Quantum Computing Inc. Reports 102% Revenue Growth, Improved Losses, and Enhanced Working Capital in Q3 2024

Quantum Computing Inc. (QCi) reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable changes in revenue, losses, and operational expenses compared to the previous fiscal period.

For the three months ended September 30, 2024, QCi generated total revenue of $101,000, a significant increase of 102% from $50,000 in the same period of 2023. For the nine months, revenue rose 10% to $311,000 from $283,000. Despite this growth, the company reported a gross margin decline, with a gross margin of $9,000 (9%) for the third quarter, down from $26,000 (52%) in 2023, attributed to increased costs of revenues.

Operating expenses for the third quarter decreased by 18% to $5,447,000 from $6,637,000 in the prior year, primarily due to reduced general and administrative costs. For the nine months, total operating expenses fell 14% to $17,101,000 from $19,816,000. The loss from operations improved to $(5,438,000) for the third quarter, an 18% reduction from $(6,611,000) in 2023, and $(17,023,000) for the nine months, down 13% from $(19,664,000).

Net loss for the third quarter was $(5,675,000), a 17% improvement from $(6,841,000) in the same quarter of 2023. For the nine months, net loss decreased by 15% to $(17,305,000) from $(20,395,000). The loss per share for the third quarter was $(0.06), compared to $(0.10) in 2023, while for the nine months, it was $(0.19), down from $(0.33).

As of September 30, 2024, QCi's cash and cash equivalents stood at $3,064,000, up from $2,059,000 at the end of 2023. Current assets increased to $3,912,000 from $2,656,000, while current liabilities decreased significantly to $2,431,000 from $4,812,000, resulting in improved working capital from a deficit of $2,156,000 to a positive $1,481,000.

Strategically, QCi issued a Secured Convertible Promissory Note to Streeterville Capital for $8,250,000, which will be used for general working capital and capital expenditures for a new chip fabrication facility in Tempe, Arizona. The company also redeemed shares of Series A Preferred Stock, reducing the outstanding shares from 1,490,004 at the end of 2023 to 993,306 as of September 30, 2024.

Overall, QCi continues to navigate a challenging financial landscape while focusing on its core technology in quantum computing and photonics, with ongoing efforts to enhance its market position and operational efficiency.