Quantum eMotion Corp (QNCCF)

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QUANTUM NUMBERS CORP.
Management’s Discussion and Analysis
December 31, 2020

1.4 COMPANY OVERVIEW AND STRATEGY
ASSET ACQUSITION
On August 3, 2016, the Company entered into an Intellectual Property Assignment Agreement (the
“IP Agreement”) with Societe de Commercialisation des Produits de la recherche appliquee SOCPRA
Sciences et Genie SEC (“SOCPRA”) and its inventors by issuing a total of 6,000,000 common shares
of the Company at a fair value of $0.05 per share, representing a total fair value of $300,000. The
Company also reimbursed $13,838 to SOCPRA for the professional fees associated with the
protection of the patent (“Acquisition”)

1.4 COMPANY OVERVIEW AND STRATEGY (Continued)
ASSET ACQUISITION (Continued)
Until the expiry of the last patent rights, the Company will pay to SOCPRA a royalty of 5% calculated
on the net sales price of products sold by the Company. The royalty shall be calculated on a 12-
month basis starting on the effective date and shall be paid by the Company to SOCPRA within 90
days following the expiry of each reference year. The Company may have an option to buy back the
royalties in the future at terms and conditions to be agreed upon by both parties. Pursuant to the IP
Agreement, if the Company did not find or develop a commercial application within three years, 50%
of the intellectual property would be transferred back to SOCPRA. As the Company found a
commercial application within three years, 50% of the intellectual property shall not be transferred.
The Acquisition was not considered to be a business combination and was accounted for as an asset
acquisition. Total purchase price of $300,000, finder’s fees of $30,000 and transaction costs of
$116,112, which includes the reimbursement of $13,838 above, totalling $446,112, were capitalized
to intellectual property.
INTELLECTUAL ACTIVITIES
Since Quantum Numbers Corp. changed its focus from mining to quantum hi-tech Intellectual
Property, the primary management objective was to strengthen the Company in the following three
sectors of activities:
Technology
In order to stay focused on our primary objective, which is to make our technology accessible as
rapidly as possible to potential clients and partners, and secured regarding its effectiveness and
ensuring that the Intellectual Property is well protected, we are closely working with l’École de
Technologie Supérieure (“ETS”) in order to maximize the potential and security of our technology.
We are putting in place a program to develop complementary metal-oxide semiconductor (“CMOS”)
implementations with ETS to ensure a greater competitiveness. During the first quarter of 2020, we
were awarded a subsidy from the Quantum Province of Quebec program to develop 3 different CMOS
implementations.
In regards to our second technology "Method and System for creating a Random Bit Sample", this
technology is a method that quantifies the randomness of our signal, a perfect complement to our first
technology.
Towards the end of 2019, the Company decided that it would be beneficial to work on a CMOS
version. The Company filed a grant form with a new Provincial Program. The grant was accepted and
will cover between 40 and 60% of the eligible expenses up to $250,000. The development project will
start under the elm of Dr Ghyslain Gagnon in Q2 2021.
The Company’s latest R&D breakthrough in August 2020 is the achievement of a successfully
operational prototype that can reach 300 Mbps of random bits with only the digital components limiting
the throughput. More recently, the Company also is exploring the development of a portable USBtype QRNG in the management opinion closer to commercialisation.
Patent
As the Company must obtain its Patent to pass the introduction level with potential clients, it was then
decided to work with the Company’s Patent Agent to assess the patentability of our technology. The
Company received the final report that indicates that it should continue the National Phase as
planned. By doing the legwork and research at the stage of the patentability report, the Company was
able to respond rapidly to the European Patent Office (“EPO”) investigator. Furthermore, that research
also allowed us to develop a second Patent that the Company filed. Please refer below for the status

1.4 COMPANY OVERVIEW AND STRATEGY (Continued)
INTELLECTUAL ACTIVITIES (Continued)
Status of patents
First Request Method for generating random numbers and associated random number
generator
Country Status
United States Patent granted. A partial Patent was granted on August 7, 2018. The
second portion was granted on October 8, 2019.
Russia Patent granted on January 16, 2019.
European Patent
Office
EPO granted the Patent on February 2, 2020, and the dispute period
for all the countries ended on November 2, 2020. We have not received
any dispute as of today.
Australia Patent granted in June 2020.
Thailand The deadline to request an examination report is November 15, 2022.
Canada,
Brazil, India,
Indonesia,
Republic of Korea,
Vietnam, China
For all these countries, we requested the examination, and we are
awaiting the examiner’s response.
Second Request Method and system for generating a random bit sample
Country Status
European Patent
Office
EPO granted the Patent on October 23, 2019, and there has been no
dispute from any countries which are members of the EPO.
United States Patent granted.
All countries where
our first patent was
registered, with the
addition of Japan
In early June 2020, we registered in all the countries where our first
patent was registered, with the addition of Japan. We are still waiting for
each examiner’s responses

QUANTUM NUMBERS CORP.
Management’s Discussion and Analysis
December 31, 2020

https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00026863