Quantum Deception

Quantum Computing Inc (NASDAQ: QUBT) has faked sales, faked partnerships, and has put
out a steady stream of deceptive PRs filled with misrepresentations and outright lies.
"Would take a small army quite some time to make what they currently have work or a
viable product . There's been no evidence from the company. There’s been no progress.
They haven’t even entered the game. No validation that they can run with any interesting
results. Until they do that it’s just a glorified University project" - Former QUBT executive

We believe QUBT is a rampant fraud and shareholders will likely be left with nothing. From
inception, the company has defrauded investors by fabricating revenue, misrepresenting their
products, and issuing a steady stream of false press releases. To conceal their fraud, QUBT
even included a clause in employee separation agreements prohibiting them from talking to the
SEC.

Initial Disclosure: After extensive research, we have taken a short position in shares of Quantum
Computing Inc (NASDAQ: QUBT). This report represents our opinion and is not financial advice.
Do your own due diligence and don't take financial advice from strangers on the internet. Please
read our full disclaimer at the bottom of this report.

False and Misleading PRs

-​ QUBT claims to have a "longstanding relationship" with NASA, but NASA and
government contract records confirm that is false. QUBT has one contract with NASA
valued at $26,000. QUBT was the sole bidder on the contract and it’s for “computer
programming”.
-​ We spoke with NASA and the Prime contractors named in QUBT’s PRs and we found
that all the PRs are deliberately misleading and some are outright lies.
-​ QUBT falsely claims to have won at least 4 subcontracts "awarded by NASA" and 2
contracts directly with NASA.
-​ NASA confirmed to us that they have no relationship with QUBT beyond the $26,000
contract noted above.
-​ Evidence suggests that QUBT bids on low-value NASA related contracts for the sole
purpose of pumping their stock via misleading press releases.
-​ In several cases, QUBT won subcontracts with Analytical Mechanics Associates (AMA)<
BAERI, SSAI and each confirmed that QUBT was the sole bidder on the contract and all
had very small revenues which QUBT hid from retail investors. NASA told us they played
no role in issuing the subs.
-​ AMA is a Prime contractor for NASA and QUBT won a contract as a sub, with no other
bidders, to claim they do quantum related work for NASA. In reality, these contracts have
nothing to do with quantum computing and NASA played no role in issuing the sub
-​ QUBT has repeatedly misrepresented their low-value contracts as NASA contracts,
doing so in Feb. 2024, Oct 2024, July 2023, May 2023 among others.
-​ QUBT has recently been removing some false and misleading PRs from their website in
a futile attempt to hide their fraud.
Fake deals

After interviewing former employees and others associated with the company, they said
it was common knowledge among employees that the QUBT CEO was doing anything he
could, to issue PRs to drive the share price higher. "They insinuated that there were
products that were farther along than they were, to lead the public to believe they had
quantum capabilities that they didn't and products that were in customers hands when
they weren't." - Former Employee

-​ For years QUBT has issued false press releases. Early on, the company even signed
fake deals with undisclosed related parties. The sole purpose for these deals was to
issue false press releases and pump their stock.
-​ QUBT is currently being sued for fraud and the plaintiffs allege that the company
announced sales deals that were completely false. The plaintiff alleges that the sales
were completely fabricated and were never even invoiced.
-​ In May 2023, QUBT announced the signing of a LOI to acquire Millionways Inc, a
purported AI company.
-​ Undisclosed to investors, Millionways was a related party. One of QUBT’s founders was
involved in Millionways.
-​ QUBT paid Millionways $500k via an unsecured note, which QUBT has been quietly
marking down because they will never be paid back.
-​ In 2022, QUBT announced a deal with Quad M, an OTC listed company with ties to
multiple stock frauds.
-​ Undisclosed to investors, Quad M was a related party. QUBT’s CEO served as a director
of Quad M and the co-founders of QUBT were also deeply involved in Quad M and are
close business associates of Quad M insiders.
-​ In 2022 QUBT signed an MOU with Quad M claiming that they would generate 5-10
dollars per employee per month for QUBT. Unsurprisingly, the deal never materialized
and generated no revenue.

Foundry Deception

-​ In Sep. 2023 QUBT claimed to have chosen a site for their new fab, a 5-acre plot in the
ASU Research Park. This is a lie. Park management confirmed that QUBT inquired
about the 5-acre parcel but never followed up and never attempted to purchase the
property. Property records confirm that the parcel ownership has not changed.
-​ In Oct. 2024, QUBT claimed to have opened the foundry they announced in September
the prior year. However, the company didn’t open a fully operational foundry, instead
they opened a small R&D lab in a leased space.​
[building permit shows r&d lab]
-​ QUBT’s R&D lab is in an office building unsuitable for industrial use cases
-​ QUBT’s R&D space does not have a cleanroom which is required to produce
commercial quality TFLN chips.
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