Quantum Cyber (QUCY) Registration Filing summary

Company overview and business model

• Develops and markets in-vitro diagnostic (IVD) tests for early cancer detection, focusing on colorectal cancer (CRC) and advanced precancerous lesions.

• Flagship product, ColoAlert, is CE-IVD certified and available in Europe; next-generation mRNA-based CRC screening test in development for US and EU markets.

• Business model centers on distributing IVD kits to third-party labs in Europe and the US, with R&D aimed at expanding the product portfolio, including PancAlert for pancreatic cancer.

• Recent strategic realignment reduced personnel by 65% and exited non-core lab operations to focus on core products and US clinical studies.

Financial performance and metrics

• Six months ended June 30, 2024: revenues $520,773, gross profit $319,038, operating loss $(9,807,328), net loss $(11,023,762).

• Year ended December 31, 2023: revenues $895,479, operating loss $(26,644,682), net loss $(26,800,221).

• As of June 30, 2024: cash $977,764, total assets $8,545,030, working deficit $(7,624,241), stockholders' deficit $(4,138,700).

• Auditor's report includes substantial doubt about ability to continue as a going concern.

Use of proceeds and capital allocation

• Estimated net proceeds of $7,135,000 (assuming full offering) to fund the eAArly Detect 2 study, next-generation product development, commercial expansion of ColoAlert, repayment of convertible debt, and general corporate purposes.

• Management has broad discretion in use of proceeds; no intent to pay dividends in the foreseeable future.