10-Q · August 25, 2026
Q2 revenue was $6,712,805 with EPS of $(0.72), but the company continued to report substantial losses, including a $7,670,591 operating loss and $22,776,206 net loss. The filing highlights ongoing material weaknesses…
Earnings analysis · 10-Q
QMLS earnings analysis
Filed August 27, 2026 · Our reading of the company's report
The latest report
Q2 revenue was $6,712,805 with EPS of $(0.72), but losses remained severe, including a $7,670,591 operating loss and $22,776,206 net loss. Management has taken remediation steps, including implementing an ERP in…
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Q2 revenue was $6,712,805 with EPS of $(0.72), but losses remained severe, including a $7,670,591 operating loss and $22,776,206 net loss. Management has taken remediation steps, including implementing an ERP in February 2026, but disclosure controls remained ineffective as of June 30, 2026 and 3 material weaknesses remain. The filing also adds 1 customer-contract risk concerning the conversion of contracted fees into revenue, while providing no quantitative revenue or EPS guidance.
Reported figures
- Earnings per share
- $-0.72
What stood out
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Revenue increased but losses remain substantial
Q2 revenue was $6,712,805, while the company reported a $7,670,591 operating loss and a $22,776,206 net loss.
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Additional equity capital raised
The company raised capital through private placements, including 156,768 shares issued at $23.15 per share on May 29, 2026, and 10,800 shares issued at $23.15 per share from June 18 through June 19, 2026.
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Control-remediation infrastructure added
Management implemented an ERP and accounts-payable payment platform effective February 2026, and hired a corporate controller in January 2026 as part of its control-remediation efforts.
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Lease expanded for infrastructure buildout
The amended surface lease adds 2 additional five-year renewal terms and permits leasehold collateral assignment to an institutional lender, supporting potential infrastructure financing.
What to watch
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Material weaknesses remain unresolved
Disclosure controls and procedures were not effective as of June 30, 2026. The company continues to identify 3 material weaknesses involving control oversight, accounting for significant or non-recurring transactions, and segregation of duties.
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Contracted fees may not convert to revenue
The filing adds 1 new risk factor stating that aggregate contracted customer fees may not become revenue because of termination, amendment, or delayed scope; no dollar amount or timing is provided for the contracted fees.
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15 MW construction condition creates execution risk
Under the July 17, 2026 lease amendment, the lessor may terminate after the second or third renewal term if facilities with at least 15 megawatts of aggregate operational capacity have not been constructed, installed, and placed into operation.
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Warrant issuances create dilution
The company issued warrants for 86,393 shares at a $23.15 exercise price to a commercial partner and additional warrants for 5,295 shares at a $23.15 exercise price, creating potential future dilution.
Management's outlook
No quantitative revenue or EPS outlook is provided in the filing; outlook was deferred to the earnings release/call.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.