2022 Q3 Form 10-Q Financial Statement

#000121390022048207 Filed on August 15, 2022

View on sec.gov

Income Statement

Concept 2022 Q3 2022 Q2 2022 Q1
Revenue $37.65K $65.48K $31.24K
YoY Change
Cost Of Revenue $24.89K $5.233K $11.57K
YoY Change
Gross Profit $12.76K $60.25K $19.67K
YoY Change
Gross Profit Margin 33.88% 92.01% 62.96%
Selling, General & Admin $2.722M $2.080M $5.704M
YoY Change -34.69% 335.09% 106.09%
% of Gross Profit 21337.48% 3452.68% 28998.58%
Research & Development $1.266M $850.4K $1.025M
YoY Change 106.58% 50.34% 63.82%
% of Gross Profit 9929.35% 1411.5% 5208.9%
Depreciation & Amortization $1.514M $254.2K $3.040K
YoY Change 68385.07% 11349.55% 50.5%
% of Gross Profit 11866.09% 421.87% 15.46%
Operating Expenses $6.847M $4.869M $6.729M
YoY Change 43.24% 12.47% 98.3%
Operating Profit -$6.834M -$4.808M -$6.709M
YoY Change 42.97% 11.08% 97.72%
Interest Expense -$512.2K -$73.09K -$201.6K
YoY Change -25329.56% -4639.75% -14711.59%
% of Operating Profit
Other Income/Expense, Net -$735.3K -$296.2K -$223.1K
YoY Change -234.65%
Pretax Income -$7.569M -$5.105M -$7.134M
YoY Change 58.42% 24.24% 110.32%
Income Tax
% Of Pretax Income
Net Earnings -$7.569M -$5.105M -$7.134M
YoY Change 58.42% 24.24% 110.33%
Net Earnings / Revenue -20106.46% -7795.15% -22835.12%
Basic Earnings Per Share -$0.22 -$0.17 -$0.24
Diluted Earnings Per Share -$0.22 -$0.17 -$244.7K
COMMON SHARES
Basic Shares Outstanding 33.90M shares 29.20M shares 29.16M shares
Diluted Shares Outstanding 33.90M shares 29.20M shares 38.14M shares

Balance Sheet

Concept 2022 Q3 2022 Q2 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $10.38M $6.743M $11.51M
YoY Change -0.5% -46.59% -16.36%
Cash & Equivalents $10.38M $6.743M $11.51M
Short-Term Investments
Other Short-Term Assets $1.697M $544.8K $464.4K
YoY Change 176.7% 127.32% 59.25%
Inventory
Prepaid Expenses $318.7K $421.0K
Receivables $94.81K $83.97K $1.284M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $12.17M $7.372M $13.26M
YoY Change 10.2% -42.7% -5.66%
LONG-TERM ASSETS
Property, Plant & Equipment $302.3K $160.4K $41.69K
YoY Change 821.42% 421.42% 26.41%
Goodwill $59.13M $59.13M
YoY Change
Intangibles $23.72M $25.22M
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $83.15M $84.51M $41.69K
YoY Change 253409.52% 274545.76% 26.41%
TOTAL ASSETS
Total Short-Term Assets $12.17M $7.372M $13.26M
Total Long-Term Assets $83.15M $84.51M $41.69K
Total Assets $95.32M $91.88M $13.30M
YoY Change 760.4% 612.48% -5.59%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $888.1K $756.6K $797.0K
YoY Change 93.96% 28.82% 222.73%
Accrued Expenses $673.6K $296.2K $16.80K
YoY Change 111.87% 39.57% -87.54%
Deferred Revenue
YoY Change
Short-Term Debt $535.7K $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $3.626M $1.299M $1.037M
YoY Change 367.4% 62.45% 72.78%
LONG-TERM LIABILITIES
Long-Term Debt $7.507M $0.00 $0.00
YoY Change
Other Long-Term Liabilities $11.47K
YoY Change
Total Long-Term Liabilities $11.47K $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $3.626M $1.299M $1.037M
Total Long-Term Liabilities $11.47K $0.00 $0.00
Total Liabilities $11.14M $1.299M $1.037M
YoY Change 1336.48% 62.45% 72.78%
SHAREHOLDERS EQUITY
Retained Earnings -$101.2M -$93.63M
YoY Change
Common Stock $3.390K $2.920K
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $84.18M $90.58M $12.27M
YoY Change
Total Liabilities & Shareholders Equity $95.32M $91.88M $13.30M
YoY Change 760.4% 612.48% -5.59%

Cashflow Statement

Concept 2022 Q3 2022 Q2 2022 Q1
OPERATING ACTIVITIES
Net Income -$7.569M -$5.105M -$7.134M
YoY Change 58.42% 24.24% 110.33%
Depreciation, Depletion And Amortization $1.514M $254.2K $3.040K
YoY Change 68385.07% 11349.55% 50.5%
Cash From Operating Activities -$2.994M -$4.378M -$4.194M
YoY Change 36.83% 274.47% 178.4%
INVESTING ACTIVITIES
Capital Expenditures -$156.1K -$59.25M -$3.380K
YoY Change 3556.44% -16.34%
Acquisitions
YoY Change
Other Investing Activities -$1.254M -$24.33M -$1.241M
YoY Change 782352.41%
Cash From Investing Activities -$1.410M -$83.58M -$1.244M
YoY Change 32928.34% 2687457.56% 30691.09%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 8.043M 83.19M 212.5K
YoY Change -8936255.56% 262660.96% 165.63%
NET CHANGE
Cash From Operating Activities -2.994M -4.378M -4.194M
Cash From Investing Activities -1.410M -83.58M -1.244M
Cash From Financing Activities 8.043M 83.19M 212.5K
Net Change In Cash 3.639M -4.771M -5.225M
YoY Change -265.97% 318.29% 265.28%
FREE CASH FLOW
Cash From Operating Activities -$2.994M -$4.378M -$4.194M
Capital Expenditures -$156.1K -$59.25M -$3.380K
Free Cash Flow -$2.838M $54.87M -$4.190M
YoY Change 29.94% -4793.73% 178.92%

Facts In Submission

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us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
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us-gaap Stock Issued1
StockIssued1
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LossContingencyDamagesPaidValue
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CY2017Q2 qci Reimbursement Of Filing Costs
ReimbursementOfFilingCosts
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CY2017Q3 qci Plaintiff Of Shares Issued
PlaintiffOfSharesIssued
18500000 shares
CY2022Q2 qci Combined Entity Percentage
CombinedEntityPercentage
0.49 pure
us-gaap Use Of Estimates
UseOfEstimates
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration:underline">Use of Estimates:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These financial statements have been prepared in accordance with U.S. GAAP. Because a precise determination of assets and liabilities, and correspondingly revenues and expenses, depends on future events, the preparation of financial statements for any period necessarily involves the use of estimates and assumption an example being assumptions in valuation of stock options. Actual amounts may differ from these estimates. These financial statements have, in management’s opinion, been properly prepared within reasonable limits of materiality and within the framework of the accounting policies summarized below.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
CY2022Q2 us-gaap Deferred Tax Assets Operating Loss Carryforwards
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6921161 usd
CY2021Q2 us-gaap Deferred Tax Assets Operating Loss Carryforwards
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CY2022Q2 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
6921161 usd
CY2021Q2 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3615322 usd
CY2022Q2 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
6921161 usd
CY2022Q2 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
186099 usd
CY2021Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
59717 usd
CY2022Q2 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
25710 usd
CY2021Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
18369 usd
CY2022Q2 us-gaap Property Plant And Equipment Owned Net
PropertyPlantAndEquipmentOwnedNet
160389 usd
CY2021Q4 us-gaap Property Plant And Equipment Owned Net
PropertyPlantAndEquipmentOwnedNet
30956 usd
us-gaap Property Plant And Equipment Additions
PropertyPlantAndEquipmentAdditions
126382 usd
us-gaap Finitelived Intangible Assets Acquired1
FinitelivedIntangibleAssetsAcquired1
116315 usd
us-gaap Property Plant And Equipment Cost Capitalization
PropertyPlantAndEquipmentCostCapitalization
$2,500
CY2020Q2 us-gaap Loans Payable
LoansPayable
218371 usd
CY2022Q1 us-gaap Debt Instrument Face Amount
DebtInstrumentFaceAmount
1250000 usd
CY2021Q2 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
usd
us-gaap Repurchase Agreements Maturities
RepurchaseAgreementsMaturities
The Note Purchase Agreement contains customary representations and warranties by QPhoton and the Company, as well as a “most favored nations” provision for the benefit of the Company. The Notes issued under the Note Purchase Agreement, including the Note issued on February 18, 2022 April 1, 2022, provide that the indebtedness evidenced by the applicable Note bears simple interest at the rate of 6% per annum (or 15% per annum during the occurrence of an event of default, as defined in the Notes), and becomes due and payable in full on the earlier of (i) March 1, 2023, subject to extension by one year at the option of QPhoton, (ii) a change of control (as defined in the Notes) of QPhoton or (iii) an event of default.
CY2022Q1 us-gaap Repurchase Agreements Maturities
RepurchaseAgreementsMaturities
On March 1, 2021, QPhoton entered into a Note Purchase Agreement with BV Advisory Partners, LLC (“BV Advisory”). Under the Note Purchase Agreement, on March 1, 2021, March 23, 2021 and July 9, 2021, QPhoton and BV Advisory, a related party shareholder, entered into convertible promissory notes for $200,592, $150,000, and $150,000, respectively, for a total of $500,592 (the “BV Notes”). The BV Notes all bore interest at a rate of 6% per annum and matured 2 years from the grant date. However, QPhoton only received approximately $375,000 in cash proceeds as $125,041 was paid by BV Advisory directly to The Trustees of the Stevens Institute of Technology (“Stevens Institute”) on behalf of QPhoton, to satisfy QPhoton’s obligations to reimburse costs incurred under the terms of their patent License agreement with the Stevens Institute. 
CY2022Q2 us-gaap Preferred Stock Convertible Conversion Price
PreferredStockConvertibleConversionPrice
5.5
us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
7
qci Merger Agreement Description
MergerAgreementDescription
The merger consideration to be paid to the stockholders of QPhoton (the “Merger Consideration”) consists of (i) 5,802,206 shares of the Company’s common stock, par value $0.0001 per share (“Common Stock”), (ii) 2,377,028 shares of a new series of the Company’s preferred stock, par value $0.0001 per share, to be designated Series B convertible preferred stock (“Series B Preferred Stock”), and (iii) warrants to purchase up to 7,028,337 shares of Common Stock (the “Warrants”). The Merger Consideration will be issued upon presentation of certain required documents and surrender of the QPhoton shares.
CY2022Q2 us-gaap Conversion Of Stock Shares Converted1
ConversionOfStockSharesConverted1
45455 shares
us-gaap Description Of Defined Contribution Pension And Other Postretirement Plans
DescriptionOfDefinedContributionPensionAndOtherPostretirementPlans
The Company also offers a 401K retirement savings plan to all full-time employees.
qci Consideration Agreement Description
ConsiderationAgreementDescription
As consideration for the license and other rights granted under the agreement, QPhoton agreed to pay the following: (i) $35,000 within 30 days of execution of the agreement, (ii) $28,000 within 30 days of each annual anniversary of the effective date, (iii) equity in the Company equivalent to nine percent of the membership units of the Company within 30 days of the execution of the agreement, and (iv) royalties of 3.5% of the Net Sales Price of each licensed product sold or licensed by the company during the quarter then-ended, for which it also received payment, concurrent with the delivery of the relevant quarterly report. 
CY2022Q2 us-gaap Convertible Notes Payable Current
ConvertibleNotesPayableCurrent
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CY2021Q4 us-gaap Convertible Notes Payable Current
ConvertibleNotesPayableCurrent
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qci Interest Expense Preferred Dividends
InterestExpensePreferredDividends
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qci Interest Expense Financing Costs
InterestExpenseFinancingCosts
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CY2021Q2 qci Interest Expense Financing Costs
InterestExpenseFinancingCosts
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qci Misc Income Government Grants
MiscIncomeGovernmentGrants
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CY2022Q2 qci Misc Income Government Grants
MiscIncomeGovernmentGrants
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us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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CY2022Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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CY2021Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
29204543 shares
CY2022Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
29204543 shares
CY2021Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.14
CY2022Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.17
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.26
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.42
CY2021Q1 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
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CY2021Q2 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
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CY2022Q1 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
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CY2022Q1 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
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CY2022Q2 qci Derivative Mark To Market
DerivativeMarkToMarket
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CY2022Q2 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
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us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
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qci Increase Decrease In Preferred Dividends Payable
IncreaseDecreaseInPreferredDividendsPayable
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us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
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qci Other Asset Lease Right To Use
OtherAssetLeaseRightToUse
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us-gaap Adjustment Of Warrants Granted For Services
AdjustmentOfWarrantsGrantedForServices
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us-gaap Interest Paid Net
InterestPaidNet
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us-gaap Interest Paid Net
InterestPaidNet
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us-gaap Income Taxes Paid
IncomeTaxesPaid
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CY2022Q2 us-gaap Deposit Liabilities Accrued Interest
DepositLiabilitiesAccruedInterest
5356844 usd
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q2
dei Entity Central Index Key
EntityCentralIndexKey
0001758009

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