IonQ, Inc. [IONQ] Filings

IonQ, Inc. [IONQ] Filings

IonQ, Inc. [IONQ-WT] Filings

10-Q 1 ionq-20230930.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023


☐		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_______to_______

Commission File No. 001-39694

IONQ, INC.

(Exact name of registrant as specified in its charter)

Delaware

85-2992192

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

4505 Campus Drive

College Park, MD 20740

(301) 298-7997

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.0001 per share	IONQ	The New York Stock Exchange
Warrants, each exercisable for one share of common stock for $11.50 per share	IONQ WS	The New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

As of November 2, 2023, there were 204,704,612 shares of common stock, par value $0.0001 per share, issued and outstanding.

IONQ, INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS


PART 1-FINANCIAL INFORMATION		1
Item 1.	Unaudited Financial Statements	1
	Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022	1
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2023 and 2022	2
	Condensed Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30, 2023 and 2022	3
	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three and Nine Months Ended September 30, 2023 and 2022	4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2023 and 2022	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4.	Controls and Procedures	38
PART II—OTHER INFORMATION		39
Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	40
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	71
Item 3.	Defaults Upon Senior Securities	71
Item 4.	Mine Safety Disclosures	71
Item 5.	Other Information	71
Item 6.	Exhibits	72
SIGNATURES

WHERE YOU CAN FIND MORE INFORMATION

Investors and others should note that we announce material financial information to our investors using our investor relations website at investors.ionq.com, press releases, filings with the U.S. Securities and Exchange Commission (“SEC”) and public conference calls and webcasts. We also use IonQ’s blog and the following social media channels as a means of disclosing information about the company, our products and services, our planned financials and other announcements and attendance at upcoming investor and industry conferences, and other matters. This is in compliance with our disclosure obligations under Regulation FD:

•

IonQ Company Blog (https://ionq.com/resources/learn)

•

IonQ LinkedIn Page (https://www.linkedin.com/company/ionq.co)

•

IonQ Twitter Account (https://twitter.com/ionq_inc)

•

IonQ YouTube Account (https://www.youtube.com/@ionq_inc)

Information posted through these social media channels may be deemed material. Accordingly, in addition to reviewing our press releases, SEC filings, public conference calls and webcasts, investors should monitor IonQ’s blog and our other social media channels. The information we post through these channels is not part of this Quarterly Report on Form 10-Q.

PART 1-FINANCIAL INFORMATION

Item 1. Unaudited Financial Statements

IonQ, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

(in thousands, except share and per share data)


	September 30,			December 31,
	2023			2022
Assets
Current assets:
Cash and cash equivalents	$	37,137		$	44,367
Short-term investments		346,853			311,430
Accounts receivable		3,033			3,292
Prepaid expenses and other current assets		16,816			12,539
Total current assets		403,839			371,628
Long-term investments		101,115			182,001
Property and equipment, net		35,356			26,014
Operating lease right-of-use assets		5,587			3,753
Intangible assets, net		13,059			8,944
Goodwill		742			742
Other noncurrent assets		5,680			4,910
Total Assets	$	565,378		$	597,992
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	6,408		$	3,055
Accrued expenses		15,703			6,655
Current portion of operating lease liabilities		695			591
Unearned revenue		5,216			8,729
Current portion of stock option early exercise liabilities		576			1,130
Total current liabilities		28,598			20,160
Operating lease liabilities, net of current portion		6,500			3,459
Unearned revenue, net of current portion		457			1,201
Stock option early exercise liabilities, net of current portion		545			839
Warrant liabilities		30,599			3,819
Other noncurrent liabilities		183			303
Total liabilities	$	66,882		$	29,781
Commitments and contingencies (see Note 8)
Stockholders’ Equity:
Common stock $0.0001 par value; 1,000,000,000 shares authorized; 204,117,084 and 199,862,123 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively	$	20		$	20
Additional paid-in capital		813,439			769,848
Accumulated deficit		(310,169	)		(194,302	)
Accumulated other comprehensive loss		(4,794	)		(7,355	)
Total stockholders’ equity	$	498,496		$	568,211
Total Liabilities and Stockholders’ Equity	$	565,378		$	597,992

The accompanying notes are an integral part of these condensed consolidated financial statements.

IonQ, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

(in thousands, except share and per share data)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Revenue	$	6,136		$	2,763		$	15,936		$	7,324
Costs and expenses:
Cost of revenue (excluding depreciation and amortization)		2,008			733			4,945			2,043
Research and development		24,599			13,292			60,701			30,282
Sales and marketing		5,047			1,969			11,289			5,971
General and administrative		13,927			10,149			35,438			26,901
Depreciation and amortization		2,749			1,531			6,869			4,248
Total operating costs and expenses		48,330			27,674			119,242			69,445
Loss from operations		(42,194	)		(24,911	)		(103,306	)		(62,121	)
Change in fair value of warrant liabilities		(7,640	)		(1,151	)		(26,787	)		28,358
Interest income, net		5,007			2,059			14,115			3,926
Other income (expense), net		55			20			150			(27	)
Loss before benefit for income taxes		(44,772	)		(23,983	)		(115,828	)		(29,864	)
Income tax expense		(39	)		—			(39	)		—
Net loss	$	(44,811	)	$	(23,983	)	$	(115,867	)	$	(29,864	)
Net loss per share attributable to common stockholders— basic and diluted	$	(0.22	)	$	(0.12	)	$	(0.57	)	$	(0.15	)
Weighted average shares used in computing net loss per share attributable to common stockholders—basic and diluted		203,390,383			198,301,240			201,656,916			197,255,965

The accompanying notes are an integral part of these condensed consolidated financial statements.

IonQ, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(unaudited)

(in thousands)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Net loss	$	(44,811	)	$	(23,983	)	$	(115,867	)	$	(29,864	)
Other comprehensive income (loss), net of reclassification adjustments:
Change in unrealized gain (loss) on available-for-sale securities, net		1,292			(2,195	)		2,560			(8,976	)
Currency translation adjustments		1			—			1			—
Total other comprehensive income (loss)		1,293			(2,195	)		2,561			(8,976	)
Total comprehensive loss	$	(43,518	)	$	(26,178	)	$	(113,306	)	$	(38,840	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

IonQ, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

(unaudited)

(in thousands, except share data)


	Stockholders’ Equity
										Accumulated
					Additional					Other			Total
	Common Stock				Paid-in		Accumulated			Comprehensive			Stockholders'
	Shares		Amount		Capital		Deficit			Loss			Equity
Balance, June 30, 2023		201,869,202	$	20	$	794,671	$	(265,358	)	$	(6,087	)	$	523,246
Net loss		—		—		—		(44,811	)		—			(44,811	)
Other comprehensive income (loss)		—		—		—		—			1,293			1,293
Stock options exercised		568,330		—		234		—			—			234
Vesting of restricted common stock		125,341		—		282		—			—			282
Issuance of common stock from the settlement of restricted stock units		1,553,290		—		141		—			—			141
Stock-based compensation		—		—		18,094		—			—			18,094
Warrants exercised		921		—		17		—			—			17
Balance, September 30, 2023		204,117,084	$	20	$	813,439	$	(310,169	)	$	(4,794	)	$	498,496


	Stockholders’ Equity
										Accumulated
					Additional					Other			Total
	Common Stock				Paid-in		Accumulated			Comprehensive			Stockholders'
	Shares		Amount		Capital		Deficit			Loss			Equity
Balance, June 30, 2022		198,003,162	$	20	$	751,259	$	(151,672	)	$	(6,929	)	$	592,678
Net loss		—		—		—		(23,983	)		—			(23,983	)
Other comprehensive income (loss)		—		—		—		—			(2,195	)		(2,195	)
Stock options exercised		370,979		—		386		—			—			386
Vesting of restricted common stock		125,341		—		282		—			—			282
Issuance of common stock from the settlement of restricted stock units		414,919		—		—		—			—			—
Stock-based compensation		—		—		8,461		—			—			8,461
Warrants exercised		45		—		1		—			—			1
Balance, September 30, 2022		198,914,446	$	20	$	760,389	$	(175,655	)	$	(9,124	)	$	575,630

The accompanying notes are an integral part of these condensed consolidated financial statements.

IonQ, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

(unaudited)

(in thousands, except share data)


	Stockholders’ Equity
										Accumulated
					Additional					Other			Total
	Common Stock				Paid-in		Accumulated			Comprehensive			Stockholders'
	Shares		Amount		Capital		Deficit			Loss			Equity
Balance, December 31, 2022		199,862,123	$	20	$	769,848	$	(194,302	)	$	(7,355	)	$	568,211
Net loss		—		—		—		(115,867	)		—			(115,867	)
Other comprehensive income (loss)		—		—		—		—			2,561			2,561
Stock options exercised		1,358,096		—		775		—			—			775
Vesting of restricted common stock		376,023		—		846		—			—			846
Issuance of common stock from the settlement of restricted stock units		2,519,921		—		2,641		—			—			2,641
Stock-based compensation		—		—		39,312		—			—			39,312
Warrants exercised		921		—		17		—			—			17
Balance, September 30, 2023		204,117,084	$	20	$	813,439	$	(310,169	)	$	(4,794	)	$	498,496


	Stockholders’ Equity
										Accumulated
					Additional					Other			Total
	Common Stock				Paid-in		Accumulated			Comprehensive			Stockholders'
	Shares		Amount		Capital		Deficit			Loss			Equity
Balance, December 31, 2021		195,630,975	$	19	$	737,150	$	(145,791	)	$	(148	)	$

IonQ, Inc. [IONQ] Filings
IonQ, Inc. [IONQ-WT] Filings
10-Q	[2023-11-09]
10-Q	[2023-08-10]
10-Q	[2023-05-11]
10-K	[2023-03-30]
10-Q	[2022-11-14]
10-Q	[2022-08-15]
10-Q	[2022-05-16]
10-K	[2022-03-28]
10-Q	[2021-11-15]
S-1	[2021-10-04]
10-Q	[2021-08-16]
10-Q	[2021-06-04]
10-K	[2021-03-25]
10-Q	[2020-12-18]
S-1	[2020-10-16]

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company