BTQ Technologies Corp.

I think we'll give everyone a minute here to join, and then, Matt, you can get started on the fun stuff. Disclaimers.

All right. Okay, sounds good, everyone. Welcome to BTQS Q3 2025 earnings call. Before we start, I'll just read off some disclaimers. So this communication contains forward-looking statements which involve known and unknown risks, uncertainties, and some factors that may cause actual results to differ materially from those expressed in implied herein. These statements are based on current expectations and assumptions and are subject to change. The company undertakes no obligation to update or revise them except as required by applicable law. All right. Okay, now that's out of the way, we'll just present today's speakers. So we have Olivier, our CEO, Lonnie Wong, CFO, Sean Hackett, head of product. We have Philippe Lowe, co-founder and CEO of QPerfect, a company that we just acquired. And then we have Chris Tan, director and head of innovation, and then myself, Matt, head of corporate development. Yeah, so I'll pass it off to Ollie to get us started.

Good morning, everyone, and happy Monday. Thanks for joining our Q3 webinar earnings call. And we spent a lot of time putting together some slides and presentations that will be available on our website shortly, as lots has been transpiring at a company development level. um but we thought we would go through kind of you know take things at a high level um kind of go from a uh you know update in terms of what's what's going on with uh with the quantum market and then dive into what we're doing as a company to address the the concerns and also the exciting advancements pertaining to the space um So, you know, as you can see kind of from this slide, quantum markets, you know, the U.S. has picked up on their National Quantum Initiative Act and almost doubling the size of funds available. to just under $3 billion. The EU, where QPerfect is based, and some of our other subsidiaries, has really been, I think the first time I was at the quantum flagship event, Initiative was, I think, 2015, 2014 in Amsterdam, where the EU first declared a billion dollars in funding. But EU is outpacing every other nation around the world with over $7 billion in national programs. Aside from China, and that's obviously concerning, and that's what they're disclosing up front, but China's investing $15 billion through 2030. I think it's a lot more under the table. South Korea as well, where we have a subsidiary, an office, and a lot of business operations is investing $2.4 billion. In terms of post-quantum cryptographic mandates, which Sean will touch on in depth and in a lot deeper, NIST, the National Institute of Science and Technology, has been spearheading the development and standardization of post-quantum cryptographic standards for the past 10 years. which were finally finalized in August 2024, so about a year and three some months ago, which really kind of kicked things off in terms of the addressable, created the sector for PQC hardware implementations. which we're actively, you know, a part of. There's been a lot of, you know, NSA movements, you know, complex mandates, completion of the transition of the quantum resistant algorithms program for the national security systems, which needs to be put in place by 2035. with classical cryptography providing 112 bits or less of security to deprecate it after 2030 and completely disallow it after 2035. So, you know, for example, ECSDA, which is the fundamental cryptographic encryption algorithm under Bitcoin, is supposed to be deprecated in 2030. um and you know that that will kind of imply you know volatile changes to a bunch of you know differentiated landscapes digital assets being one I think, you know, we're seeing kind of in real time, you know, a trade in the market where people are recognizing the value of quantum encryption in the form of Zcash, which is kind of the only kind of cryptocurrency that's green over the past kind of one, two weeks. So it's very interesting to see. I think we will flip to the next slide. And obviously also tons of different governments around the world are putting together quantum initiative acts. We're in active developments discussions with a lot of them about how they fit in post-quantum cryptography, but also look at quantum as a market holistically. with this idea of the quantum internet coming to fruition. So, you know, I think we will – this slide kind of just represents, you know, where we are, where exponential technologies are rising and kind of, you know, as mentioned earlier, you know, BTQ's mission is to accelerate quantum advantage. Quantum computers will one day sit – alongside the internet with traditional high-performance computing solutions, sharing the infrastructure that has been built over the past several decades. I think the internet that was created at CERN You know, the reason we went from an obscure, you know, communication network into one of the most powerful business platforms is the simple fact that we trust the underlying infrastructure enough to trust, you know, and access to critical infrastructure and more. Universal support for encryption and authentication in every internet-connected device in the world is the technology that has made this possible. Thanks to the world's trust in cryptography, the world has a way to manage tens of trillions of dollars of valuable assets across the world and basically secure every nation-state's GDP globally. This is all going to change, and it's all going to change dramatically. And, you know, we're seeing kind of exponential shifts and new, you know, entire industries being built in very short time horizons, such as AI, AI compute, cryptocurrency, digitization of said, you know, digital assets, scientific computing. It's very hard to overemphasize the massive demand for commute and just how difficult it is for computing companies to keep up. Quantum computing represents one of the most exciting opportunities to supply the world with unprecedented computing power in various different modalities that we will dive into on our neutral atom computing platform. So I think we'll go to the next slide here. So, you know, when we've kind of, and you know, BTQ has been a kind of 13 year expedition for myself, but when we think about, BTQ as a company, we really want to combine quantum hardware, software, and networks and have them all essentially kind of correspond and add value to the different platforms so that they all work essentially holistically together. And they need to, right? You can't scale quantum software without underpinning it with quantum hardware. And that can be in the form of security and or future modalities of quantum computing, such as neutral atom infrastructure. And so, you know, within BTQ, we have our quantum hardware division, which, you know, specific, you know, boson samplers, neutral atom quantum processors, FISCs, which is a coin, Dr. Gavin Brennan, our chief quantum officer, you know, PEND, which is, you know, The existence that essentially quantum computers can be smaller scale devices than these just gigantic big black boxes and can perform quantum advantage at much smaller qubit levels in the hundreds of thousands and potentially less than that. And then obviously we have our PQC devices. Secure chip elements, which Sean will touch on, which we call QSIM, which stands for quantum computer memory. We have our quantum software division, where we've come up with what we believe to be the first evidence of quantum advantage in the form of quantum proof of work. What does that mean? That means taking basically quantum hardware and doing something that classical computers can't do in a more efficient manner. So using quantum proof of work, we replicated what proof of work, the operation that powers Bitcoin and came up with 99.9% more energy saving and the enablement of post-quantum security which we are hopeful that Bitcoin will eventually transition to. We're also working on one-shot signatures, which is a fascinating technology that will, we believe, one day completely replace consensus mechanisms in blockchain as a whole and the entire digital certificate, basically, industry. In terms of quantum networks, and we'll touch on that, kind of our software division, we've developed a topological consensus network called Leone. We've demonstrated a version of Bitcoin in its quantum form, as well as Solana. And one of the things I'm most excited about is essentially bringing Bitcoin the digitization of financial transactions globally on-chain and being the security and settlement layer. And, you know, all of these kind of, you know, specific quadrants within our company's pipeline, you know, work together to fulfill one another. And we can switch to the next slide. So with all of this cool and fun stuff we're working on, obviously there is the need to work within regulators, governments, and shape essential future policy that has yet to be really, I think, defined You know, NIST has gone out and said, okay, there's these algorithms that we're standardizing. How do you, you know, employ them in various form factors? What are they going to be used for? How do they, you know, fit into advanced AI infrastructure? Digital asset infrastructure has all yet to be really kind of, you know, yet to be seen. I think the SEC has done a great job of basically underpinning the importance of basically a post-quantum financial future. In mid-September, they came out with a PQFIF framework, which stands for Post-Quantum Financial Infrastructure Framework, where BTQ's quantum secure stablecoin network was highlighted there. as kind of like, you know, this is a framework that needs to be employed, deployed across financial transactions. And that's something that we're, you know, working hard on. And I think we've been fortunate enough to also co-chair Quinsa, which is kind of the equivalent of NIST in Korea, which has kind of mandated QSSN as well as our quantum proof of work into law. And we are now working, and Chris, who's been leading the software team and development out of Taiwan on that initiative, will go into more detail. But we've been fortunate to really kind of have our products put into law and then work with leading industry companies that are looking to essentially roll out their stable coins and products. So that's happening in Korea, which is, I think, in terms of cryptocurrency, digital asset adoption, third largest in the world. And so, you know, tons of transactions, tons of users, tons of users of stable coins. And the equivalent of the Genius Act was passed several weeks ago in Korea. So we will be, you know, we're very excited about underpinning the security and, you know, government reporting that these, you know, Internet giants in Korea will be, as they issue their stable coins, underpinning. So I think, you know, and I've said this for, you know, I think probably six or seven years, but, you know, I have a... 15 something, I think it's probably longer, I've lost track, but since around 2010, 2011, exposure to Bitcoin, blockchain, building companies in that space. And I strongly believe, and we will see it play out and roll out with QSSN, that quantum technologies in the near term for sure will be the most utilized in digitized monetary transactions which will be enforced by regulators globally. I think this is probably the highest revenue generation product that one will see out of the quantum ecosystem. And it also doesn't require billions of dollars of CapEx, such as a quantum computer. So we're very excited as a company to lead the charge with regulators around the world, implement this much-needed technology for the scalability of basically the digitization of financial transactions. It's really not just the cryptocurrency market, but the entire market. you know, all of the large banks from JP Morgan to, you know, Morgan Stanley and all of these players will be rolling out their own, you know, stable coins or whatever they call them, distributed ledgers for, you know, cheaper, more efficient transactions. And QSSN will be the settlement layer for post-quantum security. So then we can go to the next slide. I'll keep this short, but the amount of assets at risk globally is massive. I think I was at a conference in Miami and everyone was worried about basically a public company having to buy back, you know, Bitcoin because they borrowed it within debt and, you know, Bitcoin slipping and things like that. Once we see kind of, you know, key addresses and things like that compromised with quantum attack vectors, it's essentially game over, I think, for kind of, you know, a... a very disruptive technology, but the premise of that technology has been it's, you know, cryptographic security, one, and, you know, the fact that it can be, you know, passed down from generations to generations like digital gold. They just, one thing that's been overlooked is the quantum age. And that's just kind of, you know, that's, it's something we have, you know, we're passionate about, you know, potentially helping to assist unsecure, but it's just kind of a small, I would say a small test case in terms of, you know, what disruption could look like when, you know, nation states start implementing quantum-related attacks across critical infrastructure. So we need to be, you know, deploying... and getting our act together on, you know, basically what we believe is a holistic technology stack that we've developed at BTQ to secure, you know, the future of the, you know, Internet-based economy as we know it. So I've briefly touched on our three core pillars, and I will let, you know, the respective teams dive into them specifically. I'm not sure if there's a slide after this, but, you know, we specifically touched on QSSN, and, you know, we see this as kind of, you know, Basically, kind of the future SWIFT slash DTCC that's required in a post-quantum error to process transactions. We're obviously kind of initially focusing on stablecoin implementations, like I mentioned, in Korea. And, you know, there's some points here of why we win, first mover advantage, relationships with regulators and stablecoin issuers. And, you know, we've been working on the technology to make sure that it's seamlessly integrated without, you know, the user ever knowing it exists. So I think we can skip to the next slide there. QSIM, I mean, extremely excited to, you know, be working with Sean and Zach and our growing quantum hardware team stateside. Sean will go into this in far more detail than I can just because he created it. Essentially, we want to build and are building and have tested and shown that this is the leading and most secure space-efficient, transaction-efficient chip design to secure anything and everything that requires a secure enclave, from drones to iPhones to critical infrastructure. everything will be secured with QSIM, which again stands for quantum computer memory. And, yeah, I mean, Sean can touch on this further, but computer memory and processing of memory, you know, has had billions and billions of dollars spent on it in the past few years because it's been the cornerstone to artificial intelligence chip design. And so, you know, the radical guys, as well as our hardware team in Taiwan for many years, basically realized that no one was applying compute processing in memory towards the acceleration of post-voluntary encryption algorithms. And so that's where we've created a, you know, moded intellectual property defensibility position and the best team to execute on it. I think we can go to the next slide. And likewise, we also have the honor of having Philippe Blau calling in from Strasbourg, but I'll let him take this a bit further. But I think this is for some people on our team has been a kind of a 20 plus year exercise, but our chief quantum officer, Dr. Gavin Brennan, you know, co-invented the neutral atom quantum computing, which is now, you know, I think in the last two years taken a life of its own. And QPerfect has been, you know, essentially at the forefront of, you know, quantum emulation for, you know, basically kind of advancing computing architectures required to, you know, basically make quantum computers at scale test algorithms and functional designs, applications on such devices, which is, you know, of key importance to this whole space. You know, one can kind of think of it as kind of like Android, an operating system for quantum computers. And I've been working with some of the largest and from Continuum to Quera to assist with the measurements. And we have a demo prepared on, you know, what that all looks like shortly. Okay. So yeah, I think highlights of recent news, as I've mentioned, we've exercised the option to acquire T-Perfect, which gives us a very um um great um alignment with some of the you know smartest people i've met in in the quantum computing space um philippe guido guido squared guido papillo guido masala shannon um and johan um they're based in strasbourg where they've helped um you know create the european center for quantum excellence It's amazing to see how much talent is going in and out of those doors. And so we look to kind of use this as a stepping stone to build, further invest, and really become a dominant force in the European and obviously global markets. global scene for neutral atoms and technologies pertaining to what else is being kind of uncovered. I think we're just scratching the surface of basically a software layer on top of quantum computers and what that can mean and do for all of the industries that are reaching out and saying, how do we use quantum computers? How do we run applications? You need quantum emulation to do that. And I think we can go to the next slide. Again, the team. I'm not going to touch too much into these because we have the industry domain experts on the calls here.