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Q1 initial revenue: Quantum recently (on May 23) reported its fiscal Q1 2022 (ending March) results. The company reported initial revenue of $0.03 million. EPS was $(0.24), compared to our estimate of $(0.16). There was no consensus estimates or company guidance.

Still very early stage: Quantum's recent financial performance is reflective of its developmental and early commercialization stage and has finally reported initial revenue. The company, having recently launched several of its initial products, is currently focusing on sales and marketing of its products. We believe investors should be focused on its commercialization of its software, which we believe within the next year, the company should grow revenue quickly.

Lowering estimates: We are lowering our 2022 estimates for revenue $1.0 million, from $1.5 million, and for EPS to$(0.73) from $(0.59). Our estimates do not reflect its pending acquisition.

To acquire QPhoton: In May, the company announced that it will be acquiring QPhoton, Inc. QPhoton is a privately held company that is a leading innovator in the quantum photonic technology space. Merger consideration will be paid in stock (~37 million shares). The deal is expected to close in 2H 2022.

Investment in QPhoton: In February, the company announced a marketing agreement with QPhoton, to merge QCI's quantum software solution, Qatalyst, with QPhoton's advanced photonic quantum technologies for its application to QCI-specific solutions. As part of this agreement, Quantum will invest $2.5 million in QPhoton.

Focused on quantum computing: Quantum's flagship software solution, Qatalyst, is a ready-to-run quantum and classical software for optimization computations for faster, better, and more diverse business decisions. By being early in this rapidly growing industry, we believe Quantum is well-positioned to capture and drive a meaningful market share and industry growth.

The need for quantum computing: The rapid and widespread adoption of technologies such as the Internet, artificial intelligence, virtual and augmented reality, 3D imaging, and the Internet of Things (IoT), have served to exponentially increase the generation of data. This has driven up the demand for high-performance computing to process all this data.

Large market potential: As quantum computing hardware continues to advance, we expect a corresponding growth in demand for quantum software to run on these computers. The U.S. Government has committed $1.3 billion to funding quantum information science programs.

Balance sheet: In Q4, the company raised $8.5 million selling preferred stock. We believe the company has enough cash into 2023.

Positive high risks versus rewards: Overall, concerns outweighed by growth prospects and valuation. We believe the ~billion dollars market potentials presents high rewards for the risks.

Valuation attractive: We are maintaining our BUY rating, but lowering our 12-month price target to $9.00 from $10, based on a NPV analysis, representing significant upside from the current share price. We believe this valuation appropriately balances out the company's high risks with the company's high growth prospects and large upside opportunities.

To learn more about QCI and how Qatalyst can deliver results for your business today, go to http://www.quantumcomputinginc.com.

About Quantum Computing Inc.

Quantum Computing Inc. (QCI) (NASDAQ: QUBT) is accelerating the value of quantum computing for real-world business solutions. The company's flagship product, Qatalyst, is the first software to bridge the power of classical and quantum computing, hiding complexity and empowering SMEs to solve complex computational problems today. QCI's expert team in finance, computing, security, mathematics and physics has over a century of experience with complex technologies; from leading edge supercomputing, to massively parallel programming, to the security that protects nations. Connect with QCI on LinkedIn and @QciQuantum on Twitter. For more information about QCI, visit http://www.quantumcomputinginc.com.

About QPhoton

QPhoton is a quantum photonics innovation company. It develops and commercializes powerful quantum nanophotonic technology and systems to transform critical areas of industry, including healthcare, cybersecurity, finance, environment, and computer vision. QPhoton maintains a growing and diverse portfolio of patented nanophotonic and quantum technology, covering quantum sensing, imaging, information privacy, authentication, data analytics, and quantum photonic computing.

Important Cautions Regarding Forward-Looking Statements

This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future. Those statements include statements regarding the intent, belief or current expectations of Quantum Computing Inc. (the "Company"), and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements.

Statements in this press release that are not descriptions of historical facts are forward-looking statements relating to future events, and as such all forward-looking statements are made pursuant to the Securities Litigation Reform Act of 1995. Statements may contain certain forward-looking statements pertaining to future anticipated or projected plans, performance and developments, as well as other statements relating to future operations and results. Any statements in this press release that are not statements of historical fact may be considered to be forward-looking statements. Words such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," "aim to," or variations of these or similar words, identify forward-looking statements. Such statements include statements regarding the Company's ability to consummate its planned acquisition of QPhoton, the anticipated benefits of such acquisition, and the Company's ability to successfully develop, market and sell its products. Factors that could cause actual results to differ materially from those in the forward-looking statements contained in this press release include, but are not limited to, the parties' potential inability to consummate the proposed transaction, including as a result of a failure to satisfy closing conditions to the proposed transactions; risks that QPhoton will not be integrated successfully; failure to realize anticipated benefits of the combined operations; potential litigation relating to the proposed transaction and disruptions from the proposed transaction that could harm the Company's or QPhoton's business; ability to retain key personnel; the potential impact of announcement or consummation of the proposed transaction on relationships with third parties, including customers, employees and competitors; conditions in the capital markets; and those risks described in Item 1A in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, which is expressly incorporated herein by reference, and other factors as may periodically be described in the Company's filings with the SEC. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed conditions.

Qatalyst is the trademark of Quantum Computing Inc. All other trademarks are the property of their respective owners.

Company Contact:

Robert Liscouski, CEO

Quantum Computing, Inc.

+1 (703) 436-2161

Email Contact

Investor Relations Contact:

Ron Both or Grant Stude

CMA Investor Relations

+1 (949) 432-7566

Email Contact

Media Relations Contact:

Seth Menacker

Fusion Public Relations

+1 (201) 638-7561

qci@fusionpr.com

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Quantum Computing : Q1 reports initial revenue. We expect major acquisition of QPhoton to be positive for stock. Lowering P/T to $9. -...