Business Context and Reporting Period
Company: Quantum Computing Inc. (QUBT)
Filing Type: Form 8-K (Current Report)
Date of Report: June 6, 2024 (Signed June 11, 2024)
Context: The filing addresses a change in the registrant's certifying accountant and the delayed filing of the Quarterly Report on Form 10-Q for the period ended March 31, 2024. The delay is due to the dismissal of the former auditor, BF Borgers CPA PC, following an SEC order permanently barring them from practice, and the subsequent engagement of a new auditor to re-audit prior years.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The document states that unaudited condensed consolidated interim financial statements for the period ending March 31, 2024, are included as Exhibit 99.1, but the text of the 8-K itself does not summarize these figures. Investors are cautioned not to place undue reliance on this unaudited and unreviewed information.
Material Changes
- Auditor Dismissal: Effective May 3, 2024, the Company dismissed BF Borgers CPA PC as its independent registered public accounting firm.
- SEC Enforcement Action: The SEC settled proceedings against the former auditor and its sole partner, permanently barring them from appearing or practicing before the Commission.
- Reporting Delay: The Company will not file its Form 10-Q for the quarter ended March 31, 2024, on a timely basis. Instead, it is furnishing unaudited financial statements via this 8-K.
- New Auditor Engagement: Effective June 6, 2024, the Audit Committee appointed BPM LLP as the new independent registered public accounting firm.
Guidance, Outlook, and Risks
Outlook and Management Commentary: The Company plans to file its Form 10-Q for the period ended March 31, 2024, as soon as practicable after BPM LLP completes its audit of the consolidated financial statements for the 2023 fiscal year. BPM LLP has been engaged to re-audit the years ended December 31, 2022 and 2023, as well as the current fiscal year ending December 31, 2024.
Risks and Contingencies:
- Unaudited Data Risk: Financial information in Exhibits 99.1 and 99.2 has not been audited or reviewed, and no opinion has been expressed by the auditors regarding this data.
- Regulatory Risk: The permanent bar of the former auditor indicates significant prior compliance or auditing issues.
Investor Verification Checklist
- Review Exhibit 99.1 for the specific unaudited financial figures for the three months ended March 31, 2024.
- Monitor the timeline for the completion of the re-audit by BPM LLP for fiscal years 2022 and 2023.
- Verify the status of the delayed Form 10-Q filing once the new audit is complete.
- Assess the implications of the SEC's permanent bar order against the former auditor on the Company's historical financial reporting integrity.