Quantum Computing Inc. Reports Second Quarter and First Half 2024 Financial Results

Financial Performance - Second quarter 2024 revenues totaled approximately $183,000, a 63% increase from $112,000 in the same period of 2023, driven by increased contractual sales [3] - Gross margin decreased to 32% in Q2 2024 from 54% in Q2 2023, primarily due to a shift from consulting services to customized research and development revenue [3] - Operating expenses decreased by 24% to $5.3 million in Q2 2024 compared to $7.0 million in Q2 2023, reflecting disciplined cost management and reduced stock-based compensation [3] - Net loss available to common stockholders improved to $5.2 million ($0.06 per share) in Q2 2024 from $7.6 million ($0.12 per share) in Q2 2023 [3] - Total assets increased to $76.0 million as of June 30, 2024, up from $74.4 million at year-end 2023, with cash and cash equivalents rising to $2.5 million [3] - Total liabilities decreased by $2.1 million to $3.6 million as of June 30, 2024, driven by debt repayment and reduced accrued expenses [3] Operational Highlights - Successfully sold a quantum LiDAR prototype to Johns Hopkins University for $200,000, marking a significant advancement in underwater LiDAR technology [4] - Appointed Richard Nelson as Senior Vice President of Business Development and Pouya Dianet as Director of TFLN Optical Chip Sales to accelerate market penetration [4] - Progressed on establishing the first U.S.-based Thin Film Lithium Niobate (TFLN) foundry in Tempe, Arizona, a key initiative for leadership in the optical chip market [4] - Extended the Cooperative Research and Development Agreement (CRADA) with Los Alamos National Laboratory (LANL) to focus on the Dirac-3 entropy quantum optimization machine [4] Strategic Developments - Strengthened position in the quantum computing landscape through partnerships, including product sales to Johns Hopkins University and collaboration with NASA [2] - Regained compliance with Nasdaq and SEC reporting requirements after delays caused by an auditor transition [2] - Raised $7.0 million in net proceeds through a secured convertible debt financing subsequent to the quarter [3] Company Overview - Quantum Computing Inc (QCi) is an integrated photonics and quantum optics technology company providing accessible and affordable quantum machines [7] - QCi's products operate at room temperature and low power, offering unique capabilities in high-performance computing, AI, cybersecurity, and remote sensing [7] Financial Statements - Total current assets increased to $3.4 million as of June 30, 2024, from $2.7 million at year-end 2023, driven by higher cash, inventory, and prepaid expenses [8] - Property and equipment, net, increased to $5.4 million as of June 30, 2024, from $2.9 million at year-end 2023, reflecting investments in infrastructure [8] - Intangible assets decreased to $10.5 million as of June 30, 2024, from $12.1 million at year-end 2023, due to amortization [8] - Shareholders' equity stood at $65.5 million as of June 30, 2024, down from $68.7 million at year-end 2023, primarily due to accumulated deficits [6]