We had another fantastic quarter at QuSecure. We signed a landmark distribution deal with a leading technology distributor, completed a beta installation of QuProtect for NORAD/NORTHCOM at the Catalyst Campus in Colorado Springs, and banked the first 25% of our A round. Additionally, we completed our first contract with a $2B Fortune 500 advanced IT solutions provider and are executing a second agreement for a broader roll-out of our post-quantum solutions. Our initial product, QuProtect™, is officially in Beta, and we are working towards an initial production version in Q1 of 2023. QuSecure was mentioned in multiple articles, and our content was distributed or viewed with over ½ a billion impressions, including a case study featured in the World Economic Forum’s white paper.
We have hit an important milestone in the QuSecure journey to protect data wherever it travels with the release of QuEverywhere and QuNetwork beta. QuEverywhere and QuNetwork secure data, whether on-premises, in the cloud, or going between devices and end-users. By doing this, we can ensure that every device on every system is protected against security breaches everywhere.
Our product, QuEverywhere, is now in beta and features post-quantum security for any website or application— with no installation or change necessary for the end user’s experience. Features include:
– QuNetwork, which is in beta and enables server-to-server/application-to-application protection
– Increased support for custom policies and integrations with popular web frameworks
– Improved documentation for getting started and using QuEverywhere
– Bug fixes and performance improvements
– Protect server and internal network communications with post-quantum secure connections
The image below showcases two examples of how our product can be used. First, a user is at home and can utilize online banking services through a web browser; the entire session is protected by QSL post-quantum security. The diagram shows how users could send post-quantum encrypted chats back and forth. In either case, we expect that a company would only need to spend 15 minutes installing QuEverywhere–and then every end-user will benefit from post-quantum sessions with zero installation required on the customer side and no change in user experience.
We are pleased to announce that on 7 October, we signed a global software distribution agreement with a leading technology distributor to distribute our post-quantum cybersecurity products to their 220,000 technology manufacturers and service providers. They will marshal their 8,000-person sales team to bring our QuProtect™ product to their entire federal and commercial customer base.
We are launching the program with them this quarter helping to ensure that QuSecure remains the leading post-quantum cybersecurity solution provider in the nation. With our SBIR Phase III award, QuSecure can immediately write agreements with federal agencies and commercial enterprises.
Commercially, we signed a second agreement to install post-quantum cybersecurity with a multi-billion-dollar IT services and consulting company and are finishing a phased rollout strategy of our technology. In our first-phase engagement with this company, we successfully delivered a comprehensive analysis of their systems and quantum vulnerabilities, leading to an initial roll-out of our product.
We have a verbal understanding and are contracting with a large cryptocurrency platform (29 million users) to provide QuProtect for their secure communications.
QuSecure has already completed six paid engagements this year, and we have an increased sales pipeline. Our current prospects include multiple financial services companies and some up-and-coming healthcare and space organizations.
Our company has recently been busy winning new Federal contracts, hiring more staff for our Federal Ops team, and strengthening our existing solution. We’re looking forward to the broader deployment of QuSecure solutions across different classified levels, operational environments, and are developing new capabilities.
Over the summer, we deployed a Beta version of our capability to NORAD/NORTHCOM to demonstrate a post-quantum resilient communications channel using a photonic-based Quantum Random Number Generator (QRNG) to create a 256-bit post-quantum resilient symmetric session key with randomized key rotation, delivered via the CRYSTALS-Kyber algorithm. This successful demonstration marked the completion of our first task order of our Small Business Innovative Research (SBIR) Phase III award and the first successful demonstration of post-quantum resilient communications for the US Government. As a result, five other Federal groups and agencies have approached QuSecure to start discussions around quantum resilient projects for their organizations.
Building on the success of our first task order, we are currently pursuing opportunities to add a second task order to our SBIR Phase III award. We have several options for a second task order, including participation in DTE ANR, which would involve a much larger deployment across classified levels of our national defense agencies. To take part in the experiment, we built compliance measures and hardened our solution to procure an IATT (Interim Authority to Test), allowing QuSecure to deploy and test in higher classification levels.
In addition to our SBIR Phase III award, we have also been awarded a SBIR Phase I with the ASA(ALT) as the winner of the Army xTechSearch 6 competition. Over the next six months, we will connect with various potential Army customers and deliver a technical and market study for QuSecure use cases across the US Army and in the commercial sector. We are excited for this effort to begin and hope to use the SBIR Phase I for further contracts with the Army.
Two critical members joined our staff in the third quarter: the Head of Compliance and the Chief Information Security Officer (CISO). Our Head of Compliance is creating and implementing a compliance framework that is holistic and organic and is included as part of our development processes to achieve compliance across multiple industry sectors with minimal rework. The framework consists of a seven-step process, including collecting evidence for implemented controls and creating remediation plans for controls not yet implemented. The framework allows us to minimize the time and cost of obtaining compliance certifications/audits. Specifically, we will identify the “common” controls that can be reused across multiple functions and industries, focus the initial efforts of our IT and Engineering teams towards implementing the identified controls, create the remediation plans that lead towards compliance, and request the appropriate certifications/audits as required.
In support of our Business Development, IT, and Engineering efforts, Compliance has focused on performing a NIST 800-53 gap analysis (i.e., Security and Privacy Controls for Information Systems and Organizations), as the controls can be mapped to multiple industry sectors. A subset of the NIST 800-53 controls is required to achieve IATT (i.e., NIST 800-171 – Protecting Controlled Unclassified Information (CUI) in Nonfederal Systems and Organizations). The Compliance team and the CISO are partnering to create and implement a Federal Operations remediation plan, focusing on the NIST 800-171 controls required for a successful IATT engagement.
In the second quarter of 2022, we focused on organizational planning in anticipation of the continued growth that QuSecure is continuing to realize. In Q3, we began the implementation of our new matrixed corporate design, which enables QuSecure to ensure our team members understand our strategic priorities, are fully integrated into their functional areas, understand the proper balance between cost and product delivery, and can offer product differentiation to meet the needs of our customers.
QuSecure’s vision of creating a secure future means our employees need security for themselves and their families. In Q3, we also focused on expanding our health and wellness programs to help our valuable team members thrive at work and at home.
We also focus on employee engagement as we plan strategically and align our people and business strategies. In Q4, we will implement data-driven insights to measure and check the health of our people strategy in teamwork, autonomy, ownership, performance, growth, morale, retention, and benefits. Click below to hear the thoughts on our team from QuSecure leadership:
Our intellectual property protection efforts continue to yield excellent results for the business. In September, QuSecure received the green light from the Patent Cooperation Treaty (PCT) office of the World Intellectual Property Organization regarding one of our patent applications that cover technologies such as QSL and standard protocols such as TLS. The PCT office informed us that the 20 claims in the application were all inventive, allowing us to move forward with that application in the US, Europe, and elsewhere, knowing that we are in an excellent position to secure patents in those jurisdictions.
Our total number of patent applications has also grown. We filed additional critical patent applications in Q3, including one for public key infrastructure using a quantum-enhanced encryption key and another for facility access cards secured with quantum security technology. This brings our total U.S. applications to sixteen, with plans to begin filing applications in Europe and elsewhere.
In addition, the IP team continues to work with Engineering to capture inventive concepts of QuSecure and collaborates with our Federal Operations group to ensure that our ongoing marketing efforts and responses to requests for white papers share our leading-edge technology while applying appropriate IP protections to the information we share.
QuSecure continues to grow rapidly, thanks to our strong Q3 performance. QuSecure’s marketing team has been working hard to increase brand awareness, deliver high-quality content, and establish QuSecure as the leading provider of PQC. Here are just a few accomplishments from Marketing during Q3:
Media: Hits from Press mentions from the media topped ½ a billion for the five months thru September this year
QuSecure’s QuProtect Platform Supports Post-Quantum Cryptography Algorithms Selected by NIST Today for Standardization July 5, 2022
U.S. Government and QuSecure Orchestrate First-Ever Post-Quantum Encryption Communication July 12, 2022
QuSecure’s Industry-Leading Post-Quantum Cybersecurity Solution Wins Army’s xTechSearch 6 Competition for Innovative Technology July 19, 2022
QuSecure’s Industry-Leading Post-Quantum Cybersecurity Solution Uniquely Able to Immediately Address NIST Team’s Discovery of Network Quantum Vulnerabilities July 26, 2022
QuForce Emerging as World’s Leading Community for Post-Quantum Cryptography Experts, Academics, and Enthusiasts August 19, 2022
QuSecure’s Leading Post-Quantum Cybersecurity Solution Named Winner of 2022 New Product of the Year Award as Best Quantum Cybersecurity Solution September 7, 2022
Awards: QuSecure won multiple new awards during the third quarter, including:
Best New Product of the Year from Security Today
Top 2021 Cyber Defender Award from CB Insights
Education: Our continuing efforts to bolster our leadership position in quantum cybersecurity were enhanced this quarter by adding a new educational Resources page to our website.
Thought Leadership: QuSecure demonstrated its thought leadership this past quarter in numerous articles written and published to showcase our intellectual prowess and technical expertise in quantum cryptography, including:
QuSecure’s Chief Product Officer Rebecca Krauthamer’s case study featured in the World Economic Forum’s white paper, Transitioning to a Quantum-Secure Economy
QuSecure Lands SBIR Phase III Contract for PQC Software July 1, 2022oi
Agencies Now Have Sole-Source Provider of Post-Quantum Cryptography July 1, 2022
QuSecure Wins SBIR Phase III Contract from the U.S. Government July 2, 2022
Four Encryption Tools Chosen to Protect Against Quantum Computer Attacks July 5, 2022
NIST Announces First Four Quantum-Resistant Algorithms July 5, 2022
NIST Addressing Future Post-Quantum Cybersecurity Threats Today, July 6, 2022
NIST Announces Post Quantum Encryption Competition Winners July 6, 2022
QuSecure’s QuProtect Platform Selected by NIST for Standardization July 6, 2022
World Economic Forum Weighs in on NIST Announcement and QuProtect July 7, 2022
QuSecure PQC Now Protecting Legacy Systems at U.S. Government Site July 13, 2022
Techwire Asia reports: Is post-quantum cybersecurity inevitable in APAC? July 14, 2022
Quantum Computing Cybersecurity Bill to Help Strengthen Data Protection July 15, 2022
The Problem with Legacy Public Key Encryption July 15, 2022
Cybersecurity Bill Approved, Government Ramps Up Quantum Activity July 15, 2022
Quantum Computing and Its Impact on Cybersecurity [Q&A] July 20, 2022
QuSecure, Sophos, Cynet, and More: News for the Week of 7/22 July 22, 2022
NSA Is Moving Toward a Quantum-Resilient Future, Reports National Interest July 21, 2022
The Problem with Legacy Public Key Encryption July 15, 2022
Government Implements QuProtect, Post-Quantum Cryptography Solution July 13, 2022
eSecurity Planet Reports: Best Encryption Software for 2022 August 4, 2022
QuSecure Wins Army’s xTechSearch Competition, reports BizTechWeekly August 4, 2022
Industry Today Reports: Why Cryptography Needs to Change August 18, 2022
Quantum apocalypse: Experts warn of ‘store now, decrypt later’ hacks August 19, 2022
QuForce emerging as a post-quantum cryptography community August 25, 2022
“Algorithmic Warfare: the growth of new Post-Quantum Algorithms” September 6, 2022
Financing Computing’s Next Great Disruption September 20, 2022
Quantum security experts are in step with NSA’s PQC timeline for September 28, 2022
Recognizing the needs shared with us by a Fortune 50 bank, the team crafted a Hybrid Cloud Use Case Study (available upon request). Highlighting the need for flexibility and adaptability in an evolving cloud and on-premises data center environment, QuProtect was positioned as the PQC solution that offers flexibility and ease of deployment even across legacy systems.
QuSecure was active in both attending events and producing webinars, including:
– Quantum Cybersecurity for Any Device, Anywhere, Anytime.
– Rebecca Krauthamer’s speech at the IEEE conference in Denver, CO.
– Skip Sanzeri and Barry Van Hooser participated at the Black Hat Conference in Las Vegas, NV.
– Garrison Kent Buss, Rebecca Krauthamer, and Skip Sanzeri participated in the Franklin Templeton FinTech Fair in
We launched our Series A funding round at the end of the last quarter, and we have already received the first 25% of our funding goal and have enough funding commitments to hit 1/3 of our goal by November 15. There are currently eight venture funds currently in diligence. This round of capital will allow us to deliver a full production release of QuProtect and start the recurring-revenue phase of QuSecure.
Thanks to our QuSecure friends and supporters for helping us create a safer world.