Scope Technologies acquires Cloud Codes

Executive Summary

• Scope Technologies Corp. has acquired the assets of Cloud Codes (operated by Plurilock Security Private Ltd.) to expand its authentication and storage ecosystem, specifically integrating Cloud Codes' middleware into the QSE Group's decentralized cloud backbone.
• The acquisition is immediately accretive to Scope Technologies, adding approximately $673k in annual revenue and 88,000 end-users to its operations.
• The transaction involves a total consideration of $1.78 million, paid via $100,000 cash and 4.2 million common shares, with the acquired platform to be rebranded under the QSE name.

Key Details

• Transaction Structure: Asset purchase agreement between Scope Technologies Corp. and Plurilock Security Inc.
• Total Consideration: $1.78 million.
• Payment Terms:
  • $100,000 cash paid to Plurilock.
  • Issuance of 4.2 million common shares to Plurilock.
  • Deemed price per share: $0.40.
• Share Restrictions: The consideration shares are subject to a four-month restriction on resale from the date of issue.
• Target Financials (Unaudited):
  • 2025 Annual Revenue: $673,012.
  • 2024 Annual Revenue: $723,487.
  • 2025 Net Income: $228,131.
• Target Assets & Metrics:
  • Cloud Codes supports 270 business clients and 88,000 end-users.
  • Global user base: 80% India, 13% Europe, 7% United States.
  • Core technologies: Secure single sign-on (SSO) and distributed storage solutions.
• Strategic Integration:
  • Cloud Codes will be rebranded under the QSE Group ecosystem.
  • Cloud Codes' middleware will serve as the centerpiece of QSE's decentralized cloud backbone.
  • Future product releases will include quantum-secure SSO services bundled with storage offerings.
  • Target markets for future releases: Regulated enterprises, banking, health care, and organizations requiring long-term data integrity.
  • Planned features: Identity federation, Multi-Factor Authentication (MFA), and cryptographic key rotation tailored for post-quantum assurance.

Notable Quotes

• "The Cloud Codes acquisition is immediately accretive to Scope Technologies as it adds revenue to the operations of Scope Technologies and the Cloud Codes' middleware will become the centrepiece of QSE's decentralized cloud backbone."