Shareholder letter outlines QSE's transition to commercial execution, expanding market validation and priorities for the next phase
Vancouver, British Columbia--(Newsfile Corp. - October 2, 2026) - Quantum Secure Encryption Corp. (CSE: QSE) (OTCQB: QSEGF) (FSE: VN80) ("QSE" or the "Company"), a post-quantum cybersecurity company focused on quantum-resilient data protection, identity security, secure storage and cryptographic migration readiness, is pleased to announce the release of a letter to shareholders from Chief Executive Officer Ted Carefoot outlining the Company's progress over the past six months and its priorities as QSE advances from platform development and validation into commercial execution.
The letter highlights the approximately 200% increase in QSE's sales pipeline* over the period, commercial validation across municipal government and financial services, expanded channel reach in Malaysia and Thailand, additions to the Company's leadership team, continued intellectual-property development and the approximately C$6 million financing completed in August, in addition outlining the Company's near-term priorities.
The full text of the shareholder letter follows:
Letter to Shareholders
Dear Shareholders,
Over the past six months, QSE has moved from building and validating its post-quantum cybersecurity platform into a new phase: commercial execution. During that period, our sales pipeline increased by approximately 200%, giving our team and partners a larger pool of opportunities to convert into customer commitments and revenue. Our focus remains straightforward: help organizations identify quantum-related cryptographic risk, build a practical migration plan and move from assessment to implementation.
Why the market is moving now
The opportunity is becoming clearer because post-quantum readiness is no longer only a future technology discussion. Governments, regulated industries and large enterprises are beginning the multi-year work of identifying where cryptography is used across their systems, determining what is most exposed and planning how to migrate without disrupting critical operations. For organizations that must protect sensitive information for many years, this work needs to begin well before quantum computers become a direct threat to today's encryption. That is the problem QSE is built to address.
Turning technology into a commercial platform
Our product strategy follows the way customers actually approach this transition. QPrime provides a structured view of an organization's overall quantum-readiness posture. QScope discovers and organizes cryptography across applications, certificates, networks and infrastructure. QSim helps management teams compare migration approaches, costs, timelines and operational impacts before committing capital. From there, QSE's broader identity and data-protection capabilities support the move from planning to implementation.
For shareholders, the commercial logic is important: assessment can be the beginning of a customer relationship, not the end. Organizations cannot fix what they cannot see, and migration decisions are made long before security products are deployed. By engaging early, QSE can compete for a broader role in a customer's post-quantum program and create opportunities for recurring and usage-based revenue as that relationship develops.
Building validation and distribution
We have made meaningful progress validating that model. Earlier this year, we launched our first municipal government post-quantum security pilot through MISA. In July, we secured our first major financial-services purchase order for our preparedness platform from the Malaysian operations of a leading global insurance and asset-management group, an important proof point in a highly regulated industry where cybersecurity, compliance and vendor review standards are demanding.
Malaysia is becoming an important commercial foothold for QSE. Our partnership with Pos DigiCert combines QSE's readiness and migration technology with established local digital-certificate and Public Key Infrastructure (PKI) capabilities. This matters because Malaysia's Cyber Security Act 2024 and related government directives are beginning to formalize post-quantum migration requirements for critical infrastructure, creating a practical need for the inventories, risk analysis and migration planning our platform provides. In Thailand, our agreement with Nextwave provides access to a network of more than 50 cybersecurity-focused channel partners. Rather than build a large direct sales organization in every country, we are using established local partners to accelerate market entry while keeping our operating structure disciplined.
Strengthening the company for the next stage
Commercial progress also requires credibility, leadership and defensible technology. We appointed Michael Massing as Chief Technology Officer, adding more than 30 years of experience across cybersecurity, cryptography and enterprise technology, and Joseph Hall as Chief Intelligence Officer to strengthen the connection between threat intelligence, product priorities and customer needs. QSE also joined the PKI Consortium and was selected for a Government of Canada quantum technology delegation to the Netherlands, expanding our participation in the broader digital-trust and post-quantum ecosystem. In parallel, we are advancing 11 patent applications and trademark applications covering our branded products and innovations across automated assessment and post-quantum protection.
We also strengthened our financial position. A financing initially announced at C$3 million was increased twice following investor demand and closed in August at approximately C$6 million in gross proceeds. The capital supports continued commercialization, expansion of the QSE platform and working capital. We view it as capital for execution, not an end in itself.
Our priorities from here
Our priorities remain measurable: convert pipeline into revenue; help our partners win and deliver business; expand customer relationships from assessment into broader migration and protection work; and grow recurring and usage-based revenue across the platform. We are directing sales resources toward markets where regulation and enforcement are creating the clearest near-term urgency, while using channel partners to educate customers and build future opportunities in markets where standards are still developing. We are at a point of significant growth, and our focus is execution. The metrics that matter are customer adoption, commercial conversion, recurring revenue and partner productivity, not simply the number of announcements we make.
Compared with six months ago, QSE has a larger pipeline, a broader commercial platform, deeper routes to market, stronger enterprise and public-sector validation, additional leadership depth and greater financial flexibility. Our ambition is to become a trusted platform throughout the post-quantum transition. Our responsibility now is to translate that stronger foundation into sustained operating performance and long-term shareholder value.
Thank you for your continued support and confidence in QSE.
Sincerely,
Ted Carefoot
Chief Executive Officer
Quantum Secure Encryption Corp.
About QSE - Quantum Secure Encryption Corp.
QSE - Quantum Secure Encryption Corp. is a Canadian technology company specializing in post-quantum data security, encryption, and secure data infrastructure. Built around quantum-delivered entropy and zero-knowledge architecture, QSE's solutions help protect sensitive data from current cyber threats and future quantum-enabled attacks. QSE serves organizations across commercial, enterprise, and public-sector environments requiring long-term data confidentiality and resilience.
For more information on QSE's quantum security solutions, visit www.qse-corp.com or contact sales@qse-corp.com.
Contact Information:
Ted Carefoot
Chief Executive Officer
QSE - Quantum Secure Encryption Corp
Email: info@qse-corp.com
Website: www.qse-corp.com
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements that constitute forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements in this news release that are not purely historical statements of fact are forward-looking statements and include statements regarding beliefs, plans, expectations, future, strategy, objectives, goals and targets. Although the Company believes that such statements are reasonable and reflect expectations of future developments and other factors which management believes to be reasonable and relevant, the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "expects", "aim", "anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements involve known and unknown risks and are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, including, but not limited to, those risks and assumptions described in the Company's latest management discussion and analysis, a copy of which is available under the Company's profile on SEDAR at www.sedarplus.ca. While QSE considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this press release. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions, continued satisfaction of Canadian Securities Exchange requirements, product safety and recalls, regulatory compliance and risks associated with the Company's business. Forward-looking statements are made as of the date of this news release and, unless required by applicable law, the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in these forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement.
*Non-IFRS Financial Measure
Readers are cautioned that "sales pipeline" is a measure not recognized under IFRS. The Company's sales pipeline represents the value of customer orders secured during the period and should not be interpreted as revenue recognized under applicable accounting standards. Revenue is recognized as products are manufactured, delivered and accepted in accordance with the terms of each customer contract. Sales pipeline provides useful insight into the Company's operating performance on a quarterly basis. "Sales pipeline" does not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that "sales pipeline" is not an alternative to measures determined in accordance with IFRS and should not, on their own, be construed as indicators of performance, cash flow or profitability.
The Canadian Securities Exchange has in no way passed upon the merits of the business of the Company and has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/317026
