Quantum Computing Inc. Reports 78% Revenue Decline, Net Loss in Latest Quarter

Quantum Computing Inc. (QCi) reported significant financial developments in its 10-Q filing for the quarter ending March 31, 2024. The company experienced a notable decline in revenue, generating $27,000, a decrease of 78% from $121,000 in the same period of 2023. This drop was attributed to changes in the number, size, and effort of active customer proof-of-concept and R&D contracts. Gross profit also fell sharply to $11,000, down 83% from $65,000 year-over-year.

The net loss for the quarter was $6,436,000, compared to a loss of $6,137,000 in the prior year, marking a 5% increase in losses. The loss per share improved slightly to $(0.08) from $(0.11) in the previous year, reflecting a reduction in the weighted average number of shares outstanding. Operating expenses remained stable, with research and development costs increasing due to higher stock-based compensation, while selling and marketing expenses did not show significant changes.

On the balance sheet, QCi reported total assets of $79,196,000 as of March 31, 2024, up from $74,355,000 at the end of 2023. Cash and cash equivalents increased to $6,101,000, a significant rise from $2,059,000 at the end of the previous year. Current liabilities decreased to $3,081,000, down from $4,812,000, resulting in improved working capital of $3,746,000, compared to a deficit of $(2,156,000) at the end of 2023.

The company raised $12.2 million through its At-The-Market facility during the quarter, significantly higher than the $6.4 million raised in the same period last year. However, management expressed substantial doubt about the company's ability to continue as a going concern, citing historical losses and the need for additional financing to support operations over the next 12 months.

Strategically, QCi is focused on developing its Entropy Quantum Computing technology and constructing a manufacturing facility for Thin Film Lithium Niobate chips in Tempe, Arizona. The company is also pursuing funding opportunities under the Title 17 Clean Energy Financing Program and the CHIPS Act to support its initiatives.

Overall, while QCi has made strides in cash management and asset growth, the significant drop in revenue and ongoing losses highlight the challenges it faces in its development stage.