From the Desk of the Chief Executive Officer

From: William McGann, Ph.D.

Office of the Chief Executive

October 1, 2024

This past month, QCi has continued to execute on our sales and marketing strategy, and we are gaining momentum with customers in the market. During this time, the Company’s focus on driving commercial execution for both our products and foundry services for thin film lithium niobate (TFLN) has established a robust pipeline of business.

We are seeing increased interest from the industry in the Dirac-3, driven by our Senior Vice President of Business Development, Rich Nelson. In September, QCi attended key conferences such as Quantum World Congress 2024 (QWC) and Quantum.Tech Europe, as well as delivered multiple presentations, significantly raising the profile of the Dirac-3 and its capabilities among government and commercial customers.

Additionally, our Quantum Technology Lead, Lac Nguyen, has been dedicated to delivering solutions to critical industry problems that are recognized as true quantum benchmarks by the National Laboratories and other prominent commercial entities. This effort reflects a collaborative, team-first approach across the Company and with our government relations and marketing team at A10 Associates. Together, the team continues to raise the profile of QCi as a leading company in photonics and non-linear quantum optics.

The commercial activities surrounding our new TFLN foundry services also have shown progress. Our Director of PIC and Foundry Services, Pouya Dianat, has led this effort with great passion and the results are building momentum towards securing preorders for our TFLN electro-optical modulators chips. Notably, we have signed a letter of intent with Comtech Telecommunications, a leading satellite and terrestrial communications company, for the purchase of TFLN optical chips upon availability. In just a year, QCi has built a core team who has been effectively driving this technology to the finish line at the Company’s TFLN fabrication facility in Tempe, Arizona, setting the stage for growth and revenue in 2025 as the foundry services come online.

While these commercial efforts have been at the forefront in recent months, much more is happening at QCi. Our reservoir computing device, EmuCore, is gaining considerable traction in the marketplace with exciting engagements in the artificial intelligence (AI) space, particularly for applications in neuropathology and in the financial market prediction arena. Our Quantum Technology Lead, Jeeva Ramanathan and Quantum Engineer, Malvika Garikapati also have maintained a steady and growing effort in our quantum sensing efforts with NASA and other U.S. government opportunities.

None of this progress happens without focused teamwork. It is inspiring to see a truly collaborative business team emerge as we grow, with our Chief Technology Officer, Yong Meng Sua, effectively serving as a strong proxy for the Company’s executive team at our headquarters and lab in Hoboken, New Jersey.

Finally, I want to highlight the tremendous efforts of the business team led by QCi’s Chief Financial Officer, Chris Boehmler, in regaining SEC and NASDAQ compliance, including appointing a new auditor, BPM LLP, completing a reaudit of our accounts from the past two years, and reviewing our financial statements for the first and second quarters of 2024. I am pleased to announce that with the filing of our first and second quarter financial results on October 2, we have taken key steps to regain compliance with Nasdaq and are now caught up with our Securities and Exchange Commission (SEC) reporting requirements. This has been an immense undertaking, led by Chris with the support of our Staff Accountant Kayla Resco, our General Counsel Chris Roberts, and our investor relations team at IMS.

I want to personally thank every person working at QCi for their dedication and passion. I am proud to be a part of this team, and I am confident that we will continue to achieve great things together.

- Bill

“Nothing is lost, nothing is created, everything is transformed”… (Antoine Lavoisier, French chemist and 'Father of Modern Chemistry')