HOBOKEN, NJ, November 06, 2024 -- Quantum Computing Inc. (“QCi” or the “Company”), an innovative, integrated photonics and quantum optics technology company, today released financial results for the three and nine-month periods ended September 30, 2024.

Dr William McGann, Chief Executive Officer of QCi, commented, “Throughout the third quarter of 2024, we continued to make strategic progress across multiple fronts. Our ongoing development of our U.S.-based Thin Film Lithium Niobate (TFLN) foundry in Tempe remains on schedule and we are in the final stage of commissioning, marking a critical step toward scaling our capabilities and expanding into new markets. Our recent sales efforts, led by new leadership, have begun to translate into tangible results as we progress on securing offtake agreements for our chips and orders for our machines. We are excited by the interest we’ve seen from potential partners and customers, and we look forward to delivering on the promise of high-performance photonics technology in early 2025. I remain confident in our team’s ability to execute on our vision of delivering accessible, affordable, and scalable quantum solutions, and I am excited about the opportunities ahead.”

Third Quarter 2024 Financial Highlights

Third quarter 2024 revenues totaled approximately $101,000 (9% gross margin) compared to $50,000 (52% gross margin) generated in the third quarter 2023. The increase in revenues and decrease in gross margin was primarily the result of progress executing our contract with Johns Hopkins University to deliver a customized quantum LiDAR prototype.

Third quarter 2024 operating expenses totaled $5.4 million compared to the previous year’s second quarter operating expenses of $6.6 million. The 18% period-over-period decrease is primarily a result of the Company’s disciplined strategy to minimize general and administrative expenses, including reductions in both employee and consultant costs.

The Company reported a net loss attributable to common stockholders of $5.7 million, or $(0.06) per basic share for the third quarter of 2024, compared to a net loss attributable to common stockholders of $7.1 million or $(0.10) per basic share for the same period of the previous year.

Total assets at September 30, 2024 were $76.8 million, increasing from $74.4 million at December 31, 2023. Cash and cash equivalents at September 30, 2024 increased by $1.0 million to $3.1 million from year-end 2023. During the third quarter, the Company raised net proceeds of $7.0 million in a secured convertible debt financing.

Total liabilities at September 30, 2024 were $10.9 million, an increase of approximately $5.3 million compared to year-end 2023, driven primarily by the Company’s aforementioned secured convertible debt financing, offset by repayment of the Company’s unsecured debt financing in the first quarter 2024.

As of September 30, 2024, the Company had shareholders’ equity totaling $60.4 million.

Third Quarter 2024 Operational Highlights

Extension of CRADA with Los Alamos National Laboratory: QCi renewed its Cooperative Research and Development Agreement (CRADA) with Los Alamos National Laboratory (LANL) to further explore the capabilities of the Dirac-3 quantum optimization machine. This extension will support the development of advanced quantum solutions in fields such as energy grid management, social networks, and telecommunications.

Progress on TFLN Chip Foundry: QCi advanced to the final phase of commissioning its U.S.-based TFLN foundry in Tempe, Arizona. The facility remains on track to begin production in early 2025, positioning QCi as a leader in the high-performance, TFLN-based optical chip market.

Key Industry Engagements: QCi actively participated in major industry events, including the Quantum World Congress 2024 and Quantum.Tech Europe, where the Company presented the capabilities of its Dirac-3 platform and began initial conversations on its planned foundry services. These engagements raised the profile of QCi's technology among key government and commercial stakeholders, driving further interest and partnerships.

Continued Development of Entropy Quantum Computing Solutions: The Company’s Dirac-3 platform continued to gain traction, with benchmark studies conducted in collaboration with National Laboratories such as Oak Ridge and Lawrence Berkeley to demonstrate its efficiency in solving complex computational problems.

Progress with NASA: Subsequent to the end of the quarter, QCi secured a fifth task order with NASA, focused on developing quantum remote sensing technology for spaceborne LiDAR missions. This contract aims to reduce the cost of climate-monitoring missions and enhance data collection capabilities, reinforcing QCi’s strategic partnership with NASA.