CQENS Technologies Inc. - Company Summary

Business Overview

• Industry: Technology and Inhalation Devices
• Primary Focus: Designing and developing innovative methods to heat plant-based and medicant-infused formulations to produce inhalable aerosols.
• Technology: Proprietary systems that heat ingredients at high temperatures via induction (without combustion) or at low temperatures by heating an inert carrier, to create medicant-infused aerosols while maintaining active ingredient integrity.
• Patents: Supported by 61 U.S. and international patents and pending patents for high-temperature non-combustion technology, including Heat-not-Burn (HnB) devices, and 31 patents related to low-temperature aerosolization technology and device formulations.
• Intellectual Property: Focused on device designs, formulations containing herbal/pharmaceutical preparations, and verification/monitoring of dosage delivery.

Market and Applications

• Target Market: International inhalation market — including herbal, pharmaceutical, medical, recreational, and lifestyle products.
• Market Size: Estimated at $1.1 trillion USD annually, with the largest segment being the combustible tobacco market (over 90% of the total).
• Key Application: Heat-not-Burn (HnB) devices, which heat tobacco or plant-based consumables without combustion, potentially reducing harmful chemical exposure.
• Competitors & Market Entry: Focus on applications for the international tobacco, hemp, CBD, and cannabis industries; strategies include technologies that avoid issues linked with e-cigarettes and vapor systems.

Corporate Operations

• Employees: 3 full-time employees as of March 31, 2025; supplemented by consultants in product design, testing, and business development.
• Offices & Facilities:
  • Minneapolis, MN (main office, leased from an affiliate of the CEO, with ongoing monthly rent of $800 starting January 2025)
  • Research and development space in Aptos, California (leased since April 2022, with escalating rent)
  • Hong Kong subsidiary (CQENS Electronics Limited) established in December 2023 for device design and manufacturing, holding a 50% membership interest.

Revenue & Income

• Revenue: No revenue generated as of the date of the report.
• Financials (2024):
  • Net loss: approximately $10.9 million USD
  • No revenue reports
  • Significant operating expenses mainly related to research, development, professional fees, and stock-based compensation.
• Financials (2023):
  • Net loss: approximately $4.3 million USD
  • No revenue
  • Operating expenses primarily for product development and professional services.

Funding

• The company has raised capital primarily through private stock offerings and related-party loans.
  • 2024: Raised about $6.87 million USD from stock sales and $112,467 in related-party loans.
  • First quarter 2025: Raised $10.07 million USD from stock issuances.
• Debt: Borrowed $1 million USD from a related party (Xten Capital Group); the loan is interest-free and due on demand.

Current Status

• The company is in the development stage, with several research and development milestones achieved, including completion of prototype R&D phases for a key heating module.
• Ongoing efforts to finalize manufacturing agreements and establish strategic partnerships.
• It has no public market for its stock, which is privately held with approximately 27.4 million shares outstanding as of March 31, 2025.
• Continuously investing in R&D and manufacturing equipment, with upcoming product commercialization dependent on further capital raises and regulatory approvals.

Note: The company has not reported any revenue, ongoing or completed product sales, or profitability at this stage. The primary activities involve research, patent development, and establishing manufacturing and strategic partnerships.