Quantum puting (US:QUBT)2025-11-14 21:02Financial Performance - For the three months ended September 30, 2025, the Company reported a net income of $2.4 million, compared to a net loss of $5.7 million for the same period in 2024[47]. - The basic net income per common share for the three months ended September 30, 2025, was $0.01, while for the same period in 2024, it was $(0.06)[47]. - The company's operating loss for the nine months ended September 30, 2025, was $28.861 million, compared to a loss of $17.023 million for the same period in 2024, indicating a worsening performance[54]. - The company recorded a segment net income of $2.382 million for the three months ended September 30, 2025, compared to a net loss of $5.675 million in the same period of 2024[54]. Cash and Securities - As of September 30, 2025, the Company had $294.7 million in cash equivalents, up from $78.9 million as of December 31, 2024[33]. - The Company had $517.9 million in available-for-sale securities as of September 30, 2025, classified as Level 2 assets[42]. - As of September 30, 2025, the company held available-for-sale debt securities with a total fair value of $517.932 million, with no realized gains or losses during the three or nine months ended September 30, 2025[59]. Research and Development - The Company expensed all research and development costs as incurred, reflecting a commitment to ongoing innovation[43]. - The company has approximately $264,000 of uncertain tax positions related to R&D tax credits as of September 30, 2025, which are accounted as contra-deferred tax assets[58]. Share Issuance and Proceeds - The Company raised $100 million in gross proceeds from a private placement on January 9, 2025, selling 8,163,266 shares at $12.25 per share[82]. - The June 2025 private placement resulted in gross proceeds of approximately $200 million from the issuance of 14,035,089 shares at $14.25 per share[84]. - The September 2025 private placement generated approximately $500 million in gross proceeds from 26,867,276 shares[91]. - The total net proceeds raised for the nine months ended September 30, 2025, amounted to $758.9 million, including $2.4 million from warrant exercises[97]. Stock-Based Compensation - The weighted average grant-date fair value of stock options granted during the nine months ended September 30, 2025, was $10.76 per share, compared to $1.00 per share for the same period in 2024[106]. - The company recognized total stock-based compensation expense of $3.072 million for the three months and $6.236 million for the nine months ended September 30, 2025[108]. - Total unrecognized compensation cost related to common stock options was $8.4 million, expected to be recognized over a period of 2.9 years[106]. Goodwill and Impairment - The Company has determined that it has a single reporting unit for purposes of performing its goodwill impairment test, with no impairment identified as of September 30, 2025[36]. - The Company did not record any impairment related to long-lived assets during the three and nine months ended September 30, 2025 and 2024[39]. Lease Obligations - The company has total minimum operating lease payments of $3.111 million as of September 30, 2025, with a present value of operating lease liabilities of $2.584 million[65]. Risks and Challenges - The Company is subject to risks including competition, new product development, and the ability to attract qualified employees, which could materially affect future financial performance[31]. QPhoton Transactions - The total purchase price for QPhoton was approximately $71.0 million, netting $69.9 million after cash acquired[73]. - As of September 30, 2025, the Company had unissued QPhoton shares valued at $14.7 million and unissued QPhoton warrants valued at $40.5 million[74]. - The company recognized a mark-to-market gain of $9.2 million for the three months and $4.8 million for the nine months ended September 30, 2025, due to the valuation of QPhoton Warrants[101]. License Agreement - QPhoton signed a License Agreement with the Stevens Institute effective December 17, 2020, allowing commercial use of licensed technology for 30 years or until the last patent expires[13]. - The Company is required to pay $35,000 within 30 days of the agreement execution and $28,000 annually thereafter, along with 3.5% royalties on net sales of licensed products[15]. - As of September 30, 2025, QPhoton has begun to commercialize some licensed technology but has not recognized any related revenue or incurred royalty expenses[116]. Securities Purchase Agreements - On October 5, 2025, the Company entered into securities purchase agreements to issue 37,183,937 shares, resulting in gross proceeds of approximately $750 million[117]. - The Company filed a registration statement for the resale of the October Placement Shares on October 10, 2025[118]. - The Company agreed not to issue any shares or registration statements for 75 days post-closing of the October Placement without consent from Titan and the Purchasers[119]. - The Placement Agency Agreement with Titan includes a 4% cash fee based on the total size of the October Placement and reimbursement of up to $100,000 for expenses[120]. - Directors and executive officers agreed to a 60-day lock-up period post-October Placement closing, restricting the sale of their shares[122].