Quantum eMotion Successfully Passes ISO/IEC 27001 Surveillance Audit with No Non-Conformities and Achieves ISO/IEC 27017 Cloud Security Certification

Quantum eMotion (NYSE: QNC) announced it passed its ISO/IEC 27001:2022 surveillance audit with no non-conformities and achieved ISO/IEC 27017 cloud security certification on April 20, 2026.

Rhea-AI Summary

Quantum eMotion (NYSE: QNC) announced it passed its ISO/IEC 27001:2022 surveillance audit with no non-conformities and achieved ISO/IEC 27017 cloud security certification on April 20, 2026.

These certifications strengthen QeM's information security and cloud controls across its quantum cybersecurity products. The company also clarified the SKV acquisition terms: earn-out payments up to $7,000,000 and royalties up to $15,000,000, with up to $5,500,000 of earn-outs payable in cash, common shares, or both; consideration shares use a 10-day VWAP with a minimum deemed issue price of $4.1905.

Positive

• ISO/IEC 27001 surveillance pass with no non-conformities
• ISO/IEC 27017 certification strengthens cloud security controls
• SKV acquisition adds cybersecurity IP and SecureKey™ royalties

Negative

• Potential contingent payments up to $22,000,000 (earn-outs + royalties)
• Up to $5,500,000 of earn-outs may be satisfied in shares, risking dilution

Argus Apr 20 session

+1.39% close to close Open Argus

Details

News Market Reaction – QNC

On Apr 20, the day this news came out, QNC closed 1.39% above the previous close.

Data tracked by StockTitan Argus for the Apr 20 session.

Key Figures

ISO/IEC 27001 version: 27001:2022 Cloud security standard: ISO/IEC 27017 Earn-out max: $7,000,000 +5 more

ISO/IEC 27001 version

27001:2022

Surveillance audit standard for information security

Cloud security standard

ISO/IEC 27017

New certification for cloud security controls

Earn-out max

$7,000,000

Maximum aggregate SKV milestone-based Earn-Out Payments

Royalties cap

$15,000,000

Maximum royalties on products with SecureKey technology over up to five years

Earn-out cash/shares mix

$5,500,000

Portion of earn-outs payable in cash, shares, or combination

Minimum share price

$4.1905

Minimum deemed issue price per Consideration Share

Earn-out term

up to five years

Duration for SKV-related royalties and milestones

Pricing reference

10-day VWAP

Basis for determining Consideration Share issue price

Historical Context

4 past events · Latest: Apr 15

4 events

1. Apr 15

   Strategic partnership

   24h Move

   +5.2%

   Exclusive crypto partnership deploying QRNG2 across global ecosystem.

2. Apr 02

   Strategic acquisition

   24h Move

   +0.8%

   Completed acquisition of SKV Technology and SecureKey platform.

3. Mar 17

   R&D collaboration

   24h Move

   -13.5%

   Cross-border R&D support up to $600,000 and $2.5M project investment.

4. Mar 06

   Security deployment

   24h Move

   +2.1%

   Quantum-secure infrastructure protecting $67.5M in token value.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

iso/iec 27001, iso/iec 27017, information security management system, cloud services, +1 more

5 terms

iso/iec 27001 technical

"successfully passed its ISO/IEC 27001:2022 surveillance audit with no non-conformities"

An international standard that sets out a structured approach for protecting an organization’s sensitive information, including rules, checks and best practices to prevent data loss, hacking and unauthorized access. Think of it as a building code for digital security: companies that follow and certify to it reduce the chance of costly breaches, legal penalties and reputational damage, which investors use as a signal of lower operational and regulatory risk.

iso/iec 27017 technical

"the Company has achieved ISO/IEC 27017 certification, an internationally recognized standard"

ISO/IEC 27017 is an international guideline for protecting data and managing security in cloud computing, giving clear best practices for both cloud service providers and customers. For investors, seeing this certification or adherence is like spotting a company that locks its doors and keeps an organized inventory — it signals lower risk of data breaches, stronger operational discipline, and greater trust in a firm’s cloud operations, which can protect revenue and reputation.

information security management system technical

"validating the strength and maturity of its information security management system"

An information security management system is a formal set of policies, processes and technical controls a company uses to protect its digital information and systems from theft, loss or disruption. For investors, it matters because a strong system lowers the chance of costly data breaches, operational outages or regulatory fines—like a building’s locks and fire alarms that reduce the risk of damage and keep the business running and its value more reliable.

cloud services technical

"providing guidelines for information security controls applicable to the provision and use of cloud services"

Cloud services are computing resources—like data storage, software, and processing power—delivered over the internet so companies can rent capacity instead of owning servers and software. For investors, they matter because they often generate steady, subscription-style revenue, enable fast growth with lower upfront costs, and concentrate risks such as outages or security breaches that can affect a provider’s profitability and customer retention.

vwap financial

"issued at a deemed issue price equal to the 10-day VWAP as of the date of issuance"

VWAP, or Volume-Weighted Average Price, is a way to find the average price of a stock throughout the trading day, giving more importance to times when more shares are traded. It helps traders see the typical price and decide whether a stock is expensive or cheap compared to its average, similar to finding the average speed during a trip by giving more weight to times when you traveled faster or slower.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Montreal, Quebec--(Newsfile Corp. - April 20, 2026) - Quantum eMotion Corp. (NYSE: QNC) (TSXV: QNC) (FSE: 34Q0) (QeM) is pleased to announce that it has successfully passed its ISO/IEC 27001:2022 surveillance audit with no non-conformities, further validating the strength and maturity of its information security management system. In addition, the Company has achieved ISO/IEC 27017 certification, an internationally recognized standard providing guidelines for information security controls applicable to the provision and use of cloud services.

This achievement reinforces Quantum eMotion's ongoing commitment to the highest standards of information security, risk management and operational excellence across its quantum-based cybersecurity software and hardware solutions, including cryptographic technologies.

Passing the ISO/IEC 27001 surveillance audit with no non-conformities confirms that QeM continues to maintain and improve the robust controls, policies and practices required under one of the world's leading information security standards. Our newly obtained ISO/IEC 27017 certification strengthens our security framework for cloud environments and builds confidence among customers, partners, and stakeholders who rely on secure, resilient, and trusted digital infrastructure.

Abder Benrabah, VP Operations and Compliance of QeM, commented: "Successfully passing our ISO/IEC 27001 surveillance audit with no non-conformities is a strong endorsement of the discipline and rigor of our internal processes. Achieving ISO/IEC 27017 certification is another important milestone that demonstrates our commitment to applying best-in-class security practices to cloud-based services and environments. Together, these accomplishments further position Quantum eMotion as a trusted cybersecurity partner for organizations operating in highly regulated and security-sensitive sectors."

"We are proud to have reached this new milestone in our cybersecurity and compliance journey," said Francis Bellido, CEO of QeM. "Passing our surveillance audit without any non-conformities highlights the strength of our continuous improvement approach, while ISO/IEC 27017 certification expands and deepens our security posture as we accelerate commercialization. These achievements support our mission to deliver trusted, secure and innovative solutions to customers and partners worldwide."

Clarification - SKV Technology Inc.

The Corporation recently announced the acquisition of SKV Technology Inc. ("SKV"), a California-based cybersecurity company (the "Transaction"), in consideration for milestone-based earn-out payments (the "Earn-Out Payments") of up to $7,000,000 and royalties of up to $15,000,000, subject to specified sales thresholds, on products incorporating SecureKey™ technology for a term of up to five years.

Up to $5,500,000 of the Earn-Out Payments may be satisfied in cash, common shares of the Corporation (the "Consideration Shares"), or a combination thereof, with the remaining Earn-Out Payments payable in cash. For clarity, the Corporation confirms that the $7,000,000 figure refers to the maximum aggregate amount of the Earn-Out Payments, and not the portion that may be satisfied in Consideration Shares. Any Consideration Share will be issued at a deemed issue price equal to the 10-day VWAP as of the date of issuance, subject to a minimum deemed issue price of $4.1905 per Consideration Share. For further details regarding the Transaction, please refer to the Corporation's news releases dated February 27, 2026 and April 2, 2026.

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 www.quantumemotion.com or contact:

Francis Bellido, Chief Executive Officer. Tel : 514-956-2525
Email: info@quantumemotion.com
Website: www.quantumemotion.com

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.

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 Company'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 Company's expectations with respect to the expected date of commencement of trading of the Company's common shares on NYSE American; the expected cessation of trading on the OTCQB; the anticipated benefits of the NYSE American listing; and the Company's business strategy, target markets and growth initiatives. 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 Company. 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 to delays in or failure to complete listing-related processes, the Company's ability to maintain compliance with applicable exchange requirements, changes in market conditions,, the value of the Company'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 Company's expectations, increases in costs, changes in legislation and regulation, changes in economic and political conditions and other risks inherent to the cybersecurity industry and new technologies, such as risk of obsolescence, slow adoption and competing technological advances; and those risks set out in the Company's public documents filed on SEDAR+ at www.sedarplus.ca.

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 Company 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 Company and the risks and challenges of its business, investors should review the Company's annual filings that are available at www.sedarplus.ca. The Company 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 Company 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/293364

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What does QNC's ISO/IEC 27001 surveillance audit result mean for investors?

QNC passed the ISO/IEC 27001 surveillance audit with no non-conformities, showing strong controls. According to the company, this confirms continued maintenance and improvement of its information security management system, which may bolster customer and partner confidence in QeM's cybersecurity offerings.

How does QNC's ISO/IEC 27017 certification affect its cloud security posture?

ISO/IEC 27017 certification formally covers cloud-specific information security controls and best practices. According to the company, this certification expands QeM's security framework for cloud environments and aims to increase trust among customers using its cloud-based solutions.

What are the key financial terms of QNC's SKV acquisition announced in 2026?

The SKV transaction includes earn-outs up to $7,000,000 and royalties up to $15,000,000. According to the company, up to $5,500,000 of earn-outs may be paid in cash, common shares, or both, with consideration shares issued at a 10-day VWAP and $4.1905 minimum.

Could QNC shareholders face dilution from the SKV acquisition consideration shares?

Yes, up to $5,500,000 of earn-outs may be satisfied in common shares, creating potential dilution. According to the company, any Consideration Share will use a 10-day VWAP as of issuance with a $4.1905 minimum deemed issue price, which affects share count and value.

How might the SKV earn-outs and royalties impact QNC's future cash obligations?

QNC may incur contingent payments up to $7,000,000 in earn-outs plus up to $15,000,000 in royalties over specified terms. According to the company, these payments depend on sales thresholds tied to products incorporating SecureKey™ technology and may affect future cash flow if triggered.