Quantum Computing Inc. (QUBT) shares plummeted 5.79% in pre-market trading on Friday, adding to the recent sell-off in the stock. The decline comes amid growing concerns over the company's elevated valuation and potential dilution risks.

Despite trading at a seemingly low share price of around $11, QUBT boasts a market capitalization of approximately $1.4 billion. This valuation appears unjustified, considering the company's meager revenue of $386,000 over the last 12 months and its high cash burn rate.

Analysts have cautioned that QUBT may need to raise additional capital through equity offerings to fund its operations, potentially diluting the stakes of existing shareholders. With a limited cash balance of $3.1 million on its balance sheet, the company might have to turn to the capital markets sooner rather than later.