IonQ Inc
For the period ended Sep 30, 2024. Filed Nov 6, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 6, 2024
IONQ$32.62+23.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0000950170-24-092782
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-06.
0000950170-24-122305
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 91 previous paragraphs and 90 current paragraphs.
51 unchanged; 26 reworded; 13 added; 14 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 19 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
We announced a $54.5 million contract with the United States Air Force Research Lab (AFRL) to design, develop, and deliver technology and hardware that enables the scaling, networking, and deployability of quantum systems. The project will help advance quantum networking compatibility with existing telecommunications infrastructure, interoperability with different quantum systems and devices, and deployability of systems suitable for various environments. The contract is our third with AFRL and will be delivered over four years.
Current report
We announced a $9 million agreement with the University of Maryland (UMD) to expand our partnership to provide state-of-the-art quantum computing access at the National Quantum Lab at Maryland (QLab). QLab provides UMD-affiliated students, faculty, researchers, staff, and partners with an unprecedented opportunity to work closely with our scientists and engineers as they gain experience with industry-leading trapped ion quantum computers.
Current report
We signed a definitive agreement to acquire substantially all of the assets and team of Qubitekk, Inc., a Vista, CA-based quantum networking company. As part of the transaction, which we anticipate closing within the next six months, we will fortify our leading position in the quantum networking industry by bringing on Qubitekk's team, customer base, and technology portfolio of 118 U.S. and international granted patents in the areas of quantum networking hardware and quantum network security and protection.
Current report
We announced the creation of a new quantum application development center in collaboration with AstraZeneca. We will be leveraging the power of our quantum experts and AstraZeneca’s world-class scientists to develop applications in their innovation BioVentureHub in Gothenburg, Sweden.
Current report
We announced a partnership with Ansys to accelerate simulation, expand high-fidelity design exploration, and reduce product development timelines, enabling faster market entry for more innovative products. The partnership is aimed at making simulation accessible to both quantum experts and non-experts by allowing seamless integration between Ansys software and IonQ computers.
Current report
We demonstrated remote ion-ion entanglement, the second of four significant milestones required to develop at-scale photonic interconnects. Our team achieved remote entanglement by developing a system to collect photons from two trap wells and route them to a single detection hub. This critical “point-to-point” step established a quantum communication link, an essential element in scaling quantum systems.
Current report
We announced a partnership with NKT Photonics to develop next-generation laser systems to power future quantum computers. The partnership includes NKT Photonics developing and delivering three prototype optical subsystems to us in 2025, designed to support the commercialization of our data center-ready quantum computers – such as IonQ Tempo and future barium-based systems.
Current report
Weannounced a partnership with imec – a world-renowned R&D center in nanoelectronics and digital technologies – to develop photonic integrated circuits and chip-scale ion trap technology. With these ground-breaking technologies, we aim to reduce overall hardware system size and cost, increase qubit count, and improve system performance and scale.
Current report
Sales and marketing expense increased by $1.6 million, or 31%, to $6.6 million for the three months ended September 30, 2024, from $5.0 million for the three months ended September 30, 2023. The increase was primarily driven by an increase of $1.7 million of payroll-related expenses, including an increase in stock-based compensation of $0.9 million, as a result of increased headcount and new equity grants, offset by a decrease of $0.1 million in professional service fees.
Current report
General and administrative expenses increased by $0.4 million, or 3%, to $14.3 million for the three months ended September 30, 2024, from $13.9 million for the three months ended September 30, 2023. The increase was primarily driven by an increase of $1.9 million of payroll-related expenses, including an increase in stock-based compensation of $1.6 million, as a result of increased headcount and new equity grants, offset by a decrease of $1.5 million in professional service fees and allocated overhead costs.
Current report
Comparison of the Nine Months Ended September 30, 2024 and 2023
Current report
General and administrative expenses increased by $6.0 million, or 17%, to $41.4 million for the nine months ended September 30, 2024, from $35.4 million for the nine months ended September 30, 2023. The increase was primarily driven by an increase of $7.4 million in payroll-related expenses, including an increase in stock-based compensation of $5.8 million, as a result of increased headcount and new equity grants, offset by a decrease of $1.7 million in professional service fees and allocated overhead costs.
Current report
Interest income, net was relatively flat for the nine months ended September 30, 2024 from the nine months ended September 30, 2023, as the decrease in the available-for-sale investments balance was offset by higher interest rates.
Removed paragraphs (14)
Previous report
We demonstrated a company record, two-qubit native gate fidelity of 99.9% using our next-generation barium qubits, paving the way for highly accurate quantum systems to tackle increasingly complex problems for customers. This milestone was achieved on an engineering development system running two qubits and we believe it is a harbinger for superior qubit fidelities on forthcoming barium-based production systems.
Previous report
We announced the invention of a new, industry-first partial error correction technique for an important class of quantum gates. The technique, which reduces the errors for Clifford gates within circuits, offers the potential to supercharge the accuracy of near-term quantum computers, bringing us much closer to commercial advantage. This Clifford error reduction technique, which we plan to offer in upcoming Tempo systems, allows for more accurate quantum algorithms and requires a ratio of only about three physical qubits per one error-reduced qubit.
Previous report
We announced new, more aggressive technical roadmap targets on our webinar in June, including a goal of 99.999% logical two-qubit gate fidelity and 100 physical qubits in new systems by the end of 2025.
Previous report
We announced an exciting new research project with the United States Naval Research Lab (NRL) using IonQ Aria to sample quantum states in molecular structures affecting corrosion. Corrosion is a more than $20 billion problem annually for the Navy, and through this project, our quantum computers delivered results ahead of what is possible with classical computers.
Previous report
We announced our selection by the Applied Research Laboratory for Intelligence and Security (ARLIS) through a competitive bidding process to design a first-of-its-kind, networked system for blind quantum computing. Blind quantum computing is a process where quantum computers remain ‘blind’ to what information is being processed through them, and is a key achievement target for the US national security apparatus. In fiscal 2023 and 2024, Congress funded this research for a total of $40 million. The initial phase of the contract is a $5.7 million award for the design of the quantum computers based on our trapped ion processors. We expect to complete this work by the end of this year. In the next phase of the project, ARLIS plans to have two systems built based on our initial design.
Previous report
We announced the extension of our access contract with AWS to continue to offer our world-class quantum computers via Amazon Braket, the quantum computing service of AWS, to developers everywhere who want to leverage the power of quantum computing. AWS users can access our generally available quantum computers including IonQ Aria through Amazon Braket, and request early access to IonQ Forte through Braket Direct.
Previous report
In July, we started final assembly of our first Forte Enterprise system at QuantumBasel in Basel, Switzerland, where installation and setup has begun.
Previous report
We announced the start of construction on two more Forte Enterprise systems being manufactured in our Seattle facility.
Previous report
We announced the promotion of Dr. Dean Kassmann to Senior Vice President of the newly formed Engineering and Technology division. Dr. Kassmann has over 30 years of leadership experience in software, hardware, and technology development, and has been instrumental in delivering our technical milestone achievements.
Previous report
General and administrative expenses increased by $2.1 million, or 19%, to $13.1 million for the three months ended June 30, 2024, from $10.9 million for the three months ended June 30, 2023. The increase was primarily driven by an increase of $2.1 million in stock-based compensation as a result of increased headcount and new equity grants.
Previous report
Comparison of the Six Months Ended June 30, 2024 and 2023
Previous report
Sales and marketing expense increased by $6.6 million, or 106%, to $12.8 million for the six months ended June 30, 2024, from $6.2 million for the six months ended June 30, 2023. The increase was primarily driven by an increase of $6.2 million of payroll-related expenses, including an increase in stock-based compensation of $3.7 million, as a result of increased headcount and new equity grants, and increased costs to promote our services and other marketing initiatives of approximately $0.4 million.
Previous report
General and administrative expenses increased by $5.6 million, or 26%, to $27.1 million for the six months ended June 30, 2024, from $21.5 million for the six months ended June 30, 2023. The increase was primarily driven by an increase of $5.5 million in payroll-related expenses, including an increase in stock-based compensation of $4.2 million, as a result of increased headcount and new equity grants.
Previous report
Interest income, net increased by $0.5 million, or 5%, to $9.6 million for the six months ended June 30, 2024, from $9.1 million for the six months ended June 30, 2023. The increase was primarily driven by interest income earned on our cash equivalents and available-for-sale investments due to higher interest rates.
Reworded paragraphs (26)
Previous wording
We are still in the early stages of commercial growth. Since our inception we have incurred significant operating losses. Our ability to generate revenue sufficient to achieve profitability will depend heavily on the successful development and further commercialization of our quantum computing systems. Our net losses were $77.2 million and $71.1 million for the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, we had an accumulated deficit of $429.2 million. We expect to continue to incur significant losses for the foreseeable future as we prioritize reaching the technical milestones necessary to achieve an increasingly higher number of stable qubits and higher levels of fidelity than presently exists—prerequisites for quantum computing to reach broad quantum advantage.
Current wording
We are still in the early stages of commercial growth. Since our inception we have incurred significant operating losses. Our ability to generate revenue sufficient to achieve profitability will depend heavily on the successful development and further commercialization of our quantum computing systems. Our net losses were $129.6 million and $115.9 million for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024, we had an accumulated deficit of $481.7 million. We expect to continue to incur significant losses for the foreseeable future as we prioritize reaching the technical milestones necessary to achieve an increasingly higher number of stable qubits and higher levels of fidelity than presently exists—prerequisites for quantum computing to reach broad quantum advantage.
Previous wording
While inflation has recently been moderated following the Federal Reserve's interest rate increases over the past two years, the Federal Reserve has been cautious to cut interest rates and economic uncertainty remains. Inflationary factors, interest rates and overhead costs may adversely affect our operating results. High interest and inflation rates also present a recent challenge impacting the U.S. economy and could make it more difficult for us to obtain traditional financing on acceptable terms, if at all, in the future. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience increases in the near future (especially if inflation rates remain high or continue to rise) on our operating costs, including our labor, due to supply chain constraints, consequences associated with bank failures, geopolitical tensions in and around Ukraine, Israel and other areas of the world, and employee availability and wage increases, which may result in additional stress on our working capital resources.
Current wording
Inflationary factors, interest rates and overhead costs may adversely affect our operating results. High interest and inflation rates also present a recent challenge impacting the U.S. economy and could make it more difficult for us to obtain traditional financing on acceptable terms, if at all, in the future. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience increases in the future on our operating costs, including due to supply chain constraints, consequences associated with bank failures, geopolitical tensions in and around Ukraine, Israel and other areas of the world, and employee availability and wage increases, which may result in additional stress on our working capital resources.
Previous wording
Cost of revenue primarily consists of expenses related to delivering our services, including personnel-related expenses, allocated facility and other costs for customer facing functions, and costs associated with maintaining our in-service quantum computing systems to ensure proper calibration as well as costs incurred for maintaining the cloud on which the QCaaS resides. Cost of revenue also includes hardware costs for construction of specialized quantum computing hardware. Personnel-related expenses include salaries, benefits, and stock-based compensation. Cost of revenue excludes depreciation and amortization related to our quantum computing systems and related software.
Current wording
Cost of revenue primarily consists of expenses related to construction of specialized quantum computing hardware and delivery of our services, including personnel-related expenses, hardware costs, allocated overhead costs for customer facing functions, and costs associated with maintaining our in-service quantum computing systems to ensure proper calibration as well as costs incurred for maintaining the cloud on which the QCaaS resides. Personnel-related expenses include salaries, benefits, and stock-based compensation. Cost of revenue excludes depreciation and amortization related to our quantum computing systems and related software.
Previous wording
Research and development expenses consist of personnel-related expenses, including salaries, benefits and stock-based compensation, and allocated facility and other costs for our research and development functions. Unlike a standard computer, design and development efforts continue throughout the useful life of our quantum computing systems to ensure proper calibration and optimal functionality. Research and development expenses also include purchased hardware and software costs related to quantum computing systems constructed for research purposes that are not probable of providing future economic benefit and have no alternate future use as well as costs associated with third-party research and development arrangements.
Current wording
Research and development expenses consist of personnel-related expenses, including salaries, benefits and stock-based compensation, and allocated overhead costs for our research and development functions. Unlike a standard computer, design and development efforts continue throughout the useful life of our quantum computing systems to ensure proper calibration and optimal functionality. Research and development expenses also include purchased hardware and software costs related to quantum computing systems constructed for research purposes that are not probable of providing a future economic benefit and have no alternate future use as well as costs associated with third-party research and development arrangements.
Previous wording
Sales and marketing expenses consist of personnel-related expenses, including salaries, commissions, benefits and stock-based compensation, costs for direct advertising, marketing and promotional expenditures and allocated facility and other costs for our sales and marketing functions. We expect to continue to make the necessary sales and marketing investments to enable us to increase our market penetration and expand our customer base.
Current wording
Sales and marketing expenses consist of personnel-related expenses, including salaries, commissions, benefits and stock-based compensation, costs for direct advertising, marketing and promotional expenditures and allocated overhead costs for our sales and marketing functions. We expect to continue to make the necessary sales and marketing investments to enable us to increase our market penetration and expand our customer base.
Previous wording
General and administrative expenses consist of personnel-related expenses, including salaries, benefits and stock-based compensation, and allocated facility and other costs for our corporate, executive, finance, and other administrative functions. General and administrative expenses also include expenses for outside professional services, including legal, auditing and accounting services, recruitment expenses, information technology, travel expenses, certain non-income taxes, insurance, and other administrative expenses. We expect our general and administrative expenses to increase for the foreseeable future as we scale with the growth of our business.
Current wording
General and administrative expenses consist of personnel-related expenses, including salaries, benefits and stock-based compensation, and allocated overhead costs for our corporate, executive, finance, and other administrative functions. General and administrative expenses also include expenses for outside professional services, including legal, auditing and accounting services, recruitment expenses, information technology, travel expenses, certain non-income taxes, insurance, and other administrative expenses. We expect our general and administrative expenses to increase for the foreseeable future as we scale with the growth of our business.
Previous wording
Revenue increased by $5.9 million, or 106%, to $11.4 million for the three months ended June 30, 2024, from $5.5 million for the three months ended June 30, 2023. The increase was primarily driven by progress on our arrangements to build specialized quantum computing hardware, as well as new revenue contracts under which we provided services during the three months ended June 30, 2024.
Current wording
Revenue increased by $6.3 million, or 102%, to $12.4 million for the three months ended September 30, 2024, from $6.1 million for the three months ended September 30, 2023. The increase was primarily driven by progress on our arrangements to build specialized quantum computing hardware, as well as new revenue contracts under which we provided services during the three months ended September 30, 2024.
Previous wording
Cost of revenue increased by $3.7 million, or 196%, to $5.6 million for the three months ended June 30, 2024, from $1.9 million for the three months ended June 30, 2023. The increase was driven primarily by an increase in labor costs to service contracts, as well as an increase in materials costs for arrangements to build specialized quantum computing hardware, for the three months ended June 30, 2024.
Current wording
Cost of revenue increased by $4.5 million, or 224%, to $6.5 million for the three months ended September 30, 2024, from $2.0 million for the three months ended September 30, 2023. The increase was driven primarily by an increase in hardware costs used in the construction of specialized quantum computing hardware, as well as an increase in labor costs to service contracts, for the three months ended September 30, 2024.
Previous wording
Research and development expense increased by $11.3 million, or 57%, to $31.2 million for the three months ended June 30, 2024, from $19.9 million for the three months ended June 30, 2023. The increase was primarily driven by an increase of $8.3 million in payroll-related expenses, including an increase in stock-based compensation of $5.2 million, as a result of increased headcount and new equity grants, and a $1.3 million increase in materials, supplies and equipment costs. The remaining increase is due to an increase in costs to support research and development initiatives, including a $0.5 million increase in professional service fees and a $0.5 million increase in allocated facility and other costs.
Current wording
Research and development expense increased by $8.6 million, or 35%, to $33.2 million for the three months ended September 30, 2024, from $24.6 million for the three months ended September 30, 2023. The increase was primarily driven by an increase of $6.8 million in payroll-related expenses, including an increase in stock-based compensation of $4.4 million, as a result of increased headcount and new equity grants, and a $0.5 million increase in materials, supplies and equipment costs. The remaining increase is due to an increase in costs to support research and development initiatives, including a $0.4 million increase in professional service fees and a $0.7 million increase in allocated overhead costs.
Previous wording
Depreciation and amortization expenses increased by $2.0 million, or 85%, to $4.3 million for the three months ended June 30, 2024, from $2.3 million for the three months ended June 30, 2023. The increase was primarily driven by an increase of $0.6 million and $0.7 million in depreciation expense associated with capitalized quantum computing system costs and other property and equipment, respectively, and an increase of $0.7 million due to amortization of capitalized internal-use software.
Current wording
Depreciation and amortization expenses increased by $2.1 million, or 78%, to $4.9 million for the three months ended September 30, 2024, from $2.7 million for the three months ended September 30, 2023. The increase was primarily driven by an increase of $0.7 million and $0.8 million in depreciation expense associated with capitalized quantum computing system costs and other property and equipment, respectively, and an increase of $0.6 million due to amortization of capitalized internal-use software.
Previous wording
The change in fair value of warrant liabilities increased by $22.2 million, or 143%, to a gain of $6.6 million for the three months ended June 30, 2024, from a loss of $15.5 million for the three months ended June 30, 2023. The increase was due to mark-to-market adjustments based on changes in the trading price for our public warrants.
Current wording
The change in fair value of warrant liabilities increased by $3.8 million, or 49%, to a loss of $3.9 million for the three months ended September 30, 2024, from a loss of $7.6 million for the three months ended September 30, 2023. The increase was due to mark-to-market adjustments based on changes in the trading price for our public warrants.
Previous wording
Interest income, net decreased by $0.1 million, or 2%, to $4.8 million for the three months ended June 30, 2024, from $4.9 million for the three months ended June 30, 2023. The decrease was primarily driven by a decrease in the available-for-sale investments balance, offset by higher interest rates.
Current wording
Interest income, net decreased by $0.5 million, or 10%, to $4.5 million for the three months ended September 30, 2024, from $5.0 million for the three months ended September 30, 2023. The decrease was primarily driven by a decrease in the available-for-sale investments balance, offset by higher interest rates.
Previous wording
Revenue increased by $9.2 million, or 94%, to $19.0 million for the six months ended June 30, 2024, from $9.8 million for the six months ended June 30, 2023. The increase was primarily driven by progress on our arrangements to build specialized quantum computing hardware, as well as new revenue contracts under which we provided services during the six months ended June 30, 2024.
Current wording
Revenue increased by $15.4 million, or 97%, to $31.4 million for the nine months ended September 30, 2024, from $15.9 million for the nine months ended September 30, 2023. The increase was primarily driven by progress on our arrangements to build specialized quantum computing hardware, as well as new revenue contracts under which we provided services during the nine months ended September 30, 2024.
Previous wording
Cost of revenue increased by $6.1 million, or 208%, to $9.0 million for the six months ended June 30, 2024, from $2.9 million for the six months ended June 30, 2023. The increase was driven primarily by an increase in labor costs to service contracts, as well as an increase in materials costs for arrangements to build specialized quantum computing hardware, for the six months ended June 30, 2024.
Current wording
Cost of revenue increased by $10.6 million, or 214%, to $15.6 million for the nine months ended September 30, 2024, from $4.9 million for the nine months ended September 30, 2023. The increase was driven primarily by an increase in hardware costs used in the construction of specialized quantum computing hardware, as well as an increase in labor costs to service contracts, for the nine months ended September 30, 2024.
Previous wording
Research and development expense increased by $27.5 million, or 76%, to $63.6 million for the six months ended June 30, 2024, from $36.1 million for the six months ended June 30, 2023. The increase was primarily driven by an increase of $19.7 million in payroll-related expenses, including an increase in stock-based compensation of $12.3 million, as a result of increased headcount and new equity grants, and a $4.3 million increase in materials, supplies and equipment costs. The remaining increase is due to an increase in costs to support research and development initiatives, including a $1.1 million increase in professional service fees and a $1.1 million increase in allocated facility and other costs.
Current wording
Research and development expense increased by $36.0 million, or 59%, to $96.8 million for the nine months ended September 30, 2024, from $60.7 million for the nine months ended September 30, 2023. The increase was primarily driven by an increase of $26.5 million in payroll-related expenses, including an increase in stock-based compensation of $16.7 million, as a result of increased headcount and new equity grants, and a $4.8 million increase in materials, supplies and equipment costs. The remaining increase is due to an increase in costs to support research and development initiatives, including a $1.5 million increase in professional service fees and a $1.9 million increase in allocated overhead costs.
Previous wording
Sales and marketing expense increased by $2.6 million, or 72%, to $6.1 million for the three months ended June 30, 2024, from $3.6 million for the three months ended June 30, 2023. The increase was primarily driven by an increase of $2.9 million of payroll-related expenses, including an increase in stock-based compensation of $1.7 million, as a result of increased headcount and new equity grants, offset by a decrease of $0.3 million in professional service fees.
Current wording
Sales and marketing expense increased by $8.2 million, or 72%, to $19.5 million for the nine months ended September 30, 2024, from $11.3 million for the nine months ended September 30, 2023. The increase was primarily driven by an increase of $7.9 million of payroll-related expenses, including an increase in stock-based compensation of $4.6 million, as a result of increased headcount and new equity grants.
Previous wording
Depreciation and amortization expenses increased by $4.1 million, or 100%, to $8.3 million for the six months ended June 30, 2024, from $4.1 million for the six months ended June 30, 2023. The increase was primarily driven by an increase of $1.6 million and $1.2 million in depreciation expense associated with capitalized quantum computing system costs and other property and equipment, respectively, and an increase of $1.3 million due to amortization of capitalized internal-use software.
Current wording
Depreciation and amortization expenses increased by $6.3 million, or 91%, to $13.2 million for the nine months ended September 30, 2024, from $6.9 million for the nine months ended September 30, 2023. The increase was primarily driven by an increase of $2.3 million and $2.0 million in depreciation expense associated with capitalized quantum computing system costs and other property and equipment, respectively, and an increase of $1.9 million due to amortization of capitalized internal-use software.
Previous wording
The change in fair value of warrant liabilities increased by $34.4 million, or 180%, to a gain of $15.3 million for the six months ended June 30, 2024, from a loss of $19.1 million for the six months ended June 30, 2023. The increase was due to mark-to-market adjustments based on changes in the trading price for our public warrants.
Current wording
The change in fair value of warrant liabilities increased by $38.2 million, or 143%, to a gain of $11.4 million for the nine months ended September 30, 2024, from a loss of $26.8 million for the nine months ended September 30, 2023. The increase was due to mark-to-market adjustments based on changes in the trading price for our public warrants.
Previous wording
As of June 30, 2024, we had cash, cash equivalents and available-for-sale securities of $402.0 million. Excluded from our available liquidity is $2.4 million of restricted cash, which is primarily recorded in other noncurrent assets in our condensed consolidated balance sheets. We believe that our cash, cash equivalents and investments as of June 30, 2024, will be sufficient to meet our working capital and capital expenditure needs for the next 12 months. We believe we will meet longer term expected future cash requirements and obligations through a combination of cash flows from operating activities and available funds from our cash, cash equivalents and investment balances. However, this determination is based upon internal projections and is subject to changes in market and business conditions. We have incurred significant losses since our inception and as of June 30, 2024, we had an accumulated deficit of $429.2 million. During the six months ended June 30, 2024, we incurred net losses of $77.2 million. We expect to incur significant losses and higher operating expenses for the foreseeable future.
Current wording
As of September 30, 2024, we had cash, cash equivalents and available-for-sale securities of $382.8 million. Excluded from our available liquidity is $2.4 million of restricted cash, which is primarily recorded in other noncurrent assets in our condensed consolidated balance sheets. We believe that our cash, cash equivalents and investments as of September 30, 2024, will be sufficient to meet our working capital and capital expenditure needs for the next 12 months. We believe we will meet longer term expected future cash requirements and obligations through a combination of cash flows from operating activities and available funds from our cash, cash equivalents and investment balances. However, this determination is based upon internal projections and is subject to changes in market and business conditions. We have incurred significant losses since our inception and as of September 30, 2024, we had an accumulated deficit of $481.7 million. During the nine months ended September 30, 2024, we incurred net losses of $129.6 million. We expect to incur significant losses and higher operating expenses for the foreseeable future.
Previous wording
Our material cash requirements as of June 30, 2024, include operating lease commitments. As of June 30, 2024, we have total operating lease obligations of $23.5 million, with $3.2 million payable within 12 months.
Current wording
Our material cash requirements as of September 30, 2024, include operating lease commitments. As of September 30, 2024, we have total operating lease obligations of $23.0 million, with $3.5 million payable within 12 months.
Previous wording
Net cash used in operating activities during the six months ended June 30, 2024, was $47.0 million, resulting primarily from a net loss of $77.2 million, adjusted for non-cash activity, primarily related to the gain recorded as a result of mark-to-market activity for our public warrants, stock-based compensation and other working capital activities. The increase in net cash used in operations from the prior year period was primarily related to increased research and development activities and increased compensation costs as a result of hiring personnel.
Current wording
Net cash used in operating activities during the nine months ended September 30, 2024, was $66.3 million, resulting primarily from a net loss of $129.6 million, adjusted for non-cash activity, primarily related to stock-based compensation, and other working capital activities. The increase in net cash used in operations from the prior year period was primarily related to increased research and development activities and increased compensation costs as a result of hiring personnel.
Previous wording
Net cash used in operating activities during the six months ended June 30, 2023, was $29.9 million, resulting primarily from a net loss of $71.1 million, adjusted for non-cash activity, primarily related to the loss recorded as a result of mark-to-market activity for our public warrants, stock-based compensation and other working capital activities.
Current wording
Net cash used in operating activities during the nine months ended September 30, 2023, was $52.2 million, resulting primarily from a net loss of $115.9 million, adjusted for non-cash activity, primarily related to the loss recorded as a result of mark-to-market activity for our public warrants, stock-based compensation and other working capital activities.
Previous wording
Net cash provided by investing activities during the six months ended June 30, 2024, was $51.8 million, primarily resulting from cash received from maturities of available-for-sale securities of $211.6 million, offset by purchases of available-for-sale securities of $146.1 million, additions of $10.6 million to property and equipment primarily related to leasehold improvements and the development of our quantum computing systems, and additions of $2.1 million related to capitalized software development costs.
Current wording
Net cash provided by investing activities during the nine months ended September 30, 2024, was $58.4 million, primarily resulting from cash received from maturities of available-for-sale securities of $318.2 million, offset by purchases of available-for-sale securities of $241.2 million, additions of $14.4 million to property and equipment primarily related to leasehold improvements and the development of our quantum computing systems, and additions of $3.1 million related to capitalized software development costs.
Previous wording
Net cash used in investing activities during the six months ended June 30, 2023, was $0.9 million, primarily resulting from purchases of available-for-sale securities of $185.4 million, additions of $2.4 million to property and equipment primarily related to the development of our quantum computing systems and additions of $2.0 million related to capitalized software development costs, offset by cash received from maturities of available-for-sale investments of $189.4 million.
Current wording
Net cash provided by investing activities during the nine months ended September 30, 2023, was $44.6 million, primarily resulting from maturities of available-for-sale securities of $285.7 million, offset by purchases of available-for-sale securities of $230.4 million, additions of $6.5 million to property and equipment primarily related to the development of our quantum computing systems, and additions of $3.1 million related to capitalized software development costs.
Previous wording
Net cash provided by financing activities during the six months ended June 30, 2024, was $1.3 million, primarily resulting from proceeds from stock options exercised.
Current wording
Net cash provided by financing activities during the nine months ended September 30, 2024, was $2.4 million, primarily resulting from proceeds from stock options exercised.
Previous wording
Net cash provided by financing activities during the six months ended June 30, 2023, was $0.5 million, primarily resulting from proceeds from stock options exercised.
Current wording
Net cash provided by financing activities during the nine months ended September 30, 2023, was $0.8 million, primarily resulting from proceeds from stock options exercised.