TLDR
- Q4 2024 revenue was $62,000 with improved gross margin of 55% (up from 13% in Q4 2023)
- Company raised $92.1 million in Q4 through stock offerings, ending 2024 with $78.9 million cash
- Net loss widened to $51.2 million primarily due to non-cash warrant accounting charges
- Quantum Photonic Chip Foundry in Arizona nearing completion, set to be operational in Q2 2025
- Expanded NASA partnerships with multiple contracts for quantum technology applications
Quantum Computing Inc. (QCi) has significantly strengthened its financial foundation while preparing to launch its highly anticipated Quantum Photonic Chip Foundry. The company reported mixed financial results for the fourth quarter of 2024, combining improved margins with increased operational expenses and a wider net loss.
Revenue for the fourth quarter totaled approximately $62,000, representing a decrease from the $75,000 generated in the same period of 2023. Despite the revenue decline, QCi achieved a substantial improvement in gross margin, which rose to 55% compared to just 13% in the previous year’s fourth quarter.
The improved margin was primarily attributed to lower costs of goods sold during the 2024 period. This demonstrates the company’s progress in optimizing its production processes as it prepares for larger-scale operations.
Operating expenses for Q4 2024 increased to $8.9 million, up from $6.6 million in the same quarter of 2023. This rise was largely driven by higher non-cash employee-based expenses, including stock-based compensation.
Increased depreciation expenses for production equipment installed at the company’s thin film lithium niobate (TFLN) chip foundry in Tempe, Arizona also contributed to higher operating costs. Despite the quarterly increase, cash used in operations for the full year 2024 actually decreased by $2.1 million compared to 2023.
QCi reported a net loss attributable to common stockholders of $51.2 million, or $(0.47) per basic share for the fourth quarter. This represents a significant increase from the $6.8 million net loss, or $(0.09) per share, reported for the same period in 2023.
The wider loss was primarily due to non-cash charges related to the mark-to-market accounting of the company’s warrant-related derivative liability. This liability stems from QCi’s merger with QPhoton in June 2022 and does not reflect the company’s operational performance.
Strategic Partnerships and Operational Progress
On the operational front, QCi made substantial progress with its strategic NASA partnerships. The company secured its fifth task order with NASA in October, focused on developing quantum remote sensing technology for spaceborne LiDAR missions.
This contract aims to lower the cost of climate-monitoring missions while improving data collection capabilities. In December, QCi announced an additional NASA contract to support phase unwrapping using its Dirac-3 quantum computer as a Photonic Optimization Solver.
These NASA partnerships validate the practical applications of QCi’s quantum technology in complex data processing. They position the company as a key player in bridging the gap between theoretical quantum advancements and real-world deployment.
QCi reached the final stage of commissioning its Quantum Photonic Chip Foundry in Tempe, Arizona. Construction is substantially complete, and the company is now establishing its process design kit (PDK) and beginning to fill customer orders.
During Q4, the company announced two memorandums of understanding with leading industry partners, Spark Photonics Design and Alcyon Photonics. These collaborations expand QCi’s opportunities in the quantum computing and integrated photonics sectors.
As part of its 2024 Pilot Launch Program, QCi secured multiple pre-orders for its TFLN Foundry. After the quarter’s end, the company announced a total of five purchase orders, demonstrating market interest in its quantum photonic solutions.
The Foundry remains on schedule to be operational in the first quarter of 2025, with production expected to begin in early Q2. The company anticipates a gradual ramp-up period as it establishes its processes and begins delivering proof of concept chips to customers.
Financial Position
QCi’s financial position improved dramatically during the fourth quarter. Total assets at December 31, 2024, were $153.6 million, increasing from $74.4 million at the end of 2023.
Cash and cash equivalents increased by $76.9 million to $78.9 million from year-end 2023. This substantial improvement was driven by successful fundraising efforts, with the company raising total net proceeds of $92.1 million through offerings of common stock during the fourth quarter.
Following the quarter’s end, QCi announced an additional offering of common stock for gross proceeds of $100 million. These funds position the company to scale operations and accelerate commercialization efforts for its quantum solutions and foundry services.
Total liabilities at December 31, 2024, were $46.3 million, an increase of approximately $41 million compared to year-end 2023. This increase was primarily driven by the non-cash QPhoton warrant accounting updates mentioned earlier.
As of December 31, 2024, QCi had shareholders’ equity totaling $107.3 million, reflecting the company’s strengthened financial foundation.
In summary, Quantum Computing Inc. enters 2025 with a bolstered balance sheet and clear operational momentum as it prepares to launch its quantum photonic chip foundry and expand commercial applications of its quantum computing technology.
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