Arqit Quantum (US:ARQQ)2025-12-09 13:25Financial Performance - Arqit generated revenue from its principal business operations in cybersecurity services starting in the fiscal year ended September 30, 2021, but continues to incur net losses consistent with its strategy [241]. - For the year ended September 30, 2025, Arqit reported a net cash used in operating activities of $29.553 million, with a net loss of $35.343 million and adjustments for non-cash items of $5.604 million [249]. - Arqit reported a net cash generated from financing activities of $47.134 million for the year ended September 30, 2025, primarily from share issuances [252]. Capital Raising - The company raised approximately $37.180 million by issuing 1,959,420 shares under its ATM Program in the year ended September 30, 2025 [243]. - In February 2023, Arqit completed a registered direct offering generating proceeds of approximately $20.0 million from the sale of 400,000 ordinary shares and warrants [244]. Cash Flow - Cash flows from investing activities improved to a net cash inflow of $0.683 million for the year ended September 30, 2025, compared to outflows in previous years [251]. Risk Management - Arqit is exposed to foreign exchange risk primarily with respect to British pounds sterling and Euro, and manages this risk by holding bank accounts in multiple currencies [237]. - The company has no significant concentration of credit risk, as it places surplus cash with banks based on a minimum credit rating of A3/A- [235]. Research and Development - The company had no research costs reflected in the statement of comprehensive income for the periods ended September 30, 2025, 2024, and 2023, as the research phase was deemed complete in 2018 [254]. Accounting and Valuation - As of September 30, 2025, the carrying amount of capitalized development costs was $2,112 million, an increase from $1,939 million at September 30, 2024, and a decrease from $3,414 million at September 30, 2023 [259]. - The fair value of share-based compensation is determined using the Black Scholes valuation model, with adjustments based on actual forfeitures during the vesting period [260][261]. - Arqit uses a Binomial Option Pricing Model for estimating the fair value of warrants, with assumptions disclosed in the audited consolidated financial statements [258]. - Deferred tax assets are assessed based on the likelihood of generating sufficient taxable earnings in future periods, impacting the realization of net deferred tax assets recorded at the reporting date [262]. Regulatory Compliance - Arqit is in the process of evaluating the benefits of relying on reduced reporting requirements under the JOBS Act, which may exempt it from certain obligations until September 3, 2026 [240].