Quantum Numbers Corp. (TSXV:QNC) is the only publicly-traded stock in the QNRG market right now and is one of the only leverage plays for the QNRG market
SmallCapPower | January 15, 2018: Quantum Numbers Corp. (TSXV:QNC) is a Canada-based developer of cryptographic solutions. The Company focuses on the commercialization and development of the quantum random number generator technology. Quantum Numbers Corp. works with microprocessors vendors and OEM (Original Equipment Manufacturers) to develop and market the most secure and affordable encrypted communication solutions for the financial/banking, military, mobile and Internet telecommunication sectors.
Investment Highlights
- Unique product offering: 1st Quantum Random Number Generator (“QRNG”) in the market the size of an integrated circuit (CHIP)
- Significant market opportunity: IOT, Mobile Communication and Military Communication
Unique product offering
QNG2 is the first QRNG in the market the size of an integrated circuit and is one of the most powerful chips in the market. Importantly, the chip is small enough to be integrated into consumer electronics. Furthermore, QNG2 is specifically designed to be integrated into consumer electronics, but powerful enough to secure sensitive communications, including financial and mobile communications, cloud-based applications, as well as military communications.
Quantum Numbers Corp. provides a source of absolute randomness, a key prerequisite for any encryption scheme to provide reliable cybersecurity. QNG2 is a cutting edge QNRG based on quantum tunneling, a purely quantum effect that guarantees complete randomness. It also has the capacity to deliver up to 1 Gigabits per second (“Gbps”) of full-entropy random numbers and is small enough to be embedded in a microprocessor chip. QNC is licensing the technology to leading manufacturers and integrators to address the market needs for an affordable but very secure hardware encryption.
Significant market opportunity
IoT: The Internet of Things (IoT) security market is estimated to grow from US$7.9 billion in 2016 to US$36.95 billion by 2021, at a compound annual growth rate (CAGR) of 36.1%.
The Company’s products can secure the entire network:
- Edge devices – Sensors that capture and transmit data
- Aggregation layers – Hubs/gateways data for connectivity to store the data in the cloud securely
- Cloud Computing – Applications to store and analyze the data and provide cloud services
Industries that will require IoT end-to-end security
Mobile Communication: Breaches into mobile device platforms have become increasingly notable to hackers and cybercriminals, which have resulted in more spending on mobile security by individuals and enterprises. The mobile security market size is expected to grow from US$1.50 billion in 2014 to US$5.75 billion by 2019, a compound annual growth rate (“CAGR”) of 30.7%.
Going forward, number of mobile transactions are increasing at an incredible pace:
- As consumers do most of their transactions through their mobile devices
- Bring Your Own Device (“BYOD”) is a growing trend adopted by many enterprises
- New banking mobile applications like e-wallet increase mobile banking and financial transactions
Quantum Numbers Corp.’s technology is especially well designed to secure mobile devices. The market is looking for HW encryption technology at a very competitive price.
Military Communication: Securing military communications has always been a priority with partners. Quantum Numbers Corp. provides a unique solution to address the following critical key markets:
- Operating LTE in military spectrum
- Military SATCOM terminal, military radio systems, military security systems, and communication management systems
- Airborne communication, air-ground communication, underwater communication, ground based communication, and shipborne communication
Outlook
Quantum Numbers Corp.’s shares have declined from $0.275 post the announcement of its Next Generation of Quantum Random Number Generators (“QNG2”) in January 2017. Quantum Numbers Corp. is the only publicly-traded stock in the QNRG market right now and is one of the only leverage plays for the QNRG market, which is expected to be valued at US$1 billion by 2020.
Disclosure: Neither the author nor his/her family own shares in any of the company mentioned above.
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