LEESBURG, Va., Nov. 13,
2023 /PRNewswire/ -- Quantum Computing Inc. ("QCi",
"we", "our" or the "Company") (Nasdaq: QUBT), an innovative,
quantum optics and nanophotonics technology
company, today announced its financial results for the
three and nine-months periods ended September 30, 2023.
Robert Liscouski, co-Founder, CEO
& Chairman of QCi, commented, "We achieved significant progress
since the acquisition of QPhoton less than 17 months ago and we
have continued that momentum thus far in 2023. To date, QCi
has announced five product releases, expanded manufacturing
capacity and begun the buildout of our quantum chip facility, which
establishes the roadmap for future product design, development and
sales of a variety of lithium niobate chips in 2024, including
physical unclonable function (PUF) and electro-optic modulator
(EOM) chips. We have secured multiple initial testing
contracts with government agencies, initiated a growing number of
proof of concepts, which we believe could develop into future
contracts, established our first collaborations and sales teaming
agreements and just several days ago, received our first hardware
sales - commencing product delivery. In addition, we have
been in various stages of testing with several large organizations
during 2023. At some juncture, the increasing testing hurdles
with these enterprises will reach a final round with potentially
large rewards. QCi is amid several such engagements, having
successfully passed several testing rounds during 2023, and is
cautiously optimistic waiting next steps." Mr. Liscouski
added, "We continued to significantly reduce our liabilities during
the third quarter, which have decreased by over 78% through
September 2023, maintained tight
financial controls, holding our monthly operating cash expense
levels consistent month after month, while rolling out our business
development, marketing and sales plans to facilitate a
multi-product release effort. We are planning for a robust
2024."
Third Quarter and Nine Months 2023 Financial
Highlights
P&L
Revenue:
- Third quarter 2023 revenues totaled approximately $50,000 (53.0% gross margin) compared to
$38,000 (33.9% gross margin)
generated in the third quarter 2022 and $112,000 (54.4% gross margin) revenue for the
second quarter 2023. Revenue to date has been derived from
professional services provided to multiple government and
commercial customers under multi-month contracts. Going forward
with the commencement of delivery of our hardware products
announced in mid-fourth quarter 2023, we anticipate a revenue mix
of hardware and professional services.
- For the first nine months of 2023, revenues totaled
approximately $283,000, an increase
of 111% over the prior year nine-month period. The Company has only
recently entered its commercialization phase and anticipated
revenues to be minimal during 2023; however, as contracted testing
and a backlog of proof-of-concept projects demonstrate positive
results, the Company anticipates increasing revenue for the
remainder of the year and material increases in 2024.
Operating Expenses:
- Third quarter 2023 operating expenses totaled $7.7 million compared to the previous year's
third quarter operating expenses of $6.8
million and $3.9 million for
the second quarter 2023. The $847,000
year-over-year increase in expenses is due to an overall increase
in personnel as well as an increase in R&D reflecting
significant new product development, offset by a decrease in
intangible amortization related to the QPhoton merger. The
$3.8 million increase in operating
expenses compared with the second quarter of 2023 is mainly due to
an adjustment in intangible asset amortization related to the
QPhoton merger, which was posted in the second quarter, offset in
part by an increase in technical labor expense in the third
quarter.
- Operating expenses for the nine months ended September 30, 2023, totaled $19.5 million, an increase of approximately
$1.2 million over the prior year
nine-month period principally due to an increase in R&D of
$1.7 million driven by hardware
team's product development and testing of new hardware products, an
$892,000 increase in compensation due
to additional personnel, partially offset by a $1.2 million decrease in other selling, general
& administrative expenses driven by lower legal expenses
related to the QPhoton merger and adjustments to intangible
amortization as well as a 35% reduction in outside consultants as
responsibilities are shifted internally.
- The Company's average monthly operating cash burn during the
third quarter of 2023 was approximately $1.6
million, an increase of $170,000 or roughly 11.9% over the prior year's
third quarter results, and a decrease of approximately $90,000, or 5.6%, compared to the average monthly
operating cash burn for the second quarter 2023. The
year-over-year increase in monthly cash burn is primarily due to
additional quantum engineering hires and operational support staff.
The level of monthly cash expenditure for operations is expected to
hold relatively steady for the foreseeable future.
Net Results:
- The Company reported a net loss of $8.3
million, or $(0.11) per basic
share for the third quarter of 2023, compared to a net loss of
$7.6 million or $(0.22) per basic share for the same period of
the previous year. The $707,000
year-over-year increased net loss is primarily due to an increase
in operating expenses offset by a $125,000 increase in interest income related to
the Company's cash invested in a highly liquid money market fund.
The Company's third quarter losses increased approximately
$3.6 million compared to second
quarter 2023 due largely to adjustments related to the QPhoton
acquisition.
- For the nine-months of 2023, the net loss totaled $21.4 million, or $(0.29) per basic share, compared to a net loss
of $19.8 million, or $(0.58) per basic share in the prior year's
nine-month period. The increase in net loss is largely due to the
increase in operating expenses as well as an increase in interest
expense and financing costs. As of September
30, 2023, the Company's tax loss carryforwards was
approximately $13.1 million.
Balance Sheet
Assets:
- Total assets held consistent year-to-date at $89.3 million. As of September 30, 2023, cash and cash equivalents
increased $2.1 million from year-end
2022 to $7.4 million, which excludes
capital allocated to the note receivable and associated interest of
approximately $543,000 invested to
secure the Company's right of first refusal to potentially acquire
millionways, Inc. ("millionways"). Since the beginning of 2023, the
Company repaid debt and accrued interest of approximately
$4.8 million and made $2.0 million in equipment deposits and expenses
related to the new Arizona chip
foundry. The net increase in cash and cash equivalents reflects
$23.5 million (average share price
$1.53) in capital secured from the
Company's At the Market (ATM) offering year-to-date.
Liabilities:
- Total liabilities decreased approximately $6.3 million to approximately $8.1 million compared to year-end 2022, driven
primarily by the Company's monthly repayment of its debt, and
sizable reduction in accrued expenses reflecting the issuance of
restricted stock grants. As of September 30,
2023, the Company held no long-term debt and approximately
$4.5 million in unsecured short-term
promissory notes.
Shareholders' Equity:
- As of June 30, 2023, the Company
had positive shareholder equity totaling $81.2 million, an 8.5% increase from December 31, 2022.
Capitalization:
- As of September 30, 2023, the
Company had approximately 75.1 million shares of common stock
outstanding, an increase of approximately 7.9 million shares from
the previous quarter. This increase is attributed to the sale of
shares through the (ATM) facility exercised early in the quarter
and 1.5 million in restricted stock grants with a five-year vesting
period to five key technical staff employees as long-term incentive
bonuses that were issued in satisfaction of an accrued expense
totaling $2 million booked in the
prior quarter. As of November 10,
2023, the Company has approximately $76.5 million of capacity remaining on its shelf
registration statement on Form S-3 that was declared effective
November 8, 2022. The Company's
common stock outstanding on November 10,
2023 totals approximately 75.1 million shares.
- The Company's fully diluted shares, as of September 30, 2023, totaled approximately 96.6
million, which included 13.6 million stock options of which
approximately 58% have vested (average exercise price $2.72), 1.6 million warrants (average exercise
price $6.93), 4.8 million cashless
warrants to pre-merger shareholders of QPhoton, and 1.6 million
shares underlying Series A Preferred stock (on an as converted
basis). In the event all options and cash warrants were to be
exercised, the Company would receive roughly an additional
$48 million in cash.
Subsequent Financial Developments:
- From October 1, 2023, through
November 10, 2023, the Company repaid
$1.5 million of principal and accrued
interest on the Company's unsecured note for a cumulative total
repayment of $6.25 million. As of
November 10, 2023, the Company's
remaining principal and accrued interest on the unsecured
short-term promissory notes totals approximately $2.8 million.
Third Quarter 2023 Operational Highlights
Leadership Appointments:
- Dr. Javad Shabani, a recognized
expert and thought leader in quantum materials and devices at the
forefront of product development, was appointed as the fourth
member to the QCi Technical Advisory Board. He joins U.S.
intelligence community veteran and technology strategist The
Honorable James Simon, Jr., (Advisory Board chair), cryptography
expert Dr. Brian LaMacchia, and
disruptive technology specialist Lewis
Shepherd to guide strategic and effective commercialization
of QCi product rollouts. Dr. Shabani is an associate professor of
physics and Director of the Center for Quantum Information Physics
at New York University. Previously he
conducted postdoctoral research at California NanoSystems Institute
which led to his position as Project Scientist, where Dr. Shabani
worked closely with Microsoft research on hybrid semiconductors and
superconductors heterostructures to study topological
superconductivity. Dr. Shabani is well published and an inventor
with several U.S. patents focused on qubit architecture and
fabrication. Dr. Shabani received his B.S. in Physics and
Engineering from Sharif University of Technology, M.Sc. in
Electrical Engineering from UC Santa Cruz, M.A. and Ph.D. in
Electrical Engineering from Princeton
University, and a Postdoctoral Research Fellow in Physics at
Harvard University. Dr. Shabani is also
an active member of quantum education and workforce development in
the New York area.
Contract Announcement:
- During July 2023, the Company
received a NASA Ames subcontract award from Bay Area Environmental
Research Institute (BAERI) to build and test an innovative photonic
sensor instrument that provides accurate measurement of atmospheric
particulates such as clouds, aerosols, smoke flume, volcanic ashes,
etc. to identify physical properties including size, shape and
chemical composition. This award represents the third distinct task
order from NASA in four months and is the second research center
within NASA to subcontract with the Company. Under the nine-month
subcontract, QCi will deliver a compact system, programmed to
process a substantial amount of data that can support standalone
operations for days, and designed to be powered by a 12-volt
battery that consumes no more than 30 watts of power. The possible
long-term objective of this engagement is to position these
instruments for field deployment to create a monitoring
network.
New Product Launch:
- During July 2023, the Company
expanded its commercially available product line to include its
first-in-a-series Quantum Photonic Vibrometer, a proprietary,
powerful instrument for remote vibration detection, sensing and
inspection. This device is the first quantum accelerated photonics
vibrometer available in the market today and offers significant
advancements in sensitivity, speed and resolution. The Quantum
Photonic Vibrometer is capable of discerning – for the first time –
highly obscured and non-line-of-sight objects. Military and
commercial applications are numerous in the areas of material
recognition, enhanced surveillance, infrastructure integrity and
preventive industrial maintenance – all at safe distances and
requiring minimal energy/optical power. During September 2023, the Company successfully
validated the vibrometer's (called QpDAR for military applications)
unprecedented ability to detect landmines and unexploded ordnances
from surface level to depths up to 30-inches.
Patent Award:
- On July 25, 2023, the Company's
Chief Quantum Officer (inventor), the Company's Director of Quantum
Hardware (inventor), and the Trustees of the Stevens Institute of Technology (assignee) were
named on a patent that was granted U.S. approval. Quantum Computing
Inc. has perpetual, exclusive rights to utilize the patent. The
patent, which was previously granted early 2023 in Europe and China, addresses unconditional network
security, including a method for quantum authentication. This
breakthrough patent fills a critical security breach vulnerability
by offering a way to effectively protect information in a
zero-trust environment and thereby safeguarding an entire network
at all points of slippage. Designed to be compatible with existing
fiber-based communication infrastructure and satellite-based
networks, the patent is a broad use award based on a fundamental
methodology for secure networking among multiple parties, uniquely
combining authentication and encryption in a single step.
Collaboration:
- In September 2023, the Company
entered into a sales and teaming agreement with AI-empowered
cybersecurity assessment, continuous detection, and mitigation
company, Assured Cyber Protection Ltd ("Recyber"). This initiative
is a key step in the QCi product roadmap to achieve a Zero-Trust
network environment using quantum authentication and Post Quantum
Cryptography solutions. To launch the relationship, the companies
have initially identified 13 sales opportunities with large,
well-known international organizations within the healthcare,
education, government, and banking sectors, and have advanced
cross-sector discussions with several longstanding relationships.
Recyber, based in London and
Geneva, is a privately held
cybersecurity company that combines automation, artificial
intelligence, and advanced technology to reduce a business'
cybersecurity risk by analyzing and modifying organizational and
human behavior patterns and processes. Recyber, through its
partnership with QCi, will become one of the first companies in
Europe to offer quantum
authentication and encryption solutions as part of its portfolio of
cybersecurity technology offerings. QCi has developed and created a
unique "Zero-Knowledge Proof Quantum Communication
Protocol" that addresses authentication vulnerability
security.
- September 2023, The
Company's federal subsidiary, Qi Solutions
(QIS), signed a five-year Overarching Cooperative
Research and Development Agreement (OCRADA) with U.S.
Special Operations Command (USSOCOM) to develop
quantum technology applications in support of USSOCOM
programs. USSOCOM is the premier entity of
the U.S. Department of Defense that deploys the world's latest
technology to conduct global special operations and activities as
part of the Joint Force, in concert with the U.S. government
interagency, allies, and partners. QIS will work
with USSOCOM's Science & Technology Directorate on
the development of advanced quantum solutions for use by Special
Operations Forces in their unique mission roles.
Commercial Proof of Concepts, Beta Tests and System Users
Update:
- QCi is offering Cloud access to its Dirac-1 and Dirac-2 Entropy
Quantum Computers to parties who are working on large quadratic
binary and integer optimization problems and use cases for critical
applications. This "concierge" program enables end users to develop
operational uses in cooperation with a QCi Application Scientist
before converting to a subscription. Since onboarding our first end
user in the second quarter 2023, six additional have been onboarded
in the 3rd and 4th quarters, with more expected before the end of
2023.
- The Company expanded its 2021 CRADA with Los Alamos National
Laboratory (LANL) to include the use of Dirac-1 Entropy Quantum
Computer to test a suite of use cases. This expansion permits LANL
to evaluate use cases at a problem size and complexity that has
previously only been demonstrable using classical
computers.
- One of the largest U.S. insurance carriers took part in
experiments to determine whether QCi's photonic quantum computing
could detect and/or predict variations in its systems that could
compromise its network, impairing its customer service and
operational efficiency. That same carrier is now engaged in testing
a use case related to optimizing advertising expenses.
- QCi's Dirac-1 system successfully identified optimal time,
speed and route through varying obstructions for drone aircraft for
Virginia Innovation Partnership Corporation. QCi is currently
working to expand this program toward a field demonstration using
QCi's Dirac-1 system with Unmanned Aerial Vehicles.
- The Company is continuously engaged in a number of beta test
use cases to demonstrate the effectiveness of its computing
capabilities, including:
- Inventory purchase optimization in supply chain
- Machine learning models to classify substances using
spectroscopy data
- Intrusion detection within security networks, vehicle routing
and payload optimization
Manufacturing Expansion and Chip Foundry
Developments:
- The Company selected ASU Research Park in Tempe, Arizona as the location for its new
quantum photonic chips foundry to produce Thin Film Lithium Niobate
chips. QCi's goal is to accelerate its research and development in
nanophotonics and to fabricate optical chips for use in its
high-performance computing, machine learning, cyber security,
sensing, and imaging products. Lithium niobate nanophotonic
circuits (quantum chips) deliver heightened scalability and
performance advantages such as speed, accuracy, and ultra low
electric power consumption. Expansion into Arizona represents a strategic initiative for
the Company due to the State's leadership in the field of optics,
its early recognition of the importance of advanced photonic
research, and the presence of numerous State and U.S. Government
entities interested in exploring mission-ready quantum computing
and related technologies The location QCi chose for its new
facility is on five acres within the extensive 320-acre research
park hosted by ASU, a global leader in academic microelectronics
research. To date, QCi has placed deposits for the procurement of
critical long-lead equipment and paid other related expenses of
approximately $2 million. The Company
begins the buildout of the facility during fourth quarter 2023, a
portion of which will be funded by the landlord. In addition, the
Company qualifies for multiple funding initiatives through state
and federal grants and ultra low interest rate loans, including the
$113.2 billion CHIPS and Science Act
of 2022. QCi anticipates that its chip manufacturing will commence
first half of 2024, initially with singly purposed chips, followed
by mass-producing quantum photonics chips with complex nanophotonic
circuits in late 2024/early 2025. In addition to use in QCi's
products, the Company is assessing plans to sell chips via
distributors for general sale to the market as well. The PUF and
EOM chips market opportunity is significant, and it is the
company's expectation that it will generate sales of both chips in
2024.
Subsequent Operational Developments and Outlook
Contract and Purchase Order Announcements:
- On October 31, 2023, the Company
announced its first hardware sale by securing multiple orders for
its state-of-the-art Reservoir Computer and Quantum Random Number
Generator to its partners Assured Cyber Protection Ltd and AI firm
millionways to enhance their AI capabilities. These sales kick off
the Company's commercial delivery of its computing technologies.
The QCi Reservoir Computer is a first-to-market portable device
with technology inspired by the power of quantum mechanics. The
device can perform complex computational tasks with unprecedented
speed and efficiency (consuming 80% to 95% less energy than
traditional computers) to facilitate data analysis, machine
learning and artificial intelligence. Its minimal size, weight,
power, and cost factors make it particularly suitable for use as an
edge computing tool. Additionally, the QCi Quantum Random Number
Generator (QRNG) enables true randomness for applications in
cryptography, secure communications, and data encryption. By
integrating QCi's Reservoir Computer and QRNG into security
algorithms, Assured Cyber Protection Ltd aims to enhance its
ability to detect and respond to cyberattacks in real-time. The
addition of QCi's Reservoir Computer to millionways' assessment
process is expected to significantly boost machine learning
efficiency (particularly in assessing audio files), dramatically
reduce the power consumption, and materially accelerate the
"training" of machine learning models.
Product Demonstration and Validation:
- On October 3, 2023, the Company's
federal subsidiary, Qi Solutions, announced that it demonstrated
unprecedented ability to detect landmines up to 2.5 feet below
dense underground surface. The successful validation of Quantum
Photonic Detection and Ranging (QpDAR) VX3, conducted over several
days in September in a field environment, mimicking real-world
conditions – showed the ability of the VX3 sensor to harness
Quantum Single Photon Detection to detect landmines and unexploded
ordnances from surface level to depths up to 30-inches. Landmines
are a pervasive legacy of war that kill thousands of innocent
civilians every year. According to United Nations News, there are
currently approximately 70 countries and territories contaminated
by roughly 110 million landmines. In many of the most affected
areas of the world, where agriculture is the mainstay of the
economy, landmines were planted in fields, forests, around wells,
water sources and hydroelectric installations, making the farmland
unusable or usable only at great risk. NATO, Department of State
humanitarian programs, and multiple countries in Europe and Southeast
Asia have commenced engagements to bring this technology to
the field immediately.
Guidance:
- To date, the Company has announced five products, secured
initial testing contracts with Government agencies, engaged in a
growing number of proof of concepts, established collaborations and
sales teaming agreements and, just last week, received its first
hardware sales with product delivery scheduled in the fourth
quarter. The Company anticipates a gradual revenue increase for the
remainder of the year, accelerating into heightened growth starting
in early 2024.
For additional information on the company's suite of solutions,
please visit our website or contact our team directly.
About Quantum Computing Inc. (QCi)
Quantum Computing Inc. (QCi) (Nasdaq: QUBT) is an
innovative, quantum optics and nanophotonics technology company on
a mission to accelerate the value of quantum computing for
real-world business solutions, delivering the future of quantum
computing, today. The company provides accessible and affordable
solutions with real-world industrial applications, using
nanophotonic-based quantum entropy that can be used
anywhere and with little to no training, operates at normal room
temperatures, low power and is not burdened with unique
environmental requirements. QCi is competitively advantaged
delivering its quantum solutions at greater speed, accuracy, and
security at less cost. QCi's core nanophotonic-based technology is
applicable to both quantum computing as well as quantum
intelligence, cybersecurity, sensing and imaging solutions,
providing QCi with a unique position in the marketplace. QCi's core
entropy computing capability, the Dirac series, delivers solutions
for both binary and integer-based optimization problems using over
11,000 qubits for binary problems and over 1000 (n=64) qubits for
integer-based problems, each of which are the highest number of
variables and problem size available in quantum computing
today. Using the Company's core quantum methodologies, QCi has
developed specific quantum applications for AI, cybersecurity and
remote sensing, including its Reservoir Photonic Computer series
(intelligence), reprogrammable and non-repeatable Quantum Random
Number Generator (cybersecurity) and LiDAR and Vibrometer (sensing)
products. For more information about QCi,
visit www.quantumcomputinginc.com.
About Qi Solutions (QIS)
Qi Solutions, a wholly owned subsidiary of Quantum Computing
Inc., is a supplier of quantum technology solutions and services to
the government and defense industries. With a team of qualified and
cleared staff, QIS delivers a range of solutions from entropy
quantum computing to quantum communications and sensing, backed by
expertise in logistics, manufacturing, R&D and training. The
company is exclusively focused on delivering tailored solutions for
partners in various government departments and agencies.
Important Cautions Regarding 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. By their nature, forward-looking statements and
forecasts involve risks and uncertainties because they relate to
events and depend on circumstances that will occur in the near
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, and that actual results may
differ materially from those contemplated by such forward-looking
statements.
QCi undertakes no obligation to update or revise forward-looking
statements to reflect changed conditions. Statements in this
press release that are not descriptions of historical facts are
forward-looking statements relating to future events, and as such
all forward-looking statements are made pursuant to the Securities
Litigation Reform Act of 1995. Statements may contain certain
forward-looking statements pertaining to future anticipated or
projected plans, performance and developments, as well as other
statements relating to future operations and results. Words such as
"may," "will," "expect," "believe," "anticipate," "estimate,"
"intends," "goal," "objective," "seek," "attempt," "aim to," or
variations of these or similar words, identify forward-looking
statements. These risks and uncertainties include, but are
not limited to, those described in Item 1A in QCi's Annual Report
on Form 10-K and other factors as may periodically be described in
QCi's filings with the U.S. Securities and Exchange Commission.
*** Financial Statements Follow ***
Quantum Computing Inc.
|
Consolidated Balance
Sheet
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
September 30,
2023
|
|
|
December 31,
2022
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
$
|
7,379,362
|
|
$
|
5,308,466
|
Account receivable
|
|
|
|
|
|
|
|
2,435
|
|
|
12,774
|
Prepaid expenses
|
|
|
|
|
|
|
|
167,201
|
|
|
224,302
|
Loans receivable
|
|
|
|
|
|
|
|
543,178
|
|
|
-
|
Other current assets
|
|
|
|
|
|
|
|
17,339
|
|
|
42,105
|
Subtotal current
assets
|
|
|
|
|
|
|
|
8,109,515
|
|
|
5,587,647
|
Fixed assets (net of
depreciation)
|
|
|
|
|
|
|
|
2,958,287
|
|
|
975,169
|
Other
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Lease right-of-use
|
|
|
|
|
|
|
|
1,115,397
|
|
|
1,327,746
|
Security deposits
|
|
|
|
|
|
|
|
129,045
|
|
|
60,271
|
Intangible assets-net of
amortization
|
|
|
|
|
|
|
|
12,099,013
|
|
|
22,223,725
|
Goodwill
|
|
|
|
|
|
|
|
64,921,294
|
|
|
59,125,773
|
Subtotal Other
assets
|
|
|
|
|
|
|
|
78,264,749
|
|
|
82,737,515
|
Total
Assets
|
|
|
|
|
|
|
$
|
89,332,551
|
|
$
|
89,300,331
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
(Deficit)
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
|
|
$
|
1,130,739
|
|
$
|
871,887
|
Accrued expenses
|
|
|
|
|
|
|
|
1,030,357
|
|
|
3,559,981
|
Deferred revenue
|
|
|
|
|
|
|
|
12,000
|
|
|
-
|
Lease liability
|
|
|
|
|
|
|
|
1153,868
|
|
|
1,357,924
|
Dividends
payable-preferred
|
|
|
|
|
|
|
|
215,119
|
|
|
219,844
|
Loans payable-short
term
|
|
|
|
|
|
|
|
4,512,718
|
|
|
535,684
|
Accrued interest – short
term
|
|
|
|
|
|
|
|
34,125
|
|
|
-
|
Current liabilities -
subtotal
|
|
|
|
|
|
|
|
8,088,926
|
|
|
6,545,320
|
Long term
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Loans payable-long
term
|
|
|
|
|
|
|
|
-
|
|
|
7,632,998
|
Accrued interest – long
term
|
|
|
|
|
|
|
|
-
|
|
|
225,282
|
Long term liabilities -
subtotal
|
|
|
|
|
|
|
|
-
|
|
|
7,858,280
|
Total
Liabilities
|
|
|
|
|
|
|
|
8,088,926
|
|
|
14,403,600
|
Stockholders' Equity (Deficit)
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $0.0001
par value, 250,000,000 shares authorized:
|
|
|
|
|
|
|
|
|
|
|
|
75,094,943 and 55,963,334 shares issued and
outstanding as of
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 and
December 31, 2022, respectively.
|
|
|
|
|
|
|
|
7,510
|
|
|
5,596
|
Preferred stock,
$0.0001par value, 1,550,000 shares Series A convertible
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Authorized: 1,490,004 and 1,500,004
shares issued and
|
|
|
|
|
|
|
|
|
|
|
|
outstanding as
of September 30, 2023 and December 31, 2022,
|
|
|
|
|
|
|
|
|
|
|
|
3,079,864 shares
of Series B Preferred Stock Authorized,
|
|
|
|
|
|
|
|
|
|
|
|
0 and 0 shares
issued and outstanding as of June 30, 2023 and
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2022, respectively.
|
|
|
|
|
|
|
|
149
|
|
|
150
|
Additional paid-in
capital
|
|
|
|
|
|
|
|
170,479,502
|
|
|
151,163,909
|
APIC-Beneficial Conversion
Feature in Equity
|
|
|
|
|
|
|
|
4,898,835
|
|
|
4,898,835
|
APIC-Stock Based
Compensation
|
|
|
|
|
|
|
|
47,269,914
|
|
|
38,816,022
|
Accumulated deficit
|
|
|
|
|
|
|
|
(141,412,285)
|
|
|
(119,987,781)
|
Total Stockholders' Equity
(deficit)
|
|
|
|
|
|
|
|
81,243,476
|
|
|
74,896,731
|
Total Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
$
|
89,332,551
|
|
$
|
89,300,331
|
|
|
|
Quantum Computing Inc.
|
Consolidated
Statement of Operations
|
(Unaudited)
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
$
|
50,435
|
|
$
|
37,646
|
|
$
|
283,154
|
|
$
|
134,370
|
Cost of revenues
|
|
23,721
|
|
|
24,891
|
|
|
131,117
|
|
|
41,692
|
Gross profit
|
|
26,714
|
|
|
12,755
|
|
|
152,037
|
|
|
92,678
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and benefits
|
|
1,456,770
|
|
|
1,299,587
|
|
|
3,441,092
|
|
|
3,776,324
|
Consulting
|
|
196,178
|
|
|
297,107
|
|
|
604,499
|
|
|
923,620
|
Research
& development
|
|
1,698,399
|
|
|
1,266,489
|
|
|
4,817,707
|
|
|
3,141,520
|
Stock
based compensation
|
|
1,977,671
|
|
|
1,261,969
|
|
|
5,893,296
|
|
|
4,665,631
|
Selling
General and Administrative
|
|
2,365,213
|
|
|
2,721,596
|
|
|
4,709,564
|
|
|
5,936,871
|
Total
operating expenses
|
|
7,694,231
|
|
|
6,846,748
|
|
|
19,466,158
|
|
|
18,443,966
|
Loss from operations
|
|
(7,667,517)
|
|
|
(6,833,993)
|
|
|
(19,314,121)
|
|
|
(18,351,288))
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
125,718
|
|
|
1,160
|
|
|
218,698
|
|
|
45,187
|
Interest
expense – Promissory Notes
|
|
128,419
|
|
|
18,320
|
|
|
528,564
|
|
|
18,320
|
Interest
expense – Preferred dividends
|
|
215,119
|
|
|
223,125
|
|
|
645,952
|
|
|
669,375
|
Interest
expense – Financing expenses
|
|
390,582
|
|
|
495,000
|
|
|
1,154,565
|
|
|
813,750
|
Other income (expenses),
net
|
|
(608,402)
|
|
|
(735,285)
|
|
|
(2,110,383)
|
|
|
(1,456,258)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Net loss
|
$
|
(8,275,919)
|
|
$
|
(7,569,278)
|
|
$
|
(21,424,504)
|
|
$
|
(19,807,546)
|
|
|
|
|
|
|
|
|
|
|
|
|
Per-share data
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares - basic
|
|
75,094,943
|
|
|
33,904,329
|
|
|
75,094,943
|
|
|
33,904,329
|
Weighted average shares - diluted
|
|
96,646,401
|
|
|
68,903,577
|
|
|
96,646,401
|
|
|
68,903,577
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share -
basic
|
$
|
(0.11)
|
|
$
|
(0.22)
|
|
$
|
(0.29)
|
|
$
|
(0.58)
|
Loss per share -
diluted
|
$
|
(0.09)
|
|
$
|
(0.11)
|
|
$
|
(0.22)
|
|
$
|
(0.29)
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/quantum-computing-inc-reports-third-quarter-and-nine-months-2023-financial-results-301986482.html
SOURCE Quantum Computing Inc.