Quantum Computing Inc. Announces Receipt of Nasdaq Non-Compliance Notice
Quantum Computing Inc. (NASDAQ: QUBT) has received a non-compliance notice from Nasdaq due to the late filing of its quarterly report for the period ending March 31, 2024. The company has until August 23, 2024, to submit a plan to regain compliance. If accepted, QCi could have up to 180 days to meet the requirements, delaying potential delisting until December 16, 2024. The delay follows the dismissal of their previous auditor, BF Borgers, and the appointment of BPM LLP on June 6, 2024. QCi plans to file the report soon after BPM completes its audit of the 2023 financial statements. This notice is in line with Nasdaq Listing Rule 5810(b). Quantum Computing Inc. focuses on quantum optics and nanophotonics technology, offering products in high-performance computing, AI, cybersecurity, and remote sensing.
- None.
- Quantum Computing Inc. received a non-compliance notice from Nasdaq for delayed filing of its quarterly report.
- Potential delisting from Nasdaq if compliance is not regained by December 16, 2024.
- Delay caused by change in auditors, from BF Borgers to BPM LLP.
Insights
The receipt of a non-compliance notice from Nasdaq is a significant issue for Quantum Computing Inc. The company failed to timely file its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024. Such notifications can be seen as a red flag by investors, indicating potential internal control weaknesses or operational inefficiencies. The change in the independent registered public accounting firm from BF Borgers to BPM LLP further complicates the scenario. This transition, especially amidst an SEC order against the previous firm, can delay financial reporting and create uncertainty. A key concern is whether this delay reflects deeper financial or operational issues within the company.
On the positive side, Nasdaq's notice allows QCi until August 23, 2024, to submit a compliance plan. If accepted, the company gets a further extension up to December 16, 2024, to regain compliance. This provides some breathing space, but it also means that the company is under pressure to resolve the issue promptly. Investors must monitor closely for updates on the compliance plan submission and the timely filing of the Form 10-Q.
In the short term, this news is likely to create volatility in QCi's stock price. Long-term implications depend on how the company addresses its filing delinquency and whether it can maintain its Nasdaq listing. If resolved swiftly and if the delay was purely due to the auditor transition, the impact might be mitigated. However, continued delays or further compliance issues could lead to delisting, making the stock less liquid and potentially less attractive to institutional investors.
The legal ramifications of failing to comply with Nasdaq listing requirements are severe. The company must formulate a compliance plan and submit it by August 23, 2024, to avoid delisting. This process requires meticulous preparation, ensuring all gaps and deficiencies highlighted by Nasdaq are addressed. The transition to a new audit firm, BPM LLP, adds another layer of complexity. Given that the previous auditor was dismissed following an SEC order, it raises questions about the quality of prior audits and internal control reliability.
From a legal standpoint, a delisting would significantly impact the company's market perception and liquidity. It could also raise investor concerns about the company's governance and operational transparency. Furthermore, any issues identified during BPM's audit could expose QCi to potential legal risks and liabilities if material misstatements or non-compliance with financial reporting standards are found.
Investors should keep an eye on any legal disclosures and updates from the company, especially regarding the audit's progress and the compliance plan. Any further delays or issues could exacerbate the company's legal and financial troubles, potentially leading to shareholder lawsuits or regulatory penalties.
The Notice states that the Company has until August 23, 2024 to submit to Nasdaq a plan to regain compliance with the Nasdaq Listing Rules. If Nasdaq accepts the Company's plan, then Nasdaq may grant the Company up to 180 calendar days from the filing's due date, or until December 16, 2024, for filing the Form 10-Q to regain compliance. If the Company fails to timely regain compliance, the Company's ordinary shares will be subject to delisting from Nasdaq.
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-Q as soon as practicable after completion of BPM's audit 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
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