Q3 2024 Quantum Computing Inc Earnings Call
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Operator: Ladies and gentlemen, greetings and welcome to the Quantum Computing Inc. Q3 2024 Shareholder Update Call. Following management's remarks, the call lines will be open for questions. It is now my pleasure to introduce your host, Rosalyn Christian, with IMS Investor Relations.
Speaker Change: Ladies and gentlemen, greetings and welcome to the Quantum Computing in 3rd Quarter 2024 Shareholder Update Call.
Rosalyn Christian: Thank you. I want to welcome everyone to the Quantum Computing Inc. Shareholder Update Call. Before we begin, I'd like to remind everyone that this conference call may contain forward-looking statements based on our current expectations and projections regarding future events, and are subject to change based on various important factors. In light of these risks, uncertainties, and assumptions, you should not place undue reliance on these forward-looking statements, which speak only as of the date of this call. For more details on factors that could affect these expectations, please see our filings with the Securities and Exchange Commission. On the call today, we have Dr. William McGann, CEO of QCI, and Chris Boehmler, CFO. Bill will provide an update on business, followed by a question and answer session hosted by both Bill and Chris. With that, I would like to turn the call over to management.
Speaker Change: Thank you, and I want to welcome everyone to the Quantum Computing Inc. Shareholder Update Cool. Before we begin, I'd like to remind everyone that this conference cool may contain forward-looking statements based on our current expectations and projections regarding future events, and a subject to change based on various important factors.
Speaker Change: In light of these risks, uncertainties and assumptions, you should not place undue reliance on these boards of containment, which speak only as of the date of this call. The more details on factors that could affect these expectations, CCR filings of the Securities Next Change Commission.
Speaker Change: On the call today we have Dr. William again CEO of QCI and Chris Bemler, CFO. Bill will provide an update on business followed by a question and answer session hosted by both Bill and Chris.
Speaker Change: With that, I would like to turn the call over to management. Please go ahead, Bill.
Rosalyn Christian: Please go ahead, Bill.
William McGann: Thank you, Rosalyn, thank you everyone for joining our call today. This is going to be the first of what I hope and expect will be many quarterly investor calls to come as we continue to grow our business and communicate our strategies to the world. I'm personally really excited to take the opportunity to discuss the strategic progress we've made today with you. Before we get into the specific operational details of those achievements, I wanted to address some of the broader context under which QCI is operating. To start with, I always start by saying, look, we're a nanophotonics company that leverages novel materials and their associated nonlinear quantum optical properties to design, develop, and deliver innovative hardware solutions for high-performance computing, AI machine learning, and applications in remote sensing.
Bill: Thank you, Roslin, and thank you everyone for joining our call today. So this is going to be the first of what I hope and expect will be many, quarterly, investor calls to commas. We continue to grow our business and communicate our strategies to the world.
Bill: And I'm personally really excited to take the opportunity to discuss the strategic progress we've made today with you.
Speaker Change: Before we get into the specific operational details of those achievements, I wanted to address some of the broader context under which QCI is operating. So, to start with, you know, I always start by saying, look, we're a nanophotonics company that leverages novel materials and their associated nonlinear quantum optical properties.
Speaker Change: to design, develop, and deliver innovative hardware solutions for high-performance computing, AI machine learning, and applications in remote sensing.
William McGann: We capsulize all that, because that's a lot, by saying we put photons to work because this singular core technology focus gives us the ability to address multiple revenue streams as those markets begin to emerge. Based on this approach, we believe we're very well-positioned to capitalize on what we call our early mover advantage in emerging markets and rapidly growing ones. The increase in global focus on sustainable energy solutions, coupled to the push for advanced technology innovation in sectors such as automotive, finance, and healthcare, really starts to underscore the timely relevance of our offerings and showcases and the powerful diversity of our core technology, which I'm going to talk to you about today.
Speaker Change: We capsulize all that, because that's a lot, by saying we put photons to work.
Speaker Change: because this singular core technology focus.
Speaker Change: gives us the ability to address multiple revenue streams as those markets begin to emerge.
Speaker Change: And based on this approach, we believe we're very well positioned to capitalize on what we call our early flexible, early mover advantage in emerging markets and rapidly growing ones.
Speaker Change: The increasing global focus on sustainable energy solutions coupled to the push for advanced technology innovation in sectors such as automotive, finance, and healthcare really starts to underscore the timely relevance of our offerings and showcases and the powerful diversity of our core technology, which I'm going to talk to you about today.
William McGann: Additional to that, as you might imagine, there are also political drivers, including governmental support for quantum technology and initiatives aimed at fostering innovation that are really creating quite a favorable environment for us right now. Our goal here is to establish what I call a best-in-class sustainable use case strategy for energy management, automotive applications, and for the important financial portfolio optimization. These align very well with the trends of our business and allow for a focused commitment for us to deliver high-margin revenue streams from our quantum machines and our US-based foundry services, which I'm going to talk to you about today. I want to provide a thumbnail of a couple of these really important areas to focus that we're addressing the critical challenges of energy consumption and AI, and powerful quantum machines for solving complex optimization problems.
Speaker Change: So additional to that, as you might imagine, there are also political drivers, including governmental support for quantum technology and initiatives aimed at fostering innovation.
Speaker Change: that are really creating quite a favorable environment for us right now.
Speaker Change: And our goal here is to establish what I call a best-in-class sustainable use case.
Speaker Change: strategy for energy management and automotive applications and for the important portfolio financial portfolio optimization
Speaker Change: These align very well with the trends of our business and allow us for a focused commitment for us to deliver high margin revenue streams from our quantum machines and our US-based foundry services which we're going to talk to you about today.
Speaker Change: So I want to provide a thumbnail of a couple of these really important areas to focus that we're addressing the critical challenges of energy consumption in AI and powerful quantum machines for solving complex optimization problems.
William McGann: Our product development roadmap and growth model will be sustained by leveraging one common core technology to capture multiple revenue streams in these complementary markets, all of which will benefit from the next generation of our photonic high-performance computation. It ties really well with our roadmap here. The underlying technology element that enables this approach is our model for nano-fabrication of QCI photonic chips using thin film lithium niobate, or TFLN. We call it TIFLIN for short because it's really hard to say thin film lithium niobate three times fast in a sentence. This TIFLIN material is the source material that QCI uses for developing its quantum high-performance computing machines. Importantly, TIFLIN is also becoming recognized as one of the most promising new materials for implementation of extremely low power consumption devices for the really widely expanding and rapidly growing telecom and data center application.
Speaker Change: Our product development roadmap and growth model will be sustained by leveraging one common core technology.
Speaker Change: to capture multiple revenue streams in these complementary markets, all of which will benefit from the next generation of our photonic high-performance computation. So it ties really well with our roadmap here.
Speaker Change: The underlying technology element that enables this approach is our model for nanofabrication of QCI photonic chips using thin film lithium niobate or TFLN. We call it TFLN for short because it's really hard to say thin film lithium niobate three times fast in a sentence.
Speaker Change: But this Tiflin material is the source material that QCI uses for developing its quantum high-performance computing machines
Speaker Change: And importantly, Tiflin is also becoming recognized as one of the most promising new materials for implementation of extremely low power consumption devices for the really widely expanding and rapidly growing telecom and data center application.
William McGann: Recently at a conference where we attended, one of the head spokespeople for NVIDIA, for example, stood up and said that thin film lithium niobate is one of the most being looked at for its promise in these applications. We think, again, it aligns with our strategy very well. In the near term, we're going to leverage the growing demand for TFLN devices in the market to drive early significant revenues for foundry services, while we will in parallel keep on developing along the same path of our own quantum computing machine platform.
Speaker Change: I mean, recently at a conference where we attended, one of the head spokespeople for NVIDIA, for example, stood up and said that lithium niobate is one of the most being looked at for its promise in these applications. So we think, again, it aligns with our strategy very well. So in the near term.
Speaker Change: We're going to leverage the growing demand for Tiflum devices in the market to drive early significant revenues for Foundry services While we will in parallel keep on developing along the same path of our own quantum computing machine platform
William McGann: The punchline is really this: we believe it is the best approach for us achieving scalable quantum machines, and the immediate result of this approach will be to leverage the early cash flow that we generate from the foundry services in Arizona and the large growing market that it will command to drive the high-performance quantum machine adoption in the markets where the development is still emerging and a little bit more technology maturing is needed. Ultimately, this approach back and forth, leveraging the technology in the markets, will produce miniaturized photonic integrated circuits. They're called PICs, is a term of art, and our TFLN chips will become the integral part of that scalable photonic quantum machine that will meet the extreme performance demands in these markets, as you all are following, I'm sure you know that.
Speaker Change: So the punchline is really this. We believe it is best approach for us achieving scalable quantum machines and the immediate result of this approach will be to leverage the early cash flow
Speaker Change: that we generate from the foundry services in Arizona.
Speaker Change: in the large growing market that it will command to drive the high performance machine, quantum machine adoption in the markets where the development is still emerging and a little bit more technology maturing is needed.
Speaker Change: So ultimately this approach back and forth
Speaker Change: leveraging the technology in the markets will produce miniaturized photonic integrated circuits. They're called PICs as a term of art.
Speaker Change: And our TFLN chips will become the internal integral part of that scalable photonic quantum machine that will meet the extreme performance demands in these markets, as you all are following. I'm sure you know that.
William McGann: One really important benefit that's immediately available for our growth in market share is that our systems operate at room temperature, and they are mountable in a rack in an ordinary server room configuration. Our current Dirac-3 machine is already in these configurations, showing great advantages in solving important computational benchmark problems and operating with exceedingly low powers in the range of 25W or the equivalent of 2 LED light bulbs. I mean, it's impressive what these machines can do with such low levels of power. Today, I'm confident to state that the Dirac-3 offers the best size, weight, power, and cost of any high-performance computer in the world today. Size, weight, power, and cost we refer to as SWAP-C. This fact enables us to provide these powerful machines at a very low cost.
Speaker Change: One really important benefit that's immediately available for our growth in market share is that our systems operate at room temperature and they are mountable in a rack in an ordinary server room configuration.
Speaker Change: Our Card Direct 3 machine is already in these configurations showing great advantages in solving important computational benchmark problems and operating with exceedingly low powers in the range of 25 watts or the equivalent of two LED light bulbs. I mean, it's impressive what these machines can do with such low levels of power.
Speaker Change: Today,
Speaker Change: I'm confident to state that the Direct3 offers the best size, weight, power, and cost of any high-performance computer in the world today. Size, weight, power, and cost we refer to as Swamp C.
Speaker Change: This fact enables us to provide these powerful machines that are very low cost, and it makes our accessible, affordable strategy that some of you may have heard us talk about be a reality versus an idea.
William McGann: It makes our accessible, affordable strategy that some of you may have heard us talk about be a reality versus an idea. Now let me highlight a few of the specific operational achievements for Q3 during the third quarter. First, I want to go back and discuss our specific progress with the thin film lithium niobate or TFLN foundry in Tempe, Arizona. We are in the final phase of commissioning the facility, and we remain on track to begin the production early in 2025. We've already begun finalizing offtake agreements and some pre-sales orders with new customers and strategic partners, and you've probably seen that in some of our recent press releases.
Speaker Change: So, now let me highlight a few of the specific operational achievements for Q3 during the third quarter. So, let me highlight a few of the specific operational achievements for Q3 during the
Speaker Change: So first I want to go back and discuss our specific progress with the thin-film lithium niobate or Tiflin foundry in Tempe, Arizona
Speaker Change: We are in the final phase of commissioning the facility, and we remain on track to begin the production early in 2025. And we've already begun finalizing offtake agreements and some pre-sales orders with new customers and strategic partners. You've probably seen that in some of our recent press releases.
William McGann: This foundry is a really significant step in scaling our manufacturing capabilities and expanding our reach into these new markets, as I've described above. This is a tangible result of our efforts to improve the execution of our sales and marketing strategy. Another really key element this quarter is that we extended our cooperative research and development agreement or CRADA with the Los Alamos National Laboratory, LANL. This renewed collaboration allows us to further explore the capabilities of our new Dirac-3 machine for quantum optimization problems. The extended agreement facilitates the development of advanced quantum solutions across other important sectors, including energy management, molecular dynamics, and even some really fascinating quantum chemistry problems important to the world.
Speaker Change: This foundry is a really significant step in scaling our manufacturing capabilities and expanding our reach into these new markets, as I've described above. And this is a tangible result of our efforts to improve the execution of our sales and marketing strategy.
Speaker Change: Another really key element this quarter is that we extended our Cooperative Research and Development Agreement or CRADA with the Los Alamos National Laboratory, LANL.
Speaker Change: This renewed collaboration allows us to further explore the capabilities of our new DRAC3 machine for quantum optimization problems, and the extended agreement facilitates the development of advanced quantum solutions across other important sectors, including energy management, molecular dynamics, and even some really fascinating quantum chemistry problems important to the world.
William McGann: Additionally, we're really trying to leverage these technology advancements with market opportunity through our presence in the key industry events, including things like Quantum World Congress in 2024 and Quantum.Tech Europe, which we've been giving paper presentations at. This has been very instrumental in raising our awareness about the capabilities of our Dirac-3 platform. These engagements have really elevated our profile among government and commercial stakeholders and really sparking interest in potential partnerships that we anticipate will continue to further enhance and grow our position. In parallel, all these efforts working together, we continue to develop that underlying Entropy Quantum Computing solution, our Dirac-3. It is gaining traction demonstrated through solving these benchmark problems. We're working with people like the Los Alamos National Laboratory, as I mentioned, Oak Ridge National Laboratory, and Lawrence Berkeley National Laboratory.
Speaker Change: So, additionally...
Speaker Change: You know, we're really trying to leverage these technology advancements with market opportunity through our presence in the key industry events, including things like Quantum World Congress in 24.
Speaker Change: and the Quantum Tech Europe, which we've been giving paper presentations at. And this has been very instrumental in raising our awareness about the capabilities of our Direct3 platform.
Speaker Change: These engagements have really elevated our profile among government and commercial stakeholders and really sparking interest in potential partnerships that we anticipate will continue to further enhance and grow our position.
Speaker Change: So, in parallel, all these efforts working together, we continue to develop that underlying entropy quantum computing solution, our DIRAC-3.
Speaker Change: And it is gaining traction demonstrated through solving these benchmark problems, and we're working with people like the Los Alamos National Labs, as I mentioned, Oak Ridge National Labs, and Berkeley National Labs, Lawrence Berkeley. And these studies underscore our platform's efficiency in tackling these challenges.
William McGann: These studies underscore our platform's efficiency in tackling these challenges. Lastly, and I'll probably stop at that point, is I'd like happy to announce that in this quarter, we secured our fifth project with NASA. This exciting new contract continues our focus on developing quantum technology for spaceborne LIDAR missions, light detection and ranging applications. These are specifically aimed at lowering the cost associated with spaceborne LIDAR from $ billions per flight to $ millions and focused on gathering climate monitoring data and enhancing the data collection capabilities. This contract further really solidifies that partnership that we've had ongoing with NASA, and it reflects our commitment to them and them to us on leveraging our technology for real-world applications.
Speaker Change: So, lastly, and I'll probably stop at that point, is I'm happy to announce that the subsequent, in this quarter, we secured our fifth project with NASA.
Speaker Change: And this exciting new contract continues our focus on developing quantum technology for space-borne LIDAR missions, light detection and ranging applications.
Speaker Change: focused on gathering climate monitoring data and enhancing the data collection capabilities. This contract further, you know, really solidifies that partnership that we've had ongoing with NASA and it reflects our commitment to them and them to us on leveraging our technology for real-world applications.
William McGann: I look forward to questions and answers, but for now, I'm going to pass over to Chris, my CFO, Chris Boehmler, for a quick look at our financial performance. Over to you, Chris.
Speaker Change: So I look forward to questions and answers, but for now I'm going to pass over to Chris, my CFO, Chris Bemler, for a quick look at our financial performance. Over to you, Chris.
Chris Boehmler: Great. Thank you, Bill. I will now take a few minutes to provide a brief overview of our financial performance for Q3 2024. There are really two key themes I want to highlight. One, that our results this quarter reflect our continued focus on cost containment, while two, importantly, continuing to strategically invest in capital improvements and research and development to support our long-term growth objectives, like the foundry TIFLIN facility that Bill touched on. Specifically, as we look at the financial results, Q3 2024 revenues totaled approximately $101,000 compared to $50,000 generated in Q3 2023. The increase in revenues was due to increased contractual sales, primarily from our contract with Johns Hopkins University to deliver an underwater quantum LIDAR prototype. Gross margins, however, decreased to 9% this quarter, compared to 52% in the 2023 quarter.
Chris Bemler: Great. Thank you, Bill.
Chris Bemler: I will now take a few minutes to provide a brief overview of our financial performance for the third quarter 2024. There are really two key themes I want to highlight. One, that our results this quarter reflect our continued focus on cost containment.
Speaker Change: while two, importantly, continuing to strategically invest in capital improvements and research and development to support our long-term growth objectives, like the Boundary Tifflin facility that Bill touched on.
Speaker Change: Specifically, as we look at the financial results, 3rd quarter 2024 revenues totaled approximately $101,000 compared to $50,000 generated in the 3rd quarter 2023.
Speaker Change: The increase in revenues was due to increased contractual sales, primarily from our contract with Johns Hopkins University to deliver an underwater quantum lidar prototype.
Speaker Change: Gross margins, however, decreased to 9% this quarter, compared to 52% in the 2023 quarter.
Chris Boehmler: The decrease in gross margins was primarily the result of the Johns Hopkins project, which has lower margins than our NASA LIDAR work due to its cost of revenues being comprised of a significant amount of direct component costs in addition to direct labor expenses incurred in the customized Johns Hopkins design and build contract. Turning to operating expenses, Q3 2024 totaled $5.4 million compared to the prior year Q3 operating expenses of $6.6 million. The 18% period-over-period decrease is primarily driven by our cost containment efforts and focus on reducing selling, general, and administrative expenses, specifically management's actions to reduce employee, consultant, and legal costs.
Speaker Change: The decrease in gross margins was primarily the result of the Johns Hopkins project.
Speaker Change: which has lower margins than our NASA LiDAR work due to its cost of revenues being comprised of a significant amount of direct component costs.
Speaker Change: in addition to direct labor expenses incurred in the customized Johns Hopkins design and build contract.
Speaker Change: Turning to operating expenses, third quarter 2024 totaled $5.4 million compared to the prior year third quarter operating expenses of $6.6 million.
Speaker Change: The 18% period-over-period decrease is primarily driven by our cost containment efforts.
Speaker Change: and focus on reducing selling, general and administrative expenses, specifically
Speaker Change: management's actions to reduce employee consultant and legal costs.
Chris Boehmler: Further, our investment in research and development of $2.2 million in the quarter was in line with the $2.3 million recognized in Q3 2023, which reflects our focus on innovation and continues to play a key role in driving future growth, particularly within our high-performance computing platforms. The company reported a net loss attributable to the common stockholders of $5.7 million or $0.06 per basic share for Q3 2024, compared to a net loss available to common shareholders of $7.1 million or $0.10 per basic share for the same period of the previous year. Total assets at 30 September 2024 were $76.8 million, which was up $2.4 million from the $74.4 million reported at 31 December 2023. Cash and cash equivalents at 30 September 2024 increased $1 million from year-end 2023 to approximately $3.1 million.
Speaker Change: Further, our investment in research and development of $2.2 million in the quarter was in line with the $2.3 million recognized in the 2023 quarter, which reflects our focus on innovation
Speaker Change: and continues to play a key role in driving future growth, particularly within our high-performance computing platforms.
Speaker Change: The company reported a net loss attributable to common stockholders of $5.7 million, or $0.06 per basic share, for the third quarter of 2024, compared to a net loss available to common shareholders
Speaker Change: of $7.1 million, or $0.10 per basic share for the same period of the previous year.
Speaker Change: Total assets at September 30, 2024 were $76.8 million, which was up $2.4 million from the $74.4 million reported at December 31, 2023.
Speaker Change: Cash and cash equivalents at September 30th, 2024 increased $1 million from a year in 2023 to approximately $3.1 million.
Chris Boehmler: In Q3, the company had raised net proceeds of $7 million in a secured convertible debt financing. I'm also very pleased to report that subsequent to the end of Q3, we've been able to raise in excess of $4.5 million through our ATM facility. These capital raises demonstrate our commitment to balancing our cost of capital while ensuring we have the necessary resources to execute our strategic plan. Total liabilities at 30 September 2024 were $10.9 million, an increase of approximately $5.3 million compared to year-end 2023, driven primarily by the convertible debt financing I mentioned previously. As of 30 September 2024, the company had stockholders' equity totaling $60.4 million. Looking ahead, our strategy centers on driving revenue and ultimately achieving intermediate-term cash flow from our Arizona TFLN foundry facility.
Speaker Change: In the third quarter, the company had raised net proceeds of $7 million in the secured convertible debt financing.
Speaker Change: Further, I'm also very pleased to report that subsequent to the end of the third quarter, we've been able to raise in excess of $4.5 million through our ATM facility at the market facility.
Speaker Change: Total liabilities of September 30th, 2024 were $10.9 million, an increase of approximately $5.3 million compared to year-end 2023, driven primarily by the convertible debt financing I mentioned previously.
Speaker Change: As of September 30th, 2024, the company had stockholders' equity totaling $60.4 million.
Speaker Change: Looking ahead, our strategy centers on driving revenue and ultimately achieving intermediate-term cash flow from our Arizona Tifflin Foundry facility.
Chris Boehmler: We believe that over time, the TIFLIN facility can serve as a source of stable, non-dilutive cash flow while market demand for quantum computing catches up to our quantum computing manufacturing capabilities. I will now turn it back over to Bill for some closing remarks.
Speaker Change: We believe that over time, the Tiflin facility can serve as a source of stable, non-dilutive cash flow while market demand for quantum computing catches up to our quantum computing manufacturing capabilities.
Speaker Change: I will now turn it back over to Bill for some closing remarks.
William McGann: Thanks very much, Chris, thank you all again for joining us today. In closing, look, our operational advancements this quarter really underscore our dedication to delivering accessible, affordable, and scalable quantum solutions through our hardware. I'm very confident in our team's ability to execute on our strategic vision and continued focus and passion to really make this company grow. I look forward to the many opportunities that lie ahead with all of us. Now I'd like to turn the call over to Q&A to the operator. Thank you.
Bill Tifflin: Thanks very much, Chris. And thank you all again for joining us today. And in closing, look, our operational advancements this quarter really underscore our dedication to delivering accessible, affordable, and scalable quantum solutions.
Bill Tifflin: focus and passion to really make this company grow. And I look forward to the many opportunities that lie ahead with all of us. And now I'd like to turn the call over to Q&A to the operator. Thank you.
Operator: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star one if you wish to ask a question at this time. One moment, please, while we poll for questions. Once again, that's star one if you wish to ask a question on today's call. The first question today is coming from Edward Woo from Ascendiant Capital Markets. Ed, your line is live.
Speaker Change: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad.
Speaker Change: A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star 1 if you wish to ask a question at this time. One moment, please, while we poll for questions.
Speaker Change: Once again that's star one if you wish to ask a question on today's call. The first question today is coming from Ed Wu from Ascendian Capital. Ed your line is live.
Edward Woo: Yeah, congratulations on the progress. My question is, in terms of getting more of these contract grant revenues, do you anticipate getting a lot more over the next year?
Ed Wu: Yeah. Congratulations on the progress. My question is, you know, in terms of getting more of these contract grant revenues, do you anticipate getting a lot more over the next year?
William McGann: Thank you for that. Yes. In fact, some of the additional strategic initiatives we've taken on in the past 6 months has been to bolster our R&D proposal writing capability. We have a dedicated proposal contract writer for us, another PhD physicist who's very capable and successful at submitting grants and contracts for whether it's SBIR or other government agencies. We have a very active program with a very robust opportunity pipeline. Yes, you will definitely expect to see more external funding. Having done this for many years, it's a double-edged sword, and I always like to focus the external funding initiatives we put our effort into to make sure that they align with our roadmap, as opposed to just funding for the sake of funding, right? We have a very good process for doing that, and we're very sensitive about that.
Speaker Change: Thank you for that, and yes, in fact, some of the additional strategic
Speaker Change: initiatives we've taken on in the past six months has been to bolster our R&D proposal writing capability. So we have a dedicated
Speaker Change: a proposal contract writer for us, another Ph.D. physicist who's very capable and successful at submitting grants and contracts for whether it's SBIR or other government agencies, and we have a very active program with...
Speaker Change: very robust opportunity pipeline. So yes, you will definitely.
Speaker Change: Expect to see more external funding.
Speaker Change: But, you know, I haven't done this for many years, it's a double-edged sword, and I always like to...
Speaker Change: focus the external funding initiatives we put our effort into to make sure that they align with our roadmap, as opposed to just funding for the sake of funding, right? But we have a very good process for doing that, and we're very sensitive about that. So you'll see more focus on our remote sensing applications.
William McGann: You'll see more focus on our remote sensing applications, and we're working really hard with some of the new, recently announced notice of offering of funding from some of the national laboratories and government agencies for quantum frontiers and new innovative technologies. We're right in the thick of that as we speak. Thank you for that question.
Speaker Change: And we're working really hard with some of the new recently announced notice of offering of funding from some of the national laboratories and government agencies for quantum frontiers and new innovative technologies. So we're right in the thick of that as we speak.
Edward Woo: Great. My last question, have you guys given a timeline for when your foundry in Tempe will be operational?
Speaker Change: Thank you for that question. Great. My last question, have you guys given a timeline for when your foundry and Tempe will be operational?
William McGann: Yeah, we do have one. As I said in the comments, we will complete the construction phase of the fab the end of this year, and we're going to then commission it starting in January. We'll be open for business in Q1. In fact, we will be announcing sort of a grand opening and inviting select people for that event and be inviting any of our shareholders if they'd like to come and visit us. Very exciting.
Speaker Change: Yeah, we do have one. We will be.
Speaker Change: As I said in the comments, we will complete the construction phase of the fab at the end of this year, and we're going to then commission it starting in January.
Speaker Change: and we'll be open for business in the first quarter. In fact, we will be announcing sort of a grand opening and inviting select people for that event and be inviting any of our shareholders if they'd like to come and visit us.
Speaker Change: Very exciting.
Edward Woo: Great. Well, thank you for answering my question.
Speaker Change: Great, well thank you for answering my question. I wish you good luck. Thank you.
William McGann: Thank you.
Edward Woo: I wish you good luck. Thank you.
William McGann: My pleasure.
Speaker Change: My pleasure
Operator: Thank you. Once again, it will be star one if there were any other questions at this time. There were no other questions from the lines at this time. I would now like to hand the call back to Bill McGann for closing remarks.
Speaker Change: And there were no other questions from the lines at this time. I would now like to hand the call back to Bill McGann. Closing remarks.
William McGann: Thank you. Thank you all for taking the time to join our call today. There's a lot going on. We're a very focused and passionate team, and we really look forward to doing this on a more regular basis with all of our investors. Please check out the content on our website. We really have done a complete makeover there, and it gives you a lot of information about what we do at various levels, from high level to very detailed mission and the science that we're doing behind underlying Entropy Quantum Computing. I invite you all to please talk to us through our website and check us out, and we look forward to hearing from you again more in the future. Thank you.
Bill McGann: Thank you, and thank you all for taking the time to join our call today. There's a lot going on. We're a very focused and passionate team, and we really look forward to doing this on a more regular basis with all of our investors.
Speaker Change: And please.
Speaker Change: Check out the content on our website. We really have done a complete makeover there.
Speaker Change: It gives you a lot of information about what we do at various levels, from high-level to very detailed, you know, mission and the science that we're doing behind our underlying entropy quantum computing. So I invite you all to please talk to us, to our website, and check us out. And we look forward to hearing from you again more in the future.
Operator: Thank you. This does conclude today's conference. You may disconnect your lines at this time. Have a wonderful day. Thank you for your participation.
Speaker Change: Thank you.