Earnings ·
Reports Q3 net income of $33.4M on non-cash warrant gain; signs LOI to acquire Entropica Labs for $27M
HQWWWHorizon Quantum Holdings Ltd.
Horizon Quantum Holdings reported a third-quarter net income of $33.4 million, or $0.61 per share, compared to a net loss of $5.2 million in the prior-year period. The result included a $43.1 million non-cash gain from the remeasurement of warrant-related derivative liabilities due to a decrease in the company's share price; excluding this item and other adjustments, adjusted EBITDA was a loss of $6.3 million versus a $3.0 million loss previously. Operating expenses rose to $10.5 million as R&D and G&A costs increased with headcount growth and public-company transition activities. The company also signed a non-binding letter of intent to acquire Entropica Labs, a Singapore-based quantum software firm specializing in error correction, for an anticipated consideration of $27 million in Class A ordinary shares subject to due diligence and customary closing conditions. Horizon Quantum develops software infrastructure and integrated development environments for quantum computing applications.