01 Quantum Inc. ($ONE)

I think Bill, you can start.

Yes. Hopefully, we've allowed enough time for most people to sign on, so we'd like to begin. Good afternoon, ladies and gentlemen. My name is William Train, and I am the Chairman of the Board of 01 Quantum Inc., and I'm acting as the Chair of this meeting, unless there is an objection from those present. I welcome you to this Annual Meeting of Shareholders. Now I would like to introduce you to our proposed Board of Directors. Andrew Cheung, as you all know, Chief Executive Officer and Director; myself, William Train, Director and Chairman of the Board; Gary Kissack who is in the room with Andrew and Brian; [indiscernible] he is a Director; Tyson McCauley, who I believe is tied on virtually; and Eduardo Perchedi, who is proposed or standing for the Board this year. You know most of the rest of us, but I'd like to give a brief background to introduce you to Eduardo. Eduardo has been an adviser for over a year, but he has graciously agreed to stand for election to the Board of Directors, and we're happy to invite them on and join us. A little bit of background on Eduardo. He's currently Associate Professor in the Department of Mathematics statistics at Florida Atlantic University. And before that, he was a post stock cryptography and data security group at Warsaw University in Poland. He also has a PhD in mathematics from the University of Auckland in New Zealand. Most notably, Eduardo has worked with NIST on being a co-author of the 4 different submissions to be the first Mist post-quantum standardization process, 3 of the 4 algorithms, the classic Mclese, BIKE and HQ C reached the conclusive final round with HQC being selected in March 2025, as 1 of the 2 new standards for encryption. He is also coauthored 3 submissions to NIST on-ramp call for novel signature schemes. So I'm sure you can all agree that, that kind of background is invaluable to a company like ours. Our Corporate Secretary and Controller is also in the room, Ms. Gigi Loo. I'd like to ask Gigi Loo to act as Secretary of the Meeting and [indiscernible] of TMX Trust to act as scrutineer. Ladies and gentlemen, notice and proxy materials for this meeting were duly mailed to shareholders. Additional copies are available on SEDAR. I am advised by the scrutineers that prior to the meeting, proxies were received from holders of more than [indiscernible] shares or 23.16% of the outstanding shares. As a result, we have a quorum for this meeting, and the meeting is properly constituted for the transaction of business. In view of the need to attend to a number of formal corporate matters, Certain shareholders have volunteered to move and second resolutions where required. While this procedure will facilitate the handling of the formal matters, any shareholder or proxy holder may be on a matter when that matter is before the meeting. When I recognize you, please give your name and state whether you are a shareholder or a proxy holder. The minutes of the last Annual Meeting of Shareholders held on April 23, 2025, are available for inspection from the company via e-mail from Gigi Loo at [email protected]. I'm also tabling a copy of the 2025 audited financial statements. You will have received them with the proxy materials, and additional copies are available on SEDAR. After the formal portion of this meeting, there will be a presentation by management, which will then be followed by an opportunity for questions. The first item of business for which this meeting has been called is to fix the number of directors. It is intended to determine the number of directors at 5 and to elect 5 directors for the ensuing year. May I have a motion that the number of directors be fixed at file.

Mr. Chairman, my name is Brian -- sorry, I had my mic muted -- Mr. Chairman, my name is Brian Stringer, and I'm a shareholder, I so move.

Thank you, Brian. Is there a seconder?

Mr. Chairman, my name is Gigi Loo. I'm a shareholder. I second the motion.

Thank you, Gigi. Is there any discussion on the motion? I hear none. Based on proxies received in favor of management, if a ballot were conducted on this matter, more than 95% of the votes eligible to be cast at this meeting would be voted in favor of setting the number of directors to be elected at 5. Therefore, I declare that the number of directors to be elected is set at 5 in accordance with the motion. We will now turn to the election of directors for the term expiring in 2027. 5 directors are to be elected and 5 nominees are named in the proxy circular for this meeting. The secretary will now read their names.

The names of the nominees are, Andrew Cheung; William Train; Gary Kissack; [indiscernible].

Thank you. I would like to note I would like to that the company has adopted a policy whereby any nominee for election as a director for whom the number of votes withheld exceeds the number of votes cast in his or her favor, will be deemed not to have received the support of shareholders, even if he or she is elected a director elected in such circumstances must openly offer his or her resignation to the Board -- within 90 days of receiving the final voting results, the Board will issue a press release announcing the resignation of the Director for explaining the reasons justifying its decision not to accept such resignation. This policy only applies in the context of an uncontested election of directors. May I have a nomination, please?

Mr. Chairman, my name is Brian Stringer, and I'm a shareholder. I nominate the 5 persons whose names have been read to the meeting by the secretary by the secure election as directors of the company to serve until the annual meeting of shareholders to be held at 2027.

Thank you, Brian. Is any shareholder or proxy holder wish to make a further nomination? If there are no further nominations, I declare the nominations closed. Five persons have been nominated as directors, and there are 5 directors to be elected. Accordingly, I declare that the 5 nominees whose names have been read by the Secretary have been elected directors of the company to hold office until the close of the next Annual Meeting of Shareholders or until his or her successor is duly elected or he or she otherwise ceases to hold his or her office. The next item on the agenda is the appointment of auditors of the company. I will now entertain a nominee in this regard.

Sorry, a motion in this regard. Mr. Chairman, my name is Brian Stringer, and I'm a shareholder. I move that McGovern Hurley LLP target professional accounts, be appointed auditors of the company to serve until the Annual [indiscernible] to be held in the year 2027 at a remuneration to be approved by the Board of Directors of the company.

Is there a seconder?

Mr. Chairman, my name is Gigi Loo, I'm a shareholder. I second the motion.

Thank you, Gigi. A motion has been made and seconded to appoint McGovern Hurley LLP as the company's auditors. Based on the proxies received in favor of management, if a ballot vote were conducted on this matter, more than 95% of the votes eligible to be cast at this meeting would be voted in favor of the reappointment of the auditors at a remuneration to be fixed by the Board of Directors of the company. Therefore, the motion is carried, and I declare that McGovern Hurley LLP have been reappointed auditors of the company in accordance with the motion. The next item for which this meeting has been called is to consider and if thought appropriate, to approve a resolution ratifying the stock option plan of the company as more particularly described in the management information circular. The full text of the proposed resolution is set out in the Management Information Circular. In order to be approved, the resolution must be approved by at least a majority of the votes cast thereon. May I have a motion for the approval of this resolution.

Mr. Chairman, my name is Brian Stringer, and I'm a shareholder. I hereby move I hear that the resolution approving the ratification of the company's stock option plan in the form set out in the form, the management information circular as without variation.

Is there a seconder?

Mr. Chairman, my name is Gigi Loo, and I'm a shareholder. I second the motion.

Thank you, Gigi. The meeting will now vote by ballot on the motion. If you were entitled to receive -- I'm sorry, is there any discussion or any questions that there have been questions posed on the stock option plan. The meeting will now vote by ballot on the motion. If you are entitled to recenter ballot, the scrutineer will have provided you with 1 upon entering the meeting. If you did not receive a ballot and feel you should receive a ballot, please raise your hand. The Secretary will now give the shareholders instructions as to the voting procedure. So this only applies if there are people in the room that need to vote by ballot. In the majority of cases, it will not be required.

Only proxy holders and shareholders who have not returned to a change or who wish to join the company complete -- all proxies favor of an will be building in tests instructed. -- where we do not compete competitors show to change by division instructions, then to as yet to be titer. Any are wishing to complete battened either for more promotions to a -- when you have completed about concluding standpoint unique in the space provided. Please raise your hand and the bot will be collected and given [indiscernible].

Gigi, would you please let me know if there are any Anyone raising their hand for a ballot.

No. No.

Okay. I'm going to declare the polls closed, and we will now wait for the scrutineer to tabulate the ballots, okay, that's not necessary. The scrutineer reports that -- the resolution has been duly carried by a majority of the votes cast at this meeting, and accordingly, I declare the resolution carried. If any shareholder is interested in the exact number of votes cast in favor, of or against the resolution, which has been voted on by ballot, he or she may obtain particulars from the secretary after the meeting. That concludes all the formal part of the business. I think it is now appropriate to terminate the meeting. May I have a motion to terminate this meeting.

Mr. Chairman, my name is Brian Stringer, and I'm a shareholder. I move that the meeting be terminated.

Thank you, Brian. Is there a seconder?

Mr. Chairman, my name is Gigi Loo, and I'm a shareholder. I second the motion.

Thank you. A motion has been received and seconded to terminate the meeting. The formal portion of the meeting is now concluded. Management will make a short presentation about the company, after which there will be an opportunity for questions. Thank you for attending. I believe Andrew is also going to make some product presentations, which I think we should all be excited to watch. Anyway, thank you very much.

Thank you, Bill.

Shall we pause for a few moments to get your presentation set up, Andrew?

I think it is okay. Before I do the presentation, I would like to give some kind of background which a lot of people already know. But then for some new shareholders, the benefit, I should also go through the quantum, the QA threats and kind of things. So first of all, welcome to our AGM, and this is very exciting because it's our first AGM after officially changing the name to 0 1 Quantum. I'm Andrew. I'm the President and CEO of 01 QANTM. So first of all, how are you doing? Welcome to this new AGM as 0 1 Quantum. So as I mentioned earlier, I'm very excited. I couldn't wait to give you a demo of our latest and greatest. But before I do that, I'd like to give some background about QD's threat for the benefit of some new shareholders. So fundamentally, the excessive computing power of quantum computer has created an unprecedented cybersecurity threat for the world or AKA QDay, which is the day when the bad guys starting to use quantum computers to do the dirty works. So on and after QA, everything under the sun, whether you're using AI, cryptocurrencies, banking, medical or anything or even e-mail, remote access or whatever are going to be vulnerable or make it in front of a quantum computer. So no wonder why a lot of the larger tech companies such as Apple, Google, Microsoft, et cetera, they have already started their migration to post-quantum. And the U.S. government also has issued the MSM 10 letters a couple of years ago already, asking their agencies to be very mindful about a famous attack called HNDL, Harvest -- now Decrypt Later attack, whereby the hackers are getting hold of your data today. Yes, they are encrypted. They cannot do anything. However, they can just sit and wait until they get hold of a quantum computer, then they do the dirty work. So the QD problem becoming not a tomorrow problem, not even today, but a yesterday problem. So a lot of people are asking around if there's one single question that the world are asking or having a myth on is about when QD was starting hitting the world. There's really no definitive answer to that question, but there are a lot of writings on the wall that you can reference to such as when IBM would deliver this, when Google would deliver that. So this kind of like a QD estimate has been since a few years ago, people were saying, yes, it's that case, don't worry about it. But then now the latest prediction from IBM, from Google is 2029 because Google, just 1 month ago, actually 3 weeks ago, Google announced that they can simulate the electric curve cracking within 9 minutes, okay? And they predict QD arrival of 2029. And then IBM road map is also calling -- independently calling the same thing because IBM were expecting to deliver their full fraud-tolerant quantum computer by 2029. And Vital from Ethereum founder also predicting that there are 20% chance that the QD would hit by 2029 or before. So when there are so many coincidence, saying about 2029 chances are is not a coincident. So -- having said all these things, there is still another fact that people are ignoring is that all these writing on the walls are only from the open world. And there are some closed world such as China and Russia who never -- the vendors never released their road map. So between now and 2029, which is only 2.5 years, right, there will be a very high chance that one of these vendors that you never heard of the name suddenly announced something that, hey, this is a quantum computer we have, you never know about it. And then if you're not prepared, basically, you are a toast them. So what we have done in the last few years, I would say, a few years like 8 years already, was that we went ahead and not only creating the encryption engine, but we have also went ahead to differentiate ourselves from our competitors in the way that we are actually rolling up our sleeves to create end-user product that people can use, can touch, can pay for, right? And so far, we have already completed 2 major projects. One is for Hitachi in Japan, whereby we help them converting their remote access application from being quantum vulnerable to become quantum safe, and which we will give you a bit more details later. And then we also help another partners doing a digital asset creating the world's first ecosystem to protect existing digital asset to become quantum safe. And we have also created an end user-ready end-to-end e-mail security system, whereby you can have quantum-safe e-mail encryption and digital signature. So as I said, we help Hitachi finishing the project. And only 3 months ago in January, that announcement has been made by Hitachi and us jointly about the completion and beginning of marketing phase of this product. And the good thing about what we do is that we are acting as the consultant. We are giving away the engine for free as long as we are helping our customers doing the job. So we receive onetime engineering fee plus ongoing revenue sharing, which is the good part because we, as the SME subject matter expert or PQC, we don't need to spend a dime in sales and marketing, and our partners are doing the job and we sit back collecting revenue share. And then the second thing is about, as I mentioned, the digital asset, which is what I am going to do a demonstration later now today. So what we have done is that we have helped our partner called Q Labs Foundation created the world first quantum-safe boat that is designed to protect existing digital asset to become quantum safe. There is a lot of the time when we hear about people are saying that we don't care about new chain, we don't care about new Layer 1 chain. All we want is to protect my existing token to become quantum safe. So we did it. And similar to Hitachi, again, we are receiving onetime engineering fee plus some revenue sharing. For example, we received 2 million -- $22.5 million of the Q1 token as our revenue sharing portion, which is our upside. And I am going to do a quick demonstration of this Vault technology, okay? And then the third thing I keep mentioning is about e-mail, and we have also created the world's first end-to-end e-mail security system, which is a plug-in to outlook, meaning that it is going to be -- it is a mainstream ready and enterprise ready that people can touch, download, use and pay for already. So the market size of these things are huge. As we all know, 730 million e-mail addresses in the world. It's only 10% are serious and wanting to pay $3 a month for quantum protection, and that's about $2.6 billion annual recurring revenue potential for grab already. So on top of all these things that we have already created and generating revenue, we are also creating something new for this year, next year and the years to come, which is a crossover between AI and quantum safety, right? So as we all know, AI is huge. But then if there's one particular element or factor that is preventing AI from doing the maximum is privacy. We all know that like people worrying about your question into the AI are going to be read by AI. They know what -- who you are. They know what you have asked. And so your privacy is gone, right? So after identifying that pain point, we have done in the last 2 years was working on a platform we call the QAW Quantum AI wrapper technology, whereby we are encrypting the AI question, AI model, both by what we call FHE full homomorphic encryption. And this kind of encryption is not only quantum safe, but also that they are mathematic preserving. So you can do AI inference while the AI model, it sounds too good to be true because the thing is that the AI model can provide the answer while they don't know what you're asking. And that is the thinking for the homomorphic encryption doing that kind of a magic. So your question to your AI model is not going to be known by the AI model, but yet the AI model can produce the answer for you. So there are lots of practical usage for that kind of thing. For example, in the defense industry, for example, military drone, every military drone would potentially have an AI model, recognizing some of the enemy mapping or the tank location or whatsoever. And what if the drone is down and the enemy get hold of the model, you don't want that to happen. So that's the last thing you want is the enemy having the ability to reverse engineering your model. So our platform will allow that to happen to protect both the model and the end user data, right? So the marketing potential is that we are going to market this to government, banking, large organization, basically anyone who want to use AI model, but worrying about privacy. We have a solution for that. So the road map is very simple between this year and next year is a step 1, which is what we have already completed, and I'm going to do a demonstration is going to be an optimized FHE full homomorphic encryption milestone. And then the next milestone is going to be private AI and then followed by hybrid FXE. Then next year, we're going to have an AI marketplace for private AI and then for optimized FXE, then finished by having hybrid FXE. So all these things are all dovetailing with our complete global partnership such as CGI, Hitachi, Thales, PwC and QLabs,rernium, et cetera, et cetera. So before I am performing my demonstration, I would like to ask Brian to -- our CFO, to explain a little bit about our financial position, where we sit and where the stock is performing so far. And then I will come back to do the demonstration. Brian?

Thank you, Andrew. Thank you, Andrew. Well, just very quickly looking at our financials, we have $3.3 million of cash available to us, 0 debt. No debt. No debt. We're running right now at approximately a $250,000 plus or minus a small amount of cash burn per quarter. So you can extrapolate that to see the significant amount of cash on hand that we feel will fund the current business plan that we had that Andrew has been talking about. Now going forward, we do have some revenues. As Andrew said, we've had development fees. We recognized fourth quarter, first quarter and our second quarter coming up will be similar to the first quarter, which will give us a burn of, again, approximately $250,000. Our expenses have been running in and around the $700,000 per quarter. In addition, we made use of stock-based compensation, a noncash expense to retain third-party contractors as well as employees. And we've done this very effectively because it doesn't require cash. Basic shares, $108 million. options, $8.2 million, ranging from around $0.10 up to $0.80. -- warrants, $6.59 million and they're between $0.50 and $0.75 and they've got 2 years to go. okay? Our market cap right now, we're sitting at $48 million, 52-week high and low, really like it at $1.13,.39 rather and $0.19. And that compares that market cap of $48 million to 2 players in this space in Canada, BuonamiMotion with an $80 million market cap and BTQ of $570 -- we like our go-to-market strategy, which Andrew has explained, which is wrapping our technology and our products and taking to market with partners, which allow them to do the marketing and marketing and us to be their expert in the area of post-quantum photography. It's worked well so far. We envision that it will continue to work well. And hopefully, we can close that market cap with us growing as opposed to them catching us. And with that, I'll turn it back over to Andrew for closing comments and his demonstration.

Thank you, Brian.

One last thing. I have been getting -- sorry, Andrew. I have been getting questions come in. Please. We should have said that at the outset. Any questions you have by now, everybody knows how to use Zoom. So just type your questions in Andrew presentation will be -- we will respond to the questions. So keep them coming. Thank you. Andrew, over to you.

Thank you, Brian. So switching over to is 2 demonstrations. First, it is the AI, full homomorphic encrypted AI. And then I would do the crypto vote demonstration. Now first of all, here on the screen is showing that we lock in the AI system, whereby we -- we're having a credit card fraud detection model as our demonstration, which is what we call standbox in the technology world. And so in the sample data, you can see that we got a lot of -- we bought some real data from some credit card transaction. We know some of them are legit, some of them are fraud so that we -- when we are doing the AI inference, we have expectation to see whether it is a legitimate or fraud prediction from the AI inference. So let's pick transaction #35, for example, which is actually a transaction that is actually fraud. So if we select this transaction and we submit to the AI model to do a prediction whether it is fraud or legit, we would expect to see -- let's see what the prediction is, fraud, which is the same as the actual transaction. And the response is instant, 0.0001 second, okay, which is very fast. So now the demonstration is that what we have done in the last 2 years was that we are encrypting the data so that the transaction is going to be kind of jubberous. As you can see that this transaction 35 now is represented from Jubberish. It's no longer something that is recognizable in plain text. So if we are going to submit to the AI model, okay, clicking a button, you see that it will do the inference within 0.69 second, it gives you the answer already. Now Remember, 0.69 second is still very fast in human perception. So if we decrypt, what do you expect the answer is going to be. Hopefully, it's fraud, let's see, bang bingo. So this is an apple-to-apple demonstration whereby the unencrypted plain text AI inference compared to the encrypted AI inference is identical, okay? And the good thing about that is the speed that we have optimized, spending close to 2 years of work to optimize is making this kind of very complicated encrypted AI operation to be still within the human acceptable speed, right? So that is what we we have done, and we are about to go out and do the go-to-market strategy beginning about a month later. The first event that we are presenting is the TMLS, which is one of the world's largest machine learning conference to be held in Toronto, the CIBC building in June. So that, yes, we are going to brag about the technology that we can help just about any major corporations, banking, national defense or whatsoever about how we can protect them in the AI world, right? So that is the QAW Quantum AI wrapper technology. So now let me switch over to the other demonstration, which is the -- let me go back to the same browser. And then this time, I am opening up the Q vote, which is we call Quantum vote technology. And this Q vote is actually haven't been publicly released until about middle of May, 2 to 3 weeks from now, but you have a preview of what's happening. So what exactly it is giving rise to is that if you have -- if you're a holder of some existing token such as Ethereum, hyperliquid or whatsoever, you want to protect your existing wallet, viewing it, like treating it like a safe, like a vault that you can put your token into that vote, that is quantum safe. And once it's in the vault, no one with quantum computer can hack into the vote. And if you want to use it, you take it back, okay? And then when you take it back, you have to have a quantum signature to do that so that no one can forge and no one can hack into it, you take it back and you can sell. So the step one of doing something is that you are going to connect to your existing wallet, which is what I am doing right now. Give me one second. I'm connecting to my wallet. And then it is showing that I have is all fake data, okay? I have 1.2 million Q1 token. I have 500,000 Hype, which are locked today. And then I have some other portion that are unlocked, 1.2 million of Q1 and about 392,000 of Hype token that is unlocked, right? So what I can do is if I want to lock some of the unlocked token, for example, I want to lock 10,000 of it, okay? Just type in 10,000 and continue to lock. And then I would provide the address of the Q vote and then provide a quantum password. If the password is wrong, for example, it won't accept. It will be set incorrect pin. But then if the pin is correct, it will successfully lock the 10,000 token into the QVote. So once it's in QVote, these 10,000 token are totally saved against hackers equipped with quantum computers. So if we go back to the list, you will see that now I got 1.2 million 10,000 being locked and then 10,000 less in the unlocked portion. If I want to unlock, it's more or less the same thing, how many I want to unlock and it will go the reverse way. And so this is is really a huge breakthrough because in the last probably 3 years, many crypto industries player, they were trying to think about, hey, how we're going to protect this token, how I can use a layer 1 chain to protect. But we are already ahead of them. They are asking the questions that we have already asked and tested 3 years ago. So what we have eventually done is that there's really no way that you can protect existing token unless you are providing a vault for them to keep those token in the vault so that it is quantum safe rather than selling it and put it into a new token that people don't trust. So that's basically the vote that we are going to to release by our partners about 2 to 3 weeks from now. So yes, so basically, that -- let me just disconnect the wallet. So that's kind of like concluding what we have created. We demonstrated how we already have existing product generating revenue, but these are the things that is coming to be generating revenue for this year, next year and the years to follow. So I'd like to have a kind of like -- before I open the question and answer to the floor, I'd like to make a closing statement that Quantum is really like AI from 2, 3 years ago. This is only the beginning. And we see the first wave of quantum several months ago, and it would just getting more and more talk about just like AI from 2, 3 years ago. And most importantly, we are not talking about technology that is coming in the next 2, 3 years, we already have. We are different from our competitor in the way that we already have product created for our partners, doing the sales and marketing, generating revenue, and we have more to come. So I'm very excited to be here presenting what we have, and I'm very confident in the upcoming years to come and how we would becoming the go-to place in whenever people are talking about quantum safe in the years to come. So thank you very much again for coming to our AGM and listening to viewing my demonstration. So I couldn't wait to see you again next week. Thank you.

Okay. Now the floor is open for questions. Andrew, are there any from the live floor? I have a number I started and I'll take these in order as they came in. Andrew -- with respect to the remote through our partner, Hitachi. Is this available for Japan only? Is it -- so I think the question is, is this exclusive for Japan or worldwide? I think that's the question.

The project that we did Japan go back to the Brian, microphone that will be less echo. Yes. Thank you. Yes. So this is for Hitachi in Japan called Du Mobile. However, we also do have our own remote access that is also upgraded to become quantum-safe, and that is for the rest of the world. So the short answer to the question is both. We have both for Japan and for the rest of the world.

Okay. Thank you, Andrew. And the next one that came in had to do with. And it was more of an explanation. And no more phishing outlook Outlook. So I think by that, that I don't think he was clear on that. Could you expand on the phishing issue and that is outlook ready, please?

Yes. Thank you. That's a very good question, too. Fundamentally, the end-to-end quantum-safe e-mail security that we have created is like you said, is an Outlook plug-in. It is running as an Outlook plug-in. So from an end user point of view, what does it mean? It means that it is mainstream ready because Outlook is the de facto standard in corporate e-mail. So whether you are in Japan or whether you're in the U.S. or Canada or wherever, the de facto standard in corporate e-mail are using Outlook as the e-mail platform. So there's no -- we don't need to reinvent the wheel. There is already a platform there. So all we have created -- the mandate that we have created was to run as a plug-in within Outlook so that it is immediately available to the corporate world. So once the IT person decided to try or to use it, all they have to do is download that plug-in install it and it would automatically plug into Outlook and your outlook can begin to send a quantum-safe end-to-end e-mail to your colleagues and vice versa. That's the short answer to that.

Okay. Somebody had a request, Andrew, can you mute when I'm talking -- would you mind? Okay. Thank you, Andrew. Apparently, there was some feedback there. Now going over to the go-to-market strategy with respect to AI. This is a fairly long question is you went through a very good demonstration on the financial industry. What other verticals do you see that you can attract with this solution.

Yes. As I briefly mentioned, AI is applicable to just about any industry. So whether you are in the financial or you are in the national defense or you are in the medical, they are -- they all -- nowadays, they all 100% would try to -- if they have not already done so, is trying to adopt to AI. But then the biggest problem that is preventing the AI from doing the maximum is privacy. They're worrying about privacy. So financial definitely were worrying about privacy and military would worrying even more about privacy. And medical, all the medical data that are feeding into the AI model are hugely confidential with patient data and things like that. So without the privacy being soft, this industry can never use AI to the maximum. So what we have done is creating -- is created basically, not even creating, we have created a platform and proven to the world that we can encrypt both the user data and the AI model before doing the inference. So don't get me wrong, like it is actually a 2-way street for AI security. It's not only applicable to the user data, but the AI model itself, they also cannot allow piracy of the model. It's not only commercial privacy, but also if you're talking about national security, I think I gave an example during my demonstration was that the say drone, military drone. -- military drone contain AI. It has an AI model there that can recognize some landscape and whatsoever. And when the drone is down, you cannot have the adversary, the enemy to get hold of the drone and then reverse engineer your AI model and understand what you have done to the AI model. And that's the new new age warfare, and they have to be encrypted. So we have the platform ready to help all these industries. That's the short answer.

Okay. The next one is a general question, Andrew, and it goes right back to the beginning on the need for quantum protection before 2029. And I think he's referring to the term [indiscernible] later. Could you expand on that? He's asking, is there a need for quantum protection before 2029?

Yes. A short answer to that question is absolutely yes. And is allowed, yes, not only because of the HNDL HarviceNow decrypt later attack, whereby hackers are getting hold of the data and then they just wait and hold on to it until they get hold of a quantum computer, then they decrypt, right? But also, as I think I mentioned about that, too, is that the writings on the wall are all pointing towards 2029 as the Q-day arrival. However, number one, 2029 is only 2.5 years from now. It's not a lot of time. So if you are not prepared today, chances are your ecosystem would need more than 2.5 years to get ready, then you already toasted, even though there's no HNDL at all, you toasted already. And then on the other hand, right, if there are some kind of unknown vendors from the closed world, such as Russia or China, who come in kind of like the deep -- if you remember, there was a deeepSk event happened in the AI world that suddenly there's a no-name company -- well, you never heard of the name. They are huge in China, but never heard of the name, and they made an announcement for the availability of a quantum computer that beating everyone and having QD ready between now and 2029, whether it is 2026 later this year or 2027 or 2028, doesn't matter. As long as that day happen and you are not ready, right, you are also clloseed. And remember one thing, that the hackers would never give you a call before they do that, okay? So I think that's one quick answer I can give to that question.

Could you Okay. And this one has to do switching over because I've been grouping these. Switching over to the digital asset. Okay. You mentioned the receipt of $22.5 million Q1 tokens. Can you elaborate on a couple of things there? How will they be treated accounting-wise? I can elaborate if you want. And second is, what type of value do you put on them?

Yes. I think I would explain a little bit about the value and the utility token, and then I would revert back to Brian to talk about the accounting side. And remember, I am the geek. I like the technology and then -- but I'm not a number person, so I will revert back to Brian for the accounting side. So on the technical side, the Q1 token is the first utility token in the world designed to help -- to allow people to do quantum locking. So the design is very simple. We allow people having other tokens such as Ethereum or hyperliquid or whatsoever, when they want to lock and save and protect their existing token we got to charge a fee to do that, right? So although the fee is going to be very low in the pennies, but there's a fee. So the fee is going to be paid in the currency of Q1 token. So that's we call utility token, right? And then we received $22.5 million of the Q1 token as one of the compensation or the remuneration or the upside or whatever you call it. And the current value, they started at $0.01. And then the simple math, it is that for every dollar worth of Q1 token, they would successfully marketing, it will represent $22.5 million of value on our book. That's the U.S. dollar value. So yes, that is the technical side about how Q1 token is going to be used and how the value is going to be created because it is a utility token to help people quantum locking their token. So when they need to buy the token to perform the quantum locking, it will help alleviate raising the value of the token. So I will refer back to Ryan to talk about the accounting side.

So it's fair to say that the QVault will drive value for the Q1 token, which will help increase the value as we see QLab start to market it. And with respect to how we treat it is, -- the value of the Q1, we realized value on the realized value, we recognized as comprehensive income on sale. And that's how IFRS treats it. And I think that's about it. It will be recognized as comprehensive income when it's realized. And I'm now looking down. We have covered all the questions. And thank you all for attending, and I'm cognizant of time. It's now 5:00. We went right on to the hour. Thank you very much, and I'll turn it over to Andrew and Bill for final comments.

Thank you again, Brian. So again, as a closing, I think I briefly mentioned a little bit about that. I am very exciting to be the first AGM as the name of 0 1 Quantum. So the reason why we changed the name to 01 Quantum is because we are focused in quantum safe. We're making everything quantum safe. So again, the exciting part about Quantum is that this is exactly like AI from 2, 3 years ago. It's at the first gear of moving up. So we already have, as I said, not only the technology, but having product completed for Fortune 500 companies in the world and something that people can already use and pay for and create value. and then having something new to come up for the upcoming few years. So I'm very comfortable and excited about the future of 0 1 Quantum, and I cannot wait to see you next week and see what the next 12 months would give us. Thank you very much again for joining.

I'd just like to add welcome to the Board, Eduardo. Nice to have you.

Thank you so much. I'm very, very glad and very privileged to be on board.

Thanks to everyone who attended. Bye for Bye, everyone.