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Horizon Quantum Computing Pte. (NASDAQ:HQ) reported a wider second-quarter loss as it increased hiring and incurred a large non-cash accounting charge tied to warrant liabilities, while management highlighted progress in its quantum software platform, hardware testbeds and application-development strategy
The company reported a net loss of $115.2 million, or $2.20 per ordinary share, for the quarter ended June 30, compared with a loss of $2.9 million, or $0.07 per share, a year earlier. The result included a roughly $108 million non-cash loss from the remeasurement of warrant-related derivative liabilities, which rose in value as Horizon Quantum’s share price increased during the quarter. – Russell 2000 Surge Post-Election: How to Play the Small-Cap Pop Chief Financial Officer Greg Gould said the warrant-related accounting charge did not affect cash. He noted that remaining public and private warrants will continue to be remeasured each quarter, meaning movements in the company’s Class A share price could create additional non-cash gains or losses in reported earnings.
Cash balance rises following warrant exercises Horizon Quantum ended the June quarter with $113.3 million in cash and cash equivalents, up $16.7 million from $96.6 million at the end of March. Gould said public warrant exercises during the quarter generated $2.7 million in gross proceeds. As of Aug. 3, holders had exercised approximately 2.5 million public warrants, representing about 79% of public warrants outstanding, generating approximately $28.7 million in gross proceeds to date. – 2 Recession-Resistant Stocks for Tough Market Conditions Chief Executive Officer Joe Fitzsimons said warrant exercises had strengthened the company’s financial runway and would support increased research and development investment.