Overview

The Company

flooidCX Corp/Quantum Energy Corporation (referred to as “flooidCX”, “flooid”, “flooid/Quantum”, “Quantum” or the “Company”) is a leading provider of innovative energy solutions. The company is at the forefront of revolutionizing 100% distributed direct electrical energy systems that are owned by the consumer. flooid/Quantum holds exclusive licenses and patents for a range of proprietary technologies, including Harvested and Thermal Electrical Energy Collection and Transmission (EET), Photon Lighting Systems, photonic and photovoltaic energy harvesting, thermal waste to energy conversion, Photon Engines, and advanced energy conditioning and storage systems.

Intellectual Property

flooid/Quantum vigorously protects its innovative technologies through exclusive licenses and intellectual property rights. The company owns trademarks and copyrighted materials that secure its brand identity in the global market. Its commitment to research and development, as well as legal protection strategies, ensures that its technological advancements remain proprietary and competitive.

Products

flooid/Quantum’s key products and technologies include:

• EET (Electrical Energy Transmission) technology: Patented ability to transmit harvested electrical energy through USB or Ethernet cables, reducing construction costs and enabling remote control and monitoring.
• Photon Lighting System: Transforms existing and new lighting fixtures into energy harvesting power generators.
• Photovoltaic Systems: Lightweight and self-cleaning photovoltaic harvesting systems.
• Thermal Energy Harvesting: Converts heat and cold waste energy into electricity.
• Photon Engines: Efficient engines that convert low-voltage DC input into high-speed, conditioned electrical energy.
• Rare Earth Recycling: Operational recycling and processing facilities for essential materials used in high-grade magnets and assemblies.
• Magnets and Magnetic Assemblies: World-class manufacturing of high-quality magnets and assemblies for various industries.
• Batteries: Sustainable, cost-effective, and safer alternative to lithium batteries, complemented by comprehensive energy storage systems.

Results of Operations

For the three months ended March 31, 2024, the Company generated $1 million in revenue, primarily from the sale of two Licensed Distributorships. This compared to $0 revenue in the same period of 2023.

General and administrative expenses increased from $79,000 in Q1 2023 to $300,000 in Q1 2024, driven by a $300,000 increase in advertising and marketing costs.

Other income was $94,000 in Q1 2024, compared to other expenses of $9,000 in Q1 2023, primarily due to gains on the remeasurement of notes payable denominated in Canadian dollars.

The Company reported net income of $794,000 or $0.02 and $0.01 per basic and diluted share, respectively, for the three months ended March 31, 2024, compared to a net loss of $88,000 or $0.04 per basic and diluted share in the same period of 2023.

Liquidity and Capital Resources

The Company’s capital resource plan is managed through two distinct pathways: 1) covering general operating overhead through the sales of technology licenses and related fees to licensed distributors, and 2) funding customer-specific installations of Direct Energy Systems through customer or investor financing.

During the 2025 fiscal year, the Company projects it will increase its potential installation fees to over $150 million and potential recurring revenue contracts to exceed $100 million. This would require the Company to fund approximately $35 million through customer or investor capital to fulfill the potential contracts.

The Company’s liquidity is currently limited, but it anticipates that available cash will increase during the 2025 fiscal year as long as customer and investor capital is made available. The Company has limited plans to offer equity or take on additional debt to finance customer installations.

As of March 31, 2024, the Company had a net working capital surplus of approximately $4.986 million, up from $2.398 million at the end of 2023. Cash provided by operating activities was $125,200 for the three months ended March 31, 2024, compared to $0 in the same period of 2023.

Critical Accounting Policies and Estimates

The Company’s critical accounting policies and estimates include revenue recognition, accounts receivable, other receivables, estimates and assumptions, net income (loss) per share, foreign currency transactions, and general and administrative expenses. The Company has adopted relevant accounting standards and pronouncements, including ASC 606 for revenue recognition and ASU 2016-13 for credit losses on financial instruments.