LEESBURG, Va., March 30, 2023 — Quantum Computing Inc. (QCI), a first-to-market full-stack photonic-based quantum computing and solutions company, today reported financial results for the full year ending December 31, 2022.

“In 2022, we completed our product preparation and have entered the commercialization phase. Combined with QCI’s technical success prior to, and as a result of, the merger with QPhoton, we doubled our technical personnel expertise, acquired unique patent assets and IP, and importantly, added photonic hardware and systems capability to our software expertise thereby becoming a full stack, comprehensive quantum enabling company,” commented Robert Liscouski, co-Founder and CEO of Quantum Computing Inc. “In addition, we scrutinized all budgets, solidified supply chain and funding relationships, realigned our leadership team with the expanded focus of the company, and established sales & marketing with a scalable go-to-market strategy for a 2023 commercial roll-out.  We have firmly established ourselves as an emerging leader in photonic quantum information processing, which is proving to be a highly effective methodology for high-speed, low cost and low power computing compared with alternative approaches being attempted today. There is growing industry and analyst recognition and acceptance that photonic based quantum computing is outperforming the initial quantum architectures such as matter-based gate models and quantum annealers. Universities such as Stanford University, Stevens Institute of Technology, Purdue University, Arizona State University, and George Mason have begun to validate the superior capabilities of photonic processing platforms.”

Mr. Liscouski continued: “As we noted in our 2022 mid-year Shareholder Letter, we laid out an ambitious plan to launch commercialization within the year.  We have done so and are well positioned to take orders for our Entropy Quantum Computer, Quantum LiDAR, Quantum CyberSecurity products and subscriptions.  Beginning in April 2023, our plan over the next 24-months is to roll out a series of products including a Quantum Random Number Generator, Quantum Optical Chips, Quantum Imaging, and Quantum Hybrid (a fully integrated quantum/classical computer hybrid).  During 2023 we expect to be well on our way to delivering material revenue growth with attractive gross margins and with disciplined cost controls.”

Full-Year 2022 Financial Highlights

• Revenue during 2022, the company’s first revenues, totaled approximately $136,000 (55% gross margin) and is attributed to multi-month, professional services contracts with several commercial and government customers. The services were paid proof of concepts engagements, which QCI utilized as a means to build customer awareness to solve operational needs with quantum-based solutions. The Company enters product commercialization in 2023.
• Operating Expenses increased 114% during 2022 to $36.7 million due primarily to an increase in salaries and benefits totaling approximately $3.2 million and non-cash stock-based compensation expense of $8.4 million.  The total expenses incurred from the QPhoton merger, which resulted in the Company doubling in size and quantum engineering personnel, included $9.4 million of non-recurring, non-cash, stock-based compensation expense and $6.6 million in SG&A of non-recurring legal, audit and other related fees.
  • The Company’s average monthly cash burn during 2022 was approximately $1.46 million, an increase of approximately $0.9 million over the prior year’s average primarily due to additional quantum engineers and other related merger closing costs.  The current monthly cash burn is expected to hold steady as spending on the transition from R&D to commercialization is expected to offset the decrease in non-recurring, merger-related costs.

• Net loss for full year 2022 was $38.6 million, an increase of 38% year-over-year, which included $16.0 million in non-recurring merger-related operating expenses and $2.0 million of interest and financing costs, offset by decreases of $10.7 million in interest expense related to issuance of warrants in 2021 and $226,000 forgiveness of the SBA PPP 2021 loan.
• Total Assets on December 31, 2022 were $89.3 million, an increase of approximately $72 million over the prior year due primarily to Goodwill and Intangibles, including IP, from the QPhoton merger.
  • Cash at year-end 2022 totaled approximately $5.3 million.  As of March 27, 2023, the Company’s current cash totals $7.5 million.
• Total Liabilities at year-end 2022 were $14.4 million compared to $1.1 million the prior year-end. The $13.3 million increase was primarily attributed to $8.4 million of unsecured debt as well as approximately $3.6 million increase in accounts payable and non-cash accrued expenses related to the QPhoton merger, and a $1.3 million Right-of-Use (ROU) operating lease liability expense for the addition of the QPhoton R&D facility.
  • Debt totaled $8.4 million as of December 31, 2022, of which $536,000 was short-term, compared to no debt at prior year-end 2021.
• Shareholders’ Equity totaled $74.9 million at year-end 2022, compared to $16.2 million the prior year-end.
• Capitalization as of December 31, 2022, QCI had approximately 56.0 million shares of common stock outstanding, an increase of approximately 26.8 million shares from the prior year-end 2021. This is almost entirely attributed to the closing of the QPhoton merger.
  • QCI’s fully diluted shares total approximately 74.3 million, including 9.6 million stock options of which approximately 70% have vested (average exercise price $3.35), 1.6 million warrants (average exercise price $6.93), 5.0 million cashless warrants to pre-merger shareholders of QPhoton, and 1.5 million shares underlying Series A Preferred stock. In the event that all options and warrants were to exercise, the Company would receive an additional $43.2 million in cash.

Subsequent First Quarter 2023 Financial Developments:

• The Company secured net proceeds totaling $6.4 million from the sale of 3.0 million shares through an At-The-Market (ATM) facility managed by Ascendiant Capital.

To continue reading QCI’s financial reporting, click here.

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Source: QCI