LEESBURG, Va. – Quantum Computing Inc. (QCi), a quantum optics and nanophotonics technology company, announced its financial results for the third quarter and nine months ended September 30, 2023. The company has made significant progress in product releases, expanding manufacturing capacity, and establishing their quantum chip facility.
QCi has achieved five product releases and is on track to release a variety of lithium niobate chips in 2024, including physical unclonable function (PUF) and electro-optic modulator (EOM) chips. The company has also secured testing contracts with government agencies and initiated proof of concept projects that may lead to future contracts. They have formed collaborations and sales teaming agreements and recently made their first hardware sales.
During the third quarter of 2023, QCi reported revenues of approximately $50,000, an increase compared to the same period last year. For the first nine months of 2023, the company’s revenues totaled approximately $283,000, showing a significant increase compared to the previous year. The company expects revenue to further increase as they enter the commercialization phase and demonstrate positive results from contracted testing and proof-of-concept projects.
Operating expenses for the third quarter totaled $7.7 million, reflecting an increase in personnel and R&D for new product development. For the nine months ended September 30, 2023, operating expenses amounted to $19.5 million, primarily driven by R&D expenses and additional personnel. The company has maintained tight financial controls and anticipates a robust 2024 with material revenue increases.
QCi reported a net loss of $8.3 million for the third quarter, primarily due to increased operating expenses. The net loss for the nine months of 2023 amounted to $21.4 million, mainly driven by operating expenses, interest expense, and financing costs.
As of September 30, 2023, QCi’s total assets amounted to $89.3 million, with cash and cash equivalents of $7.4 million. The company has made strategic investments, repaid debt, and allocated funds for equipment deposits and expenses related to their new chip foundry in Arizona.
Overall, Quantum Computing Inc. has demonstrated strong financial performance, positioning itself as a key player in the quantum computing industry. With ongoing product development, collaborations, and increasing revenues, the company aims to capitalize on the growing demand for advanced quantum technologies.
Frequently Asked Questions (FAQ)
Q: What are the key highlights of Quantum Computing Inc.’s financial results for Q3 2023?
A: Quantum Computing Inc. reported increased revenues, significant progress in product releases, and an expansion of their manufacturing capacity. They also achieved testing contracts, collaborations, and sales teaming agreements.
Q: What is QCi’s outlook for revenue growth?
A: The company anticipates increasing revenue for the remainder of 2023 and expects material increases in 2024 as contracted testing and proof-of-concept projects yield positive results.
Q: How did QCi manage its operating expenses?
A: Quantum Computing Inc. has maintained tight financial controls and steady monthly operating cash expenses while rolling out their business development, marketing, and sales plans.
Q: What were the main factors contributing to QCi’s net loss in Q3 2023?
A: The increased net loss was primarily due to higher operating expenses offset by an increase in interest income. The net loss also included adjustments related to the QPhoton acquisition.
Q: What is QCi’s financial position?
A: As of September 30, 2023, QCi’s total assets were $89.3 million, with cash and cash equivalents of $7.4 million. The company has made strategic investments and repaid debt while allocating funds for equipment deposits and expenses related to their new chip foundry in Arizona.