2023 Q2 Form 10-Q Financial Statement

#000121390023038633 Filed on May 12, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1 2022 Q1
Revenue $112.2K $120.5K $31.24K
YoY Change 71.32% 285.82%
Cost Of Revenue $51.16K $56.24K $11.57K
YoY Change 877.58% 386.08%
Gross Profit $61.03K $64.29K $19.67K
YoY Change 1.3% 226.85%
Gross Profit Margin 54.4% 53.34% 62.96%
Selling, General & Admin -$325.4K $2.670M $5.704M
YoY Change -115.64% -53.2% 106.09%
% of Gross Profit -533.1% 4152.55% 28998.58%
Research & Development $1.585M $1.535M $1.025M
YoY Change 86.34% 49.78% 63.82%
% of Gross Profit 2596.48% 2386.95% 5208.9%
Depreciation & Amortization $60.32K $1.544M $3.040K
YoY Change -76.27% 50693.75% 50.5%
% of Gross Profit 98.83% 2401.78% 15.46%
Operating Expenses $3.920M $7.852M $6.729M
YoY Change -19.48% 16.69% 98.3%
Operating Profit -$3.859M -$7.788M -$6.709M
YoY Change -19.74% 16.08% 97.72%
Interest Expense -$568.2K -$502.9K -$201.6K
YoY Change 677.44% 149.41% -14711.59%
% of Operating Profit
Other Income/Expense, Net -$783.4K -$718.6K -$223.1K
YoY Change 164.46% 222.07%
Pretax Income -$4.642M -$8.506M -$7.134M
YoY Change -9.05% 19.24% 110.32%
Income Tax
% Of Pretax Income
Net Earnings -$4.642M -$8.506M -$7.134M
YoY Change -9.05% 19.24% 110.33%
Net Earnings / Revenue -4138.02% -7057.28% -22835.12%
Basic Earnings Per Share -$0.07 -$0.14 -$0.24
Diluted Earnings Per Share -$0.05 -$0.11 -$244.7K
COMMON SHARES
Basic Shares Outstanding 61.51M shares 60.50M shares 29.16M shares
Diluted Shares Outstanding 88.94M shares 78.82M shares 38.14M shares

Balance Sheet

Concept 2023 Q2 2023 Q1 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $7.197M $6.765M $11.51M
YoY Change 6.73% -41.24% -16.36%
Cash & Equivalents $7.197M $6.765M $11.51M
Short-Term Investments
Other Short-Term Assets $11.57K $42.39K $464.4K
YoY Change -97.88% -90.87% 59.25%
Inventory
Prepaid Expenses $202.2K $224.3K
Receivables $121.4K $63.01K $1.284M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $8.037M $7.095M $13.26M
YoY Change 9.02% -46.5% -5.66%
LONG-TERM ASSETS
Property, Plant & Equipment $1.451M $1.309M $41.69K
YoY Change 804.9% 3040.08% 26.41%
Goodwill $65.11M $59.13M
YoY Change 10.12%
Intangibles $12.81M $20.72M
YoY Change -49.21%
Long-Term Investments
YoY Change
Other Assets $79.16M $81.12M
YoY Change
Total Long-Term Assets $80.61M $82.43M $41.69K
YoY Change -4.61% 197627.23% 26.41%
TOTAL ASSETS
Total Short-Term Assets $8.037M $7.095M $13.26M
Total Long-Term Assets $80.61M $82.43M $41.69K
Total Assets $88.65M $89.53M $13.30M
YoY Change -3.52% 572.98% -5.59%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $935.4K $922.0K $797.0K
YoY Change 23.62% 15.69% 222.73%
Accrued Expenses $2.828M $1.719M $16.80K
YoY Change 854.82% 10131.09% -87.54%
Deferred Revenue
YoY Change
Short-Term Debt $6.516M $8.288M $0.00
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $11.74M $12.57M $1.037M
YoY Change 803.51% 1112.41% 72.78%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $4.110K $0.00
YoY Change
Other Long-Term Liabilities $7.759K
YoY Change
Total Long-Term Liabilities $11.87K $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $11.74M $12.57M $1.037M
Total Long-Term Liabilities $11.87K $0.00
Total Liabilities $11.74M $12.58M $1.037M
YoY Change 803.51% 1113.56% 72.78%
SHAREHOLDERS EQUITY
Retained Earnings -$133.1M -$128.5M
YoY Change 42.19%
Common Stock $6.724K $6.049K
YoY Change 130.27%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $76.91M $76.94M $12.27M
YoY Change
Total Liabilities & Shareholders Equity $88.65M $89.53M $13.30M
YoY Change -3.52% 572.98% -5.59%

Cashflow Statement

Concept 2023 Q2 2023 Q1 2022 Q1
OPERATING ACTIVITIES
Net Income -$4.642M -$8.506M -$7.134M
YoY Change -9.05% 19.24% 110.33%
Depreciation, Depletion And Amortization $60.32K $1.544M $3.040K
YoY Change -76.27% 50693.75% 50.5%
Cash From Operating Activities -$5.072M -$4.716M -$4.194M
YoY Change 15.87% 12.46% 178.4%
INVESTING ACTIVITIES
Capital Expenditures $202.6K $378.8K -$3.380K
YoY Change -100.34% -11305.74% -16.34%
Acquisitions
YoY Change
Other Investing Activities -$508.6K $0.00 -$1.241M
YoY Change -97.91% -100.0%
Cash From Investing Activities -$711.2K -$378.8K -$1.244M
YoY Change -99.15% -69.55% 30691.09%
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 6.216M $6.551M 212.5K
YoY Change -92.53% 2983.04% 165.63%
NET CHANGE
Cash From Operating Activities -5.072M -$4.716M -4.194M
Cash From Investing Activities -711.2K -$378.8K -1.244M
Cash From Financing Activities 6.216M $6.551M 212.5K
Net Change In Cash 431.9K $1.456M -5.225M
YoY Change -109.05% -127.87% 265.28%
FREE CASH FLOW
Cash From Operating Activities -$5.072M -$4.716M -$4.194M
Capital Expenditures $202.6K $378.8K -$3.380K
Free Cash Flow -$5.275M -$5.095M -$4.190M
YoY Change -109.61% 21.59% 178.92%

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note 1 – <span style="text-decoration:underline">Nature of the Organization and Business </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"><span style="text-decoration:underline">Corporate History</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">Quantum Computing, Inc. (“Quantum” or the “Company”) 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.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration:underline">Nature of Business</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Liquidity</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 28, 2022 the Company filed a shelf registration statement on Form S-3 under the Securities Act of 1933, as amended (the “Securities Act”), which was declared effective on November 8, 2022 (the “2022 shelf”). Under the 2022 Shelf at the time of effectiveness, the Company had the ability to raise up to $100 million by selling common stock, preferred stock, debt securities, warrants and units. On December 5, 2022, the Company entered into an At the Market Issuance Sales Agreement (the “ATM Agreement”) with Ascendiant Capital Markets, LLC (“Ascendiant”) relating to the sale of its common stock, and incorporated the ATM Agreement into the 2022 Shelf by amendment that was declared effective January 10, 2023.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the terms of the ATM Agreement, the Company may, but is not obligated to, offer and sell, from time to time, shares of common stock having an aggregate offering price of up to $25 million through Ascendiant. Sales of common stock, if any, will be made by any method permitted that is deemed an ”at the market offering” as defined in Rule 415 under the Securities Act. The Company intends to use any net proceeds from the sale of securities for our operations and for other general corporate purposes, including, but not limited to, capital expenditures, general working capital, and possible future acquisitions. There were 3,021,632 shares of common stock sold under the ATM Agreement during the three months ended March 31, 2023 and no shares of common stock sold under the ATM Agreement during the three months ended March 31, 2022. As of March 31, 2023, the Company has utilized $6.6 million of the 2022 Shelf. The Company has approximately $93.4 million available under the 2022 Shelf and $18.4 million available under the 2022 Shelf as of March 31, 2023.</p>
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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. 
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Quantum Computing Inc.
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Files In Submission

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0001213900-23-038633.txt Edgar Link pending
0001213900-23-038633-xbrl.zip Edgar Link pending
f10q0323ex31-1_quantumcomp.htm Edgar Link pending
f10q0323ex31-2_quantumcomp.htm Edgar Link pending
f10q0323ex32-1_quantumcomp.htm Edgar Link pending
f10q0323ex32-2_quantumcomp.htm Edgar Link pending
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Financial_Report.xlsx Edgar Link pending
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qubt-20230331.xsd Edgar Link pending
R1.htm Edgar Link pending
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R12.htm Edgar Link pending
R13.htm Edgar Link pending
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qubt-20230331_def.xml Edgar Link unprocessable
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