Quantum Computing, Inc. Completes Restatement and Files Form 10-K/A for Fiscal Years 2023 and 2022
Rhea-AI Summary
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.
AI-generated analysis. Not financial advice.
Positive
- 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
Negative
- 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
News Market Reaction – QUBT
On the day this news was published, QUBT gained 8.40%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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.