Quantum Computing Inc. Announces Receipt of Nasdaq Non-Compliance Notice

Rhea-AI Summary

Quantum Computing Inc. (NASDAQ: QUBT) has received a non-compliance notice from Nasdaq for failing to timely file its Q2 2024 10-Q report. The company has until December 16, 2024 to regain compliance by filing both Q1 and Q2 2024 10-Qs, or face potential delisting. The delay is attributed to a recent change in auditors, with BF Borgers CPA PC dismissed on May 3, 2024, following an SEC order, and BPM LLP appointed on June 6, 2024. QCi expects to file the overdue reports soon after BPM completes the audit of the 2023 fiscal year financials. The company remains confident in regaining full compliance before the deadline.

Positive

• Company expects to regain full compliance with Nasdaq listing rules before the December 16 deadline
• New auditor (BPM LLP) appointed to address filing issues

Negative

• Received non-compliance notice from Nasdaq for failing to file Q2 2024 10-Q report
• Risk of delisting from Nasdaq if compliance is not regained by December 16, 2024
• Delayed filing of both Q1 and Q2 2024 10-Q reports
• Change in auditors due to SEC order against previous auditor (BF Borgers CPA PC)

Insights

Financial Analyst

The non-compliance notice from Nasdaq is a significant red flag for QUBT's investors. While the company has until December 16, 2024, to regain compliance, this situation raises concerns about financial reporting transparency and internal controls. The change in auditors, particularly following an SEC order against the previous firm, adds another layer of uncertainty. This could potentially impact investor confidence and the stock's liquidity in the short term. However, QCi's proactive approach in submitting a remediation plan and setting a timeline for compliance is somewhat reassuring. Investors should closely monitor the company's ability to meet the December 16 deadline, as failure to do so could result in delisting, which would severely impact the stock's value and tradability.

Legal Expert

The Nasdaq non-compliance notice presents significant legal and regulatory challenges for QCi. The company's failure to file timely 10-Q reports violates Nasdaq Listing Rule 5250(c)(1), potentially jeopardizing its listing status. The change in auditors, especially following an SEC order against the previous firm, may trigger heightened scrutiny from regulators. QCi must navigate this situation carefully to avoid further complications. The company's public disclosure of the deficiency complies with Nasdaq Listing Rule 5810(b), demonstrating some level of regulatory adherence. However, the delayed filings could expose QCi to shareholder lawsuits or SEC investigations if any material information is found to have been withheld during this period. The company's ability to meet the December 16 deadline will be important in mitigating these legal risks.

Tech Expert

Despite the financial reporting issues, QCi's focus on quantum optics and nanophotonics positions it in a cutting-edge tech sector. Their claim of providing accessible and affordable quantum machines that operate at room temperature and low power is particularly intriguing. If true, this could be a significant advancement in quantum computing accessibility. However, the lack of recent financial data makes it challenging to assess the company's R&D progress and market traction. The mention of applications in high-performance computing, AI, cybersecurity and remote sensing suggests a broad potential market. Yet, without concrete financial figures or product performance data, it's difficult to gauge QCi's competitive position in these rapidly evolving fields. Investors should seek more technical validation and market adoption metrics to evaluate the company's long-term prospects in the quantum computing space.

HOBOKEN, N.J., Aug. 22, 2024 /PRNewswire/ -- Quantum Computing Inc. (NASDAQ: QUBT) ("QCi" or the "Company"), an innovative quantum optics and nanophotonics technology company, today announced that it received a notice (the "Notice") from Nasdaq Stock Market LLC ("Nasdaq") that the Company had failed to satisfy a standard for continued listing, Nasdaq Listing Rule 5250(c)(1), because the Company did not timely file its Quarterly Report on Form 10-Q for the period ended June 30, 2024 (the "Form 10-Q") with the Securities and Exchange Commission (the "SEC").

The Company has submitted an updated plan to Nasdaq to remediate filing deficiencies and has until December 16, 2024 to regain compliance. If the Company fails to timely regain compliance by filing Form 10-Qs for the period ended March 31, 2024 and June 30, 2024, the Company's ordinary shares will be subject to delisting from Nasdaq. The Company expects to regain full compliance with Nasdaq Listing Rule 5810(b) before the December 16 deadline.

The delay in filing the Company's Form 10-Qs for the periods ending March 31, 2024 and June 30, 2024 is due to QCi's recent change of auditors. As previously reported, effective May 3, 2024, the Company dismissed BF Borgers CPA PC ("BF Borgers) as its independent registered public accounting firm, in parallel with an order by the SEC against BF Borgers, and effective June 6, 2024, appointed BPM LLP ("BPM") as the Company's independent registered public accounting firm. The Company plans to file its Form 10-Qs for the periods ending March 31, 2024, and June 30, 2024 as soon as practicable after completion of BPM's audit in the coming weeks of the Company's consolidated financial statements for its 2023 fiscal year.

This announcement is made in compliance with the Nasdaq Listing Rule 5810(b), which requires prompt public disclosure of the deficiency.

About Quantum Computing Inc.

Quantum Computing Inc. (QCi) (Nasdaq: QUBT) is an innovative, integrated photonics company that provides accessible and affordable quantum machines to the world today. QCi products are designed to operate at room temperature and low power at an affordable cost. The Company's portfolio of core technology and products offer unique capabilities in the areas of high-performance computing, artificial intelligence, cybersecurity as well as remote sensing applications.

For more information about QCi, visit www.quantumcomputinginc.com.

Forward-Looking Statements

Certain information contained in this report consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties and assumptions that are difficult to predict. Words such as "will," "would," "may," "intends," "potential," and similar expressions, or the use of future tense, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. Such forward-looking statements are not guarantees of performance and actual actions or events could differ materially from those contained in such statements. For example, there can be no assurance that the Company will regain compliance with the Rule during any compliance period or in the future, or otherwise meet Nasdaq compliance standards, that the Company will be eligible for a second compliance period, or that Nasdaq will grant the Company any relief from delisting as necessary or that the Company can ultimately meet applicable Nasdaq requirements for any such relief. The forward-looking statements contained in this report speak only as of the date of this report and the Company undertakes no obligation to publicly update any forward-looking statements to reflect changes in information, events or circumstances after the date of this report, unless required by law.

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SOURCE Quantum Computing Inc.

FAQ

Why did Quantum Computing Inc (QUBT) receive a non-compliance notice from Nasdaq?

Quantum Computing Inc (QUBT) received a non-compliance notice from Nasdaq for failing to timely file its Quarterly Report on Form 10-Q for the period ended June 30, 2024, violating Nasdaq Listing Rule 5250(c)(1).

What is the deadline for Quantum Computing Inc (QUBT) to regain compliance with Nasdaq?

Quantum Computing Inc (QUBT) has until December 16, 2024, to regain compliance by filing its Form 10-Qs for the periods ended March 31, 2024, and June 30, 2024.

What caused the delay in Quantum Computing Inc's (QUBT) 10-Q filings for Q1 and Q2 2024?

The delay in Quantum Computing Inc's (QUBT) 10-Q filings is due to a recent change of auditors. The company dismissed BF Borgers CPA PC on May 3, 2024, following an SEC order, and appointed BPM LLP as the new auditor on June 6, 2024.

What are the potential consequences if Quantum Computing Inc (QUBT) fails to meet the Nasdaq compliance deadline?

If Quantum Computing Inc (QUBT) fails to meet the December 16, 2024 compliance deadline, the company's ordinary shares will be subject to delisting from Nasdaq.