2023 Q1 Form 10-K Financial Statement

#000121390023024218 Filed on March 30, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $120.5K $1.280K $135.6K
YoY Change 285.82%
Cost Of Revenue $56.24K $19.24K $60.93K
YoY Change 386.08%
Gross Profit $64.29K -$17.96K $74.71K
YoY Change 226.85%
Gross Profit Margin 53.34% -1403.13% 55.08%
Selling, General & Admin $2.670M $16.79M $8.726M
YoY Change -53.2% 337.5% -40.0%
% of Gross Profit 4152.55% 11679.06%
Research & Development $1.535M $1.420M $4.562M
YoY Change 49.78% 79.64% 76.42%
% of Gross Profit 2386.95% 6105.67%
Depreciation & Amortization $1.544M $1.530M $3.301M
YoY Change 50693.75% 59897.65% 36574.22%
% of Gross Profit 2401.78% 4417.75%
Operating Expenses $7.852M $18.21M $36.65M
YoY Change 16.69% 293.45% 113.97%
Operating Profit -$7.788M -$18.23M -$36.58M
YoY Change 16.08% 293.84% 113.54%
Interest Expense -$502.9K -$338.3K -$1.125M
YoY Change 149.41% 112.88% 631.23%
% of Operating Profit
Other Income/Expense, Net -$718.6K -$219.8K -$2.014M
YoY Change 222.07% -97.97% -81.02%
Pretax Income -$8.506M -$18.79M -$38.59M
YoY Change 19.24% 20.27% 38.33%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$8.506M -$18.79M -$38.59M
YoY Change 19.24% 20.27% 38.33%
Net Earnings / Revenue -7057.28% -1467667.97% -28451.36%
Basic Earnings Per Share -$0.14 -$0.69
Diluted Earnings Per Share -$0.11 -$0.34 -$0.69
COMMON SHARES
Basic Shares Outstanding 60.50M shares 53.30M shares 55.96M shares
Diluted Shares Outstanding 78.82M shares 55.96M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $6.765M $5.308M $5.308M
YoY Change -41.24% -68.29% -68.29%
Cash & Equivalents $6.765M $5.308M $5.308M
Short-Term Investments
Other Short-Term Assets $42.39K $42.11K $1.654M
YoY Change -90.87% -91.65% 228.13%
Inventory
Prepaid Expenses $224.3K $224.3K
Receivables $63.01K $12.77K $12.77K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $7.095M $5.588M $6.976M
YoY Change -46.5% -67.59% -59.54%
LONG-TERM ASSETS
Property, Plant & Equipment $1.309M $975.2K $975.2K
YoY Change 3040.08% 2258.44% 2258.33%
Goodwill $59.13M $59.13M
YoY Change
Intangibles $20.72M $22.22M
YoY Change
Long-Term Investments
YoY Change
Other Assets $81.12M $82.74M
YoY Change 390300.2%
Total Long-Term Assets $82.43M $83.71M $82.32M
YoY Change 197627.23% 202368.64% 198992.31%
TOTAL ASSETS
Total Short-Term Assets $7.095M $5.588M $6.976M
Total Long-Term Assets $82.43M $83.71M $82.32M
Total Assets $89.53M $89.30M $89.30M
YoY Change 572.98% 416.66% 416.66%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $922.0K $871.9K $871.9K
YoY Change 15.69% 87.56% 87.56%
Accrued Expenses $1.719M $3.560M $4.918M
YoY Change 10131.09% 643.98% 890.34%
Deferred Revenue
YoY Change
Short-Term Debt $8.288M $535.7K $535.7K
YoY Change
Long-Term Debt Due $535.7K
YoY Change
Total Short-Term Liabilities $12.57M $6.545M $6.545M
YoY Change 1112.41% 504.76% 504.76%
LONG-TERM LIABILITIES
Long-Term Debt $4.110K $7.633M $7.633M
YoY Change
Other Long-Term Liabilities $7.759K $225.3K $225.3K
YoY Change
Total Long-Term Liabilities $11.87K $7.858M $7.858M
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $12.57M $6.545M $6.545M
Total Long-Term Liabilities $11.87K $7.858M $7.858M
Total Liabilities $12.58M $14.40M $14.40M
YoY Change 1113.56% 1230.83% 1230.83%
SHAREHOLDERS EQUITY
Retained Earnings -$128.5M -$120.0M
YoY Change 47.42%
Common Stock $6.049K $5.596K
YoY Change 91.91%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $76.94M $74.90M $74.90M
YoY Change
Total Liabilities & Shareholders Equity $89.53M $89.30M $89.30M
YoY Change 572.98% 416.66% 416.66%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income -$8.506M -$18.79M -$38.59M
YoY Change 19.24% 20.27% 38.33%
Depreciation, Depletion And Amortization $1.544M $1.530M $3.301M
YoY Change 50693.75% 59897.65% 36574.22%
Cash From Operating Activities -$4.716M -$5.992M -$17.56M
YoY Change 12.46% 208.63% 158.01%
INVESTING ACTIVITIES
Capital Expenditures $378.8K -$58.54M $869.7K
YoY Change -11305.74% 528226.71% -4585.23%
Acquisitions $1.356M
YoY Change
Other Investing Activities $0.00 $25.47M -$1.358M
YoY Change -100.0% -140981.91% 6306.65%
Cash From Investing Activities -$378.8K $84.01M -$2.227M
YoY Change -69.55% -288200.31% 5388.56%
FINANCING ACTIVITIES
Cash Dividend Paid $220.0K
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $6.551M -83.09M $8.354M
YoY Change 2983.04% -1103.96% -0.4%
NET CHANGE
Cash From Operating Activities -$4.716M -5.992M -$17.56M
Cash From Investing Activities -$378.8K 84.01M -$2.227M
Cash From Financing Activities $6.551M -83.09M $8.354M
Net Change In Cash $1.456M -5.073M -$11.43M
YoY Change -127.87% -180.45% -841.09%
FREE CASH FLOW
Cash From Operating Activities -$4.716M -$5.992M -$17.56M
Capital Expenditures $378.8K -$58.54M $869.7K
Free Cash Flow -$5.095M $52.55M -$18.43M
YoY Change 21.59% -2821.92% 171.56%

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note 1 – <span style="text-decoration:underline">Nature of the Organization and Business </span></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration:underline">Corporate History</span></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Quantum Computing was formed in the State of Nevada on July 25, 2001, under its prior name, Ticketcart, Inc. The Company redomiciled to Delaware on February 22, 2018 and changed its name to Quantum Computing Inc. Effective July 20, 2018, the trading symbol for the Company’s common stock, par value $0.0001, on the OTC Market changed from "IBGH” to “QUBT”. On July 15, 2021 the Company uplisted to The NASDAQ Stock Market. On June 16, 2022, the Company merged with QPhoton, Inc., a developer of quantum photonic systems and related technologies and applications.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration:underline">Nature of Business</span></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company is a developer of full stack quantum computing systems, including hardware platforms and ready-to-run software for complex optimization computations. The Company was founded in 2018 by leaders in supercomputing, mathematics, and massively parallel programming to solve the enormous challenge with quantum computing in terms of the high cost and lengthy times required for quantum software development. While much of the market focuses on Quantum Processing Unit (QPU) hardware, QCI’s experts realized that the quantum marketplace and vendors were limiting access to quantum computers due to the complexity of programming them. At the present time, only a very limited number of highly specialized quantum experts are able to use software development toolkits (“SDKs”) to create these critical programs and applications. The Company’s software solution, Qatalyst, enables subject matter experts (SMEs) to run existing software on quantum processing units without the need for specialized programming with SDKs. As a result of the merger with QPhoton, Inc. in June 2022, the Company is now able to offer photonic quantum computing systems and related services.</span></p>
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