Quantum Computing Inc. Reports Fourth Quarter 2024 Financial Results
HOBOKEN, N.J., March 20, 2025 /PRNewswire/ -- Quantum Computing Inc. ("QCi" or the "Company") (Nasdaq: QUBT), an innovative, integrated photonics and quantum optics technology company, today released financial results for the three and twelve-month periods ended December 31, 2024.
Dr William McGann, Chief Executive Officer of QCi, commented, "QCi made meaningful progress in the fourth quarter strengthening our financial position to support the continued advancement of our quantum solutions and foundry services. With a significantly bolstered balance sheet, we are well-positioned to scale operations and accelerate commercialization efforts.
"Operationally, we remain on track to launch our Quantum Photonic Chip Foundry in early 2025, with multiple purchase orders secured, reinforcing the growing demand for TFLN (thin film lithium niobate)-based photonic integrated circuits. Additionally, our collaborations with NASA highlight the real-world applications of our Dirac-3 quantum optimization machine, further validating its capabilities. Looking ahead, we are focused on executing our growth strategy, expanding industry partnerships, and delivering next-generation photonic and quantum technologies to the market."
Fourth Quarter 2024 Financial Highlights
-- Fourth quarter 2024 revenues totaled approximately $62,000 (55% gross
margin) compared to $75,000 (13% gross margin) generated in the fourth
quarter 2023. The increase in gross margin is primarily attributed to
lower costs of goods sold in the 2024 period.
-- Fourth quarter 2024 operating expenses totaled $8.9 million compared to
the previous year's fourth quarter operating expenses of $6.6 million.
The year-over-year increase was primarily driven by higher non-cash
employee-based expenses, including stock-based compensation, and
increased depreciation expense for production equipment installed at the
Company's TFLN chip foundry in Tempe, AZ. Cash used in operations for
the full year ended 2024 decreased by $2.1 million year-over-year,
driven by lower general and administrative expenditures.
-- The Company reported a net loss attributable to common stockholders of
$51.2 million, or $(0.47) per basic share for the fourth quarter of
2024, compared to a net loss attributable to common stockholders of $6.8
million or $(0.09) per basic share for the same period of the previous
year. The higher net loss this quarter was primarily due to non-cash
charges attributable to the mark-to-market of the Company's
warrant-related derivative liability as a result of our merger with
QPhoton in June 2022.
-- Total assets at December 31, 2024 were $153.6 million, increasing from
$74.4 million at December 31, 2023. Cash and cash equivalents at
December 31, 2024 increased by $76.9 million to $78.9 million from
year-end 2023. During the fourth quarter, the Company raised total net
proceeds of $92.1 million through offerings of common stock. Subsequent
to the quarter, the Company announced an additional offering of common
stock for gross proceeds of $100 million.
-- Total liabilities at December 31, 2024 were $46.3 million, an increase
of approximately $41 million compared to year-end 2023, driven primarily
by the previously disclosed non-cash Q Photon warrant accounting
updates.
-- As of December 31, 2024, the Company had shareholders' equity totaling
$107.3 million.
Fourth Quarter 2024 Operational Highlights
-- Advancing Strategic Partnerships with NASA: On October 17, QCi secured
its fifth task order with NASA, focused on developing quantum remote
sensing technology for spaceborne LiDAR missions. This contract aims to
lower the cost of climate-monitoring missions while improving data
collection capabilities. On December 17, QCi announced an additional
contract with NASA to support phase unwrapping using the Dirac-3 quantum
computer as a Photonic Optimization Solver, further demonstrating the
machine's capabilities in complex data processing applications.
-- Quantum Photonic Chip Foundry Update: QCi reached the final stage of
commissioning its Quantum Photonic Chip Foundry in Tempe, Arizona.
Construction is substantially complete, and the Company is now
establishing its process design kit (PDK) and filling customer orders.
During the quarter, the Company announced two memorandums of
understanding (MOUs) with leading industry partners, Spark Photonics
Design and Alcyon Photonics, expanding collaboration opportunities. As
part of its 2024 Pilot Launch Program, QCi secured multiple pre-orders,
and subsequent to the quarter, the Company announced a total of five
purchase orders for its TFLN Foundry. The Foundry remains on schedule to
be operational in the first quarter of 2025.
-- Strengthening Sales & Market Presence: The Company continued expanding
its commercial and government engagement, attending 10 trade shows and
conferences during the quarter to showcase its quantum optimization and
photonic chip solutions to potential customers and partners.
-- Advancing Quantum Solutions to Meet Immediate Market Needs: On November
14, 2024, CEO Dr. William McGann presented at the Quantum Frontiers
Conference at Los Alamos National Laboratory, showcasing QCi's quantum
optimization solutions and their potential to accelerate real-world
adoption of quantum technologies. QCi continues to position its Dirac-3
machine as a critical tool for government and commercial applications,
bridging the gap between theoretical quantum advancements and practical
deployment to make quantum computing accessible today.
Earnings Conference Call
The Company will host its fourth quarter and year end conference call on Thursday, March 20, 2025, at 4:30 p.m. To access the live webcast of the conference call, log onto the QCi website at https://quantumcomputinginc.com/ and click on the Investor Relations page. Investors may also access the webcast via the following link:
https://www.webcaster4.com/Webcast/Page/3051/52052
To participate in the call by phone, dial (877) 545-0523 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0016. Callers should use access code: 605802.
A replay of the teleconference will be available until April 3, 2025, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 52052.
About Quantum Computing Inc.
Quantum Computing Inc. (Nasdaq: QUBT) is an innovative, integrated photonics and quantum optics technology company that provides accessible and affordable quantum machines to the world today. QCi's products are designed to operate at room temperature and low power at an affordable cost. The Company's portfolio of core technologies and products offer unique capabilities in the areas of high-performance computing, artificial intelligence, and cybersecurity, as well as remote sensing applications.
Company Contact:
Rosalyn Christian/John Nesbett
IMS Investor Relations
qci@imsinvestorrelations.com
Forward-Looking Statements
This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, generally identified by terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," "aim to," or variations of these or similar words, involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those statements include statements regarding the intent, belief or current expectations of QCi and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including the timing of commencing production at our TFLN fabrication facility, and the outcome of ongoing collaborations and demonstration projects with certain U.S. government agencies, and that actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, QCi undertakes no obligation to update or revise forward-looking statements to reflect changed conditions.
IMPORTANT NOTICE TO USERS (summary only, click here for full text of notice): All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information. All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our Forms 10-Q and 10-K.
QUANTUM COMPUTING INC.
Consolidated Balance Sheets
(in thousands, except par value data)
December 31, December 31,
2024 2023
Assets
Current assets:
Cash and cash equivalents $
78,945 $
2,059
Accounts receivable, net 27 65
Inventory 18 73
Loans receivable, net 279
Prepaid expenses and other current assets 161 180
Total current assets 79,151 2,656
Property and equipment, net 8,212 2,870
Operating lease right-of-use assets 1,522 1,051
Intangible assets, net 8,972 12,076
Goodwill 55,573 55,573
Other non-current assets 129 129
Total assets $
153,559 $
74,355
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $
1,372 $
1,462
Accrued expenses 2,134 639
Financial liabilities, net of issuance costs 1,925
Deferred revenue 79
Other current liabilities 974 786
Total current liabilities 4,559 4,812
Derivative liability 40,532
Operating lease liabilities 1,181 840
Total liabilities 46,272 5,652
Contingencies (see Note 8)
Stockholders' equity:
Preferred stock, $0.0001 par value, 1,550 shares Series A Preferred authorized; no
shares and 1,490 thousand shares issued and outstanding as of December 31, 2024
and 2023, respectively; 3,080 thousand shares of Series B Preferred Stock
authorized; no shares issued and outstanding as of December 31, 2024 and 2023
Common stock, $0.0001 par value, 250,000 thousand shares authorized; 129,012
thousand and 77,451 thousand shares issued and outstanding as of December 31,
2024 and 2023, respectively 13 8
Additional paid-in capital 307,756 200,635
Accumulated deficit (200,482) (131,940)
Total stockholders' equity 107,287 68,703
Total liabilities and stockholders' equity $
153,559 $
74,355
QUANTUM COMPUTING INC.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2024 2023 2024 2023
Total revenue $
62 $
75 $
373 $
358
Cost of revenue 28 65 261 196
Gross profit 34 10 112 162
Operating expenses
Research and development 4,758 1,914 11,318 8,891
Sales and marketing 575 410 1,818 1,806
General and administrative 3,615 4,266 12,913 15,708
Total operating expenses 8,948 6,590 26,049 26,405
Loss from operations (8,914) (6,580) (25,937) (26,243)
Non-operating income (expense)
Interest and other income 243 77 423 295
Interest expense, net (2,034) (268) (2,496) (1,602)
Change in value of warrant liabilities (40,532) 144 (40,532) 528
Loss before income tax provision (51,237) (6,627) (68,542) (27,022)
Income tax provision
Net loss (51,237) (6,627) (68,542) (27,022)
Less: Series A convertible preferred stock dividends (215) 861
Net loss attributable to common stockholders $
(51,237) $
(6,842) $
(68,542) $
(27,883)
Loss per share - basic and diluted $
(0.47) $
(0.09) $
(0.73) $
(0.42)
Weighted average shares used in computing net loss per
common share - basic and dilutive 108,530 75,649 93,881 66,611
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SOURCE Quantum Computing Inc.
