HOBOKEN, N.J. - Quantum (NASDAQ:QMCO) Computing Inc. (NASDAQ: QUBT), a technology firm specializing in quantum optics and nanophotonics, is confronting potential delisting from the Nasdaq Stock Market. The company has not met the filing deadline for its quarterly financial report, breaching Nasdaq's continued listing standards.
The non-compliance notice, received from Nasdaq, pertains to the company's delay in submitting its Form 10-Q for the quarter ending March 31, 2024. The company has been given until August 23, 2024, to present a plan to regain compliance. If Nasdaq approves this plan, Quantum Computing Inc. may have until December 16, 2024, to file the overdue report and avoid delisting.
Quantum Computing Inc. recently underwent changes in its accounting oversight, dismissing BF Borgers CPA PC as its independent accounting firm on May 3, 2024, following an SEC order against the firm. Subsequently, on June 6, 2024, BPM LLP was appointed as the new independent registered public accounting firm. The company aims to file the pending Form 10-Q promptly after BPM completes the audit of the 2023 fiscal year financial statements.
The company's announcement complies with Nasdaq Listing Rule 5810(b), which mandates immediate public disclosure of such deficiencies.
Quantum Computing Inc. offers quantum machines that operate at room temperature and low power, targeting markets such as high-performance computing, artificial intelligence, cybersecurity, and remote sensing applications.
In other recent news, Quantum Computing Inc. has been making significant strides in its field. The company recently appointed Dr. Javad Shabani, an Associate Professor of Physics at New York University, to its Board of Directors. Dr. Shabani's extensive expertise in quantum computing technologies is expected to bolster the company's efforts in technological advancement and product commercialization.
In another development, Quantum Computing Inc. sold its advanced quantum LiDAR prototype to Johns Hopkins University. The prototype, valued at $200,000, represents a significant step forward in underwater LiDAR technology and is set to be used for testing and evaluation by Johns Hopkins' research and development program.
On the financial front, Ascendiant Capital adjusted its outlook on Quantum Computing Inc., reducing the 12-month price target to $8.25 from the prior $8.75, while maintaining its Buy rating on the company's stock. The revision reflects a balance between the high risks and the potential for significant growth that the company presents.
InvestingPro Insights
Amidst the challenges faced by Quantum Computing Inc. (NASDAQ: QUBT) with potential delisting from the Nasdaq, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, the company's market capitalization stands at a modest $57.97 million, reflecting the scale of its operations within the quantum computing industry. The company's price to earnings (P/E) ratio is currently negative at -1.83, indicating that it has not generated a profit over the last twelve months as of Q1 2024.
While Quantum Computing Inc. has experienced a revenue growth of 17.74% over the last twelve months as of Q1 2024, it's important to note the significant quarterly revenue decline of -77.33% in Q1 2024. This volatility is critical for investors to watch, as it may impact the company's ability to meet financial obligations and sustain growth.
InvestingPro Tips suggest that analysts are optimistic about sales growth in the current year, which could be a silver lining for the company amidst its compliance issues. However, they also highlight that the company is quickly burning through cash and has not been profitable over the past year. With a high revenue valuation multiple and a poor free cash flow yield, the company's stock price has been quite volatile, as evidenced by a six-month price total return of -33.0%.
For investors seeking a deeper analysis of Quantum Computing Inc., there are additional InvestingPro Tips available. These tips provide insights into the company's financial position, including its cash reserves, debt levels, and stock price movements. For a comprehensive understanding of QUBT's financial health and future prospects, interested readers can explore these tips on InvestingPro. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes these valuable insights.
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