Quantum Computing Inc. Updates Code of Ethics and Faces Potential Delisting - What Investors Need to Know
In a recent announcement, Quantum Computing Inc. (NASDAQ: QUBT) has made significant changes to its Code of Ethics, set to be implemented on October 1, 2024. These amendments, approved by the Board of Directors on September 20, 2024, introduce stricter regulations on conflicts of interest and outline a new process for granting waivers to the code.
The revised conflict of interest policy now prohibits company insiders from seeking any favors, preferential treatment, or gifts from individuals or entities engaged in, or looking to engage in, business with the company. The updated policy allows for gifts that align with customary business practices and are not extravagant, based on personal or family relationships unrelated to business transactions.
Furthermore, the new provisions state that any waivers granted to executive officers or directors must be authorized by the Board or a Board committee, in compliance with securities exchange regulations. Additionally, all waivers, including those deemed as minor departures from the code, will be publicly disclosed in accordance with SEC regulations and exchange rules.
Quantum Computing Inc. has also made other minor adjustments to its Code of Ethics, which will be available on the company's website after the effective date. In other news, the company has restated its annual reports for the years ending December 31, 2023, and 2022, making non-cash adjustments to financial statements following a change in auditors. Despite these adjustments, there were no significant impacts on the company's cash reserves or operating cash flows.
However, Quantum Computing Inc. is currently at risk of delisting from the Nasdaq Stock Market due to non-compliance with a listing rule stemming from a delayed submission of its quarterly financial report. On a positive note, the company has welcomed Dr. Javad Shabani from NYU to its Board of Directors and sold its advanced quantum LiDAR prototype to Johns Hopkins University for testing.
In terms of financial outlook, Ascendiant Capital has adjusted Quantum Computing Inc.'s 12-month price target to $8.25, down from $8.75, while maintaining a Buy rating on the stock.
In conclusion, investors should keep an eye on Quantum Computing Inc.'s developments, particularly regarding its Code of Ethics amendments and potential delisting situation. These factors can impact the company's stock performance and overall financial standing, making it crucial for investors to stay informed and make strategic decisions based on the latest updates.