Quantum Computing Inc

Quantum Computing Inc. (NASDAQ: QUBT) is a quantum optics and nanophotonic technology company. The Company provides accessible solutions with real-world industrial applications, using nanophotonic-based quantum entropy that can be used anywhere and with little to no training, operates at normal room temperatures, low power and is not burdened with environmental requirements. 

Recent Business and Financial Updates

• Strategic Progress and Key Initiatives: In the past six months, QCi has made significant strides in advancing its strategic objectives. The company's focus remains centered on developing cutting-edge photonics solutions for practical applications. This commitment has been reinforced through the continuous evolution of its business model. A notable achievement includes the establishment of the first U.S.-based fabrication facility dedicated to Thin Film Lithium Niobate (TFLN) processing, scheduled to open in Tempe, Arizona, by the fourth quarter of 2024. Additionally, QCi has successfully developed two high-performance computing platforms and a remote sensing platform designed for LiDAR-based applications.
• Product Launch and Market Campaign: QCi has introduced a new marketing initiative aimed at showcasing the practical advantages of its optical technology to potential customers. This campaign highlights the affordability, compact design, and low energy consumption of QCi's products, particularly emphasizing the Dirac-3 computer's superior price-to-performance ratio. The company's focus on accessibility and affordability is expected to position its products competitively in the market.
• Strengthening Leadership and Governance: To support its new sales strategy, QCi has appointed Richard Nelson as Senior Vice President of Business Development and Pouya Dianet as Director of TFLN Optical Chip Sales. These appointments are designed to enhance the company's market presence and drive growth in the emerging TFLN sector. In addition to leadership changes, QCi has taken steps to ensure the highest standards of financial reporting and investor relations by selecting BPM LLP as its new auditor and engaging IMS Investor Relations as its new advisor.
• Financial Performance in Q1 2024: For the first quarter of 2024, QCi reported revenues of approximately USD 27,000, with a 42% gross margin. The company's revenues were primarily derived from professional services related to its Dirac-series computers and other prototype design services. Operating expenses for the quarter totaled USD 6.4 million, representing an 18% decrease compared to the same period in 2023. This reduction reflects the company's ongoing efforts to streamline operations and reduce costs.
• Expense Management and Loss Reduction: QCi's research and development expenses for the first quarter remained steady at USD 1.4 million, in line with the previous year. However, the company successfully reduced selling, general, and administrative expenses by 25% compared to the first quarter of 2023. As a result, QCi reported a net loss of USD 6.9 million, or USD (0.08) per basic share, which marks an improvement from the net loss of USD 8.5 million, or USD (0.14) per basic share, reported in the same period of the prior year.
• Asset Growth and Balance Sheet Improvements: As of March 31, 2024, QCi's total assets stood at USD 83.1 million, reflecting a USD 4.3 million increase compared to December 31, 2023. Cash and cash equivalents also rose by USD 4 million during this period, reaching USD 6.1 million. The company saw a reduction in total liabilities to USD 3.8 million, a decrease of USD 1.7 million compared to the end of 2023. Additionally, QCi’s stockholders’ equity increased by approximately 8.2%, reaching USD 79.3 million as of March 31, 2024, further strengthening its financial position.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 57.81, currently upward trending, with expectations of a consolidation or an upward momentum if the important resistance of USD0.70 – USD0.80 is broken. Additionally, the stock's current positioning is between both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term support and resistance levels respectively.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH’ rating has been given to Quantum Computing Inc. (NASDAQ: QUBT) at the closing market price of USD 0.70 as of September 17, 2024. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is September 17, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.