Quantum Computing Inc. Reports First Quarter 2025 Financial Results

PR Newswire

HOBOKEN, N.J., May 15, 2025

HOBOKEN, N.J., May 15, 2025 /PRNewswire/ -- Quantum Computing Inc. ("QCi" or the "Company") (Nasdaq: QUBT), an innovative, integrated photonics and quantum optics technology company, today released financial results for the three-month period ended March 31, 2025.

Dr. Yuping Huang, Interim Chief Executive Officer of QCi, commented, "QCi delivered solid operational and financial progress in the first quarter, strengthening our balance sheet and advancing key strategic initiatives. We completed construction during the quarter of our Quantum Photonic Chip Foundry in Tempe, Arizona, a major milestone that positions us to meet growing demand for thin film lithium niobate (TFLN) photonic chips, underscored by the announcement of a fifth purchase during the period. We're encouraged by our early traction, which is the first step in what we believe is a significant, multi-year opportunity to serve the expanding markets in datacom, telecom, and quantum-enabled applications. In parallel, we continued to deepen engagement with both government and commercial partners, reinforcing the growing interest in our quantum and photonic machines and positioning QCi to capitalize on emerging opportunities ahead."

First Quarter 2025 Financial Highlights

   -- First quarter 2025 revenues totaled approximately $39,000 (33% gross 
      margin) compared to $27,000 (41% gross margin) generated in the first 
      quarter of 2024. Gross margin can vary at our current revenue levels. As 
      such, the year-over-year decrease is not unexpected. 
 
   -- First quarter 2025 operating expenses totaled $8.3 million compared to 
      the previous year's first quarter operating expenses of $6.3 million. The 
      year-over-year increase was primarily driven by higher employee-based 
      expenses. 
 
   -- The Company reported net income attributable to common stockholders of 
      $17.0 million, or $0.13 per basic share for the first quarter of 2025, 
      compared to a net loss attributable to common stockholders of $6.4 
      million or $(0.08) per basic share for the same period of the previous 
      year. The increase in net income this quarter was primarily due to a 
      $23.6 million non-cash gain on the mark-to-market valuation of the 
      Company's warrant liability as a result of our merger with QPhoton in 
      June 2022. 
 
   -- Total assets at March 31, 2025 were $242.5 million, increasing from 
      $153.6 million at December 31, 2024. Cash and cash equivalents at March 
      31, 2025 increased by $87.5 million to $166.4 million from year-end 2024. 
      During the first quarter, the Company raised total net proceeds of $93.6 
      million through a private placement offering of common stock. 
 
   -- Total liabilities at March 31, 2025 were $21.7 million, a decrease of 
      $24.6 million compared to year-end 2024, driven primarily by the 
      previously-mentioned non-cash changes in the fair value of the Company's 
      warrant liability. 
 
   -- As of March 31, 2025, the Company had shareholders' equity totaling 
      $220.8 million. 

First Quarter 2025 Operational Highlights

   -- Quantum Photonic Chip Foundry Update: During the quarter, QCi completed 
      construction of its Quantum Photonic Chip Foundry in Tempe, Arizona, 
      achieving a key milestone in scaling its U.S.-based TFLN manufacturing 
      services. The Company is now establishing its process design kit (PDK) 
      and filling customer orders. To date, the Company has received five 
      initial orders for its foundry services. 
 
   -- Advancing Quantum Machine Adoption: On January 15, 2025, QCi announced a 
      collaboration with Sanders Tri-Institutional Therapeutics Discovery 
      Institute (Sanders TDI), a non-profit drug discovery institute comprising 
      Memorial Sloan Kettering Cancer Center, The Rockefeller University, and 
      Weill Cornell Medicine. Through this partnership, Sanders TDI will 
      leverage cloud-based access to QCi's Dirac-3 quantum optimization machine 
      to support computational chemistry and biomolecular modeling research. 
      This collaboration highlights growing adoption of QCi's quantum systems 
      in real-world biomedical applications. 
 
   -- Board Appointment Strengthens Strategic Leadership: On March 26, 2025, 
      QCi appointed Eric Schwartz to its Board of Directors. Mr. Schwartz 
      brings over 20 years of experience in corporate finance, mergers and 
      acquisitions, and corporate strategy, with a strong track record guiding 
      companies through commercialization and manufacturing scale-up. His 
      expertise will support QCi's growth initiatives as the Company advances 
      its TFLN chip foundry and drives market adoption of its quantum machines. 
 
   -- Strengthening Sales & Market Presence: The Company continued to expand 
      its commercial and government engagement, participating in numerous trade 
      shows and conferences during the quarter to showcase its quantum 
      optimization and photonic chip solutions to prospective customers and 
      partners. 
 
   -- Advancing Strategic Partnerships with NASA: Subsequent to the quarter on 
      April 30, 2025, QCi was awarded a subcontract valued at approximately 
      $406,000 through Analytical Mechanics Associates $(AMA.AU)$ to support NASA's 
      Langley Research Center. Under the project, QCi will use its Dirac-3 
      quantum computer to develop a quantum-based technique for removing 
      sunlight noise from space-based LIDAR data, an obstacle that has 
      historically limited NASA's ability to conduct reliable daytime Earth 
      observation. This project builds on QCi's prior work with NASA. 
 
   -- Expanding Commercial Adoption of Quantum Solutions: Subsequent to the 
      quarter, QCi secured two additional customer orders, reflecting growing 
      global demand for its quantum machines. On April 1, 2025, the Company 
      announced the sale of a Quantum Photonic Vibrometer to the Department of 
      Aerospace Structures and Materials at Delft University of Technology in 
      the Netherlands, supporting advanced research in non-destructive testing 
      and structural health monitoring. Later in the month, on April 22, 2025, 
      QCi announced the sale of an EmuCore reservoir computing device to a 
      major automotive manufacturer for research and development use. These 
      orders underscore QCi's strategy to broaden awareness and adoption of its 
      quantum solutions across both academic and industrial markets globally. 

Earnings Conference Call

The Company will host its first quarter conference call on Thursday, May 15, 2025, at 4:30 p.m. To access the live webcast of the conference call, visit the QCi Investor Relations page at https://quantumcomputinginc.com/investor-relations. Investors may also access the webcast via the following link: https://www.webcaster4.com/Webcast/Page/3051/52325

To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0011. Callers should use access code: 832763.

A replay of the teleconference will be available until May 22, 2025, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 52325.

About Quantum Computing Inc.

Quantum Computing Inc. (Nasdaq: QUBT) is an innovative, integrated photonics and quantum optics technology company that provides accessible and affordable quantum machines to the world today. QCi's products are designed to operate at room temperature and low power at an affordable cost. The Company's portfolio of core technologies and products offer unique capabilities in the areas of high-performance computing, artificial intelligence, and cybersecurity, as well as remote sensing applications.

Company Contact:

Rosalyn Christian/John Nesbett

IMS Investor Relations

investors@quantumcomputinginc.com

Forward-Looking Statements

This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, generally identified by terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal, " "objective," "seek," "attempt," "aim to," or variations of these or similar words, involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those statements include statements regarding the intent, belief or current expectations of QCi and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including the timing of orders and revenue, and the outcome of ongoing collaborations and demonstration projects with certain U.S. government agencies, academic institutions and commercial customers, and that actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, QCi undertakes no obligation to update or revise forward-looking statements to reflect changed conditions.

IMPORTANT NOTICE TO USERS (summary only, click here for full text of notice): All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information. All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our Forms 10-Q and 10-K.

 
                        QUANTUM COMPUTING INC. 
                      Consolidated Balance Sheets 
                 (in thousands, except par value data) 
 
                                          March 31,    December 31, 
                                             2025          2024 
                                          ----------  -------------- 
Assets 
Current assets: 
  Cash and cash equivalents               $  166,429   $      78,945 
  Accounts receivable, net                        20              27 
  Inventory                                      131              18 
  Prepaid expenses and other current 
   assets                                        660             161 
                                           ---------      ---------- 
Total current assets                         167,240          79,151 
Property and equipment, net                    9,976           8,212 
Operating lease right-of-use assets            1,419           1,522 
Intangible assets, net                         8,196           8,972 
Goodwill                                      55,573          55,573 
Other non-current assets                         129             129 
                                           ---------      ---------- 
Total assets                              $  242,533   $     153,559 
                                           =========      ========== 
 
Liabilities and Stockholders' Equity 
Current liabilities: 
  Accounts payable                        $    2,022   $       1,372 
  Accrued expenses                               647           2,134 
  Deferred revenue                                83              79 
  Other current liabilities                      990             974 
                                           ---------      ---------- 
Total current liabilities                      3,742           4,559 
                                           ---------      ---------- 
Derivative liability                          16,902          40,532 
Operating lease liabilities                    1,062           1,181 
                                           ---------      ---------- 
Total liabilities                             21,706          46,272 
                                           ---------      ---------- 
Stockholders' equity: 
      Common stock, $0.0001 par value, 
      250,000 thousand shares 
      authorized; 
     137,322 thousand and 129,012 
     thousand shares issued and 
     outstanding 
     as of March 31, 2025 and December 
      31, 2024, respectively                      14              13 
 Additional paid-in capital                  404,313         307,756 
 Accumulated deficit                       (183,500)       (200,482) 
                                           ---------      ---------- 
Total stockholders' equity                   220,827         107,287 
                                           ---------      ---------- 
Total liabilities and stockholders' 
 equity                                   $  242,533   $     153,559 
                                           =========      ========== 
 
 
                        QUANTUM COMPUTING INC. 
                 Consolidated Statements of Operations 
                 (in thousands, except per share data) 
 
                                                Three Months Ended 
                                                    March 31, 
                                              ---------------------- 
                                                  2025        2024 
                                              ------------  -------- 
Total revenue                                  $        39  $     27 
Cost of revenue                                         26        16 
                                                  --------   ------- 
Gross profit                                            13        11 
Operating expenses 
Research and development                             2,985     2,220 
Sales and marketing                                    672       451 
General and administrative                           4,642     3,659 
                                                  --------   ------- 
Total operating expenses                             8,299     6,330 
Loss from operations                               (8,286)   (6,319) 
Non-operating income (expense) 
Interest and other income                            1,696        38 
Interest expense, net                                 (58)     (155) 
Change in fair value of warrant liabilities         23,630         - 
                                                  --------   ------- 
Income (loss) before income tax provision           16,982   (6,436) 
Income tax provision                                     -         - 
                                                  --------   ------- 
Net income (loss)                                   16,982   (6,436) 
 
Net income (loss) attributable to common 
 stockholders                                  $    16,982  $(6,436) 
                                                  ========   ======= 
 
Earnings (loss) per share: 
 Basic                                         $      0.13  $ (0.08) 
 Diluted                                       $      0.11  $ (0.08) 
Weighted average shares used in computing 
net earnings (loss) per common share: 
Basic                                              135,217    81,934 
Diluted                                            153,006    81,934 
 

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SOURCE Quantum Computing Inc.

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