Quantum Numbers (QNC) AI Stock Analysis

• Market Cap: C$292.20M
• Dividend Yield: N/A
• Average Volume (3M): 2.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 39
• Sector: Technology
• Sector Strength: 80
• Industry: Semiconductors
• EPS (TTM): -0.02
• Shares Outstanding: 190,981,170
• 10 Day Avg. Volume: 6,069,724
• 30 Day Avg. Volume: 2,376,636
• PEG Ratio: 26.37
• Price to Book (P/B): 186.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -45.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ―

Quantum Numbers' overall score is influenced by its financial challenges, including no revenue and consistent losses, which weigh heavily on its potential. However, technical analysis indicates positive stock momentum, while the recent corporate event announces a promising product that could transform the company's revenue prospects. The lack of traditional valuation metrics underscores the speculative nature of the stock.

Quantum Numbers Business Overview & Revenue Model

Company Description

Quantum eMotion Corp. engages in the development of cryptographic solutions based on quantum random number generators in Canada. It develops and markets encrypted data and communication solutions for financial, military, mobile, and internet telecommunication sectors. The company was formerly known as Quantum Numbers Corp. and changed its name to Quantum eMotion Inc. in June 2021. Quantum eMotion Corp. was incorporated in 2007 and is headquartered in Montreal, Canada.

How the Company Makes Money

Quantum Numbers (QNC) generates revenue primarily through the sale and licensing of its quantum random number generators (QRNGs). The company's revenue model is based on direct sales to businesses and institutions that integrate these QRNGs into their security infrastructure. Additionally, QNC enters into licensing agreements with third-party technology providers, allowing them to incorporate QNC's QRNG technology into their own products, generating royalty-based income. The company also explores strategic partnerships with major players in the technology and cybersecurity sectors to expand its market reach and enhance its product offerings, which contributes to its revenue streams.

Quantum Numbers Financial Statement Overview

Summary

Quantum Numbers faces significant financial challenges with no revenue generation and consistent losses. The balance sheet shows low leverage, which is a positive, but the lack of cash flow sustainability poses a risk. The company needs to find ways to generate revenue and manage cash flows effectively to improve its financial health.

Income Statement

Quantum Numbers has consistently reported zero revenue over the past years, indicating no growth in its sales capabilities. The company has negative EBIT and net income, reflecting operational and financial challenges. Lack of revenue growth and persistent losses are significant concerns.

Balance Sheet

The company maintains a low debt-to-equity ratio, indicating conservative leverage practices. However, the declining equity base and consistent net losses are concerning, affecting the company's solvency and long-term stability.

Cash Flow

Quantum Numbers reports negative operating and free cash flows, highlighting significant cash outflows without revenue generation. This raises concerns about sustainability and the need for external financing.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	-22.30K	-22.30K	-24.64K	-5.19K
	EBIT
-1.71M	-2.09M	-2.17M	-1.57M	-795.71K	-662.69K
	EBITDA
-2.28M	-2.09M	-2.17M	-1.53M	-773.40K	-657.50K
	Net Income Common Stockholders
-2.61M	-2.39M	-2.80M	-1.56M	-799.25K	-663.32K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.04K	1.08M	3.51M	2.04M	20.09K	287.63K
	Total Assets
342.79K	1.65M	4.04M	3.10M	672.68K	939.82K
	Total Debt
0.00	40.00K	40.00K	53.57K	31.89K	0.00
	Net Debt
-45.04K	-275.63K	-2.55M	-967.98K	11.80K	-287.63K
	Total Liabilities
9.37K	226.81K	377.75K	389.43K	450.90K	46.79K
	Stockholders Equity
333.42K	1.42M	3.66M	2.71M	221.78K	893.03K
Cash Flow		Free Cash Flow
-2.25M	-2.43M	-1.63M	-1.81M	-320.79K	-621.87K
	Operating Cash Flow
-2.25M	-2.08M	-1.62M	-1.47M	-320.79K	-596.28K
	Investing Cash Flow
530.61K	-196.80K	-21.03K	-1.34M	748.00	-25.59K
	Financing Cash Flow
803.57K	0.00	3.21M	3.81M	52.50K	0.00

Quantum Numbers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QNC, the sentiment is Positive. The current price of 1.45 is above the 20-day moving average (MA) of 0.88, above the 50-day MA of 0.70, and above the 200-day MA of 0.49, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 63.46 is Neutral, neither overbought nor oversold. The STOCH value of 67.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:QNC.

Quantum Numbers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XTRA	62 Neutral	C$103.75M	―	-107.94%	―	99.88%	28.72%
Sector *	61 Neutral	$11.50B	10.46	-6.94%	2.92%	7.57%	-9.01%
QNC	51 Neutral	C$292.20M	―	-89.82%	―	―	―
BYL	45 Neutral	C$37.13M	―	275.12%	―	―	―
MRM	27 Underperform	C$32.14M	44.74		―	―	76.58%
HPQ	26 Underperform	C$72.86M	―	-399.98%	―	―	7.43%
NSCIF		$20.22M	―	-61.54%	―	―	―

Quantum Numbers Corporate Events

Quantum eMotion Unveils Revolutionary Quantum Wallet for Blockchain Security

Quantum eMotion Corp. has announced a major breakthrough in blockchain security with its new quantum-based hardware wallet, which significantly reduces the risk of monetary loss by up to 98% compared to traditional wallets. The Quantum-as-a-Service wallet, successfully tested for Ethereum transactions, integrates advanced quantum random number generation and deep learning algorithms, offering enhanced security and operational performance without additional memory requirements, thereby setting new standards for digital asset protection.

Quantum eMotion Expands into the Philippines Market

Quantum eMotion is expanding its reach by participating in the Team Canada Trade Mission to the Philippines, aiming to introduce its quantum-secure technology to the rapidly growing digital market. With the Philippines’ high digital transaction adoption, QeM sees a significant opportunity for its cybersecurity solutions in sectors like IT, telecommunications, and financial services.