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
[email protected]
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.