Q/C TECHNOLOGIES, INC. Annual Report - How They Did This Year

I’m writing this guide to help you understand Q/C Technologies’ performance last year. My goal is to cut through the corporate jargon so you can decide if this company fits your investment goals.

1. The Big Picture

Q/C Technologies is in transition. It balances legacy pharmaceutical assets with a new, experimental "laser-based computing" business. The company reported a $14.2 million loss for 2024, compared to an $11.8 million loss in 2023. Instead of growing through steady sales, the company is restructuring its finances by issuing new preferred stock and warrants. Think of this like a homeowner who takes out complex new loans to pay off old ones and cover daily living costs.

2. The Numbers: A Year of Constant Fundraising

The company’s main activity is raising cash to cover a monthly burn rate of about $1.1 million.

• The Strategy: Throughout 2024 and early 2025, the company raised $8.5 million through "Securities Purchase Agreements." They traded future ownership for immediate cash to fund research and daily expenses.
• The "Warrant" Factor: They are issuing "warrants," which are coupons allowing investors to buy more stock later at set prices. This leads to more shares being issued, which reduces your ownership percentage. The number of shares outstanding grew by 22% last year, meaning your slice of the company is getting smaller.

3. What Are They Actually Doing?

The company is pivoting toward a laser-based computing system called the qc-LPU100. They are partnering with LightSolver and have committed $2.5 million to reach development goals. Meanwhile, they still hold older pharmaceutical projects, which generated less than $150,000 in total revenue last year.

The reality is that they are still in the research phase, which used 65% of their budget. This leaves little room to scale up their business.

4. The Risks: What Could Go Wrong?

As an investor, you should watch for these hurdles:

• Dilution: Because they keep issuing stock to raise money, your ownership stake is constantly being watered down. They have used 85% of their authorized shares, so they may need shareholder approval to issue more.
• Lack of Profit: The company is not profitable and has a $125 million deficit. They rely entirely on finding new investors to survive. Current cash will likely run out by the third quarter of 2025.
• Execution Risk: They are betting on unproven technology. If the qc-LPU100 doesn't catch on, or if they cannot manufacture it profitably—costs currently exceed sales prices by 40%—they have little to fall back on.
• Nasdaq Listing: They must maintain a $1.00 minimum share price to stay on the Nasdaq. They have received warnings and are using an extension to regain compliance. If they fail, they face being moved to the OTC markets.

5. The Bottom Line

Q/C Technologies is a high-risk bet. They spend more energy managing their debt and stock structure than growing sales. With revenue under $200,000 and expenses over $14 million, they are burning cash rather than generating it.

Decision Checklist:

• Are you comfortable with dilution? If the company continues to issue shares to fund operations, your percentage of ownership will likely continue to shrink.
• Is the technology proven? The company is currently in the research phase; consider whether you are willing to wait for a product that has not yet generated significant commercial sales.
• Can they survive the year? With cash reserves projected to run low by Q3 2025, the company will need to secure additional funding or significantly increase revenue to remain operational.