$D-Wave Quantum Inc.(QBTS)$ for whom that fomo to enter the market , please think twice!
Concerns (Risks):
Significant Losses: Net losses are substantial and unsustainable. With a negative net margin of -701% in Q1 2024, D-Wave's business model is far from profitability.
Over-Leveraged Balance Sheet: A debt-to-assets ratio of 176% indicates a high risk of insolvency. The company is heavily reliant on external funding, which may dilute shareholders or increase financial strain.
Cash Burn: While current liabilities are adequately covered (current ratio of 3.1), cash reserves are depleting quickly, covering only 31.9% of total liabilities. The company will likely need additional financing soon.
Liquidity Issues: Long-term liabilities exceed total assets by 30%, raising concerns about the company's ability to honor its financial commitments.
Compliance Risks: D-Wave narrowly avoided delisting from the NYSE in 2024 due to low share prices. Any further compliance breaches could impact investor confidence and liquidity.
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