Quantum Computing, Inc. Completes Restatement and Files Form 10-K/A for Fiscal Years 2023 and 2022
Quantum Computing Inc. (QUBT) has filed its Form 10-K/A for fiscal years 2023 and 2022, completing a restatement of its financial statements. The restatement, conducted with new auditor BPM LLP, resulted in no material impact on cash balances or operating cash flows. Key adjustments include corrections to purchase accounting, preferred dividends, and stock-based compensation. For 2023, the restatement led to a 9% decrease in net loss to $27,022,000 and a 6% decrease in total assets to $74,355,000. The company expects to file Q1 and Q2 2024 Form 10-Qs soon to regain Nasdaq compliance.
Quantum Computing Inc. (QUBT) ha presentato il suo Modulo 10-K/A per gli esercizi fiscali 2023 e 2022, completando una rettifica dei propri bilanci. La rettifica, condotta con il nuovo revisore BPM LLP, ha comportato nessun impatto materiale sui saldi di cassa o sui flussi di cassa operativi. Le correzioni principali includono rettifiche alla contabilità degli acquisti, ai dividendi preferenziali e alla compensazione basata su azioni. Per il 2023, la rettifica ha portato a una riduzione del 9% della perdita netta a $27,022,000 e a una riduzione del 6% del totale degli attivi a $74,355,000. L'azienda prevede di presentare presto i Moduli 10-Q per il Q1 e il Q2 del 2024 per ristabilire la conformità con Nasdaq.
Quantum Computing Inc. (QUBT) ha presentado su Formulario 10-K/A para los años fiscales 2023 y 2022, completando una rectificación de sus estados financieros. La rectificación, realizada con el nuevo auditor BPM LLP, no resultó en ningún impacto material en los saldos de efectivo o en los flujos de efectivo operativos. Los ajustes clave incluyen correcciones a la contabilidad de compras, dividendos preferentes y compensación basada en acciones. Para 2023, la rectificación llevó a una disminución del 9% en la pérdida neta a $27,022,000 y a una disminución del 6% en el total de activos a $74,355,000. La compañía espera presentar pronto los Formularios 10-Q para el Q1 y Q2 de 2024 para recuperar el cumplimiento de Nasdaq.
Quantum Computing Inc. (QUBT)는 2023 및 2022 회계연도에 대한 10-K/A 양식을 제출했습니다, 재무제표의 재검토를 완료했습니다. 새로운 감사인 BPM LLP와 함께 수행된 재검토는 현금 잔액이나 운영 현금 흐름에 대한 중대한 영향이 없었습니다. 주요 조정 사항에는 구매 회계, 우선 배당금 및 주식 기반 보상에 대한 수정이 포함됩니다. 2023년에는 재검토로 인해 순손실이 9% 감소하여 $27,022,000에 이르렀고, 총 자산은 6% 감소하여 $74,355,000에 달했습니다. 이 회사는 Nasdaq 준수를 회복하기 위해 곧 2024년 1분기 및 2분기 10-Q 양식을 제출할 계획입니다.
Quantum Computing Inc. (QUBT) a déposé son Formulaire 10-K/A pour les exercices fiscaux 2023 et 2022, complétant ainsi une révision de ses états financiers. Cette révision, réalisée avec le nouvel auditeur BPM LLP, n'a eu aucun impact matériel sur les soldes de trésorerie ou les flux de trésorerie d'exploitation. Les ajustements clés comprennent des corrections relatives à la comptabilité des achats, aux dividendes privilégiés et à la rémunération en actions. Pour 2023, cette révision a conduit à une diminution de 9% de la perte nette, portant celle-ci à $27,022,000, et à une diminution de 6% de l'actif total à $74,355,000. L'entreprise prévoit de soumettre bientôt ses Formulaires 10-Q pour le premier et le deuxième trimestre 2024 afin de retrouver la conformité avec le Nasdaq.
Quantum Computing Inc. (QUBT) hat sein Formular 10-K/A eingereicht für die Geschäftsjahre 2023 und 2022, und damit eine Neufeststellung seiner finanziellen Abschlüsse abgeschlossen. Die Neufeststellung, die mit dem neuen Prüfer BPM LLP durchgeführt wurde, führte zu keiner wesentlichen Auswirkung auf die Kassenbestände oder die operativen Cashflows. Zu den wesentlichen Anpassungen gehören Korrekturen in der Kaufrechnung, zu bevorzugten Dividenden und aktienbasierten Vergütungen. Für 2023 resultierte die Neufeststellung in einer 9%igen Senkung des Nettoverlusts auf $27.022.000 und einer 6%igen Senkung der Gesamtaktiva auf $74.355.000. Das Unternehmen plant, bald die Formulare 10-Q für Q1 und Q2 2024 einzureichen, um die Nasdaq-Konformität wiederherzustellen.
- Restatement resulted in a 9% decrease in net loss for 2023
- Operating expenses decreased by 4% in 2023 and 22% in 2022
- Loss per share improved by 11% in 2023
- No material impact on cash balances or operating cash flows
- Total assets decreased by 6% in 2023 and 12% in 2022
- Total stockholders' equity decreased by 6% in 2023 and 13% in 2022
- Weighted average shares outstanding decreased by 14% in 2023 and 34% in 2022
- Other income and expenses worsened by 69% in 2023
Insights
The restatement of QCi's financials reveals significant adjustments, particularly in operating expenses and other income/expenses. The 9% reduction in 2023 net loss and 33% reduction in 2022 net loss might seem positive at first glance. However, these adjustments primarily stem from non-cash items and accounting corrections, not from improved operational performance.
Of concern is the decrease in total assets (
Investors should be cautious. While the restatement provides more accurate financials, it doesn't change the fundamental challenges QCi faces in commercializing quantum technology. The company's cash position remains tight and the path to profitability unclear.
The restatement of QCi's financials following the change in auditors raises several legal and compliance concerns. The dismissal of BF Borgers CPA PC due to an SEC suspension is a red flag, suggesting potential regulatory issues. This change, coupled with the extensive restatement, may trigger heightened scrutiny from regulators and shareholders.
The company's non-compliance with Nasdaq Listing Rule 5250(c)(1) due to delayed filings is another critical issue. While QCi plans to file the missing 10-Qs "as soon as practicable," there's no guarantee of timely compliance. This situation puts QCi at risk of delisting, which could severely impact shareholder value and the company's ability to raise capital.
Investors should be aware that such significant restatements often lead to shareholder lawsuits, especially if the stock price reacts negatively. The company may face legal challenges and increased compliance costs in the near term, potentially diverting resources from its core operations.
Despite the financial restatement, QCi's core technology in quantum computing and integrated photonics remains intriguing. The company's focus on room-temperature, low-power quantum machines addresses key challenges in quantum computing adoption. However, the financial turbulence may hinder R&D efforts and delay product commercialization.
The restatement doesn't affect reported revenues (
Investors should closely monitor QCi's progress in translating its technology into commercial products. The company's ability to compete with tech giants and well-funded startups in the quantum space is crucial. Without significant revenue growth or major technological breakthroughs, QCi may struggle to justify its market position and attract the capital needed for continued development.
The Company's reaudit and restatement was done in conjunction with the previously announced change of auditor. 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 suspending BF Borgers from appearing and practicing as an accountant before the SEC, and effective June 6, 2024, appointed BPM LLP ("BPM") as the Company's independent registered public accounting firm.
The adjustments in the restated financial statements had no material impact on the Company's cash balances or operating cash flows. The restated financials contain the following material adjustments:
- Corrections to the purchase accounting relating to the June 2022 merger with QPhoton, LLC
- Corrections to the accounting for the Series A Preferred dividends and warrants
- Adjustments to stock-based compensation expenses and related prior period retained earnings to reflect an election change in accounting policy
- Corrections to the historical and subsequent accounting for debt and equity issuance costs
- Reserving a collection risk for notes receivable
- Adjusting the recognition period for certain operating expenditures
The below tables outline in detail certain non-cash restatements ($ in thousands, excluding per share information):
2023 | Increase / (Decrease) | 2022 | Increase / (Decrease) | |||
Amount | $ | % | Amount | $ | % | |
Revenue | - | - | - | - | ||
Gross profit | - | - | - | - | ||
Operating expenses | ( | (4 %) | ( | (22 %) | ||
Other income and | ( | ( | (69 %) | 232 % | ||
expenses | ||||||
Net loss | ( | (9 %) | ( | (33 %) | ||
Net loss available to | ( | (6 %) | ( | (30 %) | ||
common | ||||||
stockholders | ||||||
Loss per share | ( | 11 % | ( | (6 %) | ||
Weighted average | 66,611 | (10,840) | (14 %) | 36,680 | (19,283) | (34 %) |
shares outstanding | ||||||
Shares outstanding | 77,451 | - | - | 55,963 | - | - |
Cash | - | - | - | - | ||
Total Assets | ( | (6 %) | ( | (12 %) | ||
Total Liabilities | 4 % | ( | (7 %) | |||
Total Stockholders' | ( | (6 %) | ( | (13 %) | ||
Equity | ||||||
The Company anticipates filing Form 10-Qs for periods ending March 31, 2024, and June 30, 2024 with the SEC as soon as practicable to regain compliance with Nasdaq Listing Rule 5250(c)(1).
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.
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SOURCE Quantum Computing Inc.
FAQ
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