D-Wave Quantum Inc (QBTS) Quarterly 10-Q Report

The report was filed on November 14, 2024

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D-Wave Quantum Inc. (QBTS-2.25%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.

The filing includes financial statements for the quarter, showing a decrease in revenue to $1.9 million from $2.6 million in the same quarter the previous year. The decrease is attributed to a reduction in professional service revenue.

Cost of revenue for the quarter was $827,000, representing 44% of revenue, compared to 40% in the same quarter of the previous year. This increase in cost ratio is due to a decrease in non-cash stock-based compensation.

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The company reported a net loss of $22.7 million for the quarter, compared to $16.1 million in the previous year, with the increase attributed to higher operating expenses.

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Research and development expenses decreased to $8.7 million from $9.5 million, primarily due to reductions in stock-based compensation and fabrication expenses.

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General and administrative expenses increased to $9.3 million from $8.0 million, primarily due to higher professional services and credit losses.

Sales and marketing expenses increased to $3.8 million from $2.5 million, driven by higher personnel and marketing costs.

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The company has prepaid $21.1 million of its Term Loan, including $16.4 million in principal and $4.2 million in accrued PIK interest. The remaining balance as of September 30, 2024, was $13.7 million.

D-Wave had a working capital of $9.3 million as of September 30, 2024. The company acknowledges its dependence on additional capital to meet future obligations.

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The filing also details various financial agreements, including a purchase agreement with Lincoln Park Capital Fund, LLC, and an at-the-market sales agreement with Needham & Company, LLC, B. Riley Securities, Inc. (RILY-0.74%), and Roth Capital Partners, LLC.

D-Wave does not anticipate cash dividend payments to common stockholders in the near future.

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The company identified a material weakness in its internal controls over financial reporting due to a lack of sufficient accounting and financial reporting personnel.

D-Wave continues to focus on expanding its commercial operations and research and development programs, highlighting its dependence on additional capital for future growth.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the D-Wave Quantum Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.