In another pairing between hardware and software companies, Quantum Computing Inc. (QCI) has reached an agreement to acquire quantum photonic startup QPhoton. QPhoton is a spinout of research by Dr. Yuping Huang from the Stevens Institute of Technology and will operate as a subsidiary of QCI. The two companies had previously announced a partnership in February to jointly sell and market quantum and phonic products and had indicated at that time that an acquisition may occur.

The acquisition will be paid for by a mixture of common stock, preferred stock, and warrants and will represent in total approximately 49% of the total capital stock of QCI outstanding immediately following the closing. QPhoton is developing a series of quantum photonic systems (QPS) that run at room temperature and targetted for AI and optimization applications. It will be paired with QCI’s Qatalyst™ software to provide a complete hardware/software solution for optimization. Qatalyst will still also continue to support other processor platforms D-Wave, IonQ, Oxford Quantum Circuits, and Rigetti, among others.

In a separate development, QCI also released its financial results for the first quarter of 2022. They achieved revenue of $31 thousand with a loss from operations of $6. 7 million. For more about QCI’s acquisition and their first quarter earnings release you can view a press release announcing the acquisition here, an SEC filing for the acquisition here, and another SEC filing with the first quarter results here.

May 25, 2022