BERKELEY, CA - Rigetti Computing, Inc., a company specializing in quantum computing, has secured an extension of its corporate headquarters lease through October 31, 2028. The announcement was made today following the filing of an 8-K form with the Securities and Exchange Commission.
The lease extension pertains to the premises located at 775 Heinz Avenue in Berkeley, California, where Rigetti has been based since April 2015. The company entered into the third amendment of its original lease on September 20, 2024, with Temescal, LP, and Contra Costa Industrial Park, II, the lessors of the property.
Under the terms of the new agreement, the lease, which was due to expire, will now continue for an additional period, with the option for further extension. Starting November 1, 2025, the monthly base rent for the premises will be set at $71,756.25. Additionally, beginning November 1, 2026, the base rent will increase annually by 3% on each anniversary of the adjustment date.
This strategic move ensures the stability of Rigetti Computing's operational base and supports its ongoing research and development in the field of quantum computing. The company, recognized as an emerging growth company, is listed on the Nasdaq Capital Market under the ticker symbols RGTI for its common stock and RGTIW for its warrants.
In other recent news, Rigetti Computing, a quantum computing company, has been notified of potential delisting from Nasdaq due to non-compliance with the minimum bid price requirement. The company has until March 17, 2025, to regain compliance, with options including a reverse stock split authorized by Rigetti's stockholders.
In financial news, Rigetti reported Q2 2024 revenues of $3.1 million, down from $3.3 million in Q2 2023. Despite a decrease in gross margins from 82% to 64%, the net loss improved to $12.4 million in Q2 2024 from $17 million in Q2 2023.
Regarding technological advancements, Rigetti has introduced a new chip fabrication technique, Alternating-Bias Assisted Annealing (ABAA), expected to improve the precision of qubit frequency targeting, enhancing 2-qubit gates execution and reducing quantum processor defects. This development supports the company's ongoing efforts to scale up to higher qubit count systems, including the planned 84-qubit Ankaa-3 system, expected to be deployed by the end of 2024.
InvestingPro Insights
Rigetti Computing's recent lease extension demonstrates the company's determination to solidify its operational foundation in Berkeley, a decision that aligns with its financial strategy, as reflected in real-time data from InvestingPro. Notably, Rigetti holds more cash than debt on its balance sheet, which may offer some financial flexibility in the near term. In addition, the company's liquid assets exceed its short-term obligations, further indicating a position of relative liquidity. These factors are particularly relevant as Rigetti is not expected to be profitable this year, with analysts highlighting the company's rapid cash burn and volatile stock price movements.
Examining recent performance, Rigetti's stock has experienced significant declines, with a one-week total return of -8.97% and a six-month total return of -53.07%. The last twelve months have seen the company's market capitalization adjust to $146.3 million, alongside a negative revenue growth of -12.31% for the same period. The price of Rigetti's stock currently stands at 32.46% of its 52-week high, with a previous close at $0.76. These metrics underscore the challenges faced by the company in a competitive and rapidly evolving market.
Investors interested in a deeper analysis can explore additional InvestingPro Tips for Rigetti Computing, which provide a comprehensive view of the company's financial health and market position. With more tips available on the InvestingPro platform, investors can gain insights that go beyond the surface-level data to make informed decisions.
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