Capitol Hill Meetings with Rep. McCormick and Senior Officials | Pentagon City Defense Conference | Connecticut Facility Purchase Agreement in Progress | Strong Financial Position
Dear Fellow Shareholders,
I am writing to update you on a series
of significant developments that have taken shape over the past several
weeks. Together, they reflect a company that is executing with purpose:
deepening its relationships in Washington, progressing its manufacturing
buildout, and operating from a position of financial strength.
Washington, D.C. Engagement: Capitol Hill and Senior Government Officials
Over
the past several days, our leadership delegation traveled to
Washington, D.C. for a series of high-level government engagements. I
had the opportunity to meet directly with Representative Rich McCormick
to discuss the evolving homeland security needs facing the United States
and the role that autonomous defense technology can play in addressing
them. We also held meetings with senior-ranked government officials
across the fields of cyber security and homeland security.
I was joined on this delegation by members of Quantum Cyber's technology and business leadership team. These were substantive conversations, and I believe they reflect growing recognition at the federal level that domestically manufactured, AI-powered autonomous platforms are central to the United States' near-term defense and security posture. We plan to continue cultivating these relationships as we advance our platform.
Pentagon City: Defense and Military Conference
While
in the Washington area, we hosted a conference at Pentagon City with
military stakeholders and officials from the Department of War. These
discussions centered on the operational requirements, procurement
priorities, and deployment scenarios most relevant to our
System-of-Systems platform. The level of engagement we received
reinforces our conviction that the Company is building capabilities that
are directly aligned with where federal defense spending and doctrine
are headed.
Connecticut Manufacturing Facility: Advancing Toward a Definitive Purchase Agreement
As
previously announced on June 8, 2026, our wholly owned subsidiary
Quantum Drones Corporation signed a Letter of Intent to acquire an
approximately 43,000-square-foot manufacturing facility located in
Bridgeport, Connecticut, from Arcade Technology LLC for an aggregate
purchase price of $3,200,000. I am pleased to report that we are
actively working toward the execution of a definitive purchase agreement
and are making meaningful progress in that process.
This facility, which includes industrial manufacturing equipment such as stamping presses, CNC machining centers, lathes, milling machines, surface grinders, and metal fabrication tooling, is intended to serve as the operational foundation for our domestic defense manufacturing complex. Our plans for the complex include drone airframe assembly, an 80-unit 3D-printing drone production farm, our Advanced Filament Manufacturing Division producing both standard and patented EMP-hardened composite filament, and dedicated quality assurance infrastructure. Once operational, this facility is designed to allow Quantum Cyber to deliver combat-ready autonomous systems at the scale that the Pentagon and our government customers require. We look forward to providing further updates as the transaction progresses.
Executing From Financial Strength
We
have significantly strengthened our financial position following the
recent receipt of over $15 million in warrant exercise proceeds in May
2026. Our capital structure is also currently debt-free, with no
exercisable warrants outstanding.
Management believes the existing cash position provides sufficient runway to fund the continued build-out of our autonomous defense platform, including our disclosed technology licensing pipeline, ongoing patent prosecution, and the strategic acquisition activity currently in progress. We intend to maintain this financial discipline as we move into the next phase of the Company's development.
Closing Remarks
The
past several weeks have been among the most productive in Quantum
Cyber's short history as an autonomous defense company. We have engaged
with the officials who shape federal defense and homeland security
policy. We have hosted high-level conferences with the military and the
Department of War. We are steps away from acquiring the U.S.-based
manufacturing infrastructure we need to deliver hardware at scale. And
we are doing all of this from a debt-free balance sheet with cash in
hand.
We are building this company with urgency, with discipline, and with a clear view of where the defense procurement market is heading. Thank you for your continued confidence and support.
Sincerely,
David Lazar
Chief Executive Officer
Quantum Cyber N.V. (Nasdaq: QUCY)
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