2023 Q4 Form 10-Q Financial Statement

#000121390023086246 Filed on November 13, 2023

View on sec.gov

Income Statement

Concept 2023 Q4 2023 Q3
Revenue $74.89K $50.44K
YoY Change 5750.78% 33.97%
Cost Of Revenue $64.52K $23.72K
YoY Change 235.34% -4.7%
Gross Profit $10.37K $26.71K
YoY Change -157.74% 109.44%
Gross Profit Margin 13.85% 52.97%
Selling, General & Admin $6.288M $2.365M
YoY Change -62.55% -13.09%
% of Gross Profit 60631.92% 8853.83%
Research & Development $1.630M $1.698M
YoY Change 14.77% 34.1%
% of Gross Profit 15718.42% 6357.71%
Depreciation & Amortization $1.778M $610.0K
YoY Change 16.2% -59.7%
% of Gross Profit 17143.39% 2283.45%
Operating Expenses $7.918M $7.694M
YoY Change -56.52% 12.38%
Operating Profit -$7.907M -$7.668M
YoY Change -56.62% 12.2%
Interest Expense -$183.9K -$390.0K
YoY Change -45.64% -23.85%
% of Operating Profit
Other Income/Expense, Net -$215.1K -$608.4K
YoY Change -2.15% -17.26%
Pretax Income -$8.306M -$8.280M
YoY Change -55.79% 9.39%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$8.306M -$8.276M
YoY Change -55.79% 9.34%
Net Earnings / Revenue -11091.16% -16409.08%
Basic Earnings Per Share -$0.11
Diluted Earnings Per Share -$0.10 -$0.09
COMMON SHARES
Basic Shares Outstanding 75.10M shares 74.30M shares
Diluted Shares Outstanding 96.65M shares

Balance Sheet

Concept 2023 Q4 2023 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.059M $7.380M
YoY Change -61.21% -28.91%
Cash & Equivalents $2.059M $7.379M
Short-Term Investments
Other Short-Term Assets $427.6K $17.34K
YoY Change 915.51% -98.98%
Inventory $72.65K
Prepaid Expenses $138.5K $167.2K
Receivables $622.2K $2.435K
Other Receivables $0.00 $0.00
Total Short-Term Assets $3.182M $8.110M
YoY Change -43.06% -33.38%
LONG-TERM ASSETS
Property, Plant & Equipment $3.670M $2.958M
YoY Change 276.3% 878.53%
Goodwill $60.36M $64.92M
YoY Change 2.09% 9.8%
Intangibles $11.39M $12.10M
YoY Change -48.76% -49.0%
Long-Term Investments
YoY Change
Other Assets $129.1K $78.26M
YoY Change -99.84%
Total Long-Term Assets $75.55M $81.22M
YoY Change -9.75% -2.32%
TOTAL ASSETS
Total Short-Term Assets $3.182M $8.110M
Total Long-Term Assets $75.55M $81.22M
Total Assets $78.73M $89.33M
YoY Change -11.84% -6.29%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.462M $1.131M
YoY Change 67.63% 27.32%
Accrued Expenses $195.9K $1.030M
YoY Change -94.5% 52.97%
Deferred Revenue
YoY Change
Short-Term Debt $2.496M $4.510M
YoY Change 366.04% 741.92%
Long-Term Debt Due $2.496M
YoY Change 366.04%
Total Short-Term Liabilities $4.620M $8.089M
YoY Change -29.42% 123.07%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change -100.0% -100.0%
Other Long-Term Liabilities $840.1K
YoY Change 272.91%
Total Long-Term Liabilities $840.1K
YoY Change -89.31%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.620M $8.089M
Total Long-Term Liabilities $840.1K
Total Liabilities $5.460M $8.089M
YoY Change -62.09% -27.42%
SHAREHOLDERS EQUITY
Retained Earnings -$149.7M -$141.4M
YoY Change 24.78% 39.73%
Common Stock $7.745K $7.510K
YoY Change 38.4% 121.53%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $73.27M $81.24M
YoY Change
Total Liabilities & Shareholders Equity $78.73M $89.33M
YoY Change -11.84% -6.29%

Cashflow Statement

Concept 2023 Q4 2023 Q3
OPERATING ACTIVITIES
Net Income -$8.306M -$8.276M
YoY Change -55.79% 9.34%
Depreciation, Depletion And Amortization $1.778M $610.0K
YoY Change 16.2% -59.7%
Cash From Operating Activities -$5.301M -$4.850M
YoY Change -11.54% 62.01%
INVESTING ACTIVITIES
Capital Expenditures -$42.01K $1.580M
YoY Change -99.93% -1111.98%
Acquisitions
YoY Change
Other Investing Activities $70.00K -$60.00K
YoY Change -99.73% -95.22%
Cash From Investing Activities $112.0K -$1.640M
YoY Change -99.87% 16.29%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -130.7K 6.670M
YoY Change -99.84% -17.07%
NET CHANGE
Cash From Operating Activities -5.301M -4.850M
Cash From Investing Activities 112.0K -1.640M
Cash From Financing Activities -130.7K 6.670M
Net Change In Cash -5.319M 180.0K
YoY Change 4.85% -95.05%
FREE CASH FLOW
Cash From Operating Activities -$5.301M -$4.850M
Capital Expenditures -$42.01K $1.580M
Free Cash Flow -$5.259M -$6.430M
YoY Change -110.01% 126.61%

Facts In Submission

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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. (“QCi” 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 LLC. On June 16, 2022, the Company merged with QPhoton, Inc. (“QPhoton”), 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 nanophotonic-based quantum technology, offering real-world, affordable commercial applications. The Company was founded in 2018 by leaders in supercomputing, mathematics, and computer 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, the Company’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 flagship software solution, Qatalyst, has enabled subject matter experts (SMEs) to run existing software on quantum processing units without the need for specialized programming with SDKs. 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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. On August 17, 2023, the Company and Ascendiant entered into an amendment (the “ATM Amendment”) to the ATM Agreement, increasing the amount of Common Stock the Company may offer and sell via the “at the market” equity offering program from $25,000,000 to $50,000,000 (the “ATM Upsize”). Following the ATM Upsize, the Company is able to offer and sell shares of Common Stock having an aggregate offering price of up to $27,362,717 via the “at the market” equity offering program. The Company filed a prospectus supplement, dated August 18, 2023 with the Securities and Exchange Commission (the “SEC”) in connection with the offer and sale of the shares pursuant to the ATM Amendment (the “Prospectus Supplement”).</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, as amended, 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 $50 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 15,290,513 shares of common stock sold under the ATM Agreement during the nine months ended September 30, 2023 and no shares of common stock sold under the ATM Agreement during the nine months ended September 30, 2022. As of September 30, 2023, the Company has utilized $23.5 million of the 2022 Shelf. The Company has approximately $76.5 million available under the 2022 Shelf and $26.5 million available under the ATM Agreement, as amended, as of September 30, 2023.</p>
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171000 shares
CY2020Q3 us-gaap Warrant Exercise Price Increase
WarrantExercisePriceIncrease
2
CY2021Q4 us-gaap Debt Conversion Converted Instrument Warrants Or Options Issued1
DebtConversionConvertedInstrumentWarrantsOrOptionsIssued1
1545459 shares
CY2021Q4 us-gaap Warrant Exercise Price Increase
WarrantExercisePriceIncrease
7
CY2022Q2 us-gaap Debt Conversion Converted Instrument Warrants Or Options Issued1
DebtConversionConvertedInstrumentWarrantsOrOptionsIssued1
6325503 shares
CY2022Q2 us-gaap Warrant Exercise Price Increase
WarrantExercisePriceIncrease
0.0001
CY2023Q3 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
47135 usd
CY2023Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
344732 usd
CY2023Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
341081 usd
CY2023Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
349608 usd
CY2023Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
267092 usd
CY2023Q3 qubt Imputed Interest
ImputedInterest
301334 usd
CY2023Q3 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
1048313 usd
us-gaap Operating Lease Lease Income Lease Payments
OperatingLeaseLeaseIncomeLeasePayments
314498 usd
CY2022 us-gaap Operating Lease Lease Income Lease Payments
OperatingLeaseLeaseIncomeLeasePayments
125238 usd
CY2023Q3 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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P3Y10M24D
CY2022Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P4Y8M12D
CY2023Q3 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.10 pure
CY2022Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.10 pure
qubt 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 outstanding equity 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.
CY2022Q4 qubt Loans Receivable Current
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CY2022Q4 us-gaap Deferred Revenue Current
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CY2022Q4 us-gaap Other Liabilities Current
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CY2023Q3 us-gaap Long Term Notes Payable
LongTermNotesPayable
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CY2023Q3 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
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CY2023Q3 us-gaap Liabilities Noncurrent
LiabilitiesNoncurrent
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CY2023Q3 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
75094943 shares
CY2023Q3 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
75094943 shares
us-gaap Income Tax Expense Benefit
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CY2023Q3 us-gaap Income Tax Expense Benefit
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CY2022Q3 us-gaap Income Tax Expense Benefit
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CY2022Q1 us-gaap Stock Issued During Period Value New Issues
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CY2022Q1 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
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CY2022Q1 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
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CY2022Q2 us-gaap Stock Issued During Period Value New Issues
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CY2022Q2 qubt Conversion Of Preferred Stock Units
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CY2022Q2 us-gaap Stock And Warrants Issued During Period Value Preferred Stock And Warrants
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CY2022Q3 us-gaap Stock Issued During Period Value New Issues
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CY2022Q3 qubt Conversion Of Preferred Stock Units
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CY2022Q3 qubt Merger Consideration
MergerConsideration
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CY2022Q3 us-gaap Stock And Warrants Issued During Period Value Preferred Stock And Warrants
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CY2022Q3 qubt Preferred Original Issued Discount Amortization
PreferredOriginalIssuedDiscountAmortization
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CY2022Q3 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
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CY2023Q1 qubt Merger Consideration
MergerConsideration
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CY2023Q2 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
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CY2023Q2 qubt Conversion Of Preferred Stock Units
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CY2023Q3 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
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CY2023Q3 qubt Conversion Of Preferred Stock Units
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us-gaap Amortization Of Debt Discount Premium
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us-gaap Increase Decrease In Deferred Revenue
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us-gaap Payments To Acquire Loans Receivable
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us-gaap Payments For Proceeds From Other Investing Activities
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us-gaap Cash Provided By Used In Investing Activities Discontinued Operations
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us-gaap Proceeds From Issuance Of Preferred Stock And Preference Stock
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us-gaap Proceeds From Issuance Of Common Stock
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us-gaap Interest Paid Net
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us-gaap Income Taxes Paid
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us-gaap Income Taxes Paid
IncomeTaxesPaid
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us-gaap Capital Lease Obligations Incurred
CapitalLeaseObligationsIncurred
usd
us-gaap Capital Lease Obligations Incurred
CapitalLeaseObligationsIncurred
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CY2021Q4 us-gaap Goodwill
Goodwill
usd
CY2022 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
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CY2023Q3 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
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CY2022Q3 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
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CY2022Q2 us-gaap Investment Owned Balance Principal Amount
InvestmentOwnedBalancePrincipalAmount
53568.44 usd
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
shares
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
qubt Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercised Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedWeightedAverageRemainingContractualTerm1
qubt Sharebased Compensation Arrangement By Sharebased Payment Award Options Forfeited Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsForfeitedWeightedAverageRemainingContractualTerm1
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
dei Entity Central Index Key
EntityCentralIndexKey
0001758009

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