Quantum eMotion Announces Issuance of Q3 Financial Reports and Clarification Regarding Previously Disclosed Stock Options Grants

Rhea-AI Summary

Quantum eMotion (OTCQB: QNCCF) released its Q3 financial statements and MD&A for the three and nine months ended September 30, 2025. The company reported net proceeds of $20.3 million from LIFE offerings completed in H1 2025, 15.3 million warrants exercised during the nine months generating $6.3 million cash, and a cash balance of $24.7 million at period end. Management says these funds support R&D, commercialisation and US expansion with a new subsidiary. The release also corrects previously disclosed stock option quantities, exercise prices, and terms, and discloses cancellation of 950,000 options with holder consent on March 31, 2025.

Positive

• LIFE offerings generated $20.3M net proceeds
• Warrants exercised: 15.3M for $6.3M cash
• Cash balance of $24.7M at September 30, 2025

Negative

• Correction: granted options reduced by 100,000 (3,920,000→3,820,000)
• Discrepancies in terms for 4,050,000 previously reported stock options

Montreal, Quebec--(Newsfile Corp. - November 26, 2025) - Quantum eMotion Corp. (TSXV: QNC) (OTCQB: QNCCF) (FSE: 34Q0) ("QeM"), a leader in quantum-safe cybersecurity innovation, has released its Q3 Financial Statements accompanied by its Q3 MD&A.

Following the successful LIFE offerings that closed in the first half of 2025 that generated net proceeds of $20.3 million to QeM; the company is pleased to report that 15.3 million warrants have been exercised during the course of the nine-month period ending September 30, 2025, resulting in additional cash proceeds of $6.3 million and a cash balance at the end of the period of $24.7 million. This positions the company favorably to invest in opportunities, increase our R&D efforts as well as continue the transition to commercialisation which started earlier this year and which includes enhancing our visibility and presence in the USA with the opening of a subsidiary.

The Company's Management's Discussion and Analysis and Consolidated Financial Statements for the three and nine months ended September 30, 2025, are available on the company's website and on Sedar+.

Clarification regarding Previously Disclosed Stock Option Grants

On March 21, 2025, we reported that 3,920,000 stock options had been granted to officers and employees of the Corporation, whereas the correct number is 3,820,000.

There were also discrepancies in news releases of the Corporation dated February 19, 2021, December 23, 2020 and December 18, 2020, regarding the term of an aggregate of 4,050,000 stock options granted to senior officers and a director of the Corporation. The news releases inaccurately stated that these stock options had a three-year term. In fact:

• 2,500,000 stock options with an exercise price of $0.185 (previously reported as $0.14), as announced on February 19, 2021, granted to the Chief Executive Officer of the Corporation, have a ten-year term and are valid until February 2, 2031;

• 500,000 stock options with an exercise price of $0.185 (previously reported as $0.14), as announced on February 19, 2021, and granted to a director, have a seven-year term and are valid until January 27, 2028;

• 750,000 stock options with an exercise price of $0.065, as announced on December 23, 2020, granted to the Chief Executive Officer of the Corporation, have a ten-year term and are valid until December 23, 2030; and

• 300,000 stock options with an exercise price of $0.05, as announced on December 18, 2020, and granted to the Chief Financial Officer, have a ten-year term and are valid until December 17, 2030.

Cancellation of Stock Options

On March 31, 2025, the Corporation, with the written consent of the holders, cancelled 600,000 stock options granted to a director and 350,000 options granted to the Chief Financial Officer on December 13, 2024, as announced on December 30,2024. These options had an exercise price of $0.27 and a term of 10 years.

About Quantum eMotion Corp.

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 https://www.quantumemotion.com/ 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276116

FAQ

How much cash did Quantum eMotion (QNCCF) report at September 30, 2025?

Quantum eMotion reported a cash balance of $24.7 million at September 30, 2025.

How many warrants were exercised by Quantum eMotion (QNCCF) in the nine months ended September 30, 2025?

A total of 15.3 million warrants were exercised, producing $6.3 million in cash proceeds.

What corrections did Quantum eMotion (QNCCF) make to previously disclosed stock option grants?

The company corrected the total granted options to 3,820,000 and updated exercise prices and terms for specific grants totaling 4,050,000 options.

Which stock options were cancelled by Quantum eMotion (QNCCF) on March 31, 2025?

With holder consent the company cancelled 600,000 options held by a director and 350,000 options held by the CFO (total 950,000).

Will Quantum eMotion (QNCCF) use the proceeds to expand in the United States?

The company said it will use funds to increase R&D and support commercialisation including opening a US subsidiary to boost visibility and presence.

Where can investors find Quantum eMotion (QNCCF) Q3 2025 financial statements and MD&A?

The consolidated financial statements and MD&A for Q3 2025 are available on the company's website and on Sedar+.