Good afternoon. Now presenting Andrew Cheung of 01 Quantum.
Thank you. How are you doing? I am Andrew. I am the CEO and President of 01 Quantum. Very happy to be here presenting. Actually, 01 Quantum is not a startup. We have been a public company on the TSXV for over 20 years. It is only that the last eight years, we have refocused the company direction into post-quantum cybersecurity or PQC, and spending almost CAD 10 million reaching where we are today. Which is a lot of money for a small public company in Canada. I am going to tell you why we made such a big move and are ready to dive into this multi-billion dollar opportunity here. Everyone heard about quantum computer these days, and a lot of people even saying that quantum is kind of like AI three years ago. It is a very true statement.
In fact, the quantum computing development is moving so fast, that the people cannot even catch up. But in the fundamental is that the excessive computing power of quantum computer has indeed created an unprecedented cybersecurity threat for the world, or AKA Q-Day, which is the date when the bad guys are using quantum computers to do the dirty work. So on and after Q-Day, everything that you use here, whether you are using AI or remote access or email or cryptocurrency, everything is going to be naked in front of a quantum computer. The trillion-dollar question that people keep asking me or keep asking the field is when exactly will Q-Day hit the world?
While there is no definitive answers, there are a lot of writings on the wall that you can reference to, such as what the vendors are saying, such as IBM, Google, Honeywell, D-Wave, IonQ, whatever. They are collectively calling around 2029 is the year that they will be, some are saying earlier part of 2029, some say later part, but around 2029, they are going to deliver the first full fault-tolerant, full-scale quantum computer. The unofficial consensus of Q-Day is around 2029. No wonder why President Trump has written an executive order asking all the agencies to be quantum ready by 2030. That 2030 year is not a randomly picked year, which is probably a result of all these informal consensus by the vendors around the world, right? Our job is to make sure the quantum threat doesn't happen to our customers or our partner, right?
The market is extremely huge, and the opportunity for us is almost the sky's the limit because not only that everyone needs quantum safety before Q-Day, but most importantly, and also sets us apart from our competitors, is in the way that we already have commercial product ready today before Q-Day that people can use already. A lot of people thought, "Hey, quantum computer, quantum threat is maybe two years from now or something. Do we have something that we can use?" Yes. We already have it commercially available, which I would dive into a little bit more details for you. More importantly, we already has established a worldwide network of main player market that I would also dive into. We have proprietary technology that we have a few US patents already granted in the last 24 months. Okay.
And again, as I said, currently we have product already around that end user can use, namely from the AI field to remote access, digital asset, and email security. I will dive into them one by one. First of all, AI. I am sure everyone knows that AI is moving so fast, right? A lot of people cannot keep up. But there is one single factor that is preventing AI from achieving the maximum adoption. What is this? It is privacy. Everyone worrying about the data privacy that you are feeding into the AI model, being read by the AI operator, and a lot of the discussion are even nowadays saying if you are using AI to write your business plan or even worse, doing coding for you, that the AI operator can one day, having created a competing product because they know your secret sauce, right?
So people worrying about using AI when your data is containing privacy data. Since about two years ago, we have been working on a quantum-safe solution whereby timing couldn't be better. We just received a US patent granted about four weeks ago, which is a technology that would allow the user, like yourself, to encrypt the data before feeding into the AI model, and then the AI model can process your encrypted gibberish. And then give you back the answer is also gibberish that only you with the private key can decrypt. In other words, our secret sauce is the method of how you can ask the AI model to process the gibberish and give you the gibberish answer only you can decrypt.
So the AI model has no idea your question, everything that you ask, no matter how confidential the information is not exposed to the AI model, right? So that is what we have. And no wonder why also that about four weeks ago, the Canadian government has already invited us to a private exposition in Ottawa called GCXpo. And what they asked us to specifically demonstrate is one of the very many applications, of course, with this technology. What they have asked us to demonstrate is using an image recognition model, whereby we are feeding in a picture, which is like a jet fighter, and then is encrypted into gibberish before feeding into the image recognition model. And the image recognition model process the data and return back a gibberish answer. And when we decrypt that gibberish answer, it says jet fighter F-35, right?
This kind of technology is extremely important because imagine for military, forget about bank or even law firms or whatever, say for the military, they have a military drone with an AI model to recognize, say, distinguish between a bird and a drone, or distinguishing between a tank and a truck, right? These things are very important, but the last things you want is that when the drone is down in the hands of the adversary, you don't want the AI model to be in plain text knowing what you have in the adversary's hands, right? So this is very important, and it is all protected by our US patent that just got granted about four weeks ago. And then we have just made an announcement after this GCXpo and the patent granted.
We have just made an announcement yesterday that we are going to have the commercialization plan targeting around the end of Q2 to have a platform ready. We call it AI Marketplace, which is a place where we would allow the model owner, whatever is image recognition model or fraud detection or medical advice or whatever, the model owner to list the model on our platform so that the user yourself can go to the platform choosing which model you want to use, and we ensure that your data would be encrypted before feeding into the AI model, preserving all the privacy data that you have. This market is extremely huge moving from here, so we are very proud for that. This is just AI.
The other applications that we have picked, the vertical application we have picked is actually not we picked, it's actually our customer pick, was remote access. We have Hitachi in Japan, came to us a little more than a year ago, earlier part of 2025. They came to us and said, "We have a remote access application in Japan that is quantum vulnerable. Very simple, we want to pay you guys a one-time engineering fee plus some ongoing revenue share. All we want is you guys spit out on the other side a quantum safe version. That's it." Music to our ear. We took on the project, and we spent a little more than a year and completed the project, delivered early part of this year.
As we speak right now, Hitachi is actively marketing this quantum safe remote access in Japan, and we have already received the first royalty report. It's not a lot of money, but it's starting. The first report is already there, and it's building up the recurring revenue. That's remote access. On top of that, we also have another, which is a little after Hitachi. We have a Panama-based cryptocurrency foundation who came to us and asking us to do something similar, but in a totally different field. Everyone recognized that cryptocurrency is probably the lowest hanging fruit in Q-Day threat because everyone of us here in this room can get hold of the public key, which is the wallet, representing the wallet address very easily on the public chain.
All they have to do is hold on to the information and then wait until they get hold of a quantum computer. Then it will be up to the mercy of the hacker of which wallet they want to empty first. The crypto foundation came to us and asking us, "Hey, please create a qVAULT for us so that our customer can deposit their digital asset into the vault for quantum safety." Again, they said, "Here's a one-time engineering fee, and here's some kind of a royalty, the revenue sharing moving forward." Another music to our ear. We took on the project, and we spent a little more than a year again and delivered the project around four months ago in June.
What they are doing right now is actively creating the first marketing campaign, which is what they called, we haven't announced it yet, it's going to be announced very soon, called Mythos Challenge, which is the AI Claude Mythos. What they are doing is they are going to intentionally load the qVAULT with about CAD 100,000 worth of the token, and then intentionally publish the private key. The only protection left is our quantum-safe technology and basically telling the world of hacker, "Hey, here's $100,000. Come and steal it if you can." And they are running a web page counting down from 30 days, 29 days, 28, 27, 26, and all the way with how many tokens still left. It's going to be a very noisy and interesting campaign that they are running. Last but not least is an email application.
This is not sexy, but it's a huge market there, which is an end-to-end quantum-safe email solution that we have integrated into Office Outlook. As you can see in this screenshot, that is a very familiar compose screen at Outlook, that there will be an extra button that you can click to encrypt the email end to end. When Peter is sending an end-to-end email to Mary, only Mary has the private key, can decrypt that email. Even we cannot. If the authority, say, the CIA or the FBI, get hold of the message, intercepted the message, there's no chance for them to open the email. Even they come to me, put a gun on my head, I have no master key that we can give.
I keep joking saying that if Hillary Clinton in 2016 has this technology, she'll be in the Oval Office, not Trump, in the first operation. This is huge market because very simple, public information. There are 730 million business email addresses in the world. If only 10% of them are serious and wanting some degree of quantum safety and pay $3 per month. This is a $2.6 billion recurring revenue per year up for grab. This is huge opportunity. As I said, all these things are culminated into our full network of global partner that we already have on hand, ranging all the way from Hitachi in Japan, qLABS in Panama, Utimaco in Germany, CGI in our backyard, Thales Group in France, et cetera. Again, as I mentioned earlier, we have a slew of US patents, Canadian patent, and the Japanese patent protecting the technology.
Just a quick snapshot that 01 Quantum is actually a combination of a lot of business leaders with over 200 years’ experience in the product building, cryptography, and scholars. A snapshot of where we are today in terms of market cap. We have about CAD 54 million market cap, a little bit, maybe more these days, but it's around CAD 50 million-CAD 60 million. 109 million shares outstanding. Cash, we have about CAD 2.9 million, no debt. The good thing is the heavy lifting cash spending on R&D is already behind us. In the rear-looking mirror, as I said, we spend close to CAD 10 million reaching where we are now. We have entered into the sales and marketing and revenue generation stage already since about a year ago.
We expect to generate close to about CAD 100 million revenue before Q-Day, splitting into one time, about half are in one-time revenue, half are going to be recurring. Here is a little bit snapshot about how we compare to our competitors. As I said, we are generating revenue while our competitor, most of them are still in pre-money stage. Yet, we haven't been spending a lot of money promoting the company until just now. Our market cap is still about a quarter or less than a quarter of our competitors, even though we are ahead of them in terms of product and revenue generation. Yeah, as an investor point of view, here is music to your ear. Finally, we have also got some comparison of recent acquisition.
The first one was about three weeks ago that Nvidia spent about $14 billion acquiring Hugging Face, which is similar to our AI Marketplace offering, only that Hugging Face doesn't have quantum safety, and it doesn't have the AI privacy protection. Also, IonQ has acquired Elisity for $1.3 billion very recently also, within just about two weeks ago. These are very interesting acquisition in our field, especially related to the AI. Yeah. I guess the main reason why we're so excited, again, as a summary, is because not only that we already have product in the market, and each of these vertical product is by itself a multi-billion dollar opportunity. Let alone, we have many other verticals that we can get into aside from all these.
Finally, I think this would give you a snapshot where we are today and why we are so excited about moving forward from here all the way to Q-Day. I would like to take a quick pause here because I am sure some of you guys here are having some questions, and I would like to have some more time reserved for question and answer. Yeah, fine. No? If there is no question, I would just take a pause from here. Very nice having you. Thank you for joining this session, and I am very excited to be here. Thank you very much.