Quantum-Si Inc
For the period ended Sep 30, 2024. Filed Nov 12, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 12, 2024
QSI$1.33+13.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0001628280-24-035626
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0001816431-24-000020
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 65 previous paragraphs and 69 current paragraphs.
34 unchanged; 25 reworded; 9 added; 6 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 9 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Cost of revenue increased$0.3 million, or 265.2%, and $0.5 million, or 135.5%for thethree and nine months ended September 30, 2024, respectively, as compared to the same periods in 2023.
Current report
Unrealized Gain on Trading Securities
Current report
Unrealized gain on trading securities for thethree and nine months ended September 30, 2024 and 2023 is as follows (dollars in thousands):
Current report
Realized Loss on Trading Securities
Current report
Realized loss on trading securities for thethree and nine months ended September 30, 2024 and 2023 is as follows (dollars in thousands):
Current report
Other Income (Expense), Net
Current report
Other income (expense), net, for thethree and nine months ended September 30, 2024 and 2023 is as follows (dollars in thousands):
Current report
The net cash used in operating activities of $64.9 million for thenine months ended September 30, 2024 was primarily due to a net loss of $67.9 million resulting from continued spend on research and development and commercialization efforts, accretion on marketable securities of $6.5 million and changes in operating assets and liabilities of $3.9 million, partially offset by stock-based compensation of $6.5 million, depreciation and amortization of $3.6 million and write-downs of inventory of $2.4 million.
Current report
The net cash used in operating activities of $73.1 million for thenine months ended September 30, 2023 was primarily due to a net loss of $73.9 million resulting from continued spend on research and development efforts and commercialization ramp up, net cash outflows from changes in operating assets and liabilities of $8.5 million and unrealized gains on marketable securities of $8.3 million, partially offset by stock-based compensation of $6.9 million, realized losses on marketable securities of $6.5 million and depreciation and amortization of $3.1 million.
Removed paragraphs (6)
Previous report
Cost of revenue increased$0.1 million, or 111.0%, and $0.2 million, or 77.4%for thethree and six months ended June 30, 2024, respectively, as compared to the same periods in 2023.
Previous report
(Loss) Gain on Marketable Securities, Net
Previous report
(Loss) gain on marketable securities, net, for thethree and six months ended June 30, 2024 and 2023 is as follows (dollars in thousands):
Previous report
Other (Expense) Income, Net
Previous report
Other (expense) income, net, for thethree and six months ended June 30, 2024 and 2023 is as follows (dollars in thousands):
Previous report
The net cash used in operating activities during thesix months ended June 30, 2024 was $41.8 million compared to $51.6 million for the same period in 2023. This $9.8 million decrease in cash used was primarily driven by our operating results which resulted in a $4.4 million decrease in net cash used year-over-year as well as a decrease of $5.4 million in net cash used resulting from changes in operating assets and liabilities. Timing of cash receipts and cash payments in the ordinary course of business caused operating cash flow to fluctuate from period to period.
Reworded paragraphs (25)
Previous wording
The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of our condensed consolidated results of operations and financial condition. The discussion should be read in conjunction with (i) the unaudited Condensed Consolidated Financial Statements and notes thereto contained in this Quarterly Report on Form 10-Q, (ii) the Consolidated Financial Statements and notes thereto for the year ended December 31, 2023 contained in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on February 29, 2024, and (iii) our other public reports filed with the SEC. This discussion contains forward looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. Actual results may differ materially from those contained in any forward-looking statements. Unless the context otherwise requires, references to “we”, “us”, “our”, the “Company” or “Quantum-Si” are intended to mean the business and operations of Quantum-Si Incorporated and its consolidated subsidiaries. The unaudited Condensed Consolidated Financial Statements for the three and six months ended June 30, 2024 and 2023, respectively, present the financial position and results of operations of Quantum-Si Incorporated and its consolidated subsidiaries.
Current wording
The following discussion and analysis provides information which management believes is relevant to an assessment and understanding of our condensed consolidated results of operations and financial condition. The discussion should be read in conjunction with (i) the unaudited Condensed Consolidated Financial Statements and notes thereto contained in this Quarterly Report on Form 10-Q, (ii) the Consolidated Financial Statements and notes thereto for the year ended December 31, 2023 contained in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on February 29, 2024, and (iii) our other public reports filed with the SEC. This discussion contains forward looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and this Quarterly Report on Form 10-Q. Actual results may differ materially from those contained in any forward-looking statements. Unless the context otherwise requires, references to “we”, “us”, “our”, the “Company” or “Quantum-Si” are intended to mean the business and operations of Quantum-Si Incorporated and its consolidated subsidiaries. The unaudited Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2024 and 2023 present the financial position and results of operations of Quantum-Si Incorporated and its consolidated subsidiaries.
Previous wording
Results of Operations for the Three and Six Months Ended June 30, 2024 as Compared to the Three and Six Months Ended June 30, 2023
Current wording
Results of Operations for the Three and Nine Months Ended September 30, 2024 as Compared to the Three and Nine Months Ended September 30, 2023
Previous wording
The following table presents the Condensed Consolidated Statements of Operations and Comprehensive Loss for thethree and six months ended June 30, 2024 and 2023 (dollars in thousands):
Current wording
The following table presents the Condensed Consolidated Statements of Operations and Comprehensive Loss for thethree and nine months ended September 30, 2024 and 2023 (dollars in thousands):
Previous wording
Revenue, Cost of revenue and Gross profit for thethree and six months ended June 30, 2024 and 2023 are as follows (dollars in thousands):
Current wording
Revenue, Cost of revenue and Gross profit for thethree and nine months ended September 30, 2024 and 2023 are as follows (dollars in thousands):
Previous wording
Total revenue for the sale of Platinum® instruments, related reagent kits and service maintenance contracts increased$0.4 million, or 203.4%, and$0.6 million, or 135.1%, for thethree and six months ended June 30, 2024, respectively, as compared to the same periods in 2023.
Current wording
Total revenue for the sale of Platinum® instruments, related reagent kits and service maintenance contracts increased$0.6 million, or 252.9%, and$1.2 million, or 173.6%, for thethree and nine months ended September 30, 2024, respectively, as compared to the same periods in 2023.
Previous wording
Gross profit increased$0.3 million, or 353.8%, and $0.4 million, or 208.4%, for the three and six months ended June 30, 2024, respectively, as compared to the same periods in 2023.
Current wording
Gross profit increased$0.3 million, or 239.8%, and $0.7 million, or 219.4%, for thethree and nine months ended September 30, 2024, respectively, as compared to the same periods in 2023.
Previous wording
Research and development expenses for thethree and six months ended June 30, 2024 and 2023 are as follows (dollars in thousands):
Current wording
Research and development expenses for thethree and nine months ended September 30, 2024 and 2023 are as follows (dollars in thousands):
Previous wording
Research and development expenses decreased by$1.5 million, or 9.2%, for the three months ended June 30, 2024, when compared to the same period in 2023. This decrease was primarily due to a $2.2 million decrease in payroll and payroll-related costs, primarily driven by restructuring activities that occurred in the three months ended June 30, 2023. The decrease was partially offset by an increase of $0.7 million in laboratory supplies expense.
Current wording
Research and development expenses decreased by$0.4 million, or 2.5%, for the three months ended September 30, 2024, when compared to the same period in 2023. This decrease was primarily due to a $0.8 million decrease in payroll and payroll-related costs, primarily driven by restructuring activities that occurred in the three months ended September 30, 2023, and a $0.6 million decrease in fabrication and outsourced services. These decreases were partially offset by a $0.8 million increase in write-downs of inventory that no longer had an alternative future use and an increase of $0.5 million in laboratory supplies expense.
Previous wording
Research and development expenses decreased by$7.5 million, or 22.1%, for thesix months ended June 30, 2024, when compared to the same period in 2023. This decrease was primarily due to a $4.1 million decrease in fabrication and outsourced services, a $4.0 million decrease in payroll and payroll-related costs and a $0.8 million decrease in stock-based compensation expense. The decrease in payroll and payroll-related costs were primarily driven by restructuring activities that occurred in 2023 and a decrease in personnel costs that were capitalized for thesix months ended June 30, 2023. These decreases were partially offset by a $1.3 million increase in laboratory supplies expense and an $0.8 million increase in depreciation and amortization expense.
Current wording
Research and development expenses decreased by$7.9 million, or 15.7%, for thenine months ended September 30, 2024, when compared to the same period in 2023. This decrease was primarily due to a $4.8 million decrease in payroll and payroll-related costs, a $3.7 million decrease in fabrication and outsourced services and a $0.5 million decrease in stock-based compensation expense. The decrease in payroll and payroll-related costs were primarily driven by restructuring activities that occurred in 2023 and an increase in personnel costs that were capitalized for the nine months ended September 30, 2023. These decreases were partially offset by a $2.4 million increase in write-downs of inventory that no longer had a future use, a $1.7 million increase in laboratory supplies expense and a $0.9 million increase in depreciation and amortization expense.
Previous wording
Selling, general and administrative expenses for thethree and six months ended June 30, 2024 and 2023 are as follows (dollars in thousands):
Current wording
Selling, general and administrative expenses for thethree and nine months ended September 30, 2024 and 2023 are as follows (dollars in thousands):
Previous wording
Selling, general and administrative expenses increased $1.3 million, or 11.6%, for the three months ended June 30, 2024, when compared to the same period in 2023. This increase was primarily due to a $0.9 million increase in stock-based compensation expense, a $0.4 million increase in outsourced services, a $0.3 million increase in legal expense, a $0.3 million increase in tax expense and a $0.2 million increase in trade show and other marketing-related expenses. These increases were partially offset by a $0.9 million decrease in professional services and consulting fees and a $0.3 million decrease in insurance costs.
Current wording
Selling, general and administrative expenses increased $1.6 million, or 14.8%, for the three months ended September 30, 2024, when compared to the same period in 2023. This increase was primarily due to a $1.0 million increase in stock-based compensation expense, a $1.1 million increase in payroll and payroll-related expenses primarily related to investments made in commercial operations and a $0.4 million increase in outsourced services. These increases were partially offset by a $0.5 million decrease in legal fees and a $0.4 million decrease in professional services and consulting fees.
Previous wording
Selling, general and administrative expenses increased $1.6 million, or 7.3%, for the six months ended June 30, 2024, when compared to the same period in 2023. The increase was primarily due to a $1.2 million increase in legal fees, a $0.8 million increase in payroll and payroll-related costs, a $0.7 million increase in trade show and other marketing-related expenses, a $0.5 million increase in outsourced services and a $0.4 million increase in tax expense. These increases were partially offset by a decrease of $1.0 million in professional services and consulting fees, a $0.9 million decrease in stock-based compensation expense, and a $0.7 million decrease in insurance costs.
Current wording
Selling, general and administrative expenses increased $3.2 million, or 9.8%, for the nine months ended September 30, 2024, when compared to the same period in 2023. The increase was primarily due to a $2.0 million increase in payroll and payroll-related costs primarily related to investments made in commercial operations, a $0.9 million increase in outsourced services, a $0.7 million increase in trade show and other marketing-related expenses, a $0.6 million increase in legal fees and a $0.5 million increase in non-income tax expenses. These increases were partially offset by a decrease of $1.7 million in professional services and consulting fees and a $0.6 million decrease in insurance costs.
Previous wording
Dividend and interest income for thethree and six months ended June 30, 2024 and 2023 are as follows (dollars in thousands):
Current wording
Dividend and interest income for thethree and nine months ended September 30, 2024 and 2023 are as follows (dollars in thousands):
Previous wording
Dividend and interest income increased by$0.4 million and$1.8 million for thethree and six months ended June 30, 2024, respectively, as compared to the same periods in 2023. This increase was a result of higher dividends and interest earned on invested balances in marketable securities.
Current wording
Dividend and interest income increased by$0.1 million and$1.9 million for thethree and nine months ended September 30, 2024, respectively, as compared to the same periods in 2023. This increase was a result of higher dividends and interest earned on invested balances in marketable securities.
Previous wording
There was no (Loss) gain on marketable securities, net, for thethree and six months ended June 30, 2024 as compared to a loss of$1.2 million and a gain of $1.8 million for the same periods in 2023, respectively. The prior year losses and gains were primarily related to market adjustments of investments in marketable securities, which consisted of fixed income mutual funds.
Current wording
There was no Unrealized gain on trading securities for thethree and nine months ended September 30, 2024 as compared to a gain of$2.0 million and $8.3 million for the same periods in 2023, respectively. The prior year gains were primarily related to market adjustments of investments in trading securities, which consisted of fixed income mutual funds.
Previous wording
The warrant liabilities were recorded at fair value as part of the business combination between HighCape Capital Acquisition LLC and Quantum-Si Incorporated in June 2021 (the “Business Combination”). Change in fair value of warrant liabilities primarily consists of the change in the fair value of our Public Warrants and Private Warrants.
Current wording
The warrant liabilities were recorded at fair value as part of the business combination between HighCape and Quantum-Si Incorporated in June 2021 (the “Business Combination”). Change in fair value of warrant liabilities primarily consists of the change in the fair value of our Public Warrants and Private Warrants.
Previous wording
Change in warrant liabilities for thethree and six months ended June 30, 2024 and 2023 is as follows (dollars in thousands):
Current wording
Change in warrant liabilities for thethree and nine months ended September 30, 2024 and 2023 is as follows (dollars in thousands):
Previous wording
The change in fair value of warrant liabilities decreased $0.5 million for the three months ended June 30, 2024 compared to an increase of $0.3 million for the same period of 2023. The change in fair value of warrant liabilities decreased $0.8 million for the six months ended June 30, 2024 compared to a decrease of $0.1 million for the same period of 2023. These fluctuations were primarily driven by the change in the underlying trading price of our Class A common stock during the periods reported.
Current wording
The change in fair value of warrant liabilities decreased $0.1 million for the three months ended September 30, 2024 compared to an increase of $0.2 million for the same period of 2023. The change in fair value of warrant liabilities decreased $0.9 million for the nine months ended September 30, 2024 compared to an increase of $0.1 million for the same period of 2023. These fluctuations were primarily driven by the change in the underlying trading price of our Class A common stock during the periods reported.
Previous wording
Other (expense) income, net, decreased$0.3 million, or 104%, and$0.4 million, or 105%, for thethree and six months ended June 30, 2024 as compared to the same periods in 2023. This decrease was primarily due to a $0.4 million decrease in the fair value of contingent consideration associated with the 2021 acquisition of Majelac Technologies LLC.
Current wording
Other income (expense), net, increased slightly for thethree months ended September 30, 2024 as compared to the same period in 2023. Other income (expense), net, decreased$0.4 million, or 102.7%, for thenine months ended September 30, 2024 as compared to the same period in 2023. This decrease wasprimarily due to a $0.4 million decrease in the fair value of contingent consideration associated with the 2021 acquisition of Majelac Technologies LLC that was recorded during the nine months ended September 30, 2023.
Previous wording
The following table presents a summary of our consolidated cash flows for operating, investing, and financing activities for thesix months ended June 30, 2024 and 2023 (in thousands):
Current wording
The following table presents a summary of our consolidated cash flows for operating, investing, and financing activities for thenine months ended September 30, 2024 and 2023 (in thousands):
Previous wording
Net cash provided by investing activities
Current wording
Net cash (used in) provided by investing activities
Previous wording
During thesix months ended June 30, 2024, net cash used in investing activities was $32.6 million compared to net cash provided by investing activities of $55.2 million for the same period in 2023. This change was primarily due to an increase in cash used for purchases of marketable securities of $208.8 million as wellas a $118.9 million increase in proceeds from the sales and maturities of marketable securities.
Current wording
For thenine months ended September 30, 2024, net cash used in investing activities was $26.8 million compared to net cash provided by investing activities of $82.4 million for the same period in 2023. This increase in cash used was primarily due to an increase of purchases of marketable securities of $262.0 million partially offset by a $150.5 million increase in proceeds from the sales and maturities of marketable securities.
Previous wording
During thesix months ended June 30, 2024, net cash used in financing activities was $0.1 million. The net cash used primarily consisted of proceeds from the exercise of stock options offset by deferred offering costs paid for the Shelf Registration Statement and the ATM Offering, both of which are defined and described below. There were no financing activities during thesix months ended June 30, 2023.
Current wording
For thenine months ended September 30, 2024, net cash provided by financing activities was $0.1 million compared to $0.2 million for the same period in 2023. This decrease in cash provided was primarily due to the change in proceeds from the exercise of stock options offset by deferred offering costs paid for the Shelf Registration Statement and the ATM Offering, both of which are defined and described below.
Previous wording
As of June 30, 2024, we had cash and cash equivalents and investments in marketable securities totaling $218.1 million. Our future capital requirements may vary from those currently planned and will depend on various factors including the pace and success of product commercialization.
Current wording
As of September 30, 2024, we had cash and cash equivalents and investments in marketable securities totaling $196.3 million. Our future capital requirements may vary from those currently planned and will depend on various factors including the pace and success of product commercialization.
Previous wording
We lease certain facilities and equipment under non-cancellable lease agreements that expire at various dates through 2032. As of June 30, 2024, future lease payments, before adjustments for tenant incentives, was approximately$28.9 million.
Current wording
We lease certain facilities and equipment under non-cancellable lease agreements that expire at various dates through 2032. As of September 30, 2024, future lease payments, before adjustments for tenant incentives, were approximately$27.8 million.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
There was no Realized loss on trading securities for thethree and nine months ended September 30, 2024 as compared to a loss of$1.9 million and $6.5 million for the same periods in 2023, respectively. The prior year losses were primarily related to market adjustments of investments in trading securities, which consisted of fixed income mutual funds.