countries and regions which will have been ultimately selected.* | &nbsp;&nbsp; ***Fourth Patent Family***<br> **Method of Operating A Blockchain Wallet**<br>*Cryptocurrency (e.g., blockchain) wallets make heavy use of large series of numbers referred to as keys. There are different schemes to generate keys, such as ND and HD, and each scheme has its advantages and disadvantages. When providing a blockchain wallet to an unknown user, it is not possible to adapt the key generation scheme to the user's type of use, leading to mismatches between the types of key generation schemes and the users. Quantum eMotion's 4th generation technology alleviates these inconveniences by providing a wallet which intelligently selects the key generation scheme, based on a comparison of cost values of the different key generation schemes. Moreover, by leveraging quantum eMotion's QRNG technologies, a blockchain wallet combining the advantages of true random number generation with intelligent key generation scheme selection can now be made available to consumers, a product of an unparalleled level of functionality.*<br>*Quantum eMotion's 4th generation technology is now patent pending worldwide. More specifically, the patent application was filed under the Patent Cooperation Treaty on March 28, 2024, bearing number PCT/CA2024/050391 and claiming March 30, 2023 as a priority date. The Patent Cooperation Treaty is an international treaty which provides a means of reserving international patent protection in more than 150 member states for a period of 30 months from the priority date. Accordingly, Quantum eMotion's international pendency for the 4th generation technology will last until Sept. 30, 2025, at which point pendency will continue nationally in the countries and regions which will have been ultimately selected.* |
| **Country** | **Status** |
| Patent Cooperation Treaty | Rights reserved in all PCT member states until September 2025 |
| &nbsp;&nbsp; ***Fifth Patent Family***<br> **Hardware Wallet Apparatuses and Method of Generating Cryptographic Keys Using Same**<br>*Quantum eMotion Corp. is proud to announce that it has developed yet another technology associated to the cryptocurrency industry. More specifically, we have developed our own hardware wallet technology which has a low footprint and competitive cost, while allowing to leverage several of its other core technologies, such as the Quantum Random Number Generation (QRNG) and its intelligent key generation scheme selection technologies, in new commercial applications. A combination of a patent application and industrial secret for the hardware wallet technology will target international intellectual property protection*. *Namely, Quantum eMotion's 5th generation technology is now patent pending worldwide. More specifically, the patent application was filed under the Patent Cooperation Treaty. The Patent Cooperation Treaty is an international treaty which provides a means of reserving international patent protection in more than 150 member states until December 2026, at which point pendency will continue nationally in the countries and regions which will have been ultimately selected.* | &nbsp;&nbsp; ***Fifth Patent Family***<br> **Hardware Wallet Apparatuses and Method of Generating Cryptographic Keys Using Same**<br>*Quantum eMotion Corp. is proud to announce that it has developed yet another technology associated to the cryptocurrency industry. More specifically, we have developed our own hardware wallet technology which has a low footprint and competitive cost, while allowing to leverage several of its other core technologies, such as the Quantum Random Number Generation (QRNG) and its intelligent key generation scheme selection technologies, in new commercial applications. A combination of a patent application and industrial secret for the hardware wallet technology will target international intellectual property protection*. *Namely, Quantum eMotion's 5th generation technology is now patent pending worldwide. More specifically, the patent application was filed under the Patent Cooperation Treaty. The Patent Cooperation Treaty is an international treaty which provides a means of reserving international patent protection in more than 150 member states until December 2026, at which point pendency will continue nationally in the countries and regions which will have been ultimately selected.* |
| **Country** | **Status** |
| Patent Cooperation Treaty | Rights reserved in all PCT member states until December 2026 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4**  **<u>COMPANY OVERVIEW AND STRATEGY</u>** 

**<u>BUSINESS DEVELOPMENT ACTIVITIES</u>**

On June 30, 2025, QeM announced the conversion of $350,000 in debt into equity and an additional investment of $350,000 in Greybox Solutions Inc., strengthening its position as the second-largest shareholder in that company. This strategic investment, made at an attractive valuation, reflects QeM's strong confidence in Greybox's rapid growth trajectory and unique position in the fast-evolving Remote Care Management and Digital Therapeutics (DTx) sector. Greybox's recent launch of the secure TakeCareTM platform across Quebec leading rehabilitation centers has led to strategic commercial wins, positioning the company as a rising leader in digital health with a scalable, value-based model across Canada and beyond.

On April 2, 2025, QeM announced the official launch of its U.S. subsidiary, Quantum eMotion America (QeMA), headquartered in Irvine, California. This strategic expansion marks a significant milestone in QeM's international growth, designed to accelerate sales, forge new partnerships, and drive business development across the U.S. cybersecurity sector. California was selected for QeM's first American office due to its vibrant technology ecosystem, access to top-tier talent, strategic global connectivity, and strong support for innovative enterprises. Irvine, in particular, offers proximity to major defense, enterprise, and academic hubs, positioning QeMA for sustained growth and market leadership.

On February 19, 2025, QeM announced a non-exclusive licensing agreement with Quantolio, a leading provider of AI-driven financial solutions. This strategic partnership grants Quantolio access to QeM's proprietary Entropy-as-a-Service (EaaS) technology, enabling groundbreaking advancements in financial applications and quantum artificial intelligence (Quantum AI). Under the terms of the agreement, Quantolio will integrate QeM's quantum-based technology into its AI-powered financial platforms. QeM's EaaS technology provides robust, high-entropy quantum randomness, ensuring enhanced security and performance in sensitive financial computations and AI-driven decision-making processes. For instance, EaaS can synergize AI-powered financial forecasting platforms by guaranteeing truly unpredictable stochastic processes. QRNG technology enhances Monte Carlo simulations, optimizes risk management models, and improves market prediction capabilities. Quantolio receives a non-exclusive, worldwide license to leverage QeM's proprietary EaaS technology within finance, FinTech, and Quantum AI applications. In exchange, Once the Quantum-powered financial platforms are commercially available, Quantolio will pay QeM an annual licensing fee of $1.0 million, with additional revenue-sharing terms.

On December 23rd, 2024, QeM announced a major milestone in the commercialization of its cloud-based Sentry-Q platform, designed to address critical, unmet cybersecurity challenges in modern telemedicine and digital healthcare. QeM's partner, GreyBox Solutions entered a strategic commercial alliance with Becton Dickinson (BD), a global powerhouse in the medical device and diagnostics industry with over $20 billion in annual sales. This partnership centers on advancing remote patient monitoring to improve the quality of life for patients with chronic diseases while empowering clinicians to monitor multiple patients efficiently. The initiative will launch in Canada, expand to the USA, and potentially scale to global markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 <u>SELECTED PERIODIC INFORMATION</u> 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Periods ended June 30** | **Periods ended June 30** | **Periods ended June 30** | **Periods ended June 30** | **Periods ended June 30** |
|  | &nbsp;&nbsp; **2025**<br> **$** | &nbsp;&nbsp; 2024<br> $ | &nbsp;&nbsp; 2024<br> $ | &nbsp;&nbsp; 2023<br> $ |
| &nbsp;&nbsp;Net loss and comprehensive loss | **(4868768)** | (1220083) | (1220083) | (1037448) |
| &nbsp;&nbsp;Basic and diluted loss per share | **(0.027)** | (0.009) | (0.009) | (0.008) |
| &nbsp;&nbsp; <br> **Balance as at** | &nbsp;&nbsp; <br> **Balance as at** | &nbsp;&nbsp; <br> **Balance as at** | &nbsp;&nbsp; <br> **Balance as at** | &nbsp;&nbsp; <br> **Balance as at** |
|  | &nbsp;&nbsp; **June 30, 2025**<br> **$** | &nbsp;&nbsp; **June 30, 2025**<br> **$** | &nbsp;&nbsp; December 31, 2024<br> $ | &nbsp;&nbsp; December 31, 2024<br> $ |
| &nbsp;&nbsp;Cash and marketable securities | **24073945** | **24073945** | 1446741 | 1446741 |
| &nbsp;&nbsp;Total assets | **24574858** | **24574858** | 1857449 | 1857449 |
| &nbsp;&nbsp;Total liabilities | **511305** | **511305** | 519606 | 519606 |
| &nbsp;&nbsp;Equity | **24063553** | **24063553** | 1337843 | 1337843 |

---

**1.6**  **<u>Licenses and Property, Plant and Equipment</u>** 

The carrying amount of non-current assets at June 30, 2025 is:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**PP&E** | &nbsp;&nbsp;**Licenses** | &nbsp;&nbsp;**Rights on royalties** | &nbsp;&nbsp;**Total** |
|  |  | &nbsp;&nbsp;**$** | &nbsp;&nbsp;**$** | &nbsp;&nbsp;**$** |
| &nbsp;&nbsp;**Cost** |  |  |  |  |
| &nbsp;&nbsp;December 31, 2024 | &nbsp;&nbsp;- | &nbsp;&nbsp;446112 | &nbsp;&nbsp;350000 | &nbsp;&nbsp;796112 |
| &nbsp;&nbsp;Additions | &nbsp;&nbsp;**5516** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**5516** |
| &nbsp;&nbsp;**June 30, 2025** | &nbsp;&nbsp;**5516** | &nbsp;&nbsp;**446112** | &nbsp;&nbsp;**350000** | &nbsp;&nbsp;**801628** |
| **Accumulated amortization, impairment and loss on derecognition** |  |  |  |  |
| &nbsp;&nbsp;December 31, 2024 | &nbsp;&nbsp;- | &nbsp;&nbsp;116723 | &nbsp;&nbsp;350000 | &nbsp;&nbsp;466723 |
| &nbsp;&nbsp;Amortization | &nbsp;&nbsp;**613** | &nbsp;&nbsp;**11152** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**11765** |
| &nbsp;&nbsp;**June 30, 2025** | &nbsp;&nbsp;**613** | &nbsp;&nbsp;**127875** | &nbsp;&nbsp;**350000** | &nbsp;&nbsp;**478488** |
| &nbsp;&nbsp;Netbook value |  |  |  |  |
| &nbsp;&nbsp;December 31, 2024 | &nbsp;&nbsp;- | &nbsp;&nbsp;329389 | &nbsp;&nbsp;**-** | &nbsp;&nbsp;329389 |
| &nbsp;&nbsp;**June 30, 2025** | &nbsp;&nbsp;**4903** | &nbsp;&nbsp;**318237** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**323140** |

---

In relation to the license, the Company will pay a royalty of 5% calculated on the net sales price of products sold by the Company until the expiry of the last patent, which is expected to be in May 2035.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 <u>SELECTED FINANCIAL INFORMATION AND OPERATING RESULTS</u> 

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Periods ended June 30** | &nbsp;&nbsp;**Periods ended June 30** | &nbsp;&nbsp;**Periods ended June 30** | &nbsp;&nbsp;**Periods ended June 30** |
|  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;2024 | &nbsp;&nbsp;Variance<br> Inc/(dec) |
|  | &nbsp;&nbsp;**$** | &nbsp;&nbsp;$| &nbsp;&nbsp;$|
| &nbsp;&nbsp;**Expenses** |  |  |  |
| &nbsp;&nbsp;Research and development | &nbsp;&nbsp;**518502** | &nbsp;&nbsp;468258 | &nbsp;&nbsp;**50244** |
| &nbsp;&nbsp;General and administrative | &nbsp;&nbsp;**1041026** | &nbsp;&nbsp;653648 | &nbsp;&nbsp;**387378** |
| &nbsp;&nbsp;Marketing and selling | &nbsp;&nbsp;**260638** | &nbsp;&nbsp;51260 | &nbsp;&nbsp;**209378** |
| &nbsp;&nbsp;Share-based payments | &nbsp;&nbsp;**3126265** | &nbsp;&nbsp;46129 | &nbsp;&nbsp;**3080136** |
| &nbsp;&nbsp;Amortization | &nbsp;&nbsp;**11766** | &nbsp;&nbsp;11092 | &nbsp;&nbsp;**674** |
| &nbsp;&nbsp;Net financial expense (income) | &nbsp;&nbsp;**(89428)** | &nbsp;&nbsp;(10304) | &nbsp;&nbsp;**(79124)** |
| &nbsp;&nbsp;**Net loss and comprehensive loss for the year** | &nbsp;&nbsp;**4868768** | &nbsp;&nbsp;1220083 | &nbsp;&nbsp;**3648685** |
| &nbsp;&nbsp;**Basic and diluted loss per share** | &nbsp;&nbsp;**0.027** | &nbsp;&nbsp;0.009 | &nbsp;&nbsp;**-** |
| &nbsp;&nbsp;**Weighted average number of common shares outstanding** | &nbsp;&nbsp;**177999988** | &nbsp;&nbsp;137438064 | &nbsp;&nbsp;**40561924** |

---

Key differences: *Note R&D for 2024 was restated to conform to 2025 reporting with the offset in G&A. The total transfer was $132,861 and related to patents and wages.*

● R&D: increase of $50,244 relates primarily to ramping up R&D spend.

● G&A: the increase of $387,378 relates primarily to higher audit fees; higher TSX-V listing fees; higher compensation costs primarily relating to new employees in subsidiary; higher legal fees; and higher travel/conference fees.

● Marketing: the increase of $209,378 relates primarily to increased marketing/promotion effort as there was no such activity in H1/24

● Share-based payments; the increase of $3.1 million in this non-cash expense relates to the high number of options granted and that approximately 74% of the options vested immediately, bringing most of the related expense into the first quarter. Additional options were awarded in the second quarter primarily to new employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 <u>SUMMARY OF QUARTERLY RESULTS</u> 

The following table sets forth selected quarterly financial information for each of the twelve most recently completed quarters.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Three-month period ended** | &nbsp;&nbsp;**Net loss and comprehensive loss<br> for the period** | &nbsp;&nbsp;**Basic and diluted loss per share** |
|  | &nbsp;&nbsp;$| &nbsp;&nbsp;$|
| &nbsp;&nbsp;**June 30, 2025** | &nbsp;&nbsp;**(1517433)** | &nbsp;&nbsp;**(0.008)** |
| &nbsp;&nbsp;**March 31, 2025** | &nbsp;&nbsp;**(3351336)** | &nbsp;&nbsp;**(0.020)** |
| &nbsp;&nbsp;December 31, 2024 | &nbsp;&nbsp;(1151251) | &nbsp;&nbsp;(0.008) |
| &nbsp;&nbsp;September 30, 2024 | &nbsp;&nbsp;(597403) | &nbsp;&nbsp;(0.004) |
| &nbsp;&nbsp;June 30, 2024 | &nbsp;&nbsp;(727891) | &nbsp;&nbsp;(0.005) |
| &nbsp;&nbsp;March 31, 2024 | &nbsp;&nbsp;(492193) | &nbsp;&nbsp;(0.004) |
| &nbsp;&nbsp;December 31, 2023 | &nbsp;&nbsp;(792952) | &nbsp;&nbsp;(0.006) |
| &nbsp;&nbsp;September 30, 2023 | &nbsp;&nbsp;(556376) | &nbsp;&nbsp;(0.004) |
| &nbsp;&nbsp;June 30, 2023 | &nbsp;&nbsp;(532956) | &nbsp;&nbsp;(0.004) |
| &nbsp;&nbsp;March 31, 2023 | &nbsp;&nbsp;(504492) | &nbsp;&nbsp;(0.004) |
| &nbsp;&nbsp;December 31, 2022 | &nbsp;&nbsp;(1053975) | &nbsp;&nbsp;(0.008) |
| &nbsp;&nbsp;September 30, 2022 | &nbsp;&nbsp;(517750) | &nbsp;&nbsp;(0.004) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 <u>LIQUIDITY</u> 

In the second quarter of 2025, the Company had net non-cash working capital of $23,6 million compared to a non- cash net working capital of $0.7 million in the same period in the prior year. The increase relates primarily to the two brokered private placements that raised gross proceeds of $22.0 million in the first half of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 <u>CASH FLOWS</u> 

In the first half of 2025, the Company generated an increase of $22.9 million more cash flow from operations and financing than compared to the same period in the prior year. The increase relates primarily to the two brokered private placements that raised total gross proceeds of $22.0 million in the first half of 2025. Cash used in operations increased by $0.8 million reflecting the continued investment in product development and transitioning to commercialization.

On June 2, 2025, the Company completed a brokered LIFE financing, issuing a total of 8,000,000 units at a price of $1.50 per unit for gross proceeds of $12,000,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.82 for a period of 3 years following the closing of the date of issuance. There is no hold period for trading the warrants.

Unit issuance costs, which include a broker fee of 6.0% as well as legal and listing costs, of $857,178 were recorded in the second quarter of 2025. In addition, the Company issued 320,000 warrants representing 4% of the units issued to the Agent that brokered the private placement. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.66 for a period of 2.5 years following the closing of the date of issuance. There is no hold period for trading the warrants.

On February 24, 2025, the Company completed a brokered LIFE financing, issuing a total of 13,333,333 units at a price of $0.75 per unit for gross proceeds of $10,000,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.10 for a period of 3 years following the closing of the date of issuance. There is no hold period for trading the warrants.

Unit issuance costs, which include a broker fee of 6.5% as well as legal and listing costs, of $811,413 were recorded in the first quarter of 2025. In addition, the Company issued 666,666 warrants representing 5% of the issued units to the Agent that brokered the private placement. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.88 for a period of 2.5 years following the closing of the date of issuance. There is no hold period for trading the warrants.

On November 15, 2024, the Company completed a non-brokered private placement, issuing a total of 7,500,000 units at a price of $0.10 per unit for gross proceeds of $750,000. Each unit is comprised of one common share and one warrant. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.20 for a period of 24 months following the closing of the private placement. The securities issued in the private placement are subject to a four-month and one day hold period expiring on March 16, 2025. Unit issuance costs of $100 were recorded and paid in the fourth quarter of 2024.

On March 20, 2024, the Company completed a non-brokered private placement, issuing a total of 15,000,000 units at a price of $0.05 per unit for gross proceeds of $750,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.15 for a period of 12 months following the closing of the private placement. The securities issued in the private placement are subject to a four-month and one day hold period expiring on July 22, 2024. Unit issuance costs of $1,000 were recorded and paid in the first quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 <u>STOCK OPTIONS</u> 

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**June 30, 2025** | &nbsp;&nbsp;December 31, 2024 | &nbsp;&nbsp;December 31, 2024 |
|  | &nbsp;&nbsp;**Number of <br> options** | &nbsp;&nbsp;Number of options | &nbsp;&nbsp;Weighted average <br> exercise price |
|  |  | $&nbsp;&nbsp; | &nbsp;&nbsp;$|
| &nbsp;&nbsp;Balance outstanding, beginning of period | &nbsp;&nbsp;**10452237** | &nbsp;&nbsp;9139737 | &nbsp;&nbsp;0.13 |
| &nbsp;&nbsp;Granted | &nbsp;&nbsp;**6170000** | &nbsp;&nbsp;1850000 | &nbsp;&nbsp;0.08 |
| &nbsp;&nbsp;Exercised | &nbsp;&nbsp;**(1312000)** | &nbsp;&nbsp;(250000) | &nbsp;&nbsp;0.09 |
| &nbsp;&nbsp;Expired / cancelled / Forfeited | &nbsp;&nbsp;**(1300000)** | &nbsp;&nbsp;(250000) | &nbsp;&nbsp;0.08 |
| &nbsp;&nbsp;Balance outstanding, end of year | &nbsp;&nbsp;**14009737** | &nbsp;&nbsp;10452237 | &nbsp;&nbsp;0.15 |
| &nbsp;&nbsp;Balance exercisable, end of period | &nbsp;&nbsp;**10643487** | &nbsp;&nbsp;8791612 | &nbsp;&nbsp;0.14 |

---

The weighted average remaining contractual life for options outstanding on June 30, 2025, is 6.44 (December 31, 2024 – 4.64) years.

Share-based compensation recognized under this plan amounted to $3,126,265 for the period ended June 30, 2025 (June 30, 2024 - $46,129). Options are awarded to officers, employees, consultants and occasionally to third-parties and are recorded to general and administrative expenses.

1.12 <u>OFF-BALANCE SHEET ARRANGEMENTS</u> 

The Company does not have any off-balance sheet arrangements.

1.13 <u>FINANCIAL INSTRUMENTS</u> 

All financial instruments are recognized when the Company becomes a party to the contractual provisions of the financial instrument and are initially measured at fair value plus transaction costs, except for financial assets and financial liabilities carried at fair value through profit or loss, which are measured initially at fair value. Financial assets are derecognized when the contractual right to the cash flows from the financial assets expires, or when the financial asset and all substantial risks and rewards are transferred. Refer to Note 11 of the annual consolidated financial statements for the year ended December 31, 2024, for additional information on the Company's financial instruments.

1.14 <u>FINANCIAL RISK MANAGEMENT</u> 

In the normal course of operations, the Company is exposed to various financial risks. Refer to Note 11 of the annual consolidated financial statements for the year ending December 31, 2024, for additional information on the Company's main financial risks.

1.15 MANAGEMENT OF CAPITAL

The capital structure of the Company consists of equity attributable to common shareholders, comprising issued share capital, reserves and deficit. The Company's objectives when managing capital are to: (i) preserve capital; (ii) obtain the best available net return; and (iii) maintain liquidity.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares. There were no changes to the Company's approach to capital management during the year ended December 31, 2024.

The Company is not subject to externally imposed capital requirements.

1.16 <u>RELATED PARTY TRANSACTIONS</u> 

The Company's related parties include companies owned by key management. The Company paid Management fees to key management through their management companies as follows

● Management compensation of $36,000 to LVR Capital, a company owned by the Chief Financial Officer. As at June 30, 2025, $6,000 (December 2024 – $6,000) was due to that company.

● Management compensation of $150,000 to Aurakle Research, a company owned by the Chief Executive Officer. As at June 30, 2025, $145,000 (2024 – $161,306) was due to that company.

● Director's fees of $15,000; an advance of $25,000 and other fees of $36,023 to Baystream Corporation, a company owned by a Director. As at June 30, 2025, $nil (2024 – $17,680) was due to that company.

● Director's fees of $15,000 to Red River Solutions a company owned by a Director. As at June 30, 2025, $7,875 (2024 – $7,875) was due to that company.

● Director's fees of $15,000 to SLT Solutions, a company owned by a Director. As at June 30, 2025, $15,000 (2024 – $7,500) was due to that company.

● Management compensation of US $36,000 and Management fees of US $15,000 to CyberDef LLC, a company owned by a Director. As at June 30, 2025, US $19,500 (2024 – USD 7,500) was due to that company.

● Research and development costs of $281,081 to Fileglobal, a company owned by a Director. As at June 30, 2025, $56,791 (2024 – $25,775) was due to that company.

**Transactions with key management**

The key management of the Company are the members of senior management and the Board. The remuneration and other expenses for the period ended March 31, 2025, for key management (including the amounts above) are as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;**June 30, 2025** | &nbsp;&nbsp;June 30, 2024 |
|  | &nbsp;&nbsp;**$** | &nbsp;&nbsp;$|
| &nbsp;&nbsp;**Research and development** | &nbsp;&nbsp;**281081** | &nbsp;&nbsp;245397 |
| &nbsp;&nbsp;**Management salaries** | &nbsp;&nbsp;**235733** | &nbsp;&nbsp;183002 |
| &nbsp;&nbsp;**Directors' fees** | &nbsp;&nbsp;**65924** | &nbsp;&nbsp;60000 |
| &nbsp;&nbsp;Other fees | &nbsp;&nbsp;**36023** | &nbsp;&nbsp;21350 |
| &nbsp;&nbsp;Share based costs | &nbsp;&nbsp;**2485276** | &nbsp;&nbsp;61091 |
|  | &nbsp;&nbsp;**3054299** | &nbsp;&nbsp;570840 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17 <u>CRITICAL ACCOUNTING ESTIMATE AND JUDGEMENTS</u> 

The critical accounting estimates and judgements are described in Note 3 of the annual consolidated financial statements for the year ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 <u>CHANGES IN MATERIAL ACCOUNTING POLICIES</u> 

The accounting policies used are those described in the Company's annual consolidated financial statements in Note 3 for the year ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19 <u>OTHER</u> 

Disclosure of Outstanding Securities as at June 30, 2025.

Outstanding common shares: 200,300,337<br> Outstanding options: 14,009,737

Outstanding share purchase warrants: 25,618,333

(s) Francis Bellido, Chief Executive Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Marc Rousseau, Chief Financial Officer Montreal (Quebec), August 15, 2025

## Exhibit 99.6

**Exhibit 99.6**

QUANTUM eMOTION CORP.

**Management's Discussion and Analysis**

**Periods ended March 31, 2025, and 2024**

**May 29, 2025**

**QUANTUM eMOTION CORP.**

The following management's discussion and analysis ("MD&A") of the financial position and results of the operations and cash flows of Quantum eMotion Corp. (the "Company", "QeM" or "Quantum") constitutes management's review of the factors that affected the Company's financial and operating performance for the quarter ended March 31, 2025, compared to the same period of the prior year which have been prepared in accordance with International Financial Reporting Systems (IFRS.)

Further information regarding the Company and its operations are filed electronically on the System for Electronic Document Analysis and Retrieval + ("SEDAR+") in Canada and can be obtained from www.sedarplus.ca.

1.1 <u>FORWARD LOOKING STATEMENTS</u> 

The sections of this MD&A on the Company's strategy and action plan, its intellectual properties, development and financial reporting reflecting management's current expectations contain "forward-looking statements." Such statements should be understood in context, particularly statements that reflect the Company's opinions, estimates and expectations about future events or results. Such forward-looking statements are subject to certain factors and involve some risks and uncertainties. There can be no assurance that such statements will prove to be accurate. Factors that could cause future results, activities and events to differ materially from those expressed or implied by such forward-looking statements include, but not limited to, securing future financing inclusive of exercise of stock options and warrants, the possibility that additional research and development will not result in the timely achievement of additional patents, risks inherent in the Hi-Tech industry, and the time it will take for the industry to be ready to move to quantic solutions. These risks and uncertainties are described in this MD&A and in the annual information form filed on SEDAR+.

1.2 <u>INCORPORATION AND NATURE OF OPERATIONS</u> 

Quantum eMotion Corp. was incorporated under the *Business Corporations Act* of Ontario on July 19, 2007.

The head office, principal address and records office of the Company are located at 2300 Alfred Nobel, Montreal, Qc, H4S 2A4. The Company is a developer of a new generation of quantum-based cryptographic solutions pursuant to the development of intellectual property and commercialization of cybersecurity solutions. (See 1.6 patent summary).

1.3 <u>SENIOR MANAGEMENT CHANGES</u> 

The Company has appointed Mr. Klaus Kepper, CPA, as the Controller / Finance Director of the company. Mr. Kepper has over 30 years of experience in senior financial positions, mostly in the health care field. He also holds an MBA from Concordia University.

**1.4**  **<u>COMPANY OVERVIEW AND STRATEGY</u>** 

**RESEARCH AND DEVELOPMENT ACTIVITIES**

**Technology**

Our primary objective is to make our cryptographic solutions technology accessible as rapidly as possible to potential clients and partners, secure its effectiveness and ensure that the intellectual property is well protected. In order to stay focused on this objective, we are working closely with our partners to maximize the potential and security of our technology. The Company is developing complementary metal-oxide semiconductor ("CMOS") implementations with l'École de Technologie Supérieure ("ETS") to ensure greater competitiveness.

On January 10, 2024, QeM launched Quantum eHealth Inc., a subsidiary focused on healthcare applications for its advanced cybersecurity technology. By spinning off its Digital Healthcare Cybersecurity Activities into this new entity, QeM aims to capitalize on the growing digital healthcare security market. Quantum eHealth Inc. will hold an exclusive license to use QeM's intellectual property in the healthcare

**QUANTUM eMOTION CORP.**

sector. Meanwhile, QeM will continue developing and marketing various iterations of its Quantum Random Number Generator (QRNG) across other sectors, including financial services, blockchain, military, information technology and others.

On February 21, 2024, QeM announced a breakthrough in developing its first Quantum Random Number Generator (QRNG) on a chip, a significant advancement in quantum communication technology. This development compactly integrates QRNG into a single chip, potentially less than 1 cm², revolutionizing quantum-based security designs. This innovation allows the sale of design cores, enabling integrated circuits vendors like Texas Instruments, Intel, and IBM to embed QRNG functionality directly into their products, expanding the reach and impact of quantum security technologies.

On March 18, 2024, QeM announced a strategic partnership with the Platform for Digital and Quantum Innovation (PINQ²), an NPO established by the Ministry of Economy, Innovation and Energy of Quebec and Université de Sherbrooke. This collaboration aims to enhance the resilience of QeM's security platform against advanced threats, including simulated quantum computer attacks using IBM's Qiskit platform. PINQ², the exclusive operator of Canada's first 127-qubit IBM Quantum System One at IBM Bromont, will work with QeM to rigorously test and evaluate their Kyber algorithm and QRNG. This project will assess the security system's performance under simulated adversarial conditions, focusing on identifying strengths, weaknesses, and vulnerabilities, and ensuring alignment with strategic goals. The partnership leverages simulation tools like Qiskit to execute quantum attack simulations, thoroughly testing the security solution's robustness.

On March 28, 2024, QeM announced that the project "Quantum random number generation for highly secure cryptography applications" will receive a $1.2 million grant from the Alliance Quantum program, managed by NSERC. Led by ÉTS in partnership with QeM, the project under Professor Ghyslain Gagnon, with co-grantee Prof. K. Zhang and contributors like Prof. B. Reulet from Université de Sherbrooke, focuses on developing scalable QRNG technologies. These innovations aim to bolster secure communications, integrate into Internet of Things (IoT) devices, and enhance security in DeFi ecosystems. The collaboration seeks to address challenges in QRNG commercialization, focusing on reducing energy consumption while leveraging quantum tunneling encryption for top-tier security.

On January 22, 2025, QeM announced groundbreaking results for its state-of-the-art quantum-based hardware wallet, designed to revolutionize security in blockchain and cryptocurrency transactions. Recent studies highlight that this innovative solution reduces the risk of monetary loss by up to 98% compared to conventional hierarchical deterministic (HD) wallets. Announced last July, the wallet leverages Quantum eMotion's proprietary Quantum Random Number Generation (QRNG) technology and an intelligent key generation scheme, ensuring optimal performance for commercial blockchain applications. It provides a cost-effective and compact solution by reusing hardware components for generating both parent and child keys, thus reducing costs and complexity.

On May 26th 2025 QeM announced the successful completion and validation of its first-generation Quantum Random Number Generator (QRNG) chip design. The 65-nm CMOS finalized design has been submitted for fabrication to Taiwan Semiconductor Manufacturing Company (TSMC), a leading global semiconductor foundry. The chip integrates critical components such as an ultra-low-noise wideband amplifier and a high-precision analog-to-digital converter, both successfully prototyped and validated by academic teams at ÉTS Montréal and the Institut Quantique at Université de Sherbrooke. This significant milestone permits QeM to target the global Quantum Random Number Generator (QRNG) chip market was valued at approximately USD 150 million in 2024 and is projected to reach USD 2 billion by 2033, registering a compound annual growth rate (CAGR) of 34.5% from 2026 to 2033.

**Patents**

On June 19, 2024, Quantum announced the filing of a patent application for a fifth family of patent applications pertaining to, yet another technology associated to the cryptocurrency industry. More specifically, we have developed our own hardware wallet technology which has a low footprint and competitive cost, while allowing us to leverage several of its other core technologies, such as the QRNG and its intelligent key generation scheme selection technologies, in new commercial applications. A

**QUANTUM eMOTION CORP.**

combination of a patent application and industrial secret for the hardware-wallet technology will target international intellectual property protection.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Status of patents** | &nbsp;&nbsp;**Status of patents** |
| &nbsp;&nbsp;***First Patent Family*:** <br> **Method for generating random numbers and associated random number generator** | &nbsp;&nbsp;***First Patent Family*:** <br> **Method for generating random numbers and associated random number generator** |
| &nbsp;&nbsp;**Country** | &nbsp;&nbsp;**Status** |
| &nbsp;&nbsp;United States | &nbsp;&nbsp;Two patents were granted in the United States, including a first one granted on August 7, 2018, and a second granted on October 8, 2019. |
| &nbsp;&nbsp;Russia | &nbsp;&nbsp;Patent granted |
| &nbsp;&nbsp;European Patent Office | &nbsp;&nbsp;EPO granted the patent on February 19, 2020. The European Patent has been validated in several countries: Germany, Spain, Finland, France, Great-Britain, Italy and the Netherlands. |
| &nbsp;&nbsp;Thailand, India | &nbsp;&nbsp;Patent pending |
| &nbsp;&nbsp;Australia | &nbsp;&nbsp;Patent granted |
| &nbsp;&nbsp;China | &nbsp;&nbsp;Patent granted |
| &nbsp;&nbsp;Brazil | &nbsp;&nbsp;Patent granted |
| &nbsp;&nbsp;Canada | &nbsp;&nbsp;Patent granted |
| &nbsp;&nbsp;Republic of Korea | &nbsp;&nbsp;Patent granted |
| &nbsp;&nbsp;***Second Patent Family*:** <br> **Method and system for generating a random bit sample** | &nbsp;&nbsp;***Second Patent Family*:** <br> **Method and system for generating a random bit sample** |
| &nbsp;&nbsp;**Country** | &nbsp;&nbsp;**Status** |
| &nbsp;&nbsp;European Patent Office | &nbsp;&nbsp;EPO granted the patent on October 23, 2019. The European Patent has been validated in Germany, Spain, United Kingdom, Finland, France, Italy, Sweden and the Netherlands. |
| &nbsp;&nbsp;United States | &nbsp;&nbsp;Two patents were granted. |
| &nbsp;&nbsp;Brazil, Canada, China, India, Japan, South Korea, Thailand | &nbsp;&nbsp;Patent pending |
| &nbsp;&nbsp;Australia, Russia, Indonesia | &nbsp;&nbsp;Granted |
| &nbsp;&nbsp;***Third Patent Family*:** <br> **System and Method for Generating a Random Number, and circuit for communicating an analog random signal** | &nbsp;&nbsp;***Third Patent Family*:** <br> **System and Method for Generating a Random Number, and circuit for communicating an analog random signal** |
| &nbsp;&nbsp;**Country** | &nbsp;&nbsp;**Status** |
| &nbsp;&nbsp;Patent Cooperation Treaty | &nbsp;&nbsp;Rights reserved in all PCT member states until May 2024 |

---

**QUANTUM eMOTION CORP.**

1.4 <u>COMPANY OVERVIEW AND STRATEGY</u> 

**<u>BUSINESS DEVELOPMENT ACTIVITIES</u>**

On December 23rd, 2024, QeM announced a major milestone in the commercialization of its cloud-based Sentry-Q platform, designed to address critical, unmet cybersecurity challenges in modern telemedicine and digital healthcare. QeM's partner, GreyBox Solutions entered a strategic commercial alliance with Becton Dickinson (BD), a global powerhouse in the medical device and diagnostics industry with over $20 billion in annual sales. This partnership centers on advancing remote patient monitoring to improve the quality of life for patients with chronic diseases while empowering clinicians to monitor multiple patients efficiently. The initiative will launch in Canada, expand to the USA, and potentially scale to global markets.

On February 19, 2025, QeM announced a non-exclusive licensing agreement with Quantolio, a leading provider of AI-driven financial solutions. This strategic partnership grants Quantolio access to QeM's proprietary Entropy-as-a-Service (EaaS) technology, enabling groundbreaking advancements in financial applications and quantum artificial intelligence (Quantum AI). Under the terms of the agreement, Quantolio will integrate QeM's quantum-based technology into its AI-powered financial platforms. QeM's EaaS technology provides robust, high-entropy quantum randomness, ensuring enhanced security and performance in sensitive financial computations and AI-driven decision-making processes. For instance, EaaS can synergize AI-powered financial forecasting platforms by guaranteeing truly unpredictable stochastic processes. QRNG technology enhances Monte Carlo simulations, optimizes risk management models, and improves market prediction capabilities. Quantolio receives a non-exclusive, worldwide license to leverage QeM's proprietary EaaS technology within finance, FinTech, and Quantum AI applications. In exchange, Once the Quantum-powered financial platforms are commercially available, Quantolio will pay QeM an annual licensing fee of $1.0 million, with additional revenue-sharing terms.

On April 2, 2025, QeM announced the official launch of its U.S. subsidiary, Quantum eMotion America (QeMA), headquartered in Irvine, California. This strategic expansion marks a significant milestone in QeM's international growth, designed to accelerate sales, forge new partnerships, and drive business development across the U.S. cybersecurity sector. California was selected for QeM's first American office due to its vibrant technology ecosystem, access to top-tier talent, strategic global connectivity, and strong support for innovative enterprises. Irvine, in particular, offers proximity to major defense, enterprise, and academic hubs, positioning QeMA for sustained growth and market leadership.

As part of this expansion, QeM is pleased to announce the appointment of John Young, MBA, as Chief Operating Officer of Quantum eMotion America. In addition, Farrah Khan has been named Senior Vice President of Business Development, and Helen Woo has been appointed Vice President of Business Development, strengthening the company's leadership team and reinforcing its commitment to growth in the U.S. market.

**QUANTUM eMOTION CORP.**

1.5 <u>SELECTED PERIODIC INFORMATION</u> 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Periods ended March 31** | **Periods ended March 31** | **Periods ended March 31** | **Periods ended March 31** | **Periods ended March 31** |
|  | **2025<br> $** | 2024<br> $ | 2024<br> $ | 2023<br> $ |
| &nbsp;&nbsp;Net loss and comprehensive loss | **(3351336)** | (493193) | (493193) | (504492) |
| &nbsp;&nbsp;Basic and diluted loss per share | **(0.020)** | (0.004) | (0.004) | (0.004) |
| &nbsp;&nbsp;Net working capital | **$11095303** | 1395034 | 1395034 | 1415034 |
| &nbsp;&nbsp;<br>**Balance as at** | &nbsp;&nbsp;<br>**Balance as at** | &nbsp;&nbsp;<br>**Balance as at** | &nbsp;&nbsp;<br>**Balance as at** | &nbsp;&nbsp;<br>**Balance as at** |
|  | **March 31, 2025<br> $** | **March 31, 2025<br> $** | December 31, 2024<br> $ | December 31, 2024<br> $ |
| &nbsp;&nbsp;Cash and Marketable Securities | **11617007** | **11617007** | 1446741 | 1446741 |
| &nbsp;&nbsp;Total assets | **12086,.269** | **12086,.269** | 1857449 | 1857449 |
| &nbsp;&nbsp;Total liabilities | **661698** | **661698** | 519606 | 519606 |
| &nbsp;&nbsp;Equity | **11424571** | **11424571** | 1337843 | 1337843 |

---

**1.6**  **<u>NON-CURRENT ASSETS</u>** 

The carrying amount of the license consists of:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**PP&E** | &nbsp;&nbsp;**Licenses** | &nbsp;&nbsp;**Rights on royalties** | &nbsp;&nbsp;**Total** |
|  |  | &nbsp;&nbsp;**$** | &nbsp;&nbsp;**$** | &nbsp;&nbsp;**$** |
| &nbsp;&nbsp;**Cost** |  |  |  |  |
| &nbsp;&nbsp;December 31, 2024 | &nbsp;&nbsp;- | &nbsp;&nbsp;446112 | &nbsp;&nbsp;350000 | &nbsp;&nbsp;796112 |
| &nbsp;&nbsp;Additions | &nbsp;&nbsp;5516 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;5516 |
| &nbsp;&nbsp;**March 31, 2025** | &nbsp;&nbsp;**5516** | &nbsp;&nbsp;**446112** | &nbsp;&nbsp;**350000** | &nbsp;&nbsp;**801628** |
| **Accumulated amortization, impairment and loss on derecognition** |  |  |  |  |
| &nbsp;&nbsp;December 31, 2024 | &nbsp;&nbsp;- | &nbsp;&nbsp;116723 | &nbsp;&nbsp;350000 | &nbsp;&nbsp;466723 |
| &nbsp;&nbsp;Amortization | &nbsp;&nbsp;61 | &nbsp;&nbsp;5576 | &nbsp;&nbsp;- | &nbsp;&nbsp;5637 |
| &nbsp;&nbsp;**March 31, 2025** | &nbsp;&nbsp;**61** | &nbsp;&nbsp;**122299** | &nbsp;&nbsp;**350000** | &nbsp;&nbsp;**472360** |
| &nbsp;&nbsp;Net book value |  |  |  |  |
| &nbsp;&nbsp;December 31, 2024 | &nbsp;&nbsp;- | &nbsp;&nbsp;329389 | &nbsp;&nbsp;**-** | &nbsp;&nbsp;329389 |
| &nbsp;&nbsp;**March 31, 2025** | &nbsp;&nbsp;**5455** | &nbsp;&nbsp;**323813** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**329268** |

---

In relation to the license, until the expiry of the last patent rights, which is expected to be in May 2035, the Company will pay a royalty of 5% calculated on the net sales price of products sold by the Company.

**QUANTUM eMOTION CORP.**

1.7 <u>SELECTED FINANCIAL INFORMATION AND OPERATING RESULTS</u> 

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Periods ended March 31** | &nbsp;&nbsp;**Periods ended March 31** | &nbsp;&nbsp;**Periods ended March 31** |
|  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;2024 | &nbsp;&nbsp;Variance<br> Inc/(dec) |
|  | &nbsp;&nbsp;**$** | &nbsp;&nbsp;$| &nbsp;&nbsp;$|
| &nbsp;&nbsp;**Expenses** |  |  |  |
| &nbsp;&nbsp;Research and development | &nbsp;&nbsp;**211878** | &nbsp;&nbsp;155961 | &nbsp;&nbsp;55917 |
| &nbsp;&nbsp;General and administrative | &nbsp;&nbsp;**458553** | &nbsp;&nbsp;279287 | &nbsp;&nbsp;179266 |
| &nbsp;&nbsp;Marketing | &nbsp;&nbsp;**106342** | &nbsp;&nbsp;17534 | &nbsp;&nbsp;88808 |
| &nbsp;&nbsp;Share-based payments | &nbsp;&nbsp;**2565993** | &nbsp;&nbsp;43324 | &nbsp;&nbsp;2532669 |
| &nbsp;&nbsp;Amortization | &nbsp;&nbsp;**5638** | &nbsp;&nbsp;5499 | &nbsp;&nbsp;139 |
| &nbsp;&nbsp;Net financial expense (income) | &nbsp;&nbsp;**2932** | &nbsp;&nbsp;(9412) | &nbsp;&nbsp;12344 |
| &nbsp;&nbsp;**Net loss and comprehensive loss for the year** | &nbsp;&nbsp;**3351336** | &nbsp;&nbsp;492193 | &nbsp;&nbsp;2859143 |
| &nbsp;&nbsp;**Basic and diluted loss per share** | &nbsp;&nbsp;**0.020** | &nbsp;&nbsp;0.004 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;**Weighted average number of common shares outstanding** | &nbsp;&nbsp;**170684308** | &nbsp;&nbsp;137438064 | &nbsp;&nbsp;- |

---

Key differences relate to:

- R&D: the increase of $55,917 relates primarily to the timing of R&D including establishing a new long-term agreement with a supplier.

- G&A: the increase of $179,266 relates primarily to the timing of payment for the 2024 audit; higher legal fees; higher travel/conference fees; and higher consulting fees.

- Marketing: the increase of $179,266 relates primarily for payment to the TSX-V in relation to the increased annual filing fee due to the private placement; and, increased marketing/promotion effort as there was little such activity in Q1/24

- Share-based payments: the increase of $2.5 million in this non-cash expense relates to the high number of options granted and that approximately 74% of the options vested immediately bringing most of the related expense into the first quarter.

1.8 <u>SUMMARY OF QUARTERLY RESULTS</u> 

The following table sets forth selected quarterly financial information for each of the twelve most recently completed quarters.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Three-month period ended** | &nbsp;&nbsp;**Net loss and comprehensive loss <br> for the period** | &nbsp;&nbsp;**Basic and diluted loss per share** |
|  | &nbsp;&nbsp;$| &nbsp;&nbsp;$|
| &nbsp;&nbsp;**March 31, 2025** | &nbsp;&nbsp;**(3351336)** | &nbsp;&nbsp;**(0.020)** |
| &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**(1151251)** | &nbsp;&nbsp;**(0.008)** |
| &nbsp;&nbsp;**September 30, 2024** | &nbsp;&nbsp;**(597403)** | &nbsp;&nbsp;**(0.004)** |
| &nbsp;&nbsp;**June 30, 2024** | &nbsp;&nbsp;**(727891)** | &nbsp;&nbsp;**(0.005)** |
| &nbsp;&nbsp;**March 31, 2024** | &nbsp;&nbsp;**(492193)** | &nbsp;&nbsp;**(0.004)** |
| &nbsp;&nbsp;December 31, 2023 | &nbsp;&nbsp;(792952) | &nbsp;&nbsp;(0.006) |
| &nbsp;&nbsp;September 30, 2023 | &nbsp;&nbsp;(556376) | &nbsp;&nbsp;(0.004) |
| &nbsp;&nbsp;June 30, 2023 | &nbsp;&nbsp;(532956) | &nbsp;&nbsp;(0.004) |
| &nbsp;&nbsp;March 31, 2023 | &nbsp;&nbsp;(504492) | &nbsp;&nbsp;(0.004) |
| &nbsp;&nbsp;December 31, 2022 | &nbsp;&nbsp;(1053975) | &nbsp;&nbsp;(0.008) |
| &nbsp;&nbsp;September 30, 2022 | &nbsp;&nbsp;(517750) | &nbsp;&nbsp;(0.004) |
| &nbsp;&nbsp;June 30, 2022 | &nbsp;&nbsp;(541048) | &nbsp;&nbsp;(0.004) |
| &nbsp;&nbsp;March 31, 2022 | &nbsp;&nbsp;(691801) | &nbsp;&nbsp;(0.005) |

---

**QUANTUM eMOTION CORP.**

1.9 <u>LIQUIDITY</u> 

In the first quarter of 2025, the Company had net working capital of $11,095,303 compared to a net working capital of $1,395,034 in the same period in the prior year. The increase relates primarily to the brokered private placement that raised $10.0 million in the first quarter of 2025.

1.10 <u>CASH FLOWS</u> 

In the first quarter of 2025, the Company generated an increase of $9.8 million more cash flow from operations and financing than compared to the same period in the prior year. The increase relates primarily to the brokered private placement that raised $10.0 million in the first quarter of 2025. Cash used in operations increased by $232,000 reflecting the continued investment in product development.

On February 24, 2025, the Company completed a brokered LIFE financing, issuing a total of 13,333,333 units at a price of $0.75 per unit for gross proceeds of $10,000,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.10 for a period of 3 years following the closing of the date of issuance. There is no hold period for trading the warrants.

Unit issuance costs, which include a broker fee of 6.5% as well as legal and listing costs, of $811,413 were recorded in the first quarter of 2025. In addition, the Company issued 666,666 warrants representing 5% of the issued units to the Agent that brokered the private placement.

On March 20, 2024, the Company completed a non-brokered private placement, issuing a total of 15,000,000 units at a price of $0.05 per unit for gross proceeds of $750,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.15 for a period of 12 months following the closing of the private placement. The securities issued in the private placement are subject to a four-month and one day hold period expiring on July 22, 2024. Unit issuance costs of $1,000 were recorded and paid in the first quarter of 2024.

On November 15, 2024, the Company completed a non-brokered private placement, issuing a total of 7,500,000 units at a price of $0.10 per unit for gross proceeds of $750,000. Each unit is comprised of one common share and one warrant. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.20 for a period of 24 months following the closing of the private placement. The securities issued in the private placement are subject to a four-month and one day hold period expiring on March 16, 2025. Unit issuance costs of $100 were recorded and paid in the fourth quarter of 2024.

1.11 <u>STOCK OPTIONS</u> 

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | **Number <br> of options** | Number of<br> options | Weighted<br> average<br> exercise price |
|  |  | $— | $|
| &nbsp;&nbsp;Balance outstanding, beginning of period | **10452237** | 9139737 | 0.13 |
| &nbsp;&nbsp;Granted | **5120000** | 1850000 | 0.08 |
| &nbsp;&nbsp;Exercised | **(975000)** | (250000) | 0.09 |
| &nbsp;&nbsp;Expired / cancelled / Forfeited | (950000) | (250000) | - |
| &nbsp;&nbsp;Balance outstanding, end of year | 13647237 | 10452237 | 0.15 |
| &nbsp;&nbsp;Balance exercisable, end of period | 11986612 | 8791612 | 0.16 |

---

**QUANTUM eMOTION CORP.**

The weighted average remaining contractual life for options outstanding as at March 31, 2025, is 6.89 (December 31, 2024 – 4.64) years.

Share-based compensation recognized under this plan amounted to $2,565,993 for the period ended March 31, 2025 (2024 - $399,843) related to officers, employees and consultants mainly related to general and administrative expenses.

1.12 <u>OFF-BALANCE SHEET ARRANGEMENTS</u> 

The Company does not have any off-balance sheet arrangements.

1.13 <u>FINANCIAL INSTRUMENTS</u> 

All financial instruments are recognized when the Company becomes a party to the contractual provisions of the financial instrument and are initially measured at fair value plus transaction costs, except for financial assets and financial liabilities carried at fair value through profit or loss, which are measured initially at fair value. Financial assets are derecognized when the contractual right to the cash flows from the financial assets expires, or when the financial asset and all substantial risks and rewards are transferred. Refer to Note 11 of the annual consolidated financial statements for the year ended December 31, 2024, for additional information on the Company's financial instruments.

1.14 <u>FINANCIAL RISK MANAGEMENT</u> 

In the normal course of operations, the Company is exposed to various financial risks. Refer to Note 11 of the annual consolidated financial statements for the year ended December 31, 2024, for additional information on the Company's main financial risks.

1.15 MANAGEMENT OF CAPITAL

The capital structure of the Company consists of equity attributable to common shareholders, comprising issued share capital, reserves and deficit. The Company's objectives when managing capital are to: (i) preserve capital; (ii) obtain the best available net return; and (iii) maintain liquidity.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares. There were no changes to the Company's approach to capital management during the year ended December 31, 2024.

The Company is not subject to externally imposed capital requirements.

1.16 <u>RELATED PARTY TRANSACTIONS</u> 

The Company's related parties include companies owned by key management. The Company paid Management fees to key management through their management companies as follows:

● Management fees of $18,050 to LVR Capital, a company owned by the Chief Financial Officer. As at March 31, 2025, $nil (December 2024 – $6,000) was due to that company.

● Management fees of $75,000 to Aurakle Research, a company owned by the Chief Executive Officer. As at March 31, 2025, $145,000 (2024 – $161,306) was due to that company.

● Consulting fees of $15,000 to Klaus Kepper. As at March 31, 2025, $7,500 was due to him (2024: nil).

● Management fees of $7,500 and other fees of $19,410 to Baystream Corporation, a company owned by a Director. As at March 31, 2025, $2,875 (2024 – $17,680) was due to that company.

**QUANTUM eMOTION CORP.**

● Management fees of $7,500 to Red River Solutions a company owned by a Director. As at March 31, 2025, $7,875 (2024 – $7,875) was due to that company.

● Management fees of $7,500 to SLT Solutions, a company owned by a Director. As at March 31, 2025, $17,246 (2024 – $7,500) was due to that company.

● Management fees of $10,714 to CyberDef LLC, a company owned by a Director. As at March 31, 2025, $10,790 (2024 – $10,790) was due to that company.

● Research and development costs of $113,062 to Fileglobal, a company owned by a Director. As at March 31, 2025, nil (2024 – $25,775) was due to that company.

**Transactions with key management**

The key management of the Company are the members of senior management and the Board. The remuneration and other expenses for the period ended March 31, 2025, for key management (including the amounts above) are as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;**March 31,<br> 2025** | &nbsp;&nbsp;March 31,<br> 2024 |
|  | &nbsp;&nbsp;**$** | &nbsp;&nbsp;$|
| &nbsp;&nbsp;**Research and development** | &nbsp;&nbsp;**113062** | &nbsp;&nbsp;114361 |
| &nbsp;&nbsp;**Share-based payments** | &nbsp;&nbsp;**2425363** | &nbsp;&nbsp;26773 |
| &nbsp;&nbsp;**General and administrative:** |  |  |
| &nbsp;&nbsp;&nbsp;Management fees | &nbsp;&nbsp;**126214** | &nbsp;&nbsp;90000 |
| &nbsp;&nbsp;&nbsp;Other fees | &nbsp;&nbsp;**34410** | &nbsp;&nbsp;21636 |
|  | &nbsp;&nbsp;**2699049** | &nbsp;&nbsp;252770 |

---

1.17 <u>CRITICAL ACCOUNTING ESTIMATE AND JUDGEMENTS</u> 

The critical accounting estimates and judgements are described in Note 3 of the annual consolidated financial statements for the year ended December 31, 2024.

1.18 <u>CHANGES IN MATERIAL ACCOUNTING POLICIES</u> 

The accounting policies used are those described in the Company's annual consolidated financial statements in Note 3 for the year ended December 31, 2024.

1.19 <u>OTHER</u> 

Disclosure of Outstanding Securities as at March 31, 2025.

Outstanding common shares: 188,961,171

Outstanding options: 13,647,237

Outstanding share purchase warrants: 24,249,999

(s) Francis Bellido, Chief Executive Officer

(s) Marc Rousseau, Chief Financial Officer Montreal (Quebec), May 29, 2025

## Exhibit 99.7

**Exhibit 99.7**

Interim Condensed consolidated financial statements of

**QUANTUM eMOTION CORP.**

Three-month and six-month periods ended June 30, 2025, and 2024

(Unaudited, in Canadian dollars)

NOTICE OF NO AUDITOR REVIEW OF CONDENSED 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 financial statements, the statements must be accompanied by a notice indicating that the condensed financial statements have not been reviewed by an auditor. The accompanying condensed financial statements of the Company have been prepared by management and are the responsibility of the Company's management. The Company's independent auditor has not performed a review or an audit of these condensed financial statements.

**QUANTUM eMOTION CORP.**

**Table of Contents**

---

| | |
|:---|:---|
|  | **Page** |
| **Interim Condensed consolidated financial statements** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements of interim condensed consolidated statement of Financial Position | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements of interim condensed consolidated statement of Loss and Comprehensive Loss | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements of interim condensed consolidated statement of Changes in Shareholders' Equity | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements of interim condensed consolidated statement of Cash Flows | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes to the interim condensed consolidated financial statements | 5 - 10 |

---

**QUANTUM eMOTION CORP.**

**Statements of interim condensed consolidated Financial Position**

**(Unaudited, in Canadian dollars)**

---

| | | | |
|:---|:---|:---|:---|
| | **Notes** | **June 30,**<br> **2025** | **December 31,**<br> **2024** |
|  |  | **$** | $|
| **Assets** |  |  |  |
| Current assets |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash |  | **1138777** | 1359406 |
| &nbsp;&nbsp;&nbsp;Taxes receivable |  | **94484** | 46678 |
| &nbsp;&nbsp;&nbsp;Accounts receivable |  | **26377** |  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other |  | **56913** | 34641 |
| &nbsp;&nbsp;&nbsp;Marketable securities | 3 | **22935168** | 87335 |
|  |  | **24251719** | 1528060 |
| Non-current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;Intangible assets | 4 | **318236** | 329389 |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment | 4 | **4903** | - |
| **Total assets** |  | **24574858** | 1857449 |
| **Liabilities and Shareholders' Equity** |  |  |  |
| Current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities |  | **511305** | 473254 |
| **Total current liabilities** |  | **511305** | 473254 |
| Non-current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Loan payable | 5 | - | 46352 |
| **Total liabilities** |  | **511305** | 519606 |
| **Shareholders' Equity** |  |  |  |
| Share capital | 6 | **29845405** | 15471282 |
| Warrants | 6 | **10707889** | 454877 |
| Contributed surplus | 6 | **4507372** | 1540107 |
| Deficit |  | **(20997193)** | (16128424) |
|  |  | **24063553** | 1337843 |
| **Total liabilities and shareholders' equity** |  | **24574858** | 1857449 |

---

Nature of operations

See accompanying notes to condensed financial statements.

Approved on behalf of the Board:

---

| | |
|:---|:---|
| *"Francis Bellido"* |  |
| Francis Bellido | CEO |
| *"Marc Rousseau"* |  |
| Marc Rousseau | CFO |

---

**QUANTUM eMOTION CORP.**

**Statements of interim condensed consolidated Loss and Comprehensive Loss**

**(Unaudited, in Canadian dollars)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Three months ended**<br> **June 30** | **Three months ended**<br> **June 30** | **Six months ended<br> June 30** | **Six months ended<br> June 30** |
| | <br>**Notes** | **June 30,<br> 2025** | June 30, <br>2024 | June 30, <br>2025 | June 30, <br>2024 |
|  |  | **$** | $| $| $|
| **Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | 7 | **306624** | 179436 | **518502** | 335397 |
| &nbsp;&nbsp;&nbsp;General and administrative | 7 | **582473** | 507222 | **1041026** | 786059 |
| &nbsp;&nbsp;&nbsp;Marketing and selling |  | **154296** | 33726 | **260638** | 51260 |
| &nbsp;&nbsp;&nbsp;Share-based payments | 6, 7 | **560272** | 2805 | **3126265** | 46129 |
|  |  | **1603665** | 723189 | **4946431** | 1219295 |
| **Other items** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization | 4 | **6128** | 5594 | **11766** | 11092 |
| &nbsp;&nbsp;&nbsp;Net financial (income) expense | 8 | **(92360)** | (892) | **(89428)** | (10304) |
|  |  | **(111114)** | 4702 | **(77672)** | 782 |
| **Net loss and comprehensive loss** |  | **1517433** | 727891 | **4868768** | 1220083 |
| **Basic and diluted loss per share** |  | **0.008** | 0.005 | **0.027** | 0.009 |
| **Weighted average number of common shares outstanding** |  | **191918134** | 200300337 | **177999588** | 137438064 |

---

See accompanying notes to condensed financial statements.

**QUANTUM eMOTION CORP.**

**Statements of interim condensed consolidated Shareholders' Equity**

**(Unaudited, in Canadian dollars)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Notes** | **Number of<br> shares** | **Number of <br> shares to be <br> issued** | **Units to be<br> issued** | **Warrants** | **Contributed<br> surplus** | **Deficit** | **Total equity** |
|  |  |  |  | $— | **$** | **$** | **$** | **$** |
| Balance as of December 31, 2023 |  | 135502838 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |  | &nbsp;&nbsp;&nbsp;&nbsp;- | 1165145 | (13159685) | 1418938 |
| Units issuance | 8 | 14998000 |  | (19900) |  |  |  | 730000 |
| Units issuance costs | 8 |  |  |  |  |  |  | (1000) |
| Share-based payments | 8 |  |  |  |  | 46129 |  | 46129 |
| Net loss |  | - | - | - | - | - | (1220083) | (1220083) |
| Balance as of June 30, 2024 |  | 150500838 |  | (19900) | - | 1211274 | (14379768) | 973984 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Notes** | **Number of<br> shares** | **Number of<br> shares to be<br> issued** | **Units to be<br> issued** | **Warrants** | **Contributed<br> surplus** | **Deficit** | **Total equity** |
|  |  | | | $— | **$** | **$** | **$** | **$** |
| Balance as of December 31, 2024 |  | 164652838 | 50000 | 8688 | 454877 | 1540107 | (16128423) | 1337843 |
| **Units' issuance** | 8 | **21333333** | **-** | **-** | **11097103** | **-** | **-** | **22844091** |
| **Units' issuance costs** | 8 | **-** | **-** | **-** | **(844091)** | **-** | **-** | **(2512292)** |
| **Exercise of warrants** | 8 | **13001666** | **(50000)** | **(8688)** | **-** | **-** | **-** | **3889666** |
| **Exercise of options** |  | **1312500** | **-** | **-** | **-** | **(159000)** | **-** | **246750** |
| **Share-based expense** |  |  | **-** | **-** | **-** | **3126265** | **-** | **3126265** |
| **Net loss** |  |  | **-** | **-** | **-** | **-** | **(4868768)** | **(4868768))** |
| **Balance as of June 30, 2025** |  | **200300337** | **-** | **-** | **10707883** | **4507372** | **(20997193)** | **24063555** |

---

**QUANTUM eMOTION CORP.**

**Statements of interim condensed consolidated Cash Flows**

**(Unaudited, in Canadian dollars)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Three months ended<br> June 30** | **Three months ended<br> June 30** | **Six months ended<br> June 30** | **Six months ended<br> June 30** |
| | <br>**Notes** | **June 30,<br> 2025** | June 30, <br>2024 | June 30, <br>2025 | June 30, <br>2024 |
|  |  | **$** | $| $| $|
| **Operating Activities** |  |  |  |  |  |
| Net loss |  | **(1517433)** | (727891) | **(4868768)** | (1220083) |
| **Adjustments to net loss for non-cash items** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Share-based payments | 6 | **560272** | 2805 | **3126265** | 46129 |
| &nbsp;&nbsp;&nbsp;Amortization and depreciation | 4 | **6128** | 5594 | **11766** | 11092 |
| &nbsp;&nbsp;&nbsp;Accretion expense |  | **(2162)** | 1353 | **-** | 3515 |
| &nbsp;&nbsp;&nbsp;Change in fair value of investments | 38 | **-** |  | **-** | 4629 |
| **Net changes in non-cash working capital items** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Taxes receivable |  | **(8194)** | 18761 | **(47807)** | 13706 |
| &nbsp;&nbsp;&nbsp;Accounts receivable |  | **(26377)** |  | **(26377)** | 1437 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other |  | **(3207)** | (12162) | **(22634)** | 21632 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities |  | **(148231)** | 109123 | **(8301)** | 96631 |
|  |  | **(1139205)** | (602417) | **(1835858)** | (1021311) |
| **Investing Activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Additions to intangible assets | 4 |  | **-** | **-** |  |
| &nbsp;&nbsp;&nbsp;Additions to non-current assets |  | **-** | **-** | **(5516)** |  |
| &nbsp;&nbsp;&nbsp;Purchase of investments | 3 | **(17932824)** | (4804) | **(22934632)** | (32631) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of investments | 3 | **68172** | 1999 | **87172** | 359484 |
|  |  | **(17864653)** | (2805) | **(22852976)** | 326853 |
| **Financing Activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of shares | 6 | **6683769** | 19900 | **11746988** | 749900 |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of warrants |  | **5696941** |  | **11097103** |  |
| &nbsp;&nbsp;&nbsp;Share issuance costs | 6 | **(856788)** |  | **(1668201)** | (1000) |
| &nbsp;&nbsp;&nbsp;Warrants issuance costs |  | **(372008)** |  | **(844091)** |  |
| &nbsp;&nbsp;&nbsp;Exercise of options |  | **97062** |  | **246750** |  |
| &nbsp;&nbsp;&nbsp;Exercise of warrants |  | **2347166** | - | **3889666** | - |
|  |  | **13596144** | 19900 | **24468215** | 748900 |
| &nbsp;&nbsp;&nbsp;Increase (Decrease) in cash |  | **(5407714)** | (585322) | **(220619)** | 54442 |
| &nbsp;&nbsp;&nbsp;Cash, beginning of period |  | **6546491** | 955390 | **1359406** | 315626 |
| **Cash, end of period** |  | **1138777** | 370068 | **1138777** | 370068 |

---

See accompanying notes to condensed financial statements.

**QUANTUM eMOTION CORP.**

**Notes to the interim condensed consolidated financial statements**

**Periods ended June 30, 2025,** and 2024

**(Unaudited, in Canadian dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;1. Nature of operations

Quantum eMotion Corp. (the "Company") was incorporated under the *Business Corporations Act* of Ontario on July 19, 2007.

The head office, principal address and records office of the Company are located at 2300 Alfred Nobel, Montreal, Qc, H4S 2A4. The Company is a developer of a new generation of cryptographic solutions pursuant to the acquisition of licenses.

&nbsp;&nbsp;&nbsp;&nbsp;2. Basis of preparation

These condensed financial statements have been prepared by management in accordance with IAS 34 Interim *financial reportin*g and using the same accounting policies and methods of computation as those used in preparing the audited annual consolidated financial statements for the year ended December 31, 2024. The unaudited condensed financial statements should be read in conjunction with the Company's audited annual financial statements and accompanying notes for the year ended December 31, 2024, which have been prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the IASB.

The Board of Directors approved and authorized for issue, these condensed financial statements on August 15, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;3. Marketable Securities

---

| | | |
|:---|:---|:---|
|  | **June 30,** <br> **2025** | December 31,<br> 2024 |
|  | **$** | $|
| &nbsp;&nbsp;Balance, beginning of period | **87335** | 765858 |
| &nbsp;&nbsp;Investment in guaranteed investment certificates | **10055658** |  |
| &nbsp;&nbsp;Redeemable investment certificates | **12528975** | 577491 |
| &nbsp;&nbsp;Investment in equity | **350000** |  |
| &nbsp;&nbsp;Dispositions | **(86800)** | (1245979) |
| &nbsp;&nbsp;Change in fair value | **-** | (10035) |
| &nbsp;&nbsp;Balance, end of period | **22935168** | 87335 |

---

As of June 30, 2025, the Company has invested in multiple non-redeemable GICs with a Canadian chartered bank bearing interest at 3.3% and 3.2% that mature on March 28, 2026, and June 2, 2026, respectively. In addition, the Company has a fully redeemable investment account with its primary bank bearing interest at 3.0%, This interest rate is subject to change by the fluctuation in the Bank of Canada's prime interest rate. In addition, the Company made an equity investment whereby the Company obtained 8.49% ownership of the company in which it invested.

**QUANTUM eMOTION CORP.**

**Notes to the interim condensed consolidated financial statements**

**Periods ended June 30, 2025,** and 2024

**(Unaudited, in Canadian dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Intangible Assets and Property, Plant and Equipment** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Computer<br> Hardware** |  | **Total** |
|  | **$** | $— | **$** |
| &nbsp;&nbsp;**<u>Cost</u>** |  |  |  |
| &nbsp;&nbsp;December 31, 2024 |  |  | 796112 |
| &nbsp;&nbsp;**Additions** | **5516** |  | **5516** |
| &nbsp;&nbsp;**June 30, 2025** | **5516** |  | **801628** |
| &nbsp;&nbsp;**<u>Cost</u>** |  |  |  |
| &nbsp;&nbsp;December 31, 2024 |  |  | 466723 |
| &nbsp;&nbsp;**Additions** | **613** |  | **11765** |
| &nbsp;&nbsp;**June 30, 2025** | **613** |  | **478488** |
| &nbsp;&nbsp;**Net book value** |  |  |  |
| &nbsp;&nbsp;December 31, 2024 |  |  | 329389 |
| &nbsp;&nbsp;**June 30, 2025** | **4903** | - | **323140** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Loan payable** 

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | December 31, 2024 |
|  | **$** | $|
| &nbsp;&nbsp;Balance as at December 31, 2024 | **46352** |  |
| &nbsp;&nbsp;Loan |  | 40000 |
| &nbsp;&nbsp;Payment of loan | **(40000)** |  |
| &nbsp;&nbsp;Gain on derecognition (gain) | **(6352)** |  |
| &nbsp;&nbsp;Accretion expense | - | 6352 |
| &nbsp;&nbsp;Balance as at March 31, 2025 | - | 46352 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Share capital** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *Authorized* 

The Company is authorized to issue an unlimited number of:

● voting Class A preferred shares

● voting Class B preferred shares

● voting Class C preferred shares

● voting Class D preferred shares

● special shares (non-voting)

● common shares (voting)

**QUANTUM eMOTION CORP.**

**Notes to the interim condensed consolidated financial statements**

**Periods ended June 30, 2025,** and 2024

**(Unaudited, in Canadian dollars)**

without nominal or par value.

Class A preferred shares are ranked senior to Class B preferred shares, Class B preferred shares are ranked senior to Class C preferred shares, Class C preferred shares are ranked senior to Class D preferred shares, Class D preferred shares are ranked senior to special shares, and special shares are ranked senior to common shares in priority of receiving dividends declared by the Company.

Holders of special shares and common shares shall be entitled to receive pro-rata for the remaining property of the Company after distribution to the holders of Class A, Class B, Class C and Class D preferred shares, on a pro-rata basis.

Dividends for Class A, Class B, Class C and Class D preferred shares are preferential and non-cumulative and are declared in accordance with their respective priority. Dividend rate per share for Class B, Class C and Class D preferred shares is 7% per annum. Dividends are declared at the discretion of the Company's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *Issued and outstanding* 

 

On June 2, 2025, the Company completed a brokered LIFE financing, issuing a total of 8,000,000 units at a price of $1.50 per unit for gross proceeds of $12,000,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.82 for a period of 3 years following the closing of the date of issuance. There is no hold period for trading the warrants.

Unit issuance costs, which include a broker fee of 6.0% as well as legal and listing costs, of $857,178 were recorded in the second quarter of 2025. In addition, the Company issued 320,000 warrants representing 4% of the units issued to the Agent that brokered the private placement. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.66 for a period of 2.5 years following the closing of the date of issuance. There is no hold period for trading the warrants.

On February 24, 2025, the Company completed a brokered LIFE financing, issuing a total of 13,333,333 units at a price of $0.75 per unit for gross proceeds of $10,000,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.10 for a period of 3 years following the closing of the date of issuance. There is no hold period for trading the warrants.

Unit issuance costs, which include a broker fee of 6.5% as well as legal and listing costs, of $811,413 were recorded in the first quarter of 2025. In addition, the Company issued 666,666 warrants representing 5% of the issued units to the Agent that brokered the private placement. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.88 for a period of 2.5 years following the closing of the date of issuance. There is no hold period for trading the warrants.

Common shares and warrants were valued based on their relative fair values. The fair value of the common shares was determined by the closing price on the date of the transaction. The fair value of the warrants was determined using the Black-Scholes pricing model and based on the following assumptions:

**QUANTUM eMOTION CORP.**

**Notes to the interim condensed consolidated financial statements**

**Periods ended June 30, 2025,** and 2024

**(Unaudited, in Canadian dollars)**

---

| | | |
|:---|:---|:---|
|  | **June 2, 2025** | **February 24, 2025** |
| &nbsp;&nbsp;Share price | **$1.50** | **$0.75** |
| &nbsp;&nbsp;Expected volatility | 160.46% | **156.08%** |
| &nbsp;&nbsp;Risk-free interest rate | 2.62% | **2.62%** |
| &nbsp;&nbsp;Expected average life | 3.00 | **3.00** |
| &nbsp;&nbsp;Exercise price | $1.82 | **$1.10** |

---

On November 15, 2024, the Company completed a non-brokered private placement, issuing a total of 7,500,000 units at a price of $0.10 per unit for gross proceeds of $750,000. Each unit is comprised of one common share and one warrant. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.20 for a period of 24 months following the closing of the private placement. The securities issued in the private placement are subject to a four-month and one day hold period expiring on March 16, 2025. Unit issuance costs of $100 were recorded and paid in the fourth quarter of 2024

On March 20, 2024, the Company completed a non-brokered private placement, issuing a total of 14,998,000 units at a price of $0.05 per unit for gross proceeds of $730,000 ($19,900 to be issued in April 2024). Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.15 for a period of 12 months following the closing of the private placement. The securities issued in the private placement are subject to a four-month and one day hold period expiring on July 22, 2024. Unit issuance costs of $1,000 were recorded and paid in the first quarter of 2024.

As at June 30, 2025, no dividends were declared or unpaid (December 31, 2024 – nil).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(c)* *Stock options* 

 

The Company's share options are as follows for the reporting periods presented:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | December 31, 2024 | December 31, 2024 |
|  | **Number<br> of options** | Number of<br> options | Weighted<br> average <br> exercise price |
|  |  | $— | $|
| &nbsp;&nbsp;Balance outstanding, beginning of period | **10452237** | 9139737 | 0.13 |
| &nbsp;&nbsp;Granted | **6170000** | 1850000 | 0.20 |
| &nbsp;&nbsp;Exercised | **(1312500)** | (250000) | 0.09 |
| &nbsp;&nbsp;Cancelled / Expired | **(1300000)** | (250000) | 0.12 |
| &nbsp;&nbsp;Forfeited | **-** | (37500) | 0.10 |
| &nbsp;&nbsp;Balance outstanding, end of period | **14009737** | 10452237 | 0.14 |
| &nbsp;&nbsp;Balance exercisable, end of period | **10643487** | 8791612 | 0.14 |

---

**QUANTUM eMOTION CORP.**

**Notes to the interim condensed consolidated financial statements**

**Periods ended June 30, 2025,** and 2024

**(Unaudited, in Canadian dollars)**

Shareholders approved an increase to the Company's stock option pool to 24,750,000 options from 15,000,000 at the Company's Annual General Meeting held on June 26, 2025. This increase was also approved by the TSX Venture Exchange

The weighted average share price at date of exercise for options exercised during the 3-month and 6-month periods, respectively was $0.76 (March 31, 2024, nil) and $1.36 (June 2024, nil)

The weighted average remaining contractual life for options outstanding on June 30, 2025, is 6.44 years (December 31, 2024 – 4.64) years.

Non-cash, share-based compensation recognized under the plan amounted to $560,272 and $3,126,265 respectively, for the three-month and six-month periods ending June 30, 2025 (2024 - $18,362 and $46,129). Share-based compensation is provided to officers, employees and consultants and related to general and administrative expenses.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(d)* *Share purchase warrants* 

 

The Company's warrants movement for the six-month period ended June 30, 2025, are as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of <br> warrants** | **Weighted average<br> exercise price** |
|  |  | **$** |
| &nbsp;&nbsp;Balance outstanding, beginning of period | **16050000** | **0.17** |
| &nbsp;&nbsp;Warrants issued | **22319999** | **1.36** |
| &nbsp;&nbsp;Warrants exercised | **(12751666)** | **0.30** |
| &nbsp;&nbsp;Balance outstanding, end of period | **25618333** | **1.14** |

---

&nbsp;&nbsp;&nbsp;&nbsp;7. Related party transactions

The Company's related parties include companies owned by key management. The Company paid Management fees to key management through their management companies as follows

● Management compensation of $36,000 to LVR Capital, a company owned by the Chief Financial Officer. As at June 30, 2025, $6,000 (December 2024 – $6,000) was due to that company.

● Management compensation of $150,000 to Aurakle Research, a company owned by the Chief Executive Officer. As at June 30, 2025, $145,000 (2024 – $161,306) was due to that company.

● Director's fees of $15,000; an advance of $25,000 and other fees of $36,023 to Baystream Corporation, a company owned by a Director. As at June 30, 2025, $nil (2024 – $17,680) was due to that company.

● Director's fees of $15,000 to Red River Solutions a company owned by a Director. As at June 30, 2025, $7,875 (2024 – $7,875) was due to that company.

● Director's fees of $15,000 to SLT Solutions, a company owned by a Director. As at June 30, 2025, $15,000 (2024 – $7,500) was due to that company.

● Management compensation of US $36,000 and Management fees of US $15,000 to CyberDef LLC, a company owned by a Director. As at June 30, 2025, US $19,500 (2024 – USD 7,500) was due to that company.

● Research and development costs of $281,081 to Fileglobal, a company owned by a Director. As at June 30, 2025, $56,791 (2024 – $25,775) was due to that company.

**QUANTUM eMOTION CORP.**

**Notes to the interim condensed consolidated financial statements**

**Periods ended June 30, 2025,** and 2024

**(Unaudited, in Canadian dollars)**

**Transactions with key management**

The key management of the Company are the members of senior management and the Board. The remuneration and other expenses for the period of key management (including the amounts above) is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended <br> June 30** | **Three months ended <br> June 30** | **Six months ended <br> June 30** | **Six months ended <br> June 30** |
|  | **June 30,<br> 2025** | June 30,<br> 2024 | **June 30,<br> 2025** | June 30,<br> 2024 |
|  | **$** | $| **$** | $|
| &nbsp;&nbsp;Research & development | **168019** | 131026 | **281081** | 245397 |
| &nbsp;&nbsp;Management salaries | **142733** | 123002 | **235733** | 183002 |
| &nbsp;&nbsp;Director' fees | **32709** | 30000 | **65924** | 60000 |
| &nbsp;&nbsp;Other fees | **16613** | 12233 | **36023** | 21350 |
| &nbsp;&nbsp;Share based payments | **29134** | 39455 | **2485538** | 61091 |
|  | **389208** | 335716 | **3054299** | 570840 |

---

&nbsp;&nbsp;&nbsp;&nbsp;8. Net financial (income) expense

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended <br> June 30** | **Three months ended <br> June 30** | **Six months ended <br> June 30** | **Six months ended <br> June 30** |
|  | **June 30,<br> 2025** | June 30,<br> 2024 | **June 30,<br> 2025** | June 30,<br> 2024 |
|  | **$** | $| **$** | $|
| &nbsp;&nbsp;Financial income | **(110348)** | (2810) | **(112156)** | (12282) |
| &nbsp;&nbsp;Change in fair value of investments (note 3) |  |  | **-** | (4629) |
| &nbsp;&nbsp;Financial expense | **13351** | 1932 | **16875** | 6371 |
| &nbsp;&nbsp;Foreign currency loss | **4637** | (14) | **5853** | 236 |
|  | **(92360)** | (892) | **(89428)** | (10304) |

---

&nbsp;&nbsp;&nbsp;&nbsp;9. Comparative figures restament

In the statement of loss and comprehensive loss and in the statement of cash flows, some comparative figures for the three-month and six-months periods ended June 30, 2024, have been reclassed to conform to the presentation adopted for the three-month and six-months periods ended June 30, 2025.

## Exhibit 99.8

**Exhibit 99.8**

Interim condensed consolidated financial statements of

**QUANTUM eMOTION CORP.**

Three-month and nine-month periods ended September 30, 2025, and 2024<br> (Unaudited, in Canadian dollars)

NOTICE OF NO AUDITOR REVIEW OF ITERIM CONDENSED 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 financial statements for all periods presented, the statements must be accompanied by a notice indicating that the interim condensed consolidated financial statements have not been reviewed by an auditor. The accompanying condensed financial statements of the Company have been prepared by management and are the responsibility of the Company's management. The Company's independent auditor has not performed a review of the period ended September 30, 2025, included in these interim condensed consolidated financial statements.

**QUANTUM eMOTION CORP.**

**Table of Contents**

---

| | |
|:---|:---|
|  | **Page** |
| **Interim condensed consolidated financial statements** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interim condensed consolidated statements of Financial Position | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interim condensed consolidated statements of Loss and Comprehensive Loss | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interim condensed consolidated statements of Changes in Shareholders' Equity | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interim condensed consolidated statements of Cash Flows | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes to the interim condensed consolidated financial statements | 5 - 12 |

---

**QUANTUM eMOTION CORP.**

**Interim condensed consolidated statements of Financial Position**

**(Unaudited, in Canadian dollars)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Notes** | &nbsp;&nbsp;**September 30,<br> 2025** | &nbsp;&nbsp;December 31, <br> 2024 |
| &nbsp;&nbsp;**Assets** |  | &nbsp;&nbsp;**$** | &nbsp;&nbsp;$|
| &nbsp;&nbsp;Current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash |  | &nbsp;&nbsp;**471210** | &nbsp;&nbsp;1359406 |
| &nbsp;&nbsp;&nbsp;Taxes receivable |  | &nbsp;&nbsp;**72201** | &nbsp;&nbsp;46677 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other |  | &nbsp;&nbsp;**53879** | &nbsp;&nbsp;34642 |
| &nbsp;&nbsp;&nbsp;Investments | 3 | &nbsp;&nbsp;**24241323** | &nbsp;&nbsp;87335 |
|  |  | &nbsp;&nbsp;**24838613** | &nbsp;&nbsp;1528060 |
| &nbsp;&nbsp;Non-current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;Investments | 3 | &nbsp;&nbsp;**907751** | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Intangible assets | 4 | &nbsp;&nbsp;**312660** | &nbsp;&nbsp;329389 |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment | 4 | &nbsp;&nbsp;**9547** | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Right-of-use asset |  | &nbsp;&nbsp;**60270** | &nbsp;&nbsp;- |
| &nbsp;&nbsp;**Total assets** | &nbsp;&nbsp;**Total assets** | &nbsp;&nbsp;**26128841** | &nbsp;&nbsp;1857449 |
| &nbsp;&nbsp;**Liabilities and Shareholders' Equity** |  |  | &nbsp;&nbsp;473254 |
| &nbsp;&nbsp;Current liabilities: |  |  | &nbsp;&nbsp;473254 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities |  | &nbsp;&nbsp;**494924** | &nbsp;&nbsp;473254 |
| &nbsp;&nbsp;&nbsp;Current portion of lease obligation |  | &nbsp;&nbsp;**36952** | &nbsp;&nbsp;473254 |
| &nbsp;&nbsp;**Total current liabilities** |  | &nbsp;&nbsp;**531876** | &nbsp;&nbsp;473254 |
| &nbsp;&nbsp;Non-current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Lease obligation |  | &nbsp;&nbsp;**23317** | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Loan payable | 5 | &nbsp;&nbsp;- | &nbsp;&nbsp;46352 |
| &nbsp;&nbsp;**Total liabilities** | &nbsp;&nbsp;**Total liabilities** | &nbsp;&nbsp;**555193** | &nbsp;&nbsp;519606 |
| &nbsp;&nbsp;**Shareholders' Equity** |  |  |  |
| &nbsp;&nbsp;Share capital | 6 | &nbsp;&nbsp;**32482722** | &nbsp;&nbsp;15471282 |
| &nbsp;&nbsp;Warrants | 6 | &nbsp;&nbsp;**10707889** | &nbsp;&nbsp;454877 |
| &nbsp;&nbsp;Contributed surplus | 6 | &nbsp;&nbsp;**5067729** | &nbsp;&nbsp;1540107 |
| &nbsp;&nbsp;Deficit |  | &nbsp;&nbsp;**(22684693)** | &nbsp;&nbsp;(16128423) |
|  |  | &nbsp;&nbsp;**25573647** | &nbsp;&nbsp;1337843 |
| &nbsp;&nbsp;**Total liabilities and shareholders' equity** | &nbsp;&nbsp;**Total liabilities and shareholders' equity** | &nbsp;&nbsp;**26128840** | &nbsp;&nbsp;1857449 |

---

Nature of operations

See accompanying notes to interim condensed consolidated financial statements.

Approved on behalf of the Board:

---

| | |
|:---|:---|
| *"Francis Bellido"* |  |
| Francis Bellido | &nbsp;&nbsp;&nbsp;CEO |
| *"Marc Rousseau"* |  |
| Marc Rousseau | &nbsp;&nbsp;&nbsp;CFO |

---

**QUANTUM eMOTION CORP.** 

**Interim condensed consolidated statements of Loss and Comprehensive Loss<br> (Unaudited, in Canadian dollars)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | &nbsp;&nbsp;**Three months ended <br> September 30** | &nbsp;&nbsp;**Three months ended <br> September 30** | &nbsp;&nbsp;**Nine months ended September 30** | &nbsp;&nbsp;**Nine months ended September 30** |
| &nbsp;&nbsp;**Notes** | &nbsp;&nbsp;**Notes** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;2024 | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;2024 |
| &nbsp;&nbsp;**Expenses** |  | &nbsp;&nbsp;**$** | &nbsp;&nbsp;$| &nbsp;&nbsp;**$** | &nbsp;&nbsp;$|
| &nbsp;&nbsp;&nbsp;Research and development |  | &nbsp;&nbsp;**345146** | &nbsp;&nbsp;195246 | &nbsp;&nbsp;**863648** | &nbsp;&nbsp;655406 |
| &nbsp;&nbsp;&nbsp;General and administrative |  | &nbsp;&nbsp;**510614** | &nbsp;&nbsp;363078 | &nbsp;&nbsp;**1551642** | &nbsp;&nbsp;1025325 |
| &nbsp;&nbsp;&nbsp;Marketing and selling |  | &nbsp;&nbsp;**363436** | &nbsp;&nbsp;18848 | &nbsp;&nbsp;**624074** | &nbsp;&nbsp;70107 |
| &nbsp;&nbsp;&nbsp;Share-based payments |  | &nbsp;&nbsp;**647422** | &nbsp;&nbsp;13831 | &nbsp;&nbsp;**3773687** | &nbsp;&nbsp;59960 |
|  |  | &nbsp;&nbsp;**1866618** | &nbsp;&nbsp;591003 | &nbsp;&nbsp;**6813051** | &nbsp;&nbsp;1810798 |
| &nbsp;&nbsp;**Other items** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization and depreciation | &nbsp;&nbsp;4 | &nbsp;&nbsp;**6416** | &nbsp;&nbsp;5607 | &nbsp;&nbsp;**18182** | &nbsp;&nbsp;16699 |
| &nbsp;&nbsp;&nbsp;Net financial (income) expense | &nbsp;&nbsp;8 | &nbsp;&nbsp;**(185535)** | &nbsp;&nbsp;793 | &nbsp;&nbsp;**(274963)** | &nbsp;&nbsp;(9512) |
|  |  | &nbsp;&nbsp;**(179119)** | &nbsp;&nbsp;6400 | &nbsp;&nbsp;**(256781)** | &nbsp;&nbsp;7187 |
| &nbsp;&nbsp;**Net loss and comprehensive loss** | &nbsp;&nbsp;**Net loss and comprehensive loss** | &nbsp;&nbsp;**1687499** | &nbsp;&nbsp;597403 | &nbsp;&nbsp;**6556270** | &nbsp;&nbsp; 1817985 |
| &nbsp;&nbsp;**Basic loss per share** | &nbsp;&nbsp;**Basic loss per share** | &nbsp;&nbsp;**0.008** | &nbsp;&nbsp;0.004 | &nbsp;&nbsp;**0.036** | &nbsp;&nbsp;0.013 |
| &nbsp;&nbsp;**Basic weighted average number of common shares outstanding** | &nbsp;&nbsp;**Basic weighted average number of common shares outstanding** | &nbsp;&nbsp;**201738970** | &nbsp;&nbsp;137438064 | &nbsp;&nbsp;**183617509** | &nbsp;&nbsp;137438064 |
| &nbsp;&nbsp;**Diluted loss per share** | &nbsp;&nbsp;**Diluted loss per share** | &nbsp;&nbsp;**0.008** | &nbsp;&nbsp;0.004 | &nbsp;&nbsp;**0.033** | &nbsp;&nbsp;0.013 |
| &nbsp;&nbsp;**Diluted weighted average number of common shares outstanding** | &nbsp;&nbsp;**Diluted weighted average number of common shares outstanding** | &nbsp;&nbsp;**219418484** | &nbsp;&nbsp;137438064 | &nbsp;&nbsp;**198754021** | &nbsp;&nbsp;137438064 |

---

See accompanying notes to interim condensed consolidated financial statements.

**QUANTUM eMOTION CORP.**

**Interim condensed consolidated statements of Shareholders' Equity**

**(Unaudited, in Canadian dollars)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;Notes | &nbsp;&nbsp;Number of<br> shares | &nbsp;&nbsp;Number of<br> shares to be<br> issued | &nbsp;&nbsp;Units to be<br> issued | &nbsp;&nbsp;Warrants | &nbsp;&nbsp;Contributeds<br> surplus | &nbsp;&nbsp;Deficit | &nbsp;&nbsp;Total equity |
|  |  |  |  | $&nbsp;&nbsp; | &nbsp;&nbsp;$| &nbsp;&nbsp;$| &nbsp;&nbsp;$| &nbsp;&nbsp;$|
| &nbsp;&nbsp;Balance as of<br> December 31, 2023 |  | &nbsp;&nbsp; 135502838 | &nbsp;&nbsp; - | &nbsp;&nbsp;- | &nbsp;&nbsp; - | &nbsp;&nbsp;1165145 | &nbsp;&nbsp; (13159685) | &nbsp;&nbsp;1418938 |
| &nbsp;&nbsp;Units' issuance | &nbsp;&nbsp;6 | &nbsp;&nbsp;14998000 | &nbsp;&nbsp;- | &nbsp;&nbsp;(19900) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;730000 |
| &nbsp;&nbsp;Units' issuance costs | &nbsp;&nbsp;6 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1000) |
| &nbsp;&nbsp;Share-based payments | &nbsp;&nbsp;6 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;59960 | &nbsp;&nbsp;- | &nbsp;&nbsp;59960 |
| &nbsp;&nbsp;Net loss |  | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(1817985) | &nbsp;&nbsp;(1817985) |
| &nbsp;&nbsp;Balance as of<br> September 30, 2024 |  | &nbsp;&nbsp;150500838 |  | &nbsp;&nbsp;(19900) | &nbsp;&nbsp; - | &nbsp;&nbsp; 1225105 | &nbsp;&nbsp;(14977670) | &nbsp;&nbsp;389913 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Notes** | &nbsp;&nbsp;**Number of<br> shares** | &nbsp;&nbsp;**Number of<br> shares to be<br> issued** | &nbsp;&nbsp;**Units to be<br> issued** | &nbsp;&nbsp;**Warrants** | &nbsp;&nbsp;**Contributed surplus** | &nbsp;&nbsp;**Deficit** | &nbsp;&nbsp;**Total equity** |
|  |  |  |  | $&nbsp;&nbsp; | &nbsp;&nbsp;**$** | &nbsp;&nbsp;**$** | &nbsp;&nbsp;**$** | &nbsp;&nbsp;**$** |
| &nbsp;&nbsp;**Balance as of<br> December 31, 2024** |  | &nbsp;&nbsp;**164652838** | &nbsp;&nbsp; **50000** | &nbsp;&nbsp;**8688** | &nbsp;&nbsp;**454877** | &nbsp;&nbsp;**1540107** | &nbsp;&nbsp;**(16128423)** | &nbsp;&nbsp; **1337843** |
| &nbsp;&nbsp;**Units' issuance** | &nbsp;&nbsp;**6** | &nbsp;&nbsp;**21333333** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**10253012** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**22000000** |
| &nbsp;&nbsp;**Units' issuance costs** | &nbsp;&nbsp;**6** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** |  | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**(1668201)** |
| &nbsp;&nbsp;**Exercise of warrants** | &nbsp;&nbsp;**6** | &nbsp;&nbsp;**15319999** | &nbsp;&nbsp;**(50000)** | &nbsp;&nbsp;**(8688)** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**6349838** |
| &nbsp;&nbsp;**Exercise of options** |  | &nbsp;&nbsp;**1812500** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**(246065)** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**336750** |
| &nbsp;&nbsp;**Share-based expense** |  | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**3773687** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**3773687** |
| &nbsp;&nbsp;**Net loss** |  | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**(6556270)** | &nbsp;&nbsp;**(6556270)** |
| &nbsp;&nbsp;**Balance as of<br> September 30, 2025** |  | &nbsp;&nbsp;**203118670** | &nbsp;&nbsp; **-** | &nbsp;&nbsp; **-** | &nbsp;&nbsp;**10707889** | &nbsp;&nbsp; **5067729** | &nbsp;&nbsp;**(22684693)** | &nbsp;&nbsp;**25573647** |

---

**QUANTUM eMOTION CORP.<br> Interim condensed consolidated statements of Cash Flows <br> (Unaudited, in Canadian dollars)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | &nbsp;&nbsp;**Three months ended<br> September 30** | &nbsp;&nbsp;**Three months ended<br> September 30** | &nbsp;&nbsp; **Nine months ended<br> September 30** | &nbsp;&nbsp; **Nine months ended<br> September 30** |
|  | <br>&nbsp;&nbsp;**Notes** | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;2024 | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;2024 |
| &nbsp;&nbsp;**Operating activities** |  | &nbsp;&nbsp;**$** | &nbsp;&nbsp;$| &nbsp;&nbsp;**$** | &nbsp;&nbsp;$|
| &nbsp;&nbsp;Net loss |  | &nbsp;&nbsp;**(1687499)** | &nbsp;&nbsp;(597403) | &nbsp;&nbsp;**(6556270)** | &nbsp;&nbsp;(1817985) |
| &nbsp;&nbsp;**Adjustments to net loss for non-cash items** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Share-based payments | &nbsp;&nbsp;6 | &nbsp;&nbsp;**647422** | &nbsp;&nbsp;13831 | &nbsp;&nbsp;**3773687** | &nbsp;&nbsp;59960 |
| &nbsp;&nbsp;&nbsp;Amortization and depreciation | &nbsp;&nbsp;4 | &nbsp;&nbsp;**6416** | &nbsp;&nbsp;5607 | &nbsp;&nbsp;**18182** | &nbsp;&nbsp;16699 |
| &nbsp;&nbsp;&nbsp;Accretion expense (reversal) |  | &nbsp;&nbsp;**-** | &nbsp;&nbsp;1396 | &nbsp;&nbsp;**-** | &nbsp;&nbsp;4911 |
| &nbsp;&nbsp;&nbsp;Change in fair value of investments |  | &nbsp;&nbsp;**-** | &nbsp;&nbsp;- | &nbsp;&nbsp;**-** | &nbsp;&nbsp;4629 |
| &nbsp;&nbsp;&nbsp;Gain on derecognition | &nbsp;&nbsp;5 | &nbsp;&nbsp;**(6352)** | &nbsp;&nbsp;- | &nbsp;&nbsp;**(6352)** | &nbsp;&nbsp;- |
| &nbsp;&nbsp;**Net changes in non-cash working capital items** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Taxes receivable |  | &nbsp;&nbsp;**22283** | &nbsp;&nbsp;8870 | &nbsp;&nbsp;**(25524)** | &nbsp;&nbsp;22576 |
| &nbsp;&nbsp;&nbsp;Accounts receivable |  | &nbsp;&nbsp;**26377** | &nbsp;&nbsp;- | &nbsp;&nbsp;**-** | &nbsp;&nbsp;1437 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other |  | &nbsp;&nbsp;**3034** | &nbsp;&nbsp;(19115) | &nbsp;&nbsp;**(19600)** | &nbsp;&nbsp;2517 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities |  | &nbsp;&nbsp;**(8672)** | &nbsp;&nbsp;23878 | &nbsp;&nbsp;**21371** | &nbsp;&nbsp;120509 |
|  |  | &nbsp;&nbsp;**(998348)** | &nbsp;&nbsp;(562936) | &nbsp;&nbsp;**(2794506)** | &nbsp;&nbsp;(1584747) |
| &nbsp;&nbsp;**Investing activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Additions to property, plant, equipment | 4 | &nbsp;&nbsp;**(5484)** | &nbsp;&nbsp;- | &nbsp;&nbsp;**(11000)** | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Purchase of investments |  | &nbsp;&nbsp;**(2214279)** | &nbsp;&nbsp;(1997) | &nbsp;&nbsp;**(25148911)** | &nbsp;&nbsp;(34628) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of investments |  | &nbsp;&nbsp;**372** | &nbsp;&nbsp;400000 | &nbsp;&nbsp;**47544** | &nbsp;&nbsp;759484 |
|  |  | &nbsp;&nbsp;**(2219391)** | &nbsp;&nbsp;398003 | &nbsp;&nbsp;**(25112367)** | &nbsp;&nbsp;724856 |
| &nbsp;&nbsp;**Financing activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of units | &nbsp;&nbsp;6 | &nbsp;&nbsp;**-** | &nbsp;&nbsp;- | &nbsp;&nbsp;**22000000** | &nbsp;&nbsp;749900 |
| &nbsp;&nbsp;&nbsp;Proceeds from loan payable |  | &nbsp;&nbsp;**-** | &nbsp;&nbsp;54668 |  | &nbsp;&nbsp;54668 |
| &nbsp;&nbsp;&nbsp;Share issuance costs | &nbsp;&nbsp;6 | &nbsp;&nbsp;**-** | &nbsp;&nbsp;- | &nbsp;&nbsp;**(1668201)** | &nbsp;&nbsp;(1000) |
| &nbsp;&nbsp;&nbsp;Exercise of options |  | &nbsp;&nbsp;**90000** | &nbsp;&nbsp;- | &nbsp;&nbsp;**336750** | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;Exercise of warrants |  | &nbsp;&nbsp;**2460171** | &nbsp;&nbsp;- | &nbsp;&nbsp;**6349837** | &nbsp;&nbsp;- |
|  |  | &nbsp;&nbsp;**2550171** | &nbsp;&nbsp;54668 | &nbsp;&nbsp;**27018386** | &nbsp;&nbsp;803568 |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in cash |  | &nbsp;&nbsp;**(667568)** | &nbsp;&nbsp;(110764) | &nbsp;&nbsp;**(888187)** | &nbsp;&nbsp;56323 |
| &nbsp;&nbsp;&nbsp;Cash, beginning of period |  | &nbsp;&nbsp;**1138777** | &nbsp;&nbsp;369568 | &nbsp;&nbsp;**1359406** | &nbsp;&nbsp;315626 |
| &nbsp;&nbsp;**Cash, end of period** | &nbsp;&nbsp;**Cash, end of period** | &nbsp;&nbsp;**471210** | &nbsp;&nbsp;259303 | &nbsp;&nbsp;**471210** | &nbsp;&nbsp;259303 |

---

See accompanying notes to interim condensed consolidated financial statements.

**QUANTUM eMOTION CORP. <br> Notes to the interim condensed consolidated financial statements<br> Periods ended September 30, 2025, and 2024<br> (Unaudited, in Canadian dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Nature of operations** 

Quantum eMotion Corp. (the "Company") was incorporated under the *Business Corporations Act* of Ontario on July 19, 2007.

The head office, principal address and records office of the Company are located at 2300 Alfred Nobel, Montreal, Qc, H4S 2A4. The Company is a developer of a new generation of quantum-based cryptographic solutions pursuant to the development of intellectual property and subsequent commercialization of cybersecurity solutions.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Basis of preparation** 

These interim condensed consolidated financial statements have been prepared by management in accordance with IAS 34 *Interim financial reportin*g and using the same accounting policies and methods of computation as those used in preparing the audited annual consolidated financial statements for the year ended December 31, 2024. The unaudited interim condensed consolidated financial statements should be read in conjunction with the Company's audited annual consolidated financial statements and accompanying notes for the year ended December 31, 2024, which have been prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the IASB.

The Board of Directors approved and authorized for issue, these interim condensed consolidated financial statements on November 25, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Investments** 

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;**September 30,**<br>&nbsp;&nbsp;**2025** | &nbsp;&nbsp;December 31,<br>&nbsp;&nbsp;2024 |
| <br> *Current investments, at amortised cost* | &nbsp;&nbsp;**$** | &nbsp;&nbsp;$|
| Guaranteed investment certificates having a principal of $12,500,000 and accrued interest of $156,825, non-redeemable, bearing interest between 3.20% and 3.26% per annum, maturing at various dates between March 28, 2026 and July 11, 2026 | &nbsp;&nbsp;**12656823** | &nbsp;&nbsp;- |
| Investment account, including accrued interest of $186,871 (2024 - $Nil), redeemable, bearing interest at 2.75% per annum | &nbsp;&nbsp;**10186871** | &nbsp;&nbsp;87335 |
| Commercial deposit, having a principal of USD $1,000,000, bearing interest at interest 3.30% per annum, maturing on December 3, 2025 | &nbsp;&nbsp;**1397629** | &nbsp;&nbsp;- |
| **Balance, end of period** | &nbsp;&nbsp;**24241323** | &nbsp;&nbsp;87335 |

---

**QUANTUM eMOTION CORP. <br> Notes to the interim condensed consolidated financial statements<br> Periods ended September 30, 2025, and 2024<br> (Unaudited, in Canadian dollars)** 

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;**September 30,**<br>&nbsp;&nbsp;**2025** | &nbsp;&nbsp;December 31,<br>&nbsp;&nbsp;2024 |
| *Non-current investments, at FVOCI* | &nbsp;&nbsp;**$** | &nbsp;&nbsp;$|
| Investment in equity instruments of Greybox Solutions Inc. | &nbsp;&nbsp;**350000** | &nbsp;&nbsp;- |
| Investment in Krown Technologies, being a convertible debenture with a principal of USD $400,000, bearing interest at 7% per annum after a three-month grace period, and maturing on September 2, 2028. The debenture is convertible in a 10% ownership percentage: i) automatically upon the occurrence of a Launch Event or ii) at maturity. Subsequent to quarter-end, the Lauch Event occurred, which triggered the conversion into 10% ownership | &nbsp;&nbsp;557751 | &nbsp;&nbsp;**-** |
| **Balance, end of period** | &nbsp;&nbsp;**907751** | &nbsp;&nbsp;**-** |

---

The Company designated the investments shown above as equity securities at FVOCI because these equity securities represent investments that the Company intends to hold for the long-term for strategic purposes. No strategic investments were disposed of during the period and there were no transfers of any cumulative gain or loss within equity relating to these investments.

Management assessed that the transaction price of the investments at FVOCI were still an appropriate estimate of their fair value as of September 30, 2025.

**QUANTUM eMOTION CORP. <br> Notes to the interim condensed consolidated financial statements<br> Periods ended September 30, 2025, and 2024<br> (Unaudited, in Canadian dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Intangible assets and Property, plant and equipment** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Computer <br> Hardware** | &nbsp;&nbsp;**Licenses** | &nbsp;&nbsp;**Rights on <br> royalties** | &nbsp;&nbsp;**Total** |
| &nbsp;&nbsp; <br> **<u>Cost</u>** | &nbsp;&nbsp;**$** | &nbsp;&nbsp;**$** | &nbsp;&nbsp;**$** | &nbsp;&nbsp;**$** |
| &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**446112** | &nbsp;&nbsp;**350000** | &nbsp;&nbsp;**796112** |
| &nbsp;&nbsp;**Additions** | &nbsp;&nbsp;**11000** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**11000** |
| &nbsp;&nbsp;**Derecognition** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**(350000)** | &nbsp;&nbsp;**(350000)** |
| &nbsp;&nbsp;**September 30, 2025** | &nbsp;&nbsp;**11000** | &nbsp;&nbsp;**446112** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**457112** |
| &nbsp;&nbsp;**<u>Accumulated <br> amortization and impairment</u>** |  |  |  |  |
| &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**116723** | &nbsp;&nbsp;**350000** | &nbsp;&nbsp;**466722** |
| &nbsp;&nbsp;**Additions** | &nbsp;&nbsp;**1453** | &nbsp;&nbsp;**16729** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**18182** |
| &nbsp;&nbsp;**Derecognition** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**(350000)** | &nbsp;&nbsp;**(350000)** |
| &nbsp;&nbsp;**September 30, 2025** | &nbsp;&nbsp;**1453** | &nbsp;&nbsp;**133452** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**134905** |
| &nbsp;&nbsp; <br> **<u>Net book value</u>** | &nbsp;&nbsp; <br> **<u>Net book value</u>** | &nbsp;&nbsp; <br> **<u>Net book value</u>** | &nbsp;&nbsp; <br> **<u>Net book value</u>** | &nbsp;&nbsp; <br> **<u>Net book value</u>** |
| &nbsp;&nbsp;**December 31, 2024** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**329389** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**329389** |
| &nbsp;&nbsp;**September 30, 2025** | &nbsp;&nbsp;**9547** | &nbsp;&nbsp;**312660** | &nbsp;&nbsp;**-** | &nbsp;&nbsp;**322207** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Loan payable** 

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | December 31, 2024 |
|  | **$** | $|
| Balance at the beginning of the period | **46352** | 40000 |
| Payment of loan against investments | **(40000)** |  |
| Gain on derecognition | **(6352)** |  |
| Accretion expense | **-** | 6352 |
| Balance at the end of the period | **-** | 46352 |

---

**QUANTUM eMOTION CORP. <br> Notes to the interim condensed consolidated financial statements<br> Periods ended September 30, 2025, and 2024<br> (Unaudited, in Canadian dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Share capital** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *Authorized* 

The Company is authorized to issue an unlimited number of:

● voting Class A preferred shares

● voting Class B preferred shares

● voting Class C preferred shares

● voting Class D preferred shares

● special shares (non-voting)

● common shares (voting)

without nominal or par value.

Class A preferred shares are ranked senior to Class B preferred shares, Class B preferred shares are ranked senior to Class C preferred shares, Class C preferred shares are ranked senior to Class D preferred shares, Class D preferred shares are ranked senior to special shares, and special shares are ranked senior to common shares in priority of receiving dividends declared by the Company.

Holders of special shares and common shares shall be entitled to receive pro-rata for the remaining property of the Company after distribution to the holders of Class A, Class B, Class C and Class D preferred shares, on a pro-rata basis.

Dividends for Class A, Class B, Class C and Class D preferred shares are preferential and non-cumulative and are declared in accordance with their respective priority. Dividend rate per share for Class B, Class C and Class D preferred shares is 7% per annum. Dividends are declared at the discretion of the Company's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *Issued and outstanding* 

 

On June 2, 2025, the Company completed a brokered LIFE financing, issuing a total of 8,000,000 units at a price of $1.50 per unit for gross proceeds of $12,000,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.82 for a period of 3 years following the closing of the date of issuance. There is no hold period for trading the warrants.

Unit issuance costs of $857,178, which include a broker fee of 6.0% as well as legal and listing costs, were recorded in the second quarter of 2025. In addition, the Company issued 320,000 warrants representing 4% of the units issued to the Agent that brokered the private placement. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.66 for a period of 2.5 years following the closing of the date of issuance. There is no hold period for trading the warrants.

On February 24, 2025, the Company completed a brokered LIFE financing, issuing a total of 13,333,333 units at a price of $0.75 per unit for gross proceeds of $10,000,000. Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $1.10 for a period of 3 years following the closing of the date of issuance. There is no hold period for trading the warrants.

**QUANTUM eMOTION CORP. <br> Notes to the interim condensed consolidated financial statements<br> Periods ended September 30, 2025, and 2024<br> (Unaudited, in Canadian dollars)**

Unit issuance costs of $811,413, which include a broker fee of 6.5% as well as legal and listing costs, were recorded in the first quarter of 2025. In addition, the Company issued 666,666 warrants representing 5% of the issued units to the Agent that brokered the private placement. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.88 for a period of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 years following the closing of the date of issuance. There is no hold period for trading the warrants.

Common shares and warrants were valued based on their relative fair values. The fair value of the common shares was determined by the closing price on the date of the transaction. The fair value of the warrants was determined using the Black-Scholes pricing model and based on the following assumptions:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;**<u>June 2, 2025</u>** | &nbsp;&nbsp;**<u>February 24, 2025</u>** |
| &nbsp;&nbsp;Share price | &nbsp;&nbsp;**$1.50** | &nbsp;&nbsp;**$0.75** |
| &nbsp;&nbsp;Expected volatility | &nbsp;&nbsp;**160.46%** | &nbsp;&nbsp;**156.08%** |
| &nbsp;&nbsp;Risk-free interest rate | &nbsp;&nbsp;**2.62%** | &nbsp;&nbsp;**2.62%** |
| &nbsp;&nbsp;Expected average life | &nbsp;&nbsp;**3.00** | &nbsp;&nbsp;**3.00** |
| &nbsp;&nbsp;Exercise price | &nbsp;&nbsp;**$1.82** | &nbsp;&nbsp;**$1.10** |

---

On November 15, 2024, the Company completed a non-brokered private placement, issuing a total of 7,500,000 units at a price of $0.10 per unit for gross proceeds of $750,000. Each unit is comprised of one common share and one warrant. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.20 for a period of 24 months following the closing of the private placement. The securities issued in the private placement are subject to a four-month and one day hold period expiring on March 16, 2025. Unit issuance costs of $100 were recorded and paid in the fourth quarter of 2024

On March 20, 2024, the Company completed a non-brokered private placement, issuing a total of 14,998,000 units at a price of $0.05 per unit for gross proceeds of $730,000 ($19,900 to be issued in April 2024). Each unit is comprised of one common share and one warrant of the Company. Each warrant entitles its holder to acquire one common share of the Company at a price of $0.15 for a period of 12 months following the closing of the private placement. The securities issued in the private placement are subject to a four-month and one day hold period expiring on July 22, 2024. Unit issuance costs of $1,000 were recorded and paid in the first quarter of 2024.

As at September 30, 2025, no dividends were declared or unpaid (December 31, 2024 – $Nil).

**QUANTUM eMOTION CORP. <br> Notes to the interim condensed consolidated financial statements<br> Periods ended September 30, 2025, and 2024<br> (Unaudited, in Canadian dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(c)* *Stock options* 

 

The Company's share options are as follows for the reporting periods presented:

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**September 30, 2025** | &nbsp;&nbsp;December 31, 2024 | &nbsp;&nbsp;December 31, 2024 |
|  | &nbsp;&nbsp;**Number <br> of options** | &nbsp;&nbsp;Number of<br> options | &nbsp;&nbsp;Weighted <br> average<br> exercise price |
| &nbsp;&nbsp;Balance outstanding, beginning of period |  | $&nbsp;&nbsp; | &nbsp;&nbsp;$|
| &nbsp;&nbsp;Balance outstanding, beginning of period | &nbsp;&nbsp;**10452237** | &nbsp;&nbsp;9139737 | &nbsp;&nbsp;0.13 |
| &nbsp;&nbsp;Granted | &nbsp;&nbsp;**6645000** | &nbsp;&nbsp;1850000 | &nbsp;&nbsp;0.20 |
| &nbsp;&nbsp;Exercised | &nbsp;&nbsp;**(1812500)** | &nbsp;&nbsp;(250000) | &nbsp;&nbsp;0.09 |
| &nbsp;&nbsp;Cancelled / Expired | &nbsp;&nbsp;**(1300000)** | &nbsp;&nbsp;(250000) | &nbsp;&nbsp;0.12 |
| &nbsp;&nbsp;Forfeited | &nbsp;&nbsp;**-** | &nbsp;&nbsp;(37500) | &nbsp;&nbsp;0.10 |
| &nbsp;&nbsp;Balance outstanding, end of period | &nbsp;&nbsp;**13984737** | &nbsp;&nbsp;10452237 | &nbsp;&nbsp;0.14 |
| &nbsp;&nbsp;Balance exercisable, end of period | &nbsp;&nbsp;**10854737** | &nbsp;&nbsp;8791612 | &nbsp;&nbsp;0.14 |

---

Shareholders approved an increase to the Company's stock option pool to 24,750,000 options from 15,000,000 at the Company's Annual General Meeting held on June 26, 2025. This increase was also approved by the TSX Venture Exchange.

The weighted average share price at date of exercise for options exercised during the 3-month and 9-month periods, respectively was $1.17 (September 2024, $Nil) and $1.25 (September 2024, $Nil).

The weighted average remaining contractual life for options outstanding on September 30, 2025, is 6.60 years (December 31, 2024 – 4.64 years).

Non-cash, share-based compensation recognized under the plan amounted to $647,422 and $3,773,687 respectively, for the three-month and nine-month periods ending September 30, 2025 (2024 - $13,831 and $59,959). Share-based compensation is provided to officers, employees and consultants and related to general and administrative expenses.

The weighted average fair value of the granted options was determined using the Black-Scholes option pricing model and based on the following weighted average assumptions:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **September 30,**<br> **2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average share price at date of grant | &nbsp;&nbsp;**$1.31** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected dividends | &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;Expected volatility | &nbsp;&nbsp;**164.86%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk-free interest rate | &nbsp;&nbsp;**3.08%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected average life | &nbsp;&nbsp;**9.76** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average exercise price at date of grant | &nbsp;&nbsp;**$0.88** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average fair value at measurement date | &nbsp;&nbsp;**$0.87** |

---

**QUANTUM eMOTION CORP. <br> Notes to the interim condensed consolidated financial statements<br> Periods ended September 30, 2025, and 2024<br> (Unaudited, in Canadian dollars)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(d)* *Share purchase warrants* 

 

The Company's warrant movement for the nine-month period ended September 30, 2025, (September 30, 2024, 15,000,000 at an exercise price of $0.15) is as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;**Number of <br> warrants** | &nbsp;&nbsp;**Weighted average<br> exercise price** |
|  |  | &nbsp;&nbsp;**$** |
| &nbsp;&nbsp;Balance outstanding, beginning of period | &nbsp;&nbsp;**16050000** | &nbsp;&nbsp;**0.17** |
| &nbsp;&nbsp;Warrants issued | &nbsp;&nbsp;**22319999** | &nbsp;&nbsp;**1.36** |
| &nbsp;&nbsp;Warrants exercised | &nbsp;&nbsp;**(15269999)** | &nbsp;&nbsp;**0.42** |
| &nbsp;&nbsp;Balance outstanding, end of period | &nbsp;&nbsp;**23100000** | &nbsp;&nbsp;**1.16** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Related party transactions** 

The Company's related parties include companies owned by key management. The Company paid Management fees to key management through their management companies as follows:

● Management compensation of $54,000 to LVR Capital, a company owned by the Chief Financial Officer. As at September 30, 2025, $6,000 (December 2024 – $6,000) was due to that company.

● Management compensation of $225,000 to Aurakle Research, a company owned by the Chief Executive Officer. As at September 30, 2025, $111,175 (2024 – $161,306) was due to that company.

● Director's fees of $22,500; and IT related fees of $65,968 to Baystream Corporation, a company owned by a Director. As at September 30, 2025, $2,500 (2024 – $17,680) was due to that company.

● Director's fees of $22,500 and consulting fees of $28,250 to Red River Solutions a company owned by a Director. As at September 30, 2025, $12,785 (2024 – $7,875) was due to that company.

● Director's fees of $22,500 to SLT Solutions, a company owned by a Director. As at September 30, 2025, $15,000 (2024 – $7,500) was due to that company.

● Management compensation of US $72,000 and Management fees of US $22,500 to CyberDef LLC, a company owned by a Director. As at September 30, 2025, US $19,500 (2024 – US $7,500) was due to that company.

● Research and development costs of $442,782 to Fileglobal, a company owned by a Director. As at September 30, 2025, $27,254 (2024 – $25,775) was due to that company.

**QUANTUM eMOTION CORP. <br> Notes to the interim condensed consolidated financial statements<br> Periods ended September 30, 2025, and 2024<br> (Unaudited, in Canadian dollars)**

**Transactions with key management**

The key management of the Company are the members of senior management and the Board. The remuneration and other expenses for the period of key management (including the amounts above) is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Three months ended <br> September 30** | &nbsp;&nbsp;**Three months ended <br> September 30** | &nbsp;&nbsp;**Nine months ended**<br> **September 30** | &nbsp;&nbsp;**Nine months ended**<br> **September 30** |
|  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;2024 | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;2024 |
|  | &nbsp;&nbsp;**$** | &nbsp;&nbsp;$| &nbsp;&nbsp;**$** | &nbsp;&nbsp;$|
| &nbsp;&nbsp;Research & development | &nbsp;&nbsp;**168231** | &nbsp;&nbsp;104684 | &nbsp;&nbsp;**442782** | &nbsp;&nbsp;350081 |
| &nbsp;&nbsp;Management salaries | &nbsp;&nbsp;**142763** | &nbsp;&nbsp;66396 | &nbsp;&nbsp;**378195** | &nbsp;&nbsp;271898 |
| &nbsp;&nbsp;Director's fees & other costs | &nbsp;&nbsp;**61199** | &nbsp;&nbsp;30000 | &nbsp;&nbsp;**127188** | &nbsp;&nbsp;60000 |
| &nbsp;&nbsp;Other fees | &nbsp;&nbsp;**26946** | &nbsp;&nbsp;50048 | &nbsp;&nbsp;**65968** | &nbsp;&nbsp;111139 |
| &nbsp;&nbsp;Share based payments | &nbsp;&nbsp;**6485** | &nbsp;&nbsp;7782 | &nbsp;&nbsp;**2407963** | &nbsp;&nbsp;29132 |
|  | &nbsp;&nbsp;**405624** | &nbsp;&nbsp;258909 | &nbsp;&nbsp;**3422096** | &nbsp;&nbsp;822250 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Net financial (income) expense** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended <br> September 30** | **Three months ended <br> September 30** | &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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Nine months ended**<br> **September 30** | &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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Nine months ended**<br> **September 30** |
|  | **2025** | 2024 | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |
|  | **$** | $| **$** | $|
| Financial income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(216307)** | (1997) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(302874)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14280) |
| Change in fair value of investments | **-** |  | **-** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4629) |
| Financial expense | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27667** | 1640 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17261** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8011 |
| Foreign currency loss | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3108** | 1150 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10650** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1386 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(185535)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;793 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(274963)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9512) |

---

&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Comparative figures reclassification** 

In the interim condensed consolidated statements of loss and comprehensive loss and statements of cash flows, some comparative figures for the three-month and nine-months periods ended September 30, 2024, have been reclassed to conform to the presentation adopted for the three-month and nine-months periods ended September 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;10. **Subsequent Event** 

Subsequent to quarter-end, the Company issued 12,120,000 shares in consideration for $11,621,200 following the exercise of warrants.

## Exhibit 99.9

------

**Exhibit 99.9**<br>

![](ex99-9_001.jpg)

**Consent of Independent Registered Public Accounting Firm**

The Board of Directors<br> Quantum eMotion Corp.

We, Richter LLP, consent to the use of our report dated April 30, 2025, on the consolidated financial statements of Quantum eMotion Corp. (the "Company"), which comprise the consolidated statement of financial position as at December 31, 2024, and the consolidated statements of loss and comprehensive loss, consolidated statement of changes in shareholders' equity, and consolidated statement of cash flows for the year then ended, and the notes to the financial statements, including a summary of material accounting policies, which is incorporated by reference in this Registration Statement on Form 40-F dated January 22, 2026 of the Company.

/s/ Richter LLP <br>

Montreal, Canada<br> January 22, 2026

![](ex99-9_002.jpg)

------

## Exhibit 99.10

**Exhibit 99.10**

![](ex99-10_001.jpg)

**QeM Announces Launch of Sentry-Q**

**The Deep-Tech Company's Quantum-Safe Messenger Platform**

 ****

MONTREAL, January 25th, 2023, Quantum eMotion Corp**. (TSX.V: QNC) (OTCQB: QNCCF) (FSE: 34Q) ("QeM"** or the **"Company")** announces the launch of Sentry-Q its Quantum-safe messenger platform.

Francis Bellido, CEO of QeM, commented: "QeM is thrilled to announce the launch of its revolutionary Quantum-safe messenger platform, designed for the secure communication of large and complex messages, including entire database structures. After the completion of our quantum random number generator **(QRNG2)** last year, we realized that to maximize the value of this game-changing technology we needed to develop complete cybersecurity solutions based on truly random numbers. We now have a platform, named **Sentry-Q**, that has the potential to perform as a cloud-based solution or as a physical hardware device. It is versatile and flexible enough to be used in a multitude of applications, as a whole or in part."

Larry Moore, CTO of QeM, said: "The Sentry-Q platform is comprised of three modules that each have several advantages as cybersecurity weapons:

&nbsp;&nbsp;&nbsp;&nbsp;1. **QRNG2**: QeM's first QRNG exploits the inherent randomness of quantum mechanics to generate

makes QRNG2 particularly useful for generating cryptographic keys, which are used to encrypt and decrypt sensitive data. Our QRNG can
also generate random numbers at a much faster rate than traditional systems, making it possible to generate a large number of keys in
a relatively short amount of time, enabling the use of quantum-safe cryptography.

&nbsp;&nbsp;&nbsp;&nbsp;2. **QXCP**: QeM's cryptographic platform designed to be agile and extensible enough to be adapted
to a wide range of attack vectors, including "man-in-the-middle" attacks, and has just been extended to be Quantum-safe. As
a result, the QXCP platform includes the strongest encryption systems that exist to date.

&nbsp;&nbsp;&nbsp;&nbsp;3. **QGPS**: The Push Server Platform that is responsible for asynchronously<sup>1</sup> sending large
messages greater than one Gigabyte as push notifications to clients, even when the client is not active. QGPS enables Multi-Part Transmissions
for fast communication while being independent from User Interface (UI) and Client Operating Systems."

Francis Bellido added: "Sentry-Q will initially function as a cloud-based solution and will be progressively applied and evolved with hardware-based modules, such as PCI Express cards<sup>2</sup>, mini-HSM devices<sup>3</sup> and embedded processors. We expect that Sentry-Q will position QeM as a significant player in the quantum-safe cybersecurity space. By coincidence, as we are announcing today in Montreal the launch of Sentry-Q, almost at the same time Quebec's government announces the availability for 2023 second half of the world's 5th quantum

supercomputer, based on the 127-qubit Quantum System One architecture developed by IBM and operated by PINQ<sup>2</sup>, click <u>HERE to read the full press release.</u> The first generation of Quantum computers are already here and the threat they will pose to our security as their formidable power of calculation continues to increase with every new generational version could create havoc in our daily lives by exploiting data breaches of sensitive health and financial personal data, challenging the integrity of digital documents, and breaking most cryptocurrency encryption. The transition toward quantum-safe cybersecurity is becoming increasingly urgent."

About QeM

The Company's mission is to address the growing demand for affordable hardware security for connected devices. The patented solution for a Quantum Random Number Generator exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced security for protecting high value assets and critical systems.

The Company intends to target the highly valued Financial Services, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: <u>info@quantumemotion.com</u>

Website: <u>www.quantumemotion.com</u>

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

&nbsp;&nbsp;&nbsp;&nbsp;1. Any type of communication where one person provides information, and then there is a time lag before
the recipients take in the information and offer their responses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Hardware such as graphics cards, CPUs, solid-state drives (SSDs), or HDDs,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Hardware security modules

## Exhibit 99.11

**Exhibit 99.11**

![](ex99-10_001.jpg)

**Quantum eMotion Appoints**

**Vice President Quality & Compliance**

MONTREAL, 13 March 2023 – Quantum eMotion Corp. ("QeM" or the "Company") (TSX-V: QNC; OTCMKTS: QNCCF; F: 34Q) is pleased to announce that Abder Benrabah has joined the Company as Vice President Quality & Compliance, based in Montreal, QC.

Mr. Benrabah brings more than 25 years of broad and successful international experience in various industries (Medical Devices, Cybersecurity, EPC (Engineering, procurement, and construction), IT & Aerospace) with track records in establishing and executing business strategies. Senior management roles include start-ups and global companies such as CryoCath Technologies, PerkinElmer Life Science, Network International and recently Smith & Nephew where Mr. Benrabah led Global functions, establishing transformation initiatives including worldwide compliance and cost reduction programs.

His key strengths include track records in establishing and executing business strategies with focus in achieving results both Upstream (New Product Introduction: from R&D concept phase up to commercialization) and Downstream (Manufacturing scale-up and commercialization) for US, EC and Emerging Markets.

Mr. Benrabah is a Mechanical Engineer with a PhD in Materials engineering from Ecole Central de Lyon, France and is a Lean-Six Sigma Master Black Belt.

"Abder is a strong addition to the QeM team. His expertise around Compliance and Operations in Medical Devices and Cybersecurity will be invaluable as we engage in technology deployment in industries like Blockchain and approach commercialization in Telemedicine/Digital Therapeutics" commented Francis Bellido, CEO of QeM*.*

 

Abder Benrabah added: "In the past two years QeM has spectacularly progressed in developing a revolutionary QRNG technology and a complete cybersecurity platform (Sentry-Q) that intended to safeguard the security and privacy of electronic communications. I am very excited to join QeM as I believe this new technology could become a game changer in the Cybersecurity industry."

About QeM

The Company's mission is to address the growing demand for affordable hardware security for connected devices. The patented solution for a Quantum Random Number Generator exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced security for protecting high value assets and critical systems.

The Company intends to target the highly valued Financial Services, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication

Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please contact:

Francis Bellido, Chief Executive Officer

Tel : 514.956.2525

Email: info@quantumemotion.com

Website: www. quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.12

**Exhibit 99.12**

![](ex99-10_001.jpg)

**Quantum eMotion announces the filing of a Patent for a**

**Quantum-operating Blockchain Wallet**

**Unhackable Protection for Cryptocurrency Wallets**

MONTREAL, April 12th, 2023 – Quantum eMotion Corp. ("QeM" or the "Company") (TSX-V: QNC; OTCMKTS: QNCCF; F: 34Q) today announced the recent patent application for a new method to operate a Blockchain Wallet that benefits from the protection provided by the QeM Quantum Random Number Generator (QRNG2).

A hardware wallet is a physical device used to securely store private keys to access and manage cryptocurrencies, such as Bitcoin or Ethereum. These devices are designed to keep private keys offline, which makes them less susceptible to hacks and cyber-attacks compared to software-based wallets that are connected to the internet.

The market for hardware wallets has grown significantly in recent years due to the increasing demand for secure cryptocurrency storage solutions. According to a recent report by Markets and Markets, the global hardware wallet market is expected to grow from $1.0 billion in 2020 to $1.9 billion by 2025, at a compound annual growth rate (CAGR) of 13.5% during the forecast period. The growth of the hardware wallet market can be attributed to several factors, including the continuous adoption of cryptocurrencies despite their recent public market volatility.

Although hardware wallets have been developed to increase the security of cryptocurrencies, they remain vulnerable to sophisticated cybercriminal activities and future quantum-computers attacks. Last year hackers stole a record $3.8 billion worth of cryptocurrency globally according to a blockchain analytics firm that tracks cybercrime. The future is even more menacing with the emergence of quantum computers that could break the encryption algorithms currently used to secure many online communications, including those used for financial transactions, government communications, and personal data storage.

Francis Bellido, CEO of Quantum eMotion, commented "We continue to deploy our patent-protected technology based on quantum electron tunneling in a multitude of applications. Our Quantum-protected Blockchain wallet will be the first application of the program funded by Mitacs in collaboration with Dr. Kaiwen Zhang at ETS (École de technologie supérieure, Montreal, Canada) for Blockchain applications of its QRNG technology. Our Quantum crypto-Wallet will eventually be considered one of the safest ways to store and manage cryptocurrencies, and they will become indispensable for anyone who wants to keep their digital assets highly secure."

About QeM

The Company's mission is to address the growing demand for affordable hardware security for connected devices. The patented solution for a Quantum Random Number Generator exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced security for protecting high value assets and critical systems.

The Company intends to target the highly valued Financial Services, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please contact:

Francis Bellido, Chief Executive Officer

Tel : 514.887.5469

Email: info@quantumemotion.com

Website: www. quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.13

**Exhibit 99.13**

![](ex99-10_001.jpg)

**Quantum eMotion Introduces Advanced**

**High Performance**

**Quantum Random Number Generator**

MONTREAL, June 1<sup>st</sup>, 2023 – Quantum eMotion Corp. ("QeM" or the "Company") (TSX-V: QNC; OTCMKTS: QNCCF) is pleased to announce its Entropy as a Service system, code named QxEAAS.

Entropy as a Service (EaaS) is a ground-breaking concept that involves a service provider offering on-demand entropy by means of a cloud network. Entropy, which in this context refers to the degree of randomness or uncertainty in a system, plays a vital role in cryptography where random numbers are used to generate cryptographic keys. To achieve high quality, QeM's random number generator (QRNG2) utilizes the principles of the quantum electron tunnel effect, to produce truly random numbers that are inherently unpredictable and uncorrelated. By seamlessly incorporating this technology into the QxEaaS system, QeM fully leverages the advantages of QRNG2. This integration guarantees that QeM's Sentry-Q cryptography platform benefits from the maximum levels of entropy, thereby bolstering its resistance against increasingly sophisticated and frequent cyberattacks.

Larry Moore, CTO of QeM, commented: "The QeM EaaS system provides a range of entropy and other IT security related services to authorized devices, and does so on demand. The system distributes cryptographically secured keys and strings that are generated by means of the company's patented, quantum-effects based entropy sources".

Larry Moore added: "The EaaS system also includes a range of safeguards to continually test for the quality and randomness of the generated entropy. Several established tests exist, such as the NIST Statistical Test Suite, DIEHARD battery of tests, or the TestU01 suite are included. These tests help verify that the generated entropy meets the desired standards."

"I am delighted that QeM has achieved this landmark. The QxEAAS system leverages QeM's cryptography library and further enhances the quality of security that can be obtained. This library includes the possibility of using quantum-safe primitives approved by NIST at the end of 2022. Together, the entropy as a service system and the quantum-safe encryption library, provide state of the art security for data communications and authentication", said Francis Bellido, CEO of QeM.

About QeM

The Company's mission is to address the growing demand for affordable hardware security for connected devices. The patented solution for a Quantum Random Number Generator exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced security for protecting high value assets and critical systems.

The Company intends to target the highly valued Financial Services, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.14

**Exhibit 99.14**

![](ex99-10_001.jpg)

**Quantum eMotion Secures a Groundbreaking Patent in Australia**

**for its Method and System of Generating a Random Bit Sample**

Montreal, Canada / July 21<sup>st</sup>, 2023- Quantum eMotion Corp. ("QeM" or the "Company") (TSX-V: QNC; OTCMKTS: QNCCF) is delighted to announce the issuance of a significant patent in Australia pertaining to quantum random number generation based on quantum tunneling.

After a meticulous examination in accordance with Australian Law, the Commissioner of Patents has officially granted the patent, designated by the number 2018401978, valid for a duration of 20 years from the date of deposit.

Francis Bellido, CEO of QeM, expressed his enthusiasm regarding this momentous achievement: "We are truly thrilled with the recognition of our groundbreaking quantum technology patent in Australia. Given the nation's substantial investment in advancing quantum technologies and its prominent position in quantum communications, this is a major milestone for us. Australia's prominence in the cybersecurity domain adds further significance to the acknowledgement of our claim, representing a critical step towards global recognition of our foundational intellectual property. As we forge ahead with a well-defined commercial plan, this milestone holds profound importance for our valued shareholders, esteemed partners, and prospective clients alike."

Currently, the Company possesses two valuable patent families, spanning multiple countries and resulting in the issuance of several patents. The first patent family originated from research conducted at Sherbrooke University by Professor Bertrand Reulet's esteemed team. This intellectual property was subsequently acquired by our Company. The primary focus of the first patent family lies in the utilization of a monitored flow of electrons across a quantum tunnelling barrier, acting as a quantum random signal source. This technology serves as the foundation for generating random numbers. The second patent family emerged from our internal efforts to eliminate non-quantum noise from the quantum signal. This significant breakthrough ensures the complete authenticity and randomness of the generated numbers, solely based on quantum processes.

In recognition of his exceptional contributions as Chief Technology Officer, Dr. Larry Moore has been awarded by the board of directors a grant of 500,000 options. Simultaneously, Dr. Francis Bellido has been granted 609,737 options as per the terms of his contract.

About QeM

The Company's mission is to address the growing demand for affordable hardware security for connected devices. The patented solution for a Quantum Random Number Generator exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced security for protecting high value assets and critical systems.

The Company intends to target the highly valued Financial Services, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please contact:

Francis Bellido, Chief Executive Officer

Tel : 514.956.2525

Email: info@quantumemotion.com

Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports, including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.15

**Exhibit 99.15**

**Quantum eMotion Reaches a Successful**

**Commercialization Milestone with its**

**Sentry-Q Cybersecurity Platform**

MONTREAL, August 21st, 2023, Quantum eMotion Corp**. (TSX.V: QNC) (OTCQB: QNCCF) ("QeM"** or the **"Company")** a pioneering force in classical and quantum cybersecurity, announces a significant milestone in its journey towards the commercialization of its cloud-based Sentry-Q platform to address the unmet cybersecurity needs of modern telemedicine and digital healthcare.

Following its last Spring announcement of a revenue-sharing commercial partnership with QeM to strengthen the cybersecurity requisites of its innovative Digital Therapeutics (DTx) platform, Greybox Solutions has now been selected to implement in the Quebec healthcare system its cutting-edge solution for chronic diseases care, aiming to demonstrate enhanced patient services, experience, and overall performance. Greybox was chosen on the base of its ability to meet technical and cybersecurity requirements, showcasing their tailored patient-focused solutions.

As the use of digital therapeutics becomes more widespread, the importance of cybersecurity in this context cannot be overstated. Cybersecurity is an essential component of the digital therapeutics landscape. By protecting patient data, ensuring treatment accuracy, and maintaining platform reliability, cybersecurity measures contribute to the overall safety, efficacy, and trustworthiness of digital therapeutic interventions. As the field continues to grow, investing in robust cybersecurity practices will be instrumental in realizing the full potential of digital therapeutics to transform healthcare.

Pierre Berube, CEO of GreyBox, commented: "I am thrilled by this opportunity. This marks a significant stride toward digital transformation in Quebec's healthcare system, paving the way for wider integration of digital therapies. Our DTx platform, originally developed in partnership with the Centre Hospitalier de l'Université de Montréal (CHUM) and Boehringer Ingelheim Canada, has already demonstrated clinical superiority in the field of heart failure. In addition, it will be fortified with state-of-the-art cybersecurity, seamlessly incorporating QeM's Sentry-Q cybersecurity platform to ensure the utmost protection for our patients. These two key features will establish us as one of the world leaders in this space. Beyond Quebec and Canada, our Company is also accelerating its commercial activities in Europe to provide effective care for patients with heart failure and other conditions such as diabetes, mental health, and other complex chronic conditions."

"We are excited to announce this important milestone as we pave the way for the commercialization of our Sentry-Q cybersecurity platform" said Francis Bellido, CEO of QeM. "This accomplishment is a testament to the hard work of our talented team and the unwavering support of our partners and stakeholders. Strong cybersecurity is vital due to rising data breaches targeting patient records. Digital Therapeutics is pivotal in

the booming telemedicine market, projected to reach USD 191.9 billion by 2026, driven by COVID-19's virtual healthcare adoption, remote patient monitoring, home healthcare demand, and technological advancements. QeM has the vision to become a world leader in healthcare cybersecurity."

About Greybox Solutions:

Greybox Solutions is a growing Montreal-based health technology company specializing in innovative software development to improve patients' lives. Its mission is to find digital transformation solutions to address healthcare system challenges and reduce the burden of managing chronic illnesses. Greybox distributes its digital health platform, TakeCare<sup>TM</sup>, to redefine the relationship between patients and their healthcare team.

About QeM

The Company's mission is to address the growing demand for affordable hardware and cloud-based cybersecurity solutions for connected devices. The patented solution for a Quantum Random Number Generator exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced security for protecting high value assets and critical systems.

The Company intends to target the highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: <u>www.quantumemotion.com</u>

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.16

**Exhibit 99.16**

![](ex99-10_001.jpg)

**Quantum eMotion's Cybersecurity**

**Endeavors boosted by Greybox Solutions**

**Digital Therapeutics Platform**

**Breakthrough Results in Heart Failure**

**Study**

**Boehringer Ingelheim (Canada) Ltd, a significant sponsor**

MONTREAL, November 21<sup>st</sup>, 2023, Quantum eMotion Corp**. (TSX.V: QNC) (OTCQB: QNCCF) ("QeM"** or the **"Company")** a trailblazer in classical and quantum cybersecurity, is delighted to share a significant stride in its path to commercialization.

In a recent clinical study, Greybox Solutions Inc., a key partner of Quantum eMotion in its commercial strategy in digital healthcare, showcased remarkable success with its remote patient monitoring and digital therapeutics platform (DTx) in treating heart failure outpatients. The study revealed a significant reduction in emergency room visits and/or hospitalizations and a 23% decrease in healthcare costs, as highlighted in preliminary results presented at the American Heart Association's Scientific Sessions held November 11–13, 2023, in Philadelphia, Pennsylvania.

Developed in collaboration with the Centre hospitalier de l'Université de Montréal (CHUM), Boehringer Ingelheim (Canada) Ltd., and MEDTEQ+, this DTx study is providing significant insights in addressing heart failure utilizing Takecare, a technological platform including a self-care application for patients, a clinical dashboard enabling remote-monitoring by the team, a DTx module providing automated medication suggestions to the treatment team and finally, educational modules for patients – a crucial development in an era where digital health solutions for this disease are gaining traction without conclusive evidence of their impact on public healthcare systems in North America. With 750,000 Canadians living with heart failure and over 100,000 new diagnoses annually, this condition is a leading cause of hospitalization in Canada. Projections indicate that by 2030, associated healthcare costs in the country will surge to $2.8 billion annually.

Francis Bellido, CEO of Quantum eMotion, expressed excitement about Greybox's milestone and its positive implications for the commercialization of the Sentry-Q cybersecurity platform. He emphasized the critical role of robust cybersecurity in safeguarding sensitive patient data amid escalating data breaches.

Bellido commended Greybox's formidable partners in the study, singling out Boehringer Ingelheim (BI) for its strong history in cardiovascular diseases and visionary approach to digital therapeutics. He noted BI's recognition of the potential to enhance health outcomes and create innovative business models by integrating digital therapeutics into their existing drug offerings.

Bellido stated, "I am impressed by the quality of Greybox's partners in this landmark study, in particular Boehringer Ingelheim (BI), a German behemoth with a strong history in cardiovascular diseases. BI is one of the big pharma that sees the benefits of digital therapeutics in improving health outcomes in patients and in creating new business models by growing existing revenues from drugs through bundling strategies."

As the digital healthcare market surges towards an estimated value of USD 191.9 billion by 2026, fueled by the virtual healthcare adoption catalyzed by COVID-19, the demand for digital therapeutics, home healthcare, and remote patient monitoring continues to rise. Quantum eMotion remains committed to providing state-of-the-art cybersecurity to ensure the utmost protection in this rapidly evolving landscape.

About QeM

The Company's mission is to address the growing demand for affordable hardware security for connected devices. The patented solution for a Quantum Random Number Generator exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced security for protecting high value assets and critical systems.

The Company intends to target the highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: <u>www.quantumemotion.com</u>

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.17

**Exhibit 99.17**

![](ex99-10_001.jpg)

**Quantum eMotion Announces the Creation of**

**Quantum eHealth, a New Subsidiary Focused on**

**Healthcare Cybersecurity Applications**

MONTREAL, January 10th, 2024 – Quantum eMotion Corp. (TSX.V: QNC) (OTCQB: QNCCF) ("QeM" or the "Company"), a pioneering force in classical and quantum cybersecurity solutions, proudly announces the formation of Quantum eHealth Inc., a wholly owned subsidiary dedicated to the development and commercialization of healthcare applications for its cutting-edge cybersecurity platform.

In a strategic move to enhance value and focus on the burgeoning digital healthcare security market, QeM has decided to spin off its Digital Healthcare Cybersecurity Activities into Quantum eHealth Inc. This new entity will be endowed with significant assets, including an exclusive license for the application of QeM's intellectual property in the healthcare sector. QeM will continue to focus on the development and commercialization of the different iterations of its Quantum Random Number Generator (QRNG) such as Hardware Security Module (HSM), microchip, including its cloud-based platform Sentry-Q for other markets such as financial services, blockchain, military, IoT and others.

Francis Bellido, CEO of QeM, expressed his enthusiasm for this pivotal development, stating: "The establishment of Quantum eHealth Inc. is a strategic step that allows us to tap into alternative funding sources, distinct from public markets. This approach is also aimed at optimizing operational efficacy and maximizing shareholder value. While in the past 18 months, capital markets have been rough for small-cap technology companies, I expect that QeM will soon be recognized at a valuation that truly reflects its intrinsic value, based on its unique technology and the constant security threat posed by Cyber-criminality in healthcare."

Indeed, this announcement comes amid growing concerns about cybersecurity threats in the healthcare sector. Recent studies, including the insightful resource "Healthcare and Cybersecurity: Statistics, Facts, and Trends" found at SafetyDetectives (<u>https://www.safetydetectives.com/blog/healthcare-cybersecurity-statistics/</u>), highlight the alarming rate of cyberattacks in this industry. With threats accounting for 70% of all large-scale data security incidents, the need for robust cybersecurity solutions in healthcare has never been more urgent.

The healthcare industry faces unique challenges due to the sensitive nature of patient data. High-profile breaches, such as those experienced by iSofH in Vietnam and Anthem Blue Cross, underscore the critical need for advanced security measures. The financial, reputational, and personal impacts of these attacks are substantial, with an average cost of $10.10 million per incident.

Quantum eHealth Inc. is poised to address these challenges by leveraging QeM's advanced cybersecurity technologies. The subsidiary will focus on protecting sensitive medical data and ensuring uninterrupted healthcare services, in an industry where the stakes are exceptionally high.

Quantum eMotion is committed to delivering unparalleled cybersecurity solutions, and the creation of Quantum eHealth Inc. marks a significant milestone in our journey to safeguard the digital landscape of healthcare.

About QeM

The Company's mission is to address the growing demand for affordable hardware security for connected devices. The patented solution for a Quantum Random Number Generator exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced security for protecting high-value assets and critical systems.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.18

**Exhibit 99.18**

![](ex99-10_001.jpg)

**Quantum eMotion announces today the Beta-release**

**of QodeAI, its AI-Powered Automation System**

MONTREAL, January 16th, 2024 - Quantum eMotion Corp. (TSX.V: QNC) (OTCQB: QNCCF) ("QeM" or the "Company"), a pioneering force in classical and quantum cybersecurity solutions, proudly announces the beta release of its AI-Powered Automation System, named QodeAI, a new development tool, designed to accelerate the deployment of QeM's main products and accelerate the deployment and adoption among customers and Partners.

QodeAI, like the majority of QeM's products, is targeted to the Application Security market, which was valued at USD 7.09 Billion in 2022, projected to reach USD 26.80 Billion by 2030 at a Compound Annual Growth Rate (CAGR) of 18 %.

QodeAI is an autonomous system capable of code generation, instructions and interaction with systems and users. In its simplest form, QodeAI will respond to queries on the general subject of Application Security, providing instruction and advice in this complex field. It is primarily intended for companies that have licensed QeM's SDK (Software Development Kit) and EaaS (Entropy as a Service) products to enhance the security of their applications. QodeAI will also be available for casual users browsing the QeM website, wanting to know more about QeM products or generally making inquiries about Application Security.

Larry Moore, CTO of QeM, said: "QodeAI is a powerful and adaptable tool that is valuable for companies seeking to enhance the security of their APPS by leveraging QeM's technologies into their products. Its combination of user-friendly guidance, code automation, and integration capabilities make it a standout developer solution in the application security landscape."

Francis Bellido, CEO of QeM, conveyed great excitement about this advancement, declaring, "We are thrilled to adopt AI technologies and fully leverage the advantages of artificial intelligence to enhance the functionality and breadth of our secure communication platform. Envisioned as a support tool for developers, QodeAI is expected to evolve into a significant source of revenue for QeM, especially when employed as a Partner Support Tool."

About QeM

The Company's mission is to address the growing demand for affordable hardware security for connected devices. The patented solution for a Quantum Random Number Generator exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced security for protecting high-value assets and critical systems.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.19

**Exhibit 99.19**

![](ex99-10_001.jpg)

**Quantum eMotion Makes Major Advances in Creating**

**its First-Generation Quantum Random Number**

**Generator Microchip**

MONTREAL, February 21st, 2024 - Quantum eMotion Corp. (TSX.V: QNC) (OTCQB: QNCCF) ("QeM" or the "Company"), proudly announces significant progress in the creation of its inaugural Quantum Random Number Generator (QRNG) on a chip, marking a pivotal advancement in quantum communication technology. This achievement represents a significant step forward in the field, aiming to compactly integrate QRNG technology into a single, streamlined package, thereby transforming the design and application of quantum-based security elements.

QeM's research and development team has explored two promising solutions to achieve this ambitious objective:

· First, by incorporating crucial components such as tunnel junctions, amplifiers, Analog-to-Digital Converters (ADC), and Digital Signal
Processing (DSP) units into a microchip through the use of a standard Complementary Metal-Oxide-Semiconductor (CMOS) process.

· Secondly, by creating a System-in-Package (SIP) solution that merges tunnel junctions with a CMOS die,
encompassing all necessary functionalities in a cohesive integrated package.

These approaches are poised to culminate in the production of integrated circuits that encompass a complete QRNG within an area of less than 1 cm². Moreover, the first solution offers the potential to sell design cores, enabling integrated circuit (IC) vendors such as TI, Intel, and IBM to incorporate QRNG functionality directly into their products, thereby broadening the applicability and accessibility of quantum-based security technologies.

Francis Bellido, CEO of QeM, praised the initial prototype designed by Ecole Technologies Supérieure (ETS) in Montreal, in partnership with CMC and manufactured by Taiwan Semiconductor Manufacturing Company (TSMC). Delivered at the end of 2023 and tested at ETS, the prototype demonstrated excellent performance in critical functions. Despite the need for some adjustments and enhancements to refine the design, the team expects to be ready for the next production cycle, aiming to deliver a functional QRNG IC by fall 2024.

The integration of QRNG technology into a miniaturized chip opens up possibilities for embedding quantum-enhanced security features directly into medical devices, consumer electronics, IoT devices, and other digital systems, further broadening the applications and impact of quantum-based security technologies.

The market for QRNG technologies has seen significant growth and is projected to continue expanding. In 2022, the QRNG market was valued at approximately 50 million U.S. dollars. A forecast by IQT Research predicts that this market could rise to 4 billion U.S. dollars by 2030. This growth reflects the increasing demand for secure communication technologies and the expected adoption of quantum computing and cryptography technologies across various industries.

About QeM

The Company's mission is to address the growing demand for affordable hardware and software security for connected devices. QeM has become a pioneering force in classical and quantum cybersecurity solutions thanks to its patented Quantum Random Number Generator, a security solution that exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced protection for high-value assets and critical systems.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.20

**Exhibit 99.20**

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| ![](ex99-10_001.jpg) | ![](ex99-20_002.jpg) |

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**Quantum eMotion Partners with The Platform for Digital and**

**Quantum Innovation (PINQ²) for Testing its Security Platform**

**using IBM Quantum Computer Powered Simulated Attacks**

MONTREAL, March 18th, 2024 - Quantum eMotion Corp. (TSX.V: QNC) (OTCQB: QNCCF) ("QeM" or the "Company"), is thrilled to announce its strategic partnership with the The Platform for Digital and Quantum Innovation (PINQ²), a non-profit organization (NPO) founded in 2021 by the Ministry of Economy, Innovation and Energy of Quebec (MEIE - Ministère de l'Économie, de l'Innovation et de l'Énergie du Québec) and the Université de Sherbrooke. This collaboration marks a significant milestone in Quantum eMotion's mission to enhance its security platform's resilience against the most advanced security threats, including simulated quantum computer attacks orchestrated using IBM Quantum's Qiskit platform.

IBM and PINQ² announced last year the installation and availability of Canada's first IBM Quantum System One, along a partnership to accelerate quantum computing research application development to tackle complex and pressing global challenges. PINQ² is the exclusive operator of the cutting-edge 127-qubit IBM Quantum System One located at IBM Bromont.

The project's goal is to thoroughly examine and assess a version of the Kyber algorithm and the Quantum Random Number Generator (QRNG) that Quantum eMotion currently uses. The project aims to evaluate the QeM security system's performance in a simulated adversarial security setting, ensuring its consistency with the company's strategic goals. Specifically, the project will investigate the technical challenges of the Kyber version through advanced testing, analysis, and possible optimization efforts. Furthermore, quantum attacks will be emulated using Qiskit to confirm the algorithm's resilience against emerging threats.

At the core of this project is a comprehensive review of Quantum eMotion's existing quantum-resistant security framework, identifying its strengths, weaknesses, and potential vulnerabilities. The partnership with PINQ² leverages simulation tools like Qiskit to execute quantum attack simulations, rigorously testing the security solution's durability.

Francis Bellido, CEO of QeM, commented: *"We are very excited to collaborate with PINQ² in this unique endeavor, which has never been done before in this field. This is the first step toward building an open-*

 

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|:---|:---|
| ![](ex99-10_001.jpg) | ![](ex99-20_002.jpg) |

---

 

*source test bed for post-quantum security solutions. Eventually, we aim to prove that our security platform can make a significant difference in withstanding the threats posed by quantum computing."*

 

*"We are delighted to partner with Quantum eMotion in this groundbreaking project. Our collaboration will enable us to leverage our expertise and resources to rigorously test Quantum eMotion's security platform against the most advanced threats, including simulated quantum computer attacks.",* stated Éric Capelle, Executive Director of PINQ². *"This partnership is a testament to our commitment to driving innovation and advancing the field of quantum-resistant security solutions."*

For more information about Quantum eMotion and its innovative projects, please visit Quantum eMotion website.

About QeM

The Company's mission is to address the growing demand for affordable hardware and software security for connected devices. QeM has become a pioneering force in classical and quantum cybersecurity solutions thanks to its patented Quantum Random Number Generator, a security solution that exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced protection for high-value assets and critical systems.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

About PINQ²

## Exhibit 99.21

**Exhibit 99.21**

![](ex99-10_001.jpg)

**NSERC Approves $1.2M Groundbreaking Grant to further develop**

**Quantum eMotion (QeM) technology led by ETS and QeM**

MONTREAL, March 28<sup>th</sup> 2024 - Quantum eMotion Corp. (TSX.V: QNC) (OTCQB: QNCCF) is pleased to formally announce the reception of a significant research grant awarded by the Alliance Quantum grants program, overseen by the Natural Sciences and Engineering Research Council of Canada (NSERC). This grant supports the project "Quantum random number generation for highly secure cryptography applications," a collaborative initiative led by École de technologie supérieure (ÉTS), in partnership with QeM.

The project, under the leadership of Professor Ghyslain Gagnon from ÉTS, along with co-grantee Prof. K. Zhang and contributors such as Prof. B. Reulet of Université de Sherbrooke, is designed to pioneer in the development of quantum random number generator (QRNG) technologies. The focus of this initiative is on the creation of QRNG algorithms and hardware that are commercially scalable, aiming to enhance secure communication protocols, facilitate QRNG integration into Internet of Things (IoT) devices, and strengthen security in decentralized finance (DeFi) ecosystems, including blockchain and cryptocurrency applications.

The collaboration between ÉTS and QeM will target key technical challenges in the commercialization of QRNG technologies, particularly emphasizing the reduction of energy consumption while ensuring premier security features through quantum tunneling-based encryption methods.

Professor Ghyslain Gagnon, lead project, articulated: "This project aims at advancing knowledge in this field, with a strong focus on technology transfer with our partner QeM who will benefit from the innovations developed through this collaboration."

Francis Bellido, Chief Executive Officer of QeM, added: "This grant allows a significant advancement in quantum technologies and their cryptographic applications. By overcoming scientific and technical challenges and harnessing the unique properties of quantum physics for secure key generation, this project is expected to substantially enhance cybersecurity measures and facilitate the broader adoption of quantum technologies across multiple industries."

About QeM

The Company's mission is to address the growing demand for affordable hardware and software security for connected devices. QeM has become a pioneering force in classical and quantum cybersecurity solutions thanks to its patented Quantum Random Number Generator, a security solution that exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced protection for high-value assets and critical systems.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.22

**Exhibit 99.22**

![](ex99-10_001.jpg)

![](ex99-22_002.jpg)

**CSR5 GLOBAL AND QUANTUM EMOTION CORP. ANNOUNCE GROUNDBREAKING PARTNERSHIP TO REVOLUTIONIZE**

**CYBERSECURITY**

MONTREAL, April 8th, 2024 – CSR5 GLOBAL Inc. (CSR5) and Quantum eMotion Corp. (QeM) (TSX-V: QNC; OTCMKTS: QNCCF) are thrilled to announce a landmark partnership aimed at redefining the landscape of cybersecurity. This strategic alliance positions QeM as the exclusive provider of cutting-edge, post-quantum cryptography and cloud-based security solutions to CSR5, marking a significant leap forward in our shared commitment to reducing risk through enhanced response, resilience, and recovery capabilities.

Quantum eMotion is at the forefront of developing revolutionary quantum-based security solutions, offering a beacon of hope in the fight against the modern world's increasingly sophisticated cyber threats. Through this partnership, QeM's state-of-the-art technology will become a cornerstone of CSR5's comprehensive security solutions, designed to tackle the challenges of today's digital age head-on.

Francis Bellido, QeM's CEO, said: "In 2024, cybercrime's relentless advance is projected to incur global financial losses of a staggering $600 billion. Traditional cybersecurity measures, while essential, often prove inadequate against the coordinated and technologically advanced threats of today, leaving businesses exposed to potentially catastrophic risks."

James Castle, President, and Co-Founder of CSR5, remarked, "At CSR5, our business model goes beyond merely addressing challenges; it revolutionizes them. Through an innovative approach, we weave response and recovery into a seamless strategy. Our collaboration with QeM significantly strengthens our capabilities, allowing us to prevent unauthorized access and effectively reduce the consequences of security breaches."

He further expressed, "As we gear up for our much-anticipated pre-launch at the Toronto Tech Fest on May 22nd, and the official unveiling of Version 1.0 at Collision Toronto from June 17th to

20th, we warmly invite you to join us. This event promises attendees a unique opportunity to gain firsthand insights through a day packed with presentations from our strategic partners, including QeM. Moreover, we're offering an exclusive 50% discount on our subscription fees for the first year, underscoring our dedication to fortifying the future of your business."

**About CSR5**

CSR5 is revolutionizing the cybersecurity industry with its wholistic cybersecurity service platform. Backed by the world's largest cyber defense hub under Cyber Security Global Alliance, CSR5 offers SMBs a cost-effective solution to implement a best-in-class cybersecurity program. This program reduces overall risk, implementation costs, and improves resiliency, strategically positioning businesses for response and recovery.

CSR5 offers a comprehensive cybersecurity solution that integrates advanced protection and rapid recovery to ensure your small to medium-sized business remains resilient and successful in the face of evolving cyber threats through proactive protection and rapid recovery. Join us in creating a new pathway for the future of cybersecurity today.

For further information, please contact:

Dr. Chris Golden PhD, CEO & Co-Founder

E-mail: chris.golden@csr5-global.com

James Castle, President & Co-Founder

E-mail: james.castle@csr5-global.com

Corporate Email: <u>info@csr5-global.com</u>

Website: <u>www.csr5-global.com</u>

**About QeM**

The Company's mission is to address the growing demand for affordable hardware and software security for connected devices. QeM has become a pioneering force in classical and quantum cybersecurity solutions thanks to its patented Quantum Random Number Generator, a security solution that exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced protection for high-value assets and critical systems.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please visit our website at <u>https://www.quantumemotion.com/</u> or contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.23

**Exhibit 99.23**

![](ex99-10_001.jpg)

**Quantum eMotion Appoints International Cybersecurity Expert as New Board Member**

MONTREAL, May 17th, 2024 –Quantum eMotion Corp. (QeM) (TSX-V: QNC; OTCMKTS: QNCCF) is delighted to announce the appointment of John Young as the new Board Member, showing continuous commitment to strengthening its cybersecurity and IT operations.

With over 35 years of corporate experience in cybersecurity and IT Operations, John brings a wealth of knowledge, expertise, and valuable networks to QeM. He's made many TV and podcast appearances, written dozens of articles on cybersecurity, and is the author of four books. Among his corporate experiences, John was network director of the $41 billion C-17 project at McDonnell Douglas, a consultant at Kaiser Permanente for the buildout of a major 200-operator call center and accompanying data center in Los Angeles, and spent 27 years at IBM's Cloud Division, where he managed the IT infrastructure for 42 offices worldwide, managed data centers, made multi-million dollar equipment purchases, led a software development team, managed the assimilation of a $650 million corporate acquisition, and was lead cybersecurity SME for the team that protected the division's most sensitive information systems.

John will replace Scott Rickards, who has decided not to renew his membership. The board will continue to consist of five directors, four of whom will remain independent. In recognition of his service, John will receive a grant of 500,000 options.

Francis Bellido, QeM's CEO, commented, "I am thrilled to welcome John to our Board. He is a renowned cybersecurity expert with extensive experience at industry giants like IBM and McDonnell Douglas. His expertise in cybersecurity compliance, breach prevention, and IT operations management is critical for QeM's continued growth and success."

John Young added, "I am very excited to join the QeM team and contribute to its development and future commercial achievements. QeM's technology is unique and essential for improving current security measures and addressing the future threats posed by quantum computers."

John Young's arrival at QeM heralds a new era of cybersecurity excellence and operational efficiency. His proven track record and extensive experience position him as a pivotal figure in QeM's ongoing growth and success. His full Curriculum Vitae can be found at <u>https://www.linkedin.com/in/john-young-4aa083151/</u>

**About QeM**

The Company's mission is to address the growing demand for affordable hardware and software security for connected devices. QeM has become a pioneering force in classical and quantum cybersecurity solutions thanks to its patented Quantum Random Number Generator, a security solution that exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced protection for high-value assets and critical systems.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please visit our website at <u>https://www.quantumemotion.com/</u> or contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.24

**Exhibit 99.24**

![](ex99-10_001.jpg)

**Quantum eMotion Corp. Unveils Innovative Hardware Wallet Technology for the Cryptocurrency Industry**

Montreal, Quebec – July 3, 2024 – Quantum eMotion Corp. is proud to announce the development of an advanced hardware wallet technology tailored for the cryptocurrency industry. This cutting-edge solution offers a low footprint and competitive cost, incorporating Quantum eMotion's Quantum Random Number Generation (QRNG) and intelligent key generation scheme selection technologies into new commercial applications.

Quantum eMotion's new hardware wallet technology aims to enhance the efficiency and cost-effectiveness of hierarchical deterministic (HD) wallets. Traditional HD wallets require separate hardware devices for generating parent (master) and child keys. However, the innovative approach developed by Quantum eMotion reuses the same hardware components for both tasks, significantly reducing costs, circuit complexity, and footprint.

This method of resetting and reusing hardware devices allows for efficient and repeated key generation. Additionally, the master private key can be regenerated by resetting the memory systems and using a new quantum random number, ensuring high robust security.

The hardware wallet market size was valued at USD 284.9 million in 2023 and is poised to grow at a significant CAGR of 23.2% from 2024 to 2030. Quantum eMotion's new technology is well positioned to capture a substantial share of this growing market.

Quantum eMotion has filed a patent application and maintains industrial secrecy to secure international intellectual property protection. This strategic move highlights the company's commitment to leading innovation in the cryptocurrency sector.

Francis Bellido, CEO of Quantum eMotion, stated, "We are excited to continue leveraging our patent-protected technology based on quantum electron tunneling across various applications. This new hardware wallet represents our second collaboration with ETS (École de technologie supérieure, Montreal, Canada) for blockchain and cryptocurrency applications using our QRNG technology. Our Quantum Crypto-Wallet will set a new standard for secure cryptocurrency storage and management, becoming indispensable for anyone looking to protect their digital assets with the highest level of security."

**About QeM**

The Company's mission is to address the growing demand for affordable hardware and software security for connected devices. QeM has become a pioneering force in classical and quantum cybersecurity solutions thanks to its patented Quantum Random Number Generator, a security

solution that exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced protection for high-value assets and critical systems.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please visit our website at <u>https://www.quantumemotion.com/</u> or contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.25

**Exhibit 99.25**

![](ex99-10_001.jpg)

**Quantum eMotion Achieves ISO/IEC 27001 Cybersecurity Certification**

MONTREAL, July 11th, 2024 –Quantum eMotion Corp. (QeM) (TSX-V: QNC; OTCMKTS: QNCCF) is proud to announce that it has obtained the prestigious ISO/IEC 27001:2022 certification, a significant milestone underscoring QeM's commitment to information security and operational excellence. ISO 27001 cybersecurity certification is one of the most widely recognized, rigorous, and internationally accepted information security standards.

The scope of this certification encompasses Quantum eMotion's security management of applications and systems for its quantum-based cybersecurity software and hardware solutions, including cryptographic solutions.

Abder Benrabah, VP Operations and Compliance of QeM, commented: "Achieving ISO/IEC 27001 certification is significant for several reasons. Firstly, it provides a systematic approach to managing sensitive company information, ensuring its security, and systematically identifying and managing information security risks. In terms of compliance, ISO 27001 assists in meeting legal, regulatory, and contractual obligations related to information security. Its international recognition simplifies compliance with various global laws and regulations."

"We are thrilled to have achieved ISO 27001 cybersecurity certification, a critical milestone that can be time-consuming and expensive," said Francis Bellido, CEO at QeM. "This certification is indispensable for our commercialization success, upholding the confidentiality, integrity, and availability of our information assets, and continuously enhancing our information security processes and products. In today's digital age, trust is paramount, and ISO 27001 not only differentiates our organization from competitors but also opens new business opportunities. Many tenders and contracts, especially with governments or large enterprises, require ISO 27001 certification."

Larry Moore, QeM's CTO, added: "The ISO/IEC 27001 certification helps Quantum eMotion protect its information assets, comply with legal requirements, build customer trust, improve operational processes, and gain a competitive edge in the market. This milestone clearly indicates our ongoing commitment to excellence and proactive approach to information security management."

About QeM

The Company's mission is to address the growing demand for affordable hardware and software security for connected devices. QeM has become a pioneering force in classical and quantum cybersecurity solutions thanks to its patented Quantum Random Number Generator, a security solution that exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced protection for high-value assets and critical systems.

<br> The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please visit our website at <u>https://www.quantumemotion.com/</u> or contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.26

**Exhibit 99.26**

![](ex99-10_001.jpg)

**Quantum eMotion Selects Vantage Data Centers for Colocation Services Ahead of Commercialization**

Montreal, Quebec – July 22, 2024 – – Quantum eMotion (QeM) is pleased to announce the deployment of its Hardware Security Module (HSM) and related infrastructure to the Tier 4 Vantage Data Center in Montreal. This strategic move is in preparation for the company's upcoming commercial activities and to comply with ISO 27001 requirements.

The HSM features a high-performance Quantum electron tunnel effect-based entropy generator, which is essential for securing large and complex messages, including entire database structures. This entropy is integral to QeM's Entropy-As-A-Service (EAAS) system, a pioneering cloud-based solution designed to supply high-grade entropy vital for cryptographic systems. EAAS provides a seamless and secure entropy distribution platform, serving as the backbone for numerous security applications where reliable random number generation is crucial.

Colocation, the practice of placing infrastructure in a third-party data center, offers numerous benefits, including reliability, scalability, and enhanced security. Vantage ensures high availability with redundant power and advanced cooling systems while providing robust security measures and access to multiple high-performance ISPs (Internet Service Providers) for optimal connectivity. This allows QeM to expand its IT infrastructure without physical constraints, focus on core business activities, and meet regulatory compliance requirements. Additionally, Vantage's energy-efficient facilities and geographically diverse centers support disaster recovery planning, offering 24/7 technical support and managed services for continuous, expert assistance.

**About QeM**

The Company's mission is to address the growing demand for affordable hardware and software security for connected devices. QeM has become a pioneering force in classical and quantum cybersecurity solutions thanks to its patented Quantum Random Number Generator, a security solution that exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced protection for high-value assets and critical systems.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please visit our website at <u>https://www.quantumemotion.com/</u> or contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.27

**Exhibit 99.27**

![](ex99-10_001.jpg)

**Quantum eMotion Secures Key Patent in India, Bolstering Global Intellectual Property Portfolio**

**Montreal, Canada / August 7th, 2024** – Quantum eMotion Corp. ("QeM" or the "Company") (TSX-V: QNC; OTCMKTS: QNCCF) proudly announces the issuance of its first-generation patent for quantum random number generation based on quantum tunneling in India.

The Indian Patent Office has granted patent number 202047029523, titled "Method and System for Generating a Random Bit Sample," for 20 years from the date of deposit. This significant milestone underscores QeM's commitment to innovation and strengthens its intellectual property portfolio.

Francis Bellido, QeM's CEO, stated, "India's substantial investment in quantum technologies and its leadership in quantum communications make this patent grant particularly significant. As a significant player in cybersecurity, India's recognition of our unique claim is a crucial business milestone and a significant step towards global acknowledgment of our foundational intellectual property."

Recognizing the critical role of patents as key value drivers, Quantum eMotion has developed a robust portfolio comprising five patent families and trade secrets, spanning multiple countries:

**1st Generation Technology: Quantum Tunneling for Random Number Generation**

This revolutionary technology, which serves as the foundation of Quantum eMotion, is protected by numerous patents, including those granted in the United States, Australia, Brazil, Canada, China, Germany, Spain, Finland, France, Great Britain, Italy, South Korea, the Netherlands, Russia, India and Sweden. The patent application remains pending in Thailand. This technology utilizes the quantum tunneling effect to produce truly random numbers, ensuring a high level of confidence in its strength.

**2nd Generation Technology: Pure Quantum Signal Extraction**

The second-generation technology synergizes with the first by extracting a purely quantum signal from classical noise generated by electronics. This ensures the integrity of the quantum randomness. Patents for this technology have been granted in the United States, Australia, Germany, Spain, Finland, France, Great Britain, Indonesia, Italy, Japan, the Netherlands, Russia, India, and Sweden. Applications are pending in Brazil, Canada, China, South Korea, and Thailand.

**3rd Generation Technology: Utilizing Consumer Electronics**

Harnessing the affordability and availability of consumer electronics, the third-generation technology democratizes quantum number generation. Applications are pending in various countries under the PCT application process.

**4th Generation Technology: Cost-efficient Key Generation for Blockchain**

This technology reduces computing costs for key generation in blockchain wallets by selecting key generation schemes based on cost values. Applications are pending worldwide under the Patent Cooperation Treaty.

**5th Generation Technology: Advanced Hardware Wallet for Cryptocurrency**

Focused on the cryptocurrency industry, this technology integrates QeM's core technologies, including QRNG and intelligent key generation schemes, into a competitive hardware wallet. This innovation will be protected through a combination of patent applications and industrial secrets.

**Future Innovations**

Quantum eMotion continues to advance its technology through collaborations with universities and ongoing development efforts. New patent applications are in preparation and will be unveiled soon.

**About QeM**

The Company's mission is to address the growing demand for affordable hardware and software security for connected devices. QeM has become a pioneering force in classical and quantum cybersecurity solutions thanks to its patented Quantum Random Number Generator, a security solution that exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced protection for high-value assets and critical systems.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please visit our website at <u>https://www.quantumemotion.com/</u> or contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.28

**Exhibit 99.28**

![](ex99-10_001.jpg)

**TERRANOVA DEFENSE AND QUANTUM EMOTION FORGE A GLOBAL CYBERSECURITY COMMERCIAL PARTNERSHIP**

**Montreal, August 27, 2024** – Terranova Defense Solution Incorporated (TDS) and Quantum eMotion Corp. (QeM) (TSX-V: QNC; OTCMKTS: QNCCF) are excited to announce a groundbreaking partnership aimed at accelerating the commercialization of advanced cybersecurity solutions and key products.

This strategic alliance designates QeM as the exclusive provider of state-of-the-art quantum entropy generators, post-quantum cryptography, and cloud-based security solutions to TDS, marking a significant advancement in the cybersecurity field.

**Terranova Defense Solutions** is now the primary service provider for the Terranova Defense Group which is quickly becoming one of the world's largest cyber defense networks working in partnership with <u>Cyber Security Global Alliance,</u> and <u>CSR5 Global Incorporated</u> that operates in 21 countries over 4 continents which encompasses Terranova Defense Solutions, Terranova Aerospace Solutions, Terranova Maritime Solutions, Terranova Cyber Solutions, Terranova Communications, Terranova AI, Terranova Defense NFP (operating as Cyber Security Global Alliance), and CSR5 Global. This collaboration will leverage shared resources among its partners, creating a unique business solution poised to become a unicorn service within three years, providing a solid foundation for high-level returns on global investments.

**Quantum eMotion** is at the forefront of developing revolutionary quantum-based security solutions, offering a beacon of hope in the fight against the modern world's increasingly sophisticated cyber threats. Through this partnership, QeM's cutting-edge technology will become a cornerstone of TDS's comprehensive security solutions, designed to tackle the challenges of today's digital age head-on.

Francis Bellido, CEO of QeM, expressed, "We are thrilled to collaborate with Terranova Defense Solutions, leveraging their extensive international network within the cybersecurity sector. The timing of this partnership aligns perfectly with NIST's recent release of recommended quantum-safe algorithms, signaling a pivotal moment for the cybersecurity industry. This development is poised to catalyze market adoption, and QeM is exceptionally well-positioned to capitalize on it with our advanced Quantum Random Number Generation (QRNG) and post-quantum encryption technologies."

James Castle, CEO, CSO & Founder of Terranova Defense Solutions, added, "We are excited to embark on this partnership with QeM, aimed at expanding the security products and solutions offered by both companies. By integrating Quantum Random Number Generators and Quantum-Safe Encryptions, we are strengthening the cybersecurity framework within the Terranova Defense Group of Companies, offering these advanced solutions exclusively to our global clients. As awareness of the quantum threat grows, we are witnessing a genuine surge in demand for quantum-based security solutions."

**About Terranova Defense Solutions**

The Terranova Defense Group is quickly becoming one of the world's largest cyber defense hubs working in partnership with <u>Cyber Security Global Alliance</u>, that operates in 21 countries with offices in 13 countries over 4 continents. Terranova Defense Solutions works with domestic and international companies that are at risk of physical and digital threats including autonomous and digital attacks. We have developed quantum software solutions, through advancing technologies and manufacturing partners that work together, to enable the global flow of commerce, access to healthcare, fintech, and digital freedom.

Terranova Defense Solutions is the Parent Organization in the Terranova Defense Group of Companies that was built to create a defense hub and network for technology companies, based in North America and Afro Eurasian continents. All having been designed to protect critical infrastructure, data services, and global information technologies from a variety of online attackers aimed at technology thefts and ransomware and zero-day attempts.

For further information, please contact:

James Castle, CEO, CSO & Founder

E-mail: <u>james.castle@terranovadefense.com</u>

TDS Website: <u>https://www.terranovadefense.com</u>

TDG Website: <u>https://www.terranova-global.com</u>

**About QeM**

The Company's mission is to address the growing demand for affordable hardware and software security for connected devices. QeM has become a pioneering force in classical and quantum cybersecurity solutions thanks to its patented Quantum Random Number Generator, a security solution that exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced protection for high-value assets and critical systems.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please visit our website at <u>https://www.quantumemotion.com/</u> or contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: <u>info@quantumemotion.com</u>

Website: <u>www.quantumemotion.com</u>

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports

including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.29

**Exhibit 99.29**

![](ex99-10_001.jpg)

**Quantum eMotion Announces Closing of Private Placement**

MONTREAL, November 15<sup>h</sup>, 2024. Quantum eMotion Corp. (TSX.V: QNC) (OTCQB: QNCCF) ("QeM" or the "Corporation"), is pleased to announce that it has closed a non-brokered private placement by issuing a total of 7,500,000 units (the "**Units**") at $0.10 per Unit, for a total gross proceed of $750,000 to several strategic investors who add significant value to the Corporation's cybersecurity initiatives.

Each Unit is comprised of one common share and one warrant of the Corporation. Each warrant entitles its holder to acquire one common share of the Corporation at a price of $0.20 for a period of 24 months following the closing of the private placement. The securities issued in the private placement are subject to a four month and one day hold period expiring on March 16, 2024.

The net proceeds from the private placement will be used by QeM to finance and accelerate the commercialization of its patented (QRNG) Quantum Random Number Generator technology. The Corporation intends to target high profile verticals such as Healthcare Services and is also well suited to meet the demands for Cloud-Based IT Security Infrastructure, Classified Government Networks And Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics), Quantum Cryptography and Financial Services.

The Insiders' participation for $51,000 is exempt from the formal valuation and minority shareholder approval requirements provided under Regulation 61-101 *respecting Protection of Minority Security Holders in Special Transactions* ("**Regulation 61-101**") in accordance with sections 5.5(a) and 5.7(1)(a) of Regulation 61-101. The exemption is based on the fact that neither the fair market value of the private placement, nor the consideration paid by such Insiders exceeds 25% of the market capitalization of the Corporation.

As a result of the closing of the private placement, there are 158,002,838 common shares of the Corporation issued and outstanding.

The private placement was carried out pursuant to prospectus exemptions of applicable securities laws and is subject to final acceptance by the TSX Venture Exchange.

"We are delighted by the strong support from both our existing shareholders and new strategic investors. This substantial capital investment will significantly advance the execution of QeM's strategic plan, strengthening our commercialization capabilities both domestically and internationally, while carefully preserving value for current shareholders. This unwavering confidence from our investors serves as a powerful endorsement of QeM's vision and underscores our potential to lead and innovate in the rapidly evolving field of quantum technologies." said Marc Rousseau, CFO.

For more information about Quantum eMotion and its innovative projects, please visit the Quantum eMotion website.

**About QeM**

The Company's mission is to address the growing demand for affordable hardware and software security for connected devices. QeM has become a pioneering force in classical and quantum cybersecurity solutions thanks to its patented Quantum Random Number Generator, a security solution that exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced protection for high-value assets and critical systems.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please visit our website at <u>https://www.quantumemotion.com/</u> or contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.30

**Exhibit 99.30**

![](ex99-10_001.jpg)

**Quantum eMotion Progress Report: Advancing Quantum-Safe Solutions Across Blockchain, Healthcare, and IoT**

MONTREAL, December 5<sup>th</sup>, 2024 – Quantum eMotion Corp. (TSX.V: QNC; OTCMKTS: QNCCF) proudly announces remarkable progress in its mission to deliver state-of-the-art quantum cybersecurity solutions. Bolstered by ISO 27001 certification and breakthroughs across blockchain, telemedicine, and advanced QRNG chip development, QeM is setting new standards for digital security.

**ISO 27001 Certification: A Testament to Excellence**

QeM's recent achievement of ISO/IEC 27001:2022 certification underscores its leadership in implementing world-class cybersecurity standards. This globally recognized certification strengthens QeM's ability to meet rigorous compliance requirements and significantly enhances its market credibility. With this milestone, QeM is well-positioned to expand its presence in industries where trust and data protection are paramount, including finance, healthcare, blockchain, and government networks.

**Blockchain & Cryptocurrency: Transforming Digital Asset Security**

The synergies between QeM's QRNG technology and blockchain applications are reshaping cryptocurrency security. The company's proprietary Quantum crypto-wallet offers unmatched protection for digital assets by combining true quantum randomness with post-quantum encryption. This innovation ensures secure storage and transactions, addressing emerging threats posed by quantum computing.

&nbsp;&nbsp;&nbsp;&nbsp;· Secure Key Generation: QRNG-based entropy delivers unparalleled
randomness for cryptographic operations, mitigating vulnerabilities inherent in traditional pseudo-random number generators.

&nbsp;&nbsp;&nbsp;&nbsp;· Enhanced Security Architecture: By incorporating post-quantum
encryption, QeM has fortified its wallet against quantum attacks, future-proofing digital asset management systems.

&nbsp;&nbsp;&nbsp;&nbsp;· Intellectual Property Leadership: With robust patents on
QRNG for blockchain, QeM is establishing itself as a pioneer in securing tokenized ecosystems.

**Telemedicine & Digital Therapeutics: Securing Healthcare Innovation**

As digital therapeutics (DTx) become integral to healthcare, safeguarding patient data is critical. QeM's Sentry-Q platform integrates QRNG and post-quantum cryptography to secure data flow across devices, ensuring compliance with regulations like HIPAA and GDPR.

&nbsp;&nbsp;&nbsp;&nbsp;· Key Milestone: QeM is nearing its first sales in the DTx
market, addressing vulnerabilities that leave platforms exposed to cyber threats.

&nbsp;&nbsp;&nbsp;&nbsp;· Use Case Highlights: The platform is demonstrating its efficacy
in securing patient data during clinical interactions, offering peace of mind to both patients and providers.

**Projet PINQ² Sentry-Q: Pioneering Post-Quantum Simulations**

Through a strategic partnership with PINQ², QeM's Sentry-Q platform is undergoing rigorous testing against simulated quantum attacks using IBM's Qiskit framework. Early results are encouraging, and the final report is anticipated in early 2025.

&nbsp;&nbsp;&nbsp;&nbsp;· Project Scope: Evaluation of the Kyber algorithm alongside
QRNG technology in adversarial scenarios.

&nbsp;&nbsp;&nbsp;&nbsp;· Significance: This initiative marks a critical step toward
creating an open-source test bed for post-quantum security solutions.

**Miniaturized CMOS QRNG Chip: Revolutionizing IoT Security**

QeM has developed a working prototype of a miniaturized QRNG chip for IoT devices, mobile applications, and cloud systems. Manufactured in collaboration with leading partners, the new version prototype is now undergoing extensive testing to validate readiness for integration.

&nbsp;&nbsp;&nbsp;&nbsp;· Innovative Design: Incorporates advanced tunnel junctions
and digital signal processing units using CMOS technology.

&nbsp;&nbsp;&nbsp;&nbsp;· Broad Applicability: The chip is poised to deliver scalable
security for industries ranging from consumer electronics to automotive systems.

**Looking Ahead**

As the quantum cybersecurity landscape evolves, QeM's future is very bright as the Company remains committed to delivering cutting-edge solutions that address the pressing challenges of the digital era. From pioneering advancements in blockchain security to ensuring the safety of healthcare data and IoT devices, QeM is leading the charge in quantum-safe innovation.

**About QeM**

The Company's mission is to address the growing demand for affordable hardware and software security for connected devices. QeM has become a pioneering force in classical and quantum cybersecurity solutions thanks to its patented Quantum Random Number Generator, a security solution that exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced protection for high-value assets and critical systems.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please visit our website at <u>https://www.quantumemotion.com/</u> or contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.31

**Exhibit 99.31**

![](ex99-10_001.jpg)

**Quantum eMotion Deploys its Quantum-Safe Security Platform for Digital Therapeutics in Landmark Commercial Alliance**

**GreyBox Solutions partners with Becton Dickinson Canada**

**MONTREAL, December 23rd, 2024** – Quantum eMotion Corp. (TSX.V: QNC) (OTCQB: QNCCF) ("QeM" or the "Company"), a leader in classical and quantum-based cybersecurity solutions, is proud to announce a major milestone in the commercialization of its cloud-based Sentry-Q platform, designed to address critical, unmet cybersecurity challenges in modern telemedicine and digital healthcare.

QeM's partner, GreyBox Solutions—a recognized leader in digital therapeutics (DTx)—has entered a strategic commercial alliance with Becton Dickinson (BD), a global powerhouse in the medical device and diagnostics industry with over $20 billion in annual sales. This partnership centers on advancing remote patient monitoring to improve the quality of life for patients with chronic diseases while empowering clinicians to monitor multiple patients efficiently. The initiative will launch in Canada, expand to the USA, and potentially scale to global markets.

Building on their collaboration announced in Spring 2023, QeM and GreyBox continue strengthening the cybersecurity framework of GreyBox's DTx platform through a revenue-sharing business model. QeM's Sentry-Q platform, a cutting-edge cybersecurity solution, ensures patient data protection, treatment accuracy, and platform reliability—three critical pillars for success in the digital therapeutics domain.

The significance of cybersecurity in digital therapeutics cannot be overstated. As telemedicine and remote patient monitoring become integral to modern healthcare, safeguarding sensitive patient data is paramount to fostering trust, ensuring treatment efficacy, and maintaining platform resilience. These efforts will be instrumental in realizing the full transformative potential of digital therapeutics.

As the digital therapeutics field continues to revolutionize healthcare, robust cybersecurity remains a cornerstone of its evolution. Together, QeM and GreyBox are setting a new standard for secure, patient-centered digital healthcare solutions, ensuring safety, reliability, and scalability across diverse healthcare systems.

**About QeM**

The Company aims to address the growing demand for affordable hardware and software security for connected devices. QeM has become a pioneering force in classical and quantum cybersecurity solutions thanks to its patented Quantum Random Number Generator, a security solution that exploits the built-in

unpredictability of quantum mechanics and promises to provide enhanced protection for high-value assets and critical systems.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please visit our website at <u>https://www.quantumemotion.com/</u> or contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.32

**Exhibit 99.32**

![](ex99-10_001.jpg)

**Sentry-Q: Quantum-Powered Security Platform Leads the Way in Meeting New U.S. Healthcare Cybersecurity Proposed Standards**

MONTREAL, December 30<sup>th</sup>, 2024 – Quantum eMotion (QeM) . (TSX.V: QNC) (OTCQB: QNCCF) recently announced the commercialization of its quantum-powered security platform, Sentry-Q, designed to fortify digital therapeutics (DTx) against advanced cyber threats. This launch is timely, coinciding with newly proposed healthcare cybersecurity regulations aimed at addressing rising vulnerabilities and underscoring the urgency of safeguarding healthcare systems.

Last week, the U.S. government proposed new cybersecurity regulations to mitigate the impact of healthcare data breaches. This initiative responds to significant cyberattacks on healthcare organizations such as Ascension and UnitedHealth, which have compromised the sensitive information of millions of Americans. The proposals include measures such as enhanced data encryption to prevent unauthorized access even if data is leaked and implementing compliance checks to ensure that networks adhere to cybersecurity standards (<u>https://www.hhs.gov/about/news/2024/12/27/hhs-office-civil-rights-proposes-measures-strengthen-cybersecurity-health-care-under-hipaa.html</u>).

QeM's cutting-edge technology fully meets the latest U.S. healthcare cybersecurity recommendations. Its Sentry-Q platform harnesses the power of pure Entropy-as-a-Service (EaaS), generated by its advanced QRNG2 technology, seamlessly integrated with classical and post-quantum cryptography (PQC). This robust approach ensures the secure transmission of sensitive healthcare data, providing real-time protection and safeguarding confidentiality against both current and emerging quantum threats.

By meeting regulatory requirements, QeM's technology helps healthcare organizations proactively counter future threats while advancing secure digital transformation. QeM has achieved the prestigious ISO/IEC 27001:2022 certification. This certification encompasses Quantum eMotion's security management of applications and systems for its quantum-based cybersecurity software and hardware solutions, including cryptographic solutions.

On December 13, 2024 the Board of QeM granted Edward Lawrence Moore, CTO, 600,000 options to purchase common shares, and Marc Rousseau, CFO was granted 350,000 options to purchase common shares.

**About QeM**

The Company aims to address the growing demand for affordable hardware and software security for connected devices. QeM has become a pioneering force in classical and quantum cybersecurity solutions thanks to its patented Quantum Random Number Generator, a security solution that exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced protection for high-value assets and critical systems.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please visit our website at <u>https://www.quantumemotion.com/</u> or contact:

Francis Bellido, Chief Executive Officer

Tel: 514.956.2525

Email: info@quantumemotion.com

Website: www.quantumemotion.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Corporation's periodic reports including the annual report or in the filings made by Quantum from time to time with securities regulatory authorities.

## Exhibit 99.33

**Exhibit 99.33**

![](ex99-10_001.jpg)

**Quantum eMotion Announces Upsized Brokered LIFE Financing of C$10,000,000**

***NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES***

MONTREAL, February 21 , 2025 – Quantum eMotion Corp. ("**QeM"** or the "**Corporation**") (TSX.V: QNC; OTCQB: QNCCF; F: 34Q0) is pleased to announce that it has increased the size of its previously announced best efforts brokered private placement due to increased institutional demand, led by A.G.P. Canada Investments ULC, on behalf of itself and a syndicate of agents (hereinafter referred to collectively as the "**Agents**"), for total gross proceeds of C$10,000,000 (the "**Offering**"), consisting of 13,333,333 units of the Corporation (each "**Unit"** at a price of C$0.75 per Unit (the "**Offering Price**")), pursuant to the listed issuer financing exemption (the "**LIFE Exemption**") under Part 5A of National Instrument 45-106 – *Prospectus Exemptions* ("**NI 45-106**").

Subject to compliance with applicable regulatory requirements and in accordance with NI 45-106, the securities issued pursuant to the LIFE Exemption are expected to be immediately freely tradeable and will not be subject to a hold period under applicable Canadian securities laws. The Units 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 Corporation's common shares or require the Corporation to be subject to any ongoing disclosure requirements under any domestic securities laws.

There is an offering document related to the Offering that can be accessed under the Corporation's profile at <u>www.sedarplus.ca</u> and on the Corporation website at <u>https://www.quantumemotion.com/</u>. Prospective investors should read this offering document before making an investment decision.

It is expected that closing of the Offering will take place on or about February 24, 2025 (the "**Closing Date**"). Closing of the Offering is subject to certain conditions including, but not limited to, receipt of all necessary approvals.

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. The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration requirements is available.

**About QeM**

The Corporation's mission is to address the growing demand for affordable hardware and software security for connected devices. QeM has become a pioneering force in classical and quantum cybersecurity solutions thanks to its patented Quantum Random Number Generator, a security solution that exploits the built-in unpredictability of quantum mechanics and promises to provide enhanced protection for high-value assets and critical systems.

The Corporation intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please visit our website at <u>https://www.quantumemotion.com/</u> or contact us at: <u>info@quantumemotion.com</u>

Marc Rousseau, Chief Financial Officer Tel: (514) 886-0045

Email: <u>info@quantumemotion.com</u>

Website: <u>www.quantumemotion.com</u>

**Cautionary Note regarding Forward-Looking Statements**

This news release contains "forward-looking information" within the meaning of applicable securities laws, which is based upon the Corporation's current internal expectations, estimates, projections, assumptions and beliefs. Such forward-looking statements and forward-looking information include, but are not limited to, statements concerning the Corporation's expectations with respect to the use of proceeds and the use of the available funds following completion of the Offering, the completion of the Offering, if it is to be completed at all; the expected Closing Date; and the completion of the Corporation's business objectives, and the timing, costs, and benefits thereof. Forward-looking statements or forward-looking information relate to future events and future performance and include statements regarding the expectations and beliefs of management based on information currently available to the Corporation. Such forward-looking statements and forward-looking information often, but not always, can be identified by the use of words such as "plans", "expects", "potential", "is expected", "anticipated", "is targeted", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or forward-looking information are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements or forward-looking information, including, without limitation, risks and uncertainties relating risks inherent to the cybersecurity industry, the value of the Corporation's intangible assets, completing proof of concept studies, protecting intangible assets rights, timing and availability of external financing on acceptable terms or at all, the possibility that future results will not be consistent with the Corporation's expectations, increases in costs, changes in legislation and regulation, changes

<br> in economic and political conditions and other risks involved in the cybersecurity industry and inherent to new technologies, such as risk of obsolescence, slow adoption and competing technological advances; and those risks set out in the Corporation's public documents filed on SEDAR+ at <u>www.sedarplus.ca.</u>

Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or forward-looking information. Although the Corporation has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that could cause results not to be as anticipated, estimated or intended. For more information on the Corporation and the risks and challenges of its business, investors should review the Corporation's annual filings that are available at <u>www.sedarplus.ca.</u> The Corporation provides no assurance that forward-looking statements or forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and information. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Corporation disclaims any intent or obligation to update any forward-looking information.

**Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.**

## Exhibit 99.34

**Exhibit 99.34**

![](ex99-10_001.jpg)

**Quantum eMotion Announces Upsized Brokered LIFE Financing of C$12,000,000**

***NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES***

MONTREAL, May 30, 2025 – Quantum eMotion Corp. ("**QeM"** or the "**Corporation**") (TSX.V: QNC; OTCQB: QNCCF; FSE: 34Q0) is pleased to announce that it has increased the size of its previously announced best efforts brokered private placement due to increased institutional demand for total gross proceeds of C$12,000,000 (the "**Offering**"), consisting of 8,000,000 units of the Corporation (each a "**Unit** at a price of C$1.50 per Unit (the "**Offering Price**"), pursuant to the listed issuer financing exemption (the "**LIFE Exemption**") under Part 5A of National Instrument 45-106 – *Prospectus Exemptions* ("**NI 45-106**").

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.

Subject to compliance with applicable regulatory requirements and in accordance with NI 45-106, the securities issued pursuant to the LIFE Exemption are expected to be immediately freely tradeable and will not be subject to a hold period under applicable Canadian securities laws. The Units 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 Corporation's common shares or require the Corporation to be subject to any ongoing disclosure requirements under any domestic securities laws.

There is an offering document related to the Offering that can be accessed under the Corporation's profile at <u>www.sedarplus.ca</u> and on the Corporation website at <u>https://www.quantumemotion.com/</u>. Prospective investors should read this offering document before making an investment decision.

It is expected that closing of the Offering will take place on or about June 2, 2025 (the "**Closing Date**"). Closing of the Offering is subject to certain conditions including, but not limited to, receipt of all necessary approvals.

This press release is not an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. 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"), and such securities may not be offered or sold to, or for the account or benefit of, persons in the United States or U.S. persons absent registration or an applicable

exemption from U.S. registration requirements. " United States" and " U.S. persons" have the meanings ascribed to them in Regulation S under the U.S. Securities Act.

**About Quantum eMotion**

The Company's mission is to address the growing demand for affordable hardware and software security for connected devices. Thanks to its patented Quantum Random Number Generator, QeM has become a pioneering force in classical and quantum cybersecurity solutions. This security solution exploits quantum mechanics' built-in unpredictability and promises to provide enhanced protection for high-value assets and critical systems. For further information, please visit our website at <u>https://www.quantumemotion.com/</u> or contact us at: <u>info@quantumemotion.com</u>

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Krown Technologies and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please visit our website at <u>https://www.quantumemotion.com/</u> or contact:

Francis Bellido, Chief Executive Officer Tel: 514.956.2525

Email: <u>info@quantumemotion.com</u>

Website: <u>www.quantumemotion.com</u>

**Cautionary Note regarding Forward-Looking Statements**

This news release contains "forward-looking information" within the meaning of applicable securities laws, which is based upon the Corporation's current internal expectations, estimates, projections, assumptions and beliefs. Such forward-looking statements and forward-looking information include, but are not limited to, statements concerning the Corporation's expectations with respect to the use of proceeds and the use of the available funds following completion of the Offering, the completion of the Offering, if it is to be completed at all; the expected Closing Date; and the completion of the Corporation's business objectives, and the timing, costs, and benefits thereof. Forward-looking statements or forward-looking information relate to future events and future performance and include statements regarding the expectations and beliefs of management based on information currently available to the Corporation. Such forward-looking statements and forward-looking information often, but not always, can be identified by the use of words such as "plans", "expects", "potential", "is expected", "anticipated", "is targeted", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements

or forward-looking information are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements or forward-looking information, including, without limitation, risks and uncertainties relating risks inherent to the cybersecurity industry, the value of the Corporation's intangible assets, completing proof of concept studies, protecting intangible assets rights, timing and availability of external financing on acceptable terms or at all, the possibility that future results will not be consistent with the Corporation's expectations, increases in costs, changes in legislation and regulation, changes in economic and political conditions and other risks involved in the cybersecurity industry and inherent to new technologies, such as risk of obsolescence, slow adoption and competing technological advances; and those risks set out in the Corporation's public documents filed on SEDAR+ at <u>www.sedarplus.ca.</u>

Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or forward-looking information. Although the Corporation has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that could cause results not to be as anticipated, estimated or intended. For more information on the Corporation and the risks and challenges of its business, investors should review the Corporation's annual filings that are available at <u>www.sedarplus.ca.</u> The Corporation provides no assurance that forward-looking statements or forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and information. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Corporation disclaims any intent or obligation to update any forward-looking information.

**Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.**

## Exhibit 99.35

**Exhibit 99.35**

**AUDIT COMMITTEE CHARTER**

The Corporation must, pursuant to National Instrument 52-110 *Audit Committees* (**"NI 52-110"**), have a written charter which sets out the duties and responsibilities of its audit committee. The Corporation's audit committee charter is substantially reproduced below.

*Mandate*

The primary function of the audit committee (the **"Committee"**) is to assist the Corporation's board of directors (the **"Board"**) in fulfilling its financial oversight responsibilities by reviewing the financial reports and other financial information provided by the Corporation to regulatory authorities and shareholders, the Corporation's systems of internal controls regarding finance and accounting and the Corporation's auditing, accounting and financial reporting processes. Consistent with this function, the Committee will encourage continuous improvement of, and should foster adherence to, the Corporation's policies, procedures and practices at all levels. The Committee's primary duties and responsibilities are to:

● serve as an independent and objective party to
monitor the Corporation's financial reporting and internal control system and review the Corporation's financial statements;

● review and appraise the performance of the Corporation's
external auditors; and

● provide an open avenue of communication among
the Corporation's auditors, financial and senior management and the Board.

*Composition*

The Committee shall be comprised of:

(1) a minimum three directors as determined by the Board;

(2) at least two (2) members of the Committee shall be independent and the Committee shall endeavour to appoint
a majority of independent directors to the Committee, who in the opinion of the Board, would be free from a relationship which would interfere
with the exercise of the Committee members' independent judgment; and

(3) at least one (1) member of the Committee shall have accounting or related financial management expertise.

If the Corporation ceases to be a **"venture issuer"** (as that term is defined in NI 52-110), all of the members of the Committee shall be free from any relationship that, in the opinion of the Board, would interfere with the exercise of his or her independent judgment as a member of the Committee.

If the Corporation ceases to be a "venture issuer" (as that term is defined in National Instrument 52-110), then all members of the Committee shall have accounting or related financial management expertise. All members of the Committee that are not financially literate will work towards becoming financially literate to obtain a working familiarity with basic finance and accounting practices. For the purposes of the Corporation's Audit Committee Charter, the definition of "financially literate" is 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 presumably be expected to be raised by the Corporation's financial statements.

The members of the Committee shall be elected by the Board at its first meeting following the annual shareholders' meeting. Unless a Chair is elected by the full Board, the members of the Committee may designate a Chair by a majority vote of the full Committee membership.

*Meetings*

The Committee shall meet a least once annually*,* or more frequently as circumstances dictate. As part of its job to foster open communication, the Committee will meet at least annually with the chief financial officer and the external auditors in separate sessions.

*Responsibilities and Duties*

To fulfill its responsibilities and duties, the Committee shall:

1. Documents/Reports Review

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) review and update this Audit Committee Charter annually; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) review the Corporation's financial statements, MD&A and any annual and interim earnings press releases
before the Corporation publicly discloses this information and any reports or other financial information (including quarterly financial
statements), which are submitted to any governmental body, or to the public, including any certification, report, opinion, or review rendered
by the external auditors.

2. External Auditors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) review annually, the performance of the external auditors who shall be ultimately accountable to the Board
and the Committee as representatives of the shareholders of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) obtain annually, a formal written statement of external auditors setting forth all relationships between
the external auditors and the Corporation, consistent with Independence Standards Board Standard 1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) review and discuss with the external auditors any disclosed relationships or services that may impact
the objectivity and independence of the external auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) take, or recommend that the Board take appropriate action to oversee the independence of the external
auditors, including the resolution of disagreements between management and the external auditor regarding financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) recommend to the Board the selection and, where applicable, the replacement of the external auditors nominated
annually for shareholder approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) recommend to the Board the compensation to be paid to the external auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) at each meeting, consult with the external auditors, without the presence of management, about the quality
of the Corporation's accounting principles, internal controls and the completeness and accuracy of the Corporation's financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) review and approve the Corporation's hiring policies regarding partners, employees and former partners
and employees of the present and former external auditors of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) review with management and the external auditors the audit plan for the year-end financial statements
and intended template for such statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) review and pre-approve all audit and audit-related services and the fees and other compensation related
thereto, and any non-audit services, provided by the Corporation's external auditors. The pre-approval requirement is waived with
respect to the provision of non-audit services if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the aggregate amount of all such non-audit services provided to the Corporation constitutes not more than
five percent of the total amount of revenues paid by the Corporation to its external auditors during the fiscal year in which the non-audit
services are provided,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such services were not recognized by the Corporation at the time of the engagement to be non-audit services,
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such services are promptly brought to the attention of the Committee by the Corporation and approved prior
to the completion of the audit by the Committee or by one or more members of the Committee who are members of the Board to whom authority
to grant such approvals has been delegated by the Committee.

Provided the pre-approval of the non-audit services is presented to the Committee's first scheduled meeting following such approval such authority may be delegated by the Committee to one or more independent members of the Committee.

3. Financial Reporting Processes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in consultation with the external auditors, review with management the integrity of the Corporation's
financial reporting process, both internal and external;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consider the external auditors' judgments about the quality and appropriateness of the Corporation's
accounting principles as applied in its financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) consider and approve, if appropriate, changes to the Corporation's auditing and accounting principles
and practices as suggested by the external auditors and management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) review significant judgments made by management in the preparation of the financial statements and the
view of the external auditors as to appropriateness of such judgments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) following completion of the annual audit, review separately with management and the external auditors
any significant difficulties encountered during the course of the audit, including any restrictions on the scope of work or access to
required information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) review any significant disagreement among management and the external auditors in connection with the
preparation of the financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) review with the external auditors and management the extent to which changes and improvements in financial
or accounting practices have been implemented;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) review any complaints or concerns about any questionable accounting, internal accounting controls or auditing
matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) review certification process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) establish a procedure for 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;(k) establish a procedure for the confidential, anonymous submission by employees of the Corporation of concerns
regarding questionable accounting or auditing matters.

4. Others

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) review any related-party transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) engage independent counsel and other advisors as it determines necessary to carry out its duties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to set and pay compensation for any independent counsel and other advisors employed by the Committee.

## Exhibit 99.36

**Exhibit 99.36**

![](ex99-10_001.jpg)

**GOVERNANCE POLICY**

The board of directors (the "**Board**") of Quantum eMotion Corp. (the "**Corporation**") recognizes the importance of sound and well -founded governance principles and practices. They are essential to good management and the overall results obtained by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **PURPOSE AND SCOPE** 

Good governance requires that the roles and responsibilities of the different components of the Board and its members are properly defined and understood. The purpose of this policy is to define such roles and responsibilities and ensure that the Corporation has a strong governance structure in place to carry out its mandate effectively and comply with regulations of each jurisdiction in which its business is carried on, including rules and guidelines of stock exchanges to which the Corporation is subject ("**Applicable Laws**"). This policy applies to the Corporation, particularly members of the Board and Board committees.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **ETHICAL AND RESPONSIBLE DECISION-MAKING** 

&nbsp;&nbsp;&nbsp;&nbsp;**2.1** **Code of Business Conduct and Ethics** 

The Board has adopted a Code of Business Conduct and Ethics (the "**Code of Conduct**") which embeds the Corporation's values, and guides the Board, management and the broader workforce as to the expected standards of behaviour. It helps to ensure the appropriate degree of integrity in the Corporation's dealings. Corporation personnel and suppliers are also informed of the values and expected behaviour under the Code of Conduct.

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **GUIDING PRINCIPLES OF CORPORATE GOVERNANCE** 

&nbsp;&nbsp;&nbsp;&nbsp;**3.1** **Board: Composition** 

The number of members that make up the Board is determined in accordance with the Corporation's articles and by-laws.

All Board members must meet the qualification requirements set in the Corporation's articles and bylaws.

The Chair of the Board must be a director.

The Board, or a committee of the Board to which the Board delegates such responsibilities (the "**Committee**"), as applicable, will assess the nature of the relationship between each Board member and the Corporation, and review annually the independence and qualifications of Board members and make recommendations to the Board accordingly.

Directors are required to inform the Board of any changes to their interests or relationships that could bear upon their independence.

The Board or the Committee, as applicable, regularly reviews the Board's structure, size and composition to ensure that it has the range of skills, expertise and experience required for robust decision-making and effective governance of the Corporation.

The Corporation's intention is that the Board encompasses a mix of diversity (including in relation to gender, age, culture and experience) and a broad range of skills in key areas relevant to the Corporation's business.

The Board, in collaboration with the Committee, as applicable, may utilize a skills and experience matrix to set out the skills and experience mix that the Board is looking to achieve in its membership, to identify the current directors who have such skills and experience and to identify any gaps or areas to focus on for future appointments or training.

&nbsp;&nbsp;&nbsp;&nbsp;**3.2** **The Board: Roles and Responsibilities** 

The Board determines the strategic direction of the Corporation, regularly reviews the appropriateness of it, and oversees its implementation. The Board is ultimately accountable to the Corporation's shareholders for the performance of the business. The Board may appoint a Managing Director who shall ensure a general supervision of the business and affairs of the Corporation, except those expressly reserved to the Board and its committees.

The role and responsibilities of the Board include the following:

&nbsp;&nbsp;&nbsp;&nbsp;a) Ensure that the Corporation's mission is carried out effectively and in compliance with Applicable
Laws.

&nbsp;&nbsp;&nbsp;&nbsp;b) Approve the strategic goals, the action plans, the policies including risk management policies and make
sure that they are applied;

&nbsp;&nbsp;&nbsp;&nbsp;c) Create the appropriate committees and define their mandates;

&nbsp;&nbsp;&nbsp;&nbsp;d) Oversee the implementation of the Corporation's Code of Conduct, policies and committees'
charters. Implementation should be efficient and transparent and in the best interests of the Corporation;.

&nbsp;&nbsp;&nbsp;&nbsp;e) Follow up on its decisions and assume responsibility of its decisions relative to the shareholders;.

&nbsp;&nbsp;&nbsp;&nbsp;f) Periodically evaluate the Corporation's performance;.

&nbsp;&nbsp;&nbsp;&nbsp;g) Ensure, in cooperation with the President and CEO, that there is an effective succession plan in place
for the President and CEO position and the other senior management positions of the Corporation;.

&nbsp;&nbsp;&nbsp;&nbsp;h) Identify the main operational risks facing the Corporation. Ensure that they are adequately monitored,
that appropriate controls are in place, and that all necessary mitigation measures are taken;.

&nbsp;&nbsp;&nbsp;&nbsp;i) Ensure that open and transparent communication channels are maintained between the Corporation and all
of its stakeholders and vice-versa.

&nbsp;&nbsp;&nbsp;&nbsp;**3.3** **Chair of the Board: Role and Responsibilities** 

The Chair of the Board is designated by the Board and shall be a director. In addition to the responsibilities applicable to all directors of the Corporation, the responsibilities of the Chair of the Board include the following :

&nbsp;&nbsp;&nbsp;&nbsp;a) In accordance with the by-laws of the Corporation, call any special meeting of the Corporation's
shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;b) Determine the time and place for the meetings of the Board in consultation with management and ensure
the proper timely flow of information to the Board sufficiently in advance of the meetings;

&nbsp;&nbsp;&nbsp;&nbsp;c) Maintain a good working relationship between members of the Board and management to assure open communication,
cooperation, interdependence, mutual trust, respect, and commonality of purpose;

&nbsp;&nbsp;&nbsp;&nbsp;d) Ensure that the responsibilities of Board members are clearly understood by the directors;

&nbsp;&nbsp;&nbsp;&nbsp;e) Ensure that the Board members are present at meetings of the Board and that they work together as a team;

&nbsp;&nbsp;&nbsp;&nbsp;f) Ensure that the Board members have the necessary resources and training if necessary to efficiently carry
out their mandates;

&nbsp;&nbsp;&nbsp;&nbsp;g) Promote an efficient exchange of information between the Board members by using appropriate means of communication;.

&nbsp;&nbsp;&nbsp;&nbsp;**3.4** **Directors: Role and Responsibilities** 

The main responsibilities and functions of a director are:

&nbsp;&nbsp;&nbsp;&nbsp;a) To understand the mission, vision, corporate values and the overall strategies of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;b) To be fully informed and to update whenever necessary his/her understanding of the operational activities
of the Corporation as well as the concomitant operational risks;

&nbsp;&nbsp;&nbsp;&nbsp;c) Unequivocally confirm his/her adherence to the Code of Conduct and all the other corporate governance
policies and charters;

&nbsp;&nbsp;&nbsp;&nbsp;d) Diligently divulge without delay to the Board any personal or professional situation or fact that may
lead to a conflict of interest or a change in the status of the relationship between the Corporation and the director;

&nbsp;&nbsp;&nbsp;&nbsp;e) Proactively participate in the work and discussions of the Board and the Board committees of which a director
is a member;

&nbsp;&nbsp;&nbsp;&nbsp;f) Prepare all for the Board and committee meetings, by reading all the relevant documentation and by asking
for any additional information when necessary;

&nbsp;&nbsp;&nbsp;&nbsp;g) Participate in any useful training sessions and courses that may be periodically organized;

&nbsp;&nbsp;&nbsp;&nbsp;h) Strive to attend all of the meetings of the Board and the Board committees to which a director has been
appointed.

&nbsp;&nbsp;&nbsp;&nbsp;**3.5** **Directors: Compensation** 

Compensation and trends are periodically assessed, with the assistance of professional independent remuneration consultants as required, so that Board membership of a high standard is maintained and market compensation trends are reflected. Compensation of non-executive directors is adjusted where necessary to align with compensation paid to board members of comparable TSX Venture Exchange listed corporations.

Expenses incurred by a Board member to attend a meeting of a committee or the Board may be paid in addition to attendance fees and retainers.

Every year the Board reports to the shareholders on the meetings attendance record of, and compensation paid to, each director.

&nbsp;&nbsp;&nbsp;&nbsp;**3.6** **Board Committees** 

In order to assist the Board in fulfilling its overall mandate and its responsibilities, the Board may create committees as necessary.

The mandates and the responsibilities of each committee are defined in their respective charter approved by the Board and periodically updated, as necessary.

The Board can at any time create special committees with a specific mandate.

&nbsp;&nbsp;&nbsp;&nbsp;**3.7** **Performance: Evaluation of the Board and its Directors** 

A review of the performance and effectiveness of the Board, Board committees and directors is undertaken annually. Performance evaluations are carried out in an independent manner that ensures anonymity and freedom to speak out for all the directors. The Board sets the modalities and the process performance evaluation, using peer reviews and/or auto-evaluations.

&nbsp;&nbsp;&nbsp;&nbsp;**3.8** **Access to Information and External Advisors** 

All directors have direct access to all relevant Corporation information and to the Corporation's senior officers. Members of the Board and the committees also have access to independent legal, accounting or other professional advisors as necessary, at the Corporation's expense.

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **RISK MANAGEMENT** 

The Board recognises that risk management and internal controls are fundamental to sound management, and that oversight of such matters is a key responsibility of the Board. The Board's role in relation to risk is to confirm that systems are in place which facilitate the effective identification, management and mitigation of any significant financial and non-financial risks to which the Corporation is exposed.

The Audit Committee assists the Board to fulfil its responsibilities in relation to risk. Its role in relation to risk is to: (a) oversee the identification, prioritisation and management of the risks faced by the Corporation; (b) direct the facilitation of risk assessments and measurement to determine the material risks to which the Corporation may be exposed and to evaluate the strategy for managing those risks; (c) monitor the changes in the internal and external environment and the emergence of new risks; (d) review the adequacy of insurance coverage; (e) monitor the procedures to deal with and review disclosure of information to third parties insofar as these disclosure represent a risk for the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **MARKET COMMUNICATION** 

The Board recognises the importance of keeping the market fully informed of the Corporation's activities and of stakeholder communication in a timely, balanced and transparent manner, and is committed to compliance with the disclosure requirements applicable to the Corporation. The Corporation's guidelines and practices with respect to market communication can be found in the Corporation's Disclosure Policy.

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **REVIEW** 

This policy shall be reviewed annually by the Board or Committee, as applicable.

## Exhibit 99.37

**Exhibit 99.37**

**MATERIAL CHANGE REPORT<br> FORM 51-102F3**

**<u>Item 1 – Name and Address of Corporation</u>**

Quantum eMotion Corp. ("**Quantum**" or the "**Corporation**")

2300 Bd Alfred Nobel

Saint-Laurent, QC, H4S 2A4

**<u>Item 2 – Date of Material Change</u>**

February 24, 2025

**<u>Item 3 – News Release</u>**

A news release pertaining to the material change being the subject of the present report was disseminated through Newswire on February 24, 2025 and filed on SEDAR+.

**<u>Item 4 – Summary of Material Change</u>**

On February 24, 2025, the Corporation closed its previously announced "best efforts" brokered private placement (the "**Offering**") for total gross proceeds of C$10,000,000 (the "**Offering**"), consisting of the issuance of 13,333,333 units of the Corporation (each a "Unit") at a price of C$0.75 per Unit (the "**Offering Price**"), pursuant to the listed issuer financing exemption (the "**LIFE Exemption**") under Part 5A of National Instrument 45-106 - *Prospectus Exemptions* ("**NI 45-106**"). A.G.P. Canada Investments ULC (the "**Agent**") acted as sole bookrunner for the Offering and A.G.P./Alliance Global Partners acted as the sole U.S. agent to the Corporation in connection with the Offering.

Each Unit consists of (i) one common share in the capital of the Corporation (a "**Share**"), and (ii) one common share purchase warrant (a "**Warrant**"). Each Warrant entitles its holder to acquire one additional common share (a "**Warrant Share**") of the Corporation at a price of C$1.10 for a period of 3 years from the date of issuance.

**<u>Item 5 – Full Description of Material Change</u>**

**5.1** **Full Description of Material Change** 

As consideration for its services, the Agent has received an aggregate cash fee equal to 6.5% of the gross proceeds of the Offering. In addition, the Corporation issued to the Agent non-transferable warrants (the "**Agent Warrants**") representing 5.0% of the aggregate number of Units issued pursuant to the Offering. Each Agent Warrant entitles its holder to purchase one common share of the Corporation at price of C$0.88 for a 30-month period from the date of issuance.

The Corporation intends to use the net proceeds raised from the Offering to accelerate the pace of its research and development ("**R&D**") efforts, expand the R&D team, hire staff for the commercialization initiatives underway and for general working capital needs

There is an offering document related to the Offering that can be accessed under the Corporation's profile at www.sedarplus.ca and on the Corporation website at https://www.quantumemotion.com/.

**5.2** **Disclosure for Restructuring Transactions** 

Not applicable.

**<u>Item 6 – Reliance on Section 7.1(2) of National Instrument 51-102</u>**

Not applicable.

**<u>Item 7 – Omitted Information</u>**

None.

**<u>Item 8 – Executive Officer</u>**

Marc Rousseau, Chief Financial Officer

Tel: (514) 886-0045

Email: info@quantumemotion.com

**<u>Item 9 – Date of Report</u>**

February 27, 2025

**Cautionary Statement on Forward-Looking Information**

 

*This material change report contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements, and subject to risks and uncertainties. All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption was made and on management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors deemed appropriate in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct. Forward-looking statements are not facts, but only predications and can generally be identified by the use of statements that include phrases such as "anticipate", "believe", "continue", "could", "estimate", "foresee", "grow", "expect", "plan", "intend", "forecast", "future", "guidance", "may", "predict", "project", "should", "strategy", "target", "will" or similar expressions suggesting future outcomes and in this material change report relate to the expected use of proceeds from the Offering and the final approval of the TSX Venture Exchange.*

 

*Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. Such forward-looking information necessarily involves known and unknown risks and uncertainties, including the relevant assumptions and risks factors set out in Quantum's most recent annual management discussion and analysis filed on SEDAR+ at www.sedarplus.ca, which may cause Quantum's actual results to differ materially from any projections of future results expressed or implied by such forward-looking information. These risks, uncertainties and other factors include, among others, the uncertain and unpredictable condition of global economy. Any forward-looking information is made as of the date hereof and, except as required by law, Quantum does not undertake any obligation to update or revise any forward–looking statement as a result of new information, subsequent events or otherwise.*

## Exhibit 99.38

**Exhibit 99.38**

**MATERIAL CHANGE REPORT <br> FORM 51-102F3**

**<u>Item 1 – Name and Address of Corporation</u>**

Quantum eMotion Corp. ("**Quantum**" or the "**Corporation**")

2300 Bd Alfred Nobel

Saint-Laurent, QC, H4S 2A4

**<u>Item 2 – Date of Material Change</u>**

June 2, 2025

**<u>Item 3 – News Release</u>**

A news release pertaining to the material change being the subject of the present report was disseminated through Newswire on June 2, 2025 and filed on SEDAR+.

**<u>Item 4 – Summary of Material Change</u>**

On June 2, 2025, the Corporation closed its previously announced "best efforts" brokered private placement (the "**Offering**") for total gross proceeds of $12,000,000 (the "**Offering**"), consisting of the issuance of 8,000,000 units of the Corporation (each a "**Unit**") at a price of $1.50 per Unit (the "**Offering Price**"), pursuant to the listed issuer financing exemption (the "**LIFE Exemption**") under Part 5A of National Instrument 45-106 - *Prospectus Exemptions* ("**NI 45-106**"). A.G.P. Canada Investments ULC (the "**Agent**") acted as sole bookrunner for the Offering and A.G.P./Alliance Global Partners acted as the sole U.S. agent to the Corporation in connection with the Offering.

Each Unit consists of (i) one common share in the capital of the Corporation (a "**Share**"), and (ii) one common share purchase warrant (a "**Warrant**"). Each Warrant entitles its holder to acquire one additional common share (a "**Warrant Share**") of the Corporation at a price of $1.82 for a period of 3 years from the date of issuance.

**<u>Item 5 – Full Description of Material Change</u>**

**5.1** **Full Description of Material Change** 

As consideration for its services, the Agent received a cash fee equal to 6.0% of the gross proceeds of the Offering. In addition, the Corporation issued to the Agent non-transferable warrants (the "**Agent Warrants**") representing 4.0% of the aggregate number of Units issued pursuant to the Offering. Each Agent Warrant entitles the Agent to purchase one common share of the Corporation at price of $1.66 for a 30-month period from the date of issuance.

The Corporation intends to use the net proceeds of the Offering to further accelerate the pace of the Corporation's research and development ("**R&D**") efforts, expand the R&D team, continue to hire staff for the commercialization initiatives underway and for general working capital purposes.

There is an offering document related to the Offering that can be accessed under the Corporation's profile at www.sedarplus.ca and on the Corporation website at https://www.quantumemotion.com/.

5.2 Disclosure for Restructuring Transactions

Not applicable.

**<u>Item 6 – Reliance on Section 7.1(2) of National Instrument 51-102</u>**

Not applicable.

**<u>Item 7 – Omitted Information</u>**

None.

**<u>Item 8 – Executive Officer</u>**

Marc Rousseau, Chief Financial Officer

Tel: (514) 886-0045

Email: info@quantumemotion.com

**<u>Item 9 – Date of Report</u>**

June 2, 2025

**Cautionary Statement on Forward-Looking Information**

 

*This material change report contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements, and subject to risks and uncertainties. All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption was made and on management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors deemed appropriate in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct. Forward-looking statements are not facts, but only predications and can generally be identified by the use of statements that include phrases such as "anticipate", "believe", "continue", "could", "estimate", "foresee", "grow", "expect", "plan", "intend", "forecast", "future", "guidance", "may", "predict", "project", "should", "strategy", "target", "will" or similar expressions suggesting future outcomes and in this material change report relate to the expected use of proceeds from the Offering and the final approval of the TSX Venture Exchange.*

 

*Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. Such forward-looking information necessarily involves known and unknown risks and uncertainties, including the relevant assumptions and risks factors set out in Quantum's most recent annual management discussion and analysis filed on SEDAR+ at www.sedarplus.ca, which may cause Quantum's actual results to differ materially from any projections of future results expressed or implied by such forward-looking information. These risks, uncertainties and other factors include, among others, the uncertain and unpredictable condition of global economy. Any forward-looking information is made as of the date hereof and, except as required by law, Quantum does not undertake any obligation to update or revise any forward–looking statement as a result of new information, subsequent events or otherwise.*

## Exhibit 99.39

**Exhibit 99.39**

![](ex99-10_001.jpg)

**CODE OF CONDUCT**

**PURPOSE OF THE CODE OF CONDUCT**

The purpose of this Code of Conduct (the "**Code**") is to set out the values and rules of conduct that guide the behaviour of Quantum eMotion Corp. and its subsidiaries (collectively, the "**Corporation**"), as well as that of the third parties with whom it maintains business relationships. The Code supports the establishment and maintenance of a corporate culture based on respect, honesty, leadership, excellence and social responsibility.

**SCOPE OF THE CODE OF CONDUCT**

The Code applies to all employees, consultant, officers, members of the Board of Directors and strategic partners. Compliance with this Code is a condition of employment and of serving as a director or officer of the Corporation. Third-party business partners are expected to comply with standards of conduct that are consistent with this Code.

**1.** **Compliance with Legislation** 

The Corporation complies with all applicable laws and regulations in the jurisdictions where it operates.

All employees are required to comply with legal regulations applicable in their procedures and in case of doubt, they must consult with their first-line supervisors or the legal department.

**2.** **Health and Safety** 

The Corporation is committed to providing a safe and healthy working environment to prevent injury and illness to its employees and visitors. Violence, harassment and substance abuse in the workplace will not be tolerated.

**3.** **Environmental Protection** 

The Corporation is committed to conducting its activities while ensuring sustainable development.

Employees undertake to comply with applicable environmental laws and use resources efficiently.

**4.** **Human Rights** 

The Corporation complies with applicable human rights laws and expects its suppliers/partners to do likewise to prevent all forms of child labour, prostitution, forced labour, degrading treatment and

human trafficking. The Corporation and its employees must respect human rights in all their professional activities.

**5.** **Labour Relations** 

The Corporation complies with all its labour and social security obligations to its employees, creating a climate of respect and trust with employees and promoting them on merit based and non discriminatory criteria.

The Corporation provides an adequate working environment for employees to discharge their duties in the best possible way, while respecting their functions.

The Corporation and its strategic partners acknowledge and respect the rights of employees to freedom of association and collective bargaining.

**6.** **Diversity, Inclusion and Non-discrimination** 

The Corporation does not engage in discriminatory, harassing or abusive practices in the course of the employment relationship with any employee. Employees are treated equally and differences in age, race, origin, sex, sexual orientation, culture, religion and physical capacities are respected.

Harassment (including psychological and sexual harassment) is prohibited and will be addressed promptly. Employees who consider that these rights are violated may make a report in accordance with internal regulations and applicable law.

**7.** **Anti-Corruption and Anti-Bribery Measures** 

The Corporation complies with all applicable anti corruption laws in the jurisdictions in which it operates.

Bribery and corruption in any form are not tolerated at the Corporation. We do not offer or give to any public officials and private persons any reward, advantage or benefit in exchange for an act or omission, aimed at convincing such individual to use his or her position to influence an action or decision of a government to the benefit of the Corporation.

**8.** **Conflicts of Interests** 

Employees are required not to place their personal interests over their working duties. For this purpose, they are required to avoid any conflict of interest arising from internal or external influence. In the case of a conflict of interest (e.g. financial interests in suppliers or competitors, outside employment, family relationships, use of corporate opportunities), they are required to inform their first-line supervisors thereof.

**9.** **Preventing Money Laundering and the Financing of Terrorism** 

The Corporation prevents the risks of money laundering and the financing of terrorism as well as operational and legal risks that such activities could cause for the Corporation.

Directors and employees are required to maintain a vigilant attitude when faced with any unusual operation and to report it to the Corporation's internal body so that it can report it in turn to the competent authorities.

**10.** **Relationships with Suppliers and Customers** 

The Corporation is committed to meeting the needs and expectation of customers by supplying quality products meeting international standards. Suppliers of materials, supplies and services are strategic partners and are selected based on their legal compliance, transparently and for the quality of their products and services. Suppliers and other business partners are expected to conduct their activities in a manner consistent with this Code and applicable laws, including in relation to human rights, anti corruption and environmental protection.

**11.** **Protection of Personal Information** 

The Corporation is responsible for protecting the personal information it holds; it applies strict security measures to protect personal information against unauthorized access, use, communication, unauthorized modification, loss, theft, or any other breach of the security of the information. The personal information is collected, used and disclosed only for legitimate, identified purposes, with appropriate consent or legal basis. The personal information collected is protected by reasonable computer security measures given its sensitivity.

**12.** **Communication and Implementation** 

The Corporation's directors promote adequate channels allowing employees to communicate with them or their immediate hierarchy respecting any concern. As well, the internal standards, codes and policies are communicated in the employees' language at all levels of the Corporation. The Corporation maintains an open and honest dialogue with all its employees and stakeholders.