As we step into 2025 (already a quarter of a century gone by!), the quantum technology landscape is poised for another year of groundbreaking advancements, building on the momentum of 2024. Suddenly, it looks like every other tech company is doing something about quantum computing. Among the small cap companies, one of the more known is MicroAlgo Inc. (MLGO), a technology company that provides artificial intelligence (AI) and algorithmic solutions and is at the heart of the quantum evolution. Recently, it unveiled a significant quantum technological breakthrough.
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I remember, as a kid in the 80’s, watching sci-fi movies of films such as Blade Runner, Total Recall, The Terminator, Robocop, Tron, or Brazil. The future in those films looked very technological but also very daunting. The prospects of the future, as seen in Blade Runner, didn’t look like a welcoming idea, so we referred to them as a representation of a dystopian future. Technology is always destined to change the world, but only we can decide how to use this new technology.
In the last two years, AI has been a prime source of discussion and prompted lots of feedback, mainly a worrying one regarding humanity’s future. However, in 2024, it seems that, at least when concerning technological progress, we are finally catching up with the 80s movies and entering a new era in high-tech – quantum tech! So let’s not make it a Blade Runner one.
The company has created a quantum algorithm for a full adder operation using CPU registers in quantum gate computers. This development is an important step forward in quantum computing. In other important news for the company and its investors, MicroAlgo has regained compliance with NASDAQ’s listing requirements, maintaining a closing bid price of $1.00 and above for ten consecutive business days. Like other companies in the industry, MLGO has yet to showcase any profits.
Let’s see what they’ve been up to:
Financial Performance in 2024
MicroAlgo’s financial journey in 2024 was mainly marked by challenges but some achievements as well. For Q3 2024, the company reported revenue of $1 million but faced a net loss of $19.2 million. For the full fiscal year, MicroAlgo recorded revenue of $580.02 million, with a gross profit of $173.99 million. However, the company’s operating expenses overshadowed these figures at $306.28 million, leading to an operating income of -$132.29 million. The net income for the year was -$268.21 million, reflecting the company’s ongoing financial struggles.
Technological Achievements and Commercial Potential
MicroAlgo’s recent development of a FULL adder operation quantum algorithm is a game-changer. This technology enhances the efficiency and accuracy of quantum computers in performing complex arithmetic tasks. By leveraging quantum gates and the unique properties of qubits, such as superposition and entanglement, MicroAlgo’s progress opens new pathways for designing and implementing quantum gate computers. This breakthrough possesses great commercial potential, particularly in fields requiring high computational power and precision. However, it must be stressed that their findings haven’t been peer-reviewed, so they can still be considered as a question mark.
Challenges and Ongoing Issues
Despite technological advancements, MicroAlgo faces several challenges. The company’s financial health remains a concern, with significant net losses and high operating expenses. Additionally, the stock’s volatility and the bearish sentiment from bloggers, as TipRanks’ Smart Score of 4 indicates, indicate market skepticism. The company’s high market capitalization relative to its financial performance also raises questions about its valuation.
Additionally, regaining compliance with NASDAQ’s listing requirements is a positive step but highlights the ongoing pressure to maintain market standards.
This Is Only the Beginning
We cannot ignore the fact that we are at the beginning of a new technological dawn, and the world is going to change and evolve quicker than saying, ‘Robinzon Cruzo.’ Of course, many of the companies engaging in quantum computing today will not last until we truly reach a quantum leap, but until then, every company is a fascinating story to follow.
MicroAlgo Inc. stands at a critical juncture. Its recent quantum technological advancements and compliance achievements are promising, yet the company must address its financial challenges and market perceptions to capitalize on its potential. As 2025 unfolds, investors will be watching MicroAlgo to see if it can turn its technological prowess into sustained financial success. That will be key!
