Toronto, Ontario--(Newsfile Corp. - March 19, 2026) - 01 Quantum Inc. (TSXV: ONE) (OTCQB: OONEF) ("01 Quantum" or the "Company"), one of the first-to-market, enterprise level cybersecurity providers for the quantum computing era, is pleased to report the Company's first quarter 2026 results which ended January 31, 2026.
Andrew Cheung, CEO for 01 Quantum, commented: "While we continue to build out our IronCAP™ based product suite our first two verticals being remote access and digital assets are now commercially ready and beginning to generate revenue through our partners. Our next major opportunity is quantum-safe AI, where recent breaches involving prompt privacy and model security have highlighted the need for encrypted, secure AI execution. With sufficient capital to advance our existing roadmap and a growing pipeline of partner-driven deployments, we believe 2026 will be an important year in converting our technology investments into long-term value."
Commercial deployments:
Remote Access - As previously announced, (click HERE for press release) , DoMobile Ver.5 with quantum-safety is now in the market through our partner in Japan. The Post Quantum Cryptography (PQC) enhanced zero-trust remote access platform developed in conjunction with our partner entered commercial availability in Japan in late January 2026. DoMobile Ver.5 integrates our IronCAP™ PQC to protect against harvest-now-decrypt-later (HNDL) threats. With development complete, marketing and deployment has commenced by our Japanese partner. 01 Quantum participates through upfront development fees and ongoing royalties.
Digital Assets - $qONE was launched on February 6, 2026 as the first quantum-resistant token and wallet on the Hyperliquid platform in partnership with qLABS Foundation. $qONE is powered by 01 Quantum's Quantum Crypto Wrapper (QCW) and Quantum DeFi Wrapper (QDW), enabling quantum-safe transactions on existing blockchains such as Hyperliquid, Ethereum and Solana. $qONE is designed to be the "Quantum Gas Fee currency" to pay when users want to quantum-protect their existing tokens.
Following the launch of $qONE is the Layer 1 Migration Toolkit planned for release in late April. Upgrading existing Layer 1 blockchains remains a significant challenge. The Toolkit addresses this by providing a phased, production-ready framework that enables smart-contract-based blockchains including Ethereum, Solana and Hyperliquid, as well as major stablecoins, the transition to quantum-resistant security without disrupting existing infrastructure. The Toolkit builds on 01 Quantum's QCW and QDW technologies with a "PQC Circuit Breaker", combining post-quantum cryptography with zero-knowledge proofs to maintain on-chain efficiency, scalability, and compatibility.
Commercialization is partner-driven, with 01 Quantum participating through upfront development fees and token-sharing arrangements.
Quantum Safe AI - emerging market opportunity:
Development of the Company's Quantum AI Wrapper (QAW) continued during the quarter. QAW is designed to let AI systems work on data without ever exposing that data in readable form. It does this by combining full homomorphic encryption (FHE), which allows computation on encrypted information, with our IronCAP™ PQC. The result is an AI environment where prompts, model parameters, and outputs stay encrypted end-to-end, even if the underlying system is compromised.
Recent published security analyses, including a report by Boston Consulting Group, have confirmed a rapid increase in real-world AI-related breaches. The report concludes roughly 60% of organizations have likely experienced an AI-powered attack in the past year, reflecting the growing exploitation of vulnerabilities such as prompt-injection and model-extraction in enterprise AI deployments. These types of incidents highlight a structural weakness in current AI architectures where prompts and models are highly vulnerable and represent high-value targets. An efficient and effective solution is to process the prompts, outputs and run the models in encrypted form end-to-end, which QAW is specifically designed to accomplish.
The need for encrypted AI execution is being accelerated by the rapid adoption of Large Language Models (LLMs), general-purpose AI systems that generate text, analyze documents, and answer natural-language queries and Small Language Models (SLMs), which are compact, domain-specific models increasingly embedded inside enterprise workflows. Both LLMs and SLMs routinely handle confidential prompts, proprietary data, and regulated information, making them attractive targets for attackers and reinforcing the need for secure, encrypted AI environments.
By allowing AI models to operate on encrypted data without ever decrypting it, QAW prevents attackers from learning anything about the user or their data, even if they gain full access to the hosting environment. At the same time QAW also protects the model itself from being copied or reconstructed through side-channel attacks. These protections are increasingly viewed as essential for regulated industries, high-value AI workloads and organizations that rely on proprietary models. The Company's QAW technology goes one step further allowing for a ground-breaking environment where competitors such as banks can share credit card fraud detection models for mutual benefit without revealing any confidential information.
According to market research forecasts from Technavio a leading global market research company, the global privacy-preserving AI market will grow to approximately US $9 billion by 2029 representing a $7.88 billion increase between 2024 and 2029, a 27.9% compound annual growth rate, as enterprises adopt technologies such as FHE to secure multi-party computation, and implement privacy-preserving architectures.
The Company's initial commercial focus is on high-value expert SLMs where FHE is most practical today and where demand for secure, specialized AI solutions is growing rapidly. QAW represents one of 01 Quantum's most significant long-term opportunities, addressing an accelerating market need to protect intellectual property and preserve privacy in AI environments.
Financial Results for the first quarter 2026:
IFRS loss for the period was $569,495, compared to $135,439 in Q1 2025.
The adjusted loss, which excludes stock-based compensation and depreciation which are non-cash expenses, was $292,623 (2025 - $57,635). The Company's adjusted loss provides a clearer view of underlying cash expenditures by removing non-cash items such as stock-based compensation and depreciation.
Revenue was $349,766, compared to $86,505 in Q1 2025. The significant increase in quarterly revenue was driven primarily by development fees associated with PQC-enabled applications across remote access, digital assets, and AI security.
Operating expenses were $919,996 (2025 - $213,544). Excluding non-cash expenses of $276,872 (2025 - $77,804, cash operating expenses were $643,124 (2025 - $135,740). The increase in cash operating expenses reflects higher R&D activity supporting the Company's product roadmap as well as an increase in expenses pertaining to commercial development and initiatives to increase awareness for the Company in the financial and business markets.
Liquidity: Cash and GIC's total $3.36 million at quarter-end. The Company believes its current capital resources are sufficient to support its current level of operations and commercialization initiatives.
Outlook for 2026:
The Company has two PQC product verticals commercially available and in the market through partners and is entering a period of increasing commercial activity. The Company's focus for 2026 includes:
- supporting our partner's rollout of DoMobile Ver.5,
- expanding $qONE adoption across blockchain ecosystems,
- advancing QAW toward initial commercial availability, and
- continuing to build out additional PQC technologies in its roadmap.
Andrew Cheung further commented, "Our potential long-term opportunity is significant. The world is moving toward quantum-safe infrastructure, and the need for secure AI execution environments is accelerating even faster than we expected. With our technology foundation in place and partners now starting to drive commercialization as well as establishing credibility for our technology, we believe 2026 will be an important year in establishing 01 Quantum as a leader in quantum-resilient cybersecurity and AI security."
Conference Call Reminder - 10:00 AM EDT Today
Join 01 Quantum live later today at 10:00AM EDT (Thursday March 19, 2026) for an update on the Company's results as well as an overview of and the potential for the Company's strategic partnerships along with insights into the Company's roadmap and additional areas of focus.
Browser (please cut-and-paste the following link into your browser):
https://us02web.zoom.us/j/83272630612?pwd=zntVLSugtbPyvLgjY6lbKEkkUhK72W.1
Passcode: 01Quantum
Dial-in:
Within Canada (647) 374-4685 or (647) 558-0588
Within the USA (646) 558 8656 or (669) 900 9128
Webinar ID when prompted is 832 7263 0612
Passcode: 827339858
The Company's unaudited consolidated financial statements and Management's Discussion and Analysis for the period ended January 31, 2026 are available on SEDAR+.
About 01 Quantum Inc.
01 Quantum Inc. (TSXV: ONE) (OTCQB: OONEF), formerly 01 Communique Laboratory Inc., is known for its innovative work in post-quantum cryptography (PQC), developing technologies designed to protect digital systems against emerging quantum computing threats. The Company's IronCAP™ and supporting technologies are integrated into its PQC solutions, enabling applications across security-sensitive environments including digital assets, AI systems, email security, and enterprise infrastructure.
IronCAP™ technologies are patent-protected in the U.S.A. by patents #11,271,715 and #11,669,833.
For more information, visit the Company's website at https://01quantuminc.com | https://01com.com.
Cautionary Note Regarding Forward-looking Statements.
Certain statements in this news release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements use such words as "may", "will", "expect", "believe", "plan", "intend", "are confident" and other similar terminology. Such statements include statements regarding the expansion of the Company's product lineup, the timing of commercialization of the Company's technologies, the success of the Company's strategic alliances, the future of quantum computers and their impact on the Company's product offering, the functionality of the Company's products and the intended product lines for the Company's technology and the potential licensing of the Company's technology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under "Risk and Uncertainties" in the Company's Management`s Discussion and Analysis document filed on SEDAR+. Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances.
Neither TSX Venture Exchange ("TSX-V") 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.
01 Quantum Inc.
SELECTED FINANCIAL INFORMATION
UNAUDITED
Consolidated Statements of Financial Position
As at January 31, 2026 and October 31, 2025
|
| 31-Jan-26 |
|
| 31-Oct-25 |
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
| Cash | $ | 306,814 |
| $ | 159,133 |
|
| Guaranteed investment certificate |
| 3,050,000 |
|
| 2,913,518 |
|
| Accounts receivable |
| 112,330 |
|
| 192,316 |
|
| Prepaid expenses and other assets |
| 59,918 |
|
| 26,540 |
|
|
| 3,529,062 |
|
| 3,291,507 |
|
|
| |
|
| |
|
| Plant and equipment |
| 105,235 |
|
| 115,454 |
|
|
| |
|
| |
|
| Total assets | $ | 3,634,297 |
| $ | 3,406,961 |
|
|
| |
|
| |
|
| Liabilities and Shareholders' Deficit |
| |
|
| |
|
| Current liabilities |
| |
|
| |
|
| Accounts payable | $ | 234,744 |
| $ | 346,917 |
|
| Deferred revenue |
| 2,858 |
|
| 3,783 |
|
| Lease liability |
| 43,522 |
|
| 41,628 |
|
|
| 281,124 |
|
| 392,328 |
|
| Non-current liabilities |
| |
|
| |
|
| Lease liability |
| 52,328 |
|
| 65,347 |
|
| Total liabilities |
| 333,452 |
|
| 457,675 |
|
|
| |
|
| |
|
| Shareholders' deficit |
| |
|
| |
|
| Share capital |
| 47,663,323 |
|
| 46,825,347 |
|
| Contributed surplus |
| 7,042,886 |
|
| 6,767,886 |
|
| Warrants |
| 827,645 |
|
| 1,018,587 |
|
| Agent's compensation options |
| 93,435 |
|
| 94,415 |
|
| Deficit |
| (52,326,444 | ) |
| (51,756,949 | ) |
|
| 3,300,845 |
|
| 2,949,286 |
|
|
| |
|
| |
|
| Total liabilities and shareholders' deficit | $ | 3,634,297 |
| $ | 3,406,961 |
|
01 Quantum Inc.
SELECTED FINANCIAL INFORMATION
UNAUDITED
Consolidated Statements of Operations and Comprehensive Income
For the 3 month periods ended January 31, 2026 and 2025
|
| three months ended |
|
|
|
|
|
| 31-Jan-26 |
|
| 31-Jan-25 |
|
|
|
|
|
|
|
|
| Revenue | $ | 349,766 |
| $ | 86,505 |
|
| Expenses: |
| |
|
| |
|
| Selling, general and administrative |
| 406,739 |
|
| 96,988 |
|
| Stock based compensation |
| 275,000 |
|
| 75,700 |
|
| Research and development |
| 238,257 |
|
| 40,856 |
|
| Withholding taxes |
| 5,879 |
|
| 7,825 |
|
|
| 925,875 |
|
| 221,369 |
|
| Loss before other income and expense |
| (576,109 | ) |
| (134,864 | ) |
| Interest income |
| 7,674 |
|
| - |
|
| Interest expense |
| (1,060 | ) |
| (575 | ) |
| Loss for the period and comprehensive loss | $ | (569,495 | ) | $ | (135,439 | ) |
|
| |
|
| |
|
| Loss per common share |
| |
|
| |
|
| Basic | $ | (0.01 | ) | $ | (0.00 | ) |
| Diluted | $ | (0.01 | ) | $ | (0.00 | ) |
|
| |
|
| |
|
| Weighted average number of common shares |
| |
|
| |
|
| Basic |
| 108,217,756 |
|
| 97,470,532 |
|
| Diluted |
| 108,217,756 |
|
| 97,470,532 |
|
01 Quantum Inc.
SELECTED FINANCIAL INFORMATION
UNAUDITED
Consolidated Statements of Cash Flows
For the 3 month periods ended January 31, 2026 and 2025
|
| three months ended |
|
|
|
|
|
| 31-Jan-26 |
|
| 31-Jan-25 |
|
| Cash provided by (used in): |
|
|
|
|
|
|
| Operating activities: |
|
|
|
|
|
|
| Loss and comprehensive loss for the period | $ | (569,495 | ) | $ | (135,439 | ) |
| Adjustments to reconcile loss for the period to |
| |
|
| |
|
| net cash flows from operating activities: |
| |
|
| |
|
| Depreciation of property and equipment |
| 1,872 |
|
| 2,104 |
|
| Amortization of right-of-use asset |
| 10,733 |
|
| 11,593 |
|
| Stock-based compensation expense |
| 275,000 |
|
| 75,700 |
|
| Change in non-cash working capital |
| (66,490 | ) |
| (35,492 | ) |
|
| (348,380 | ) |
| (81,534 | ) |
| Financing activities: |
| |
|
| |
|
| Exercise of stock options |
| - |
|
| 58,500 |
|
| Exercise of warrants |
| 644,374 |
|
| - |
|
| Proceeds from private placement |
| - |
|
| 920,000 |
|
| Less issuance costs |
| - |
|
| (17,442 | ) |
| Exercise of Agents' options |
| 1,680 |
|
| - |
|
| Lease payments made |
| (11,125 | ) |
| (12,560 | ) |
|
| 634,929 |
|
| 954,384 |
|
| Investing activities: |
| |
|
| |
|
| Purchase of guaranteed investment certificate |
| (136,482 | ) |
| (800,000 | ) |
| Purchase of property and equipment |
| (2,386 | ) |
| (910 | ) |
|
| (138,868 | ) |
| (800,910 | ) |
|
| |
|
| |
|
| Increase (decrease) in cash |
| 147,681 |
|
| 71,940 |
|
| Cash, beginning of period |
| 159,133 |
|
| 139,126 |
|
| Cash, end of period | $ | 306,814 |
| $ | 211,066 |
|
#
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/289058
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