Quantum Cyber N.V. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported first revenue of $966,833 for the three months ended September 30, 2026, compared to $0 in the prior-year period and first/second quarters of 2026.
• Cost of revenue was $873,243 for the quarter, resulting in a gross profit of $93,590.
• Total operating expenses for the quarter were $4,955,601, including $2,929,422 in general and administrative expenses, $1,255,029 in research and development, and $771,150 in sales and marketing.
• Loss from operations was $4,862,011 for the quarter, compared to a loss of $1,166,735 in the same period in 2025.
• Net loss for the three months ended September 30, 2026, was $5,381,441 ($0.08 per share), compared to a net loss of $2,919,346 ($0.42 per share) in the prior-year period.
• For the nine months ended September 30, 2026, net loss was $21,479,903 ($0.69 per share), compared to $11,402,070 ($2.30 per share) in the prior-year period.
• Shareholders' equity increased to approximately $16.2 million at September 30, 2026, from $0.6 million at December 31, 2025, representing a 2,600% increase.
• Total assets were approximately $18.8 million at September 30, 2026, up from $5.3 million at December 31, 2025.
• Cash and marketable securities totaled approximately $5.0 million at September 30, 2026, compared to $701,602 at December 31, 2025.
• The Company received approximately $22.2 million in net proceeds from financing activities during the nine months ended September 30, 2026, including $15.2 million from warrant exercises and $6.0 million from preferred share issuances.
• Inventory was $929,606 and accounts receivable was $643,386 at September 30, 2026, with no comparable figures in prior periods.
• Property, plant, and equipment was $2.78 million at September 30, 2026, compared to $0 at December 31, 2025.
• No shares were sold under the at-the-market registration statement through November 12, 2026.

Guidance and Future Outlook:

• The Company expects to begin manufacturing and selling drones in early 2027, subject to further build-out of production lines, equipment procurement, and completion of commercial prototypes.
• Management anticipates entering 2027 as an operating, revenue-generating business with the necessary manufacturing footprint, technology licenses, and capital to execute the next phase of its plan.
• The $8.0 million funding commitment from CEO David Lazar is intended to support working capital through November 30, 2027, to complete the Bridgeport facility build-out and advance the Project LightShift program.

Business Segments and Product Lines:

• Revenue was generated by the precision metal stamping and fabrication business (Arcade Metal Stamping) operating out of the Bridgeport, Connecticut facility, acquired on July 15, 2026.
• Revenue was distributed across three product lines: electrical components, tooling, and general metal stamping products.
• The Company has four customers, each accounting for between 10% and 15% of quarterly revenue, with no single customer exceeding 15%.
• An 80-unit 3D printing production farm was installed at the Bridgeport facility in August 2026.
• The Project LightShift quantum antenna license field of use was expanded via a November 6, 2026 amendment to include unmanned surface and underwater vehicles, maritime platforms, homeland security, and law enforcement applications.

Market and Competitive Landscape:

• The Company is positioning itself as a vertically integrated autonomous defense manufacturer assembling an AI-powered System-of-Systems platform for drone warfare, counter-UAS, and border security.
• The expansion of the quantum antenna license is intended to materially broaden the addressable market across air, land, and sea autonomous platforms.

Risks and Challenges:

• Forward-looking statements regarding revenue generation, funding commitment drawdowns, drone manufacturing timelines, and technology commercialization are subject to risks and uncertainties that could cause actual results to differ materially from expectations.
• The Company's ability to execute its strategy depends on the sufficiency of its balance sheet and liquidity.

Management Commentary and Tone:

• CEO David Lazar stated that Q3 2026 marked the transition from a pre-revenue strategy to an operating company, citing the generation of first revenue, installation of production equipment, and resolution of a legacy legal claim as key building blocks.
• Management views the transition to an operating business with inventory, accounts receivable, and a diversified customer base as a meaningful inflection point in the vertical integration strategy.
• The CEO expressed confidence that the Company is entering 2027 with the capital and infrastructure to execute its plan.

Other Key Points:

• On November 11, 2026, CEO David Lazar provided a funding commitment of up to $8.0 million through November 30, 2027.
• On October 15, 2026, the Company settled the Boustead Securities, LLC action and related FINRA arbitration for $250,000, terminating Boustead's April 2021 engagement letter and removing related rights to fees, compensation, and rights of first refusal.
• On October 9, 2026, the Company entered into a Titan Sales Agreement for an at-the-market offering facility allowing the sale of up to $100 million of ordinary shares.
• The Company acquired the Arcade Metal Stamping business from Arcade Technology LLC and Arcade Realty LLC on July 15, 2026.
• Goodwill associated with Bridgeport operations was recorded at $534,000 as of September 30, 2026.