Quantum Computing (QUBT) Q2 2024 earnings summary

Executive summary

• Quantum Computing Inc. is advancing accessible quantum machines and photonics chips, leveraging proprietary Entropy Quantum Computing (EQC) technology for commercial and government markets.

• The company is building a TFLN chip manufacturing facility in Tempe, AZ, aiming to lead in optical integrated circuits for quantum applications.

• Progress includes a U.S.-based TFLN foundry, expanded partnerships, a product sale to Johns Hopkins University, and collaboration with NASA.

• Regained compliance with Nasdaq and SEC reporting requirements after auditor transition.

• Operations remain at an early stage, with limited revenue and ongoing investments in R&D and sales expansion.

Financial highlights

• Q2 2024 revenue was $183,000, up 63% year-over-year, with a gross margin of 32%; six-month revenue was $210,000, down 10% from the prior year.

• Net loss for Q2 2024 was $5.2M ($0.06 per share), improved from $7.4M ($0.12 per share) in Q2 2023; six-month net loss was $11.6M, down from $13.6M year-over-year.

• Operating expenses for Q2 2024 decreased 24% year-over-year to $5.3M, mainly due to lower G&A and R&D costs.

• Cash and cash equivalents as of June 30, 2024, were $2.5M, up $0.5M from year-end 2023; working capital was $522K, up from a $2.2M deficit at year-end 2023.

• Total assets at June 30, 2024 were $76.0M; total liabilities decreased to $3.6M; shareholders' equity was $65.5M.

Outlook and guidance

• Management expects continued losses and higher operating expenses as investments in R&D and go-to-market programs persist.

• Additional financing will be required to fund operations over the next 12 months; substantial doubt exists about the company's ability to continue as a going concern without new capital.

• Proceeds from a new $8.25M secured convertible note in August 2024 will support working capital, sales, and chip facility buildout.

• Continued focus on establishing the TFLN foundry and expanding government and research partnerships.

• No further delays expected in SEC filings following auditor transition.