2023 Q2 Form 10-Q Financial Statement

#000190798223000016 Filed on May 19, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1 2022 Q1
Revenue $1.707M $1.583M $0.00
YoY Change 24.51%
Cost Of Revenue $1.002M $1.162M $584.0K
YoY Change 70.99% 98.97% 95.97%
Gross Profit $705.0K $421.0K $1.129M
YoY Change -10.19% -62.71% 1.53%
Gross Profit Margin 41.3% 26.6%
Selling, General & Admin $12.06M $14.20M $5.246M
YoY Change 111.72% 170.61% 46.05%
% of Gross Profit 1711.21% 3371.97% 464.66%
Research & Development $9.548M $10.92M $6.525M
YoY Change 35.01% 67.28% 0.63%
% of Gross Profit 1354.33% 2592.64% 577.95%
Depreciation & Amortization $200.0K $339.0K $412.0K
YoY Change -35.28% -17.72% 7.29%
% of Gross Profit 28.37% 80.52% 36.49%
Operating Expenses $21.61M $25.11M $2.187M
YoY Change 69.24% 1048.04% 179.75%
Operating Profit -$20.91M -$24.69M -$1.058M
YoY Change 74.44% 2233.01% -420.57%
Interest Expense -$1.130M $454.0K $46.38K
YoY Change -164.72% 878.87% -22.56%
% of Operating Profit
Other Income/Expense, Net -$4.991M $82.00K -$1.282M
YoY Change 311.46% -106.4% -107.95%
Pretax Income -$25.90M -$24.61M -$3.423M
YoY Change 96.24% 619.01% -122.23%
Income Tax
% Of Pretax Income
Net Earnings -$25.90M -$24.60M -$3.423M
YoY Change 96.24% 618.77% -122.23%
Net Earnings / Revenue -1517.28% -1554.01%
Basic Earnings Per Share -$0.20 -$0.20 -$0.09
Diluted Earnings Per Share -$0.20 -$0.20 -$91.27K
COMMON SHARES
Basic Shares Outstanding 80.60M shares 80.39M shares 125.4M shares
Diluted Shares Outstanding 127.3M shares 123.1M shares 125.4M shares

Balance Sheet

Concept 2023 Q2 2023 Q1 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $7.510M $8.988M $30.75K
YoY Change -28.24% 29129.27% -96.67%
Cash & Equivalents $7.514M $8.988M $17.66M
Short-Term Investments
Other Short-Term Assets $2.200M $2.814M $123.4K
YoY Change -69.44% 2181.13% -68.92%
Inventory $2.325M $2.240M $2.052M
Prepaid Expenses
Receivables $803.0K $542.0K $2.820M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $12.84M $14.91M $154.1K
YoY Change -44.61% 9576.21% -88.34%
LONG-TERM ASSETS
Property, Plant & Equipment $1.792M $2.041M $11.34M
YoY Change -35.35% -82.0%
Goodwill
YoY Change
Intangibles $205.0K $228.0K
YoY Change -21.76%
Long-Term Investments $300.2M
YoY Change 0.04%
Other Assets $1.354M $1.351M $1.354M
YoY Change 0.3% -0.22%
Total Long-Term Assets $12.07M $12.55M $300.2M
YoY Change -3.48% -95.82% 0.04%
TOTAL ASSETS
Total Short-Term Assets $12.84M $14.91M $154.1K
Total Long-Term Assets $12.07M $12.55M $300.2M
Total Assets $24.91M $27.46M $300.4M
YoY Change -30.2% -90.86% -0.35%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.110M $8.067M $3.052M
YoY Change 65.53% 164.32%
Accrued Expenses $10.80M $9.859M $7.813M
YoY Change 30.2% 26.19% 768.68%
Deferred Revenue $2.827M $1.827M
YoY Change 8.94%
Short-Term Debt $210.0K $420.0K $200.0K
YoY Change 110.0%
Long-Term Debt Due $15.91M $790.0K $15.28M
YoY Change -25.49% -94.83%
Total Short-Term Liabilities $33.64M $18.08M $4.930M
YoY Change -7.32% 266.85% 448.09%
LONG-TERM LIABILITIES
Long-Term Debt $8.473M $8.260M $0.00
YoY Change -34.33%
Other Long-Term Liabilities $10.69M $8.428M $22.57M
YoY Change -62.66% -31.77%
Total Long-Term Liabilities $8.473M $8.260M $22.57M
YoY Change -34.33% -63.4% -31.77%
TOTAL LIABILITIES
Total Short-Term Liabilities $33.64M $18.08M $4.930M
Total Long-Term Liabilities $8.473M $8.260M $22.57M
Total Liabilities $52.80M $34.77M $27.50M
YoY Change -5.34% 26.45% -19.07%
SHAREHOLDERS EQUITY
Retained Earnings -$427.3M -$401.4M
YoY Change 22.05%
Common Stock $12.00K $12.00K
YoY Change -99.57%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$27.89M -$7.313M $272.9M
YoY Change
Total Liabilities & Shareholders Equity $24.91M $27.46M $300.4M
YoY Change -30.2% -90.86% -0.35%

Cashflow Statement

Concept 2023 Q2 2023 Q1 2022 Q1
OPERATING ACTIVITIES
Net Income -$25.90M -$24.60M -$3.423M
YoY Change 96.24% 618.77% -122.23%
Depreciation, Depletion And Amortization $200.0K $339.0K $412.0K
YoY Change -35.28% -17.72% 7.29%
Cash From Operating Activities -$15.47M -$13.60M -$294.0K
YoY Change 29.02% 4526.32% 83.77%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $64.00K -$144.0K
YoY Change -100.0% -144.44% -80.51%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities $0.00 -$76.00K -$144.0K
YoY Change -100.0% -47.22% -80.51%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $881.0K $13.00K
YoY Change 6676.92%
Cash From Financing Activities 14.07M $15.59M 200.0K
YoY Change 187.55% 7696.0% -98.32%
NET CHANGE
Cash From Operating Activities -15.47M -$13.60M -294.0K
Cash From Investing Activities 0.000 -$76.00K -144.0K
Cash From Financing Activities 14.07M $15.59M 200.0K
Net Change In Cash -1.400M $1.923M -93.97K
YoY Change -80.48% -2146.4% -41.26%
FREE CASH FLOW
Cash From Operating Activities -$15.47M -$13.60M -$294.0K
Capital Expenditures $0.00 $64.00K -$144.0K
Free Cash Flow -$15.47M -$13.66M -$150.0K
YoY Change 29.83% 9011.16% -125.9%

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IncreaseDecreaseInOperatingLeaseLiability
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CY2022Q1 us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
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CY2023Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
64000 usd
CY2022Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
123000 usd
CY2023Q1 us-gaap Payments For Software
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CY2022Q1 us-gaap Payments For Software
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CY2023Q1 us-gaap Net Cash Provided By Used In Investing Activities
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CY2022Q1 us-gaap Net Cash Provided By Used In Investing Activities
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CY2023Q1 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
15683000 usd
CY2022Q1 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
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CY2022Q1 qbts Proceeds From Government Assistance
ProceedsFromGovernmentAssistance
3178000 usd
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CY2022Q1 us-gaap Proceeds From Stock Options Exercised
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CY2022Q1 us-gaap Proceeds From Issuance Of Long Term Debt
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14700000 usd
CY2023Q1 us-gaap Repayments Of Long Term Debt
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881000 usd
CY2022Q1 us-gaap Repayments Of Long Term Debt
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CY2023Q1 qbts Proceeds From Short Swing Profit Settlement
ProceedsFromShortSwingProfitSettlement
244000 usd
CY2022Q1 qbts Proceeds From Short Swing Profit Settlement
ProceedsFromShortSwingProfitSettlement
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CY2023Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
15592000 usd
CY2022Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
17872000 usd
CY2023Q1 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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1923000 usd
CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
8178000 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
7065000 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
9483000 usd
CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
8988000 usd
CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
17661000 usd
CY2023Q1 qbts Deferred Costs Incurred But Not Yet Paid
DeferredCostsIncurredButNotYetPaid
0 usd
CY2022Q1 qbts Deferred Costs Incurred But Not Yet Paid
DeferredCostsIncurredButNotYetPaid
3734000 usd
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150000000 usd
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CY2023Q1 us-gaap Nature Of Operations
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Description of business<div style="margin-bottom:0.11pt;margin-top:6pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">D-Wave Quantum Inc. ("D-Wave" or the “Company”) was incorporated under the General Corporation Law of the State of the Delaware on January 24, 2022. The Company was formed for the purpose of effecting a merger between DPCM Capital, Inc. (“DPCM”), D-Wave Systems Inc. (“D-Wave Systems”), and certain other affiliated entities through a series of transactions (the “Merger”) pursuant to the definitive agreement entered into on February 7, 2022 (the “Transaction Agreement”). On August 5, 2022, in conjunction with the Merger, DPCM and D-Wave Systems became wholly-owned subsidiaries of, and are operated by, the Company. Upon the completion of the Merger, the Company succeeded to all of the operations of its predecessor, D-Wave Systems. </span></div><div style="margin-top:6pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">D-Wave is a commercial quantum computing company that provides customers with a full suite of professional services and web-based access to its superconducting quantum computer systems and integrated software environment through its cloud service, Leap</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">TM</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">. Historically, the Company has developed its own annealing superconducting quantum computer and associated software, and its current generation quantum system is the Advantage</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:6.5pt;font-weight:400;line-height:120%;position:relative;top:-3.5pt;vertical-align:baseline">TM</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> system.</span></div><div style="margin-top:6pt;text-align:justify;text-indent:36pt"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">D-Wave has three operating facilities, which it leases, in North America. These facilities are located in Burnaby, British Columbia, Richmond, British Columbia, and Palo Alto, California.</span></div>
CY2023Q1 qbts Number Of Operating Facilities
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CY2022Q1 us-gaap Net Cash Provided By Used In Operating Activities
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CY2023Q1 us-gaap Cash
Cash
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EquityLineOfCreditRightToSellCommonStock
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<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:100%">Use of estimates</span></div><div style="margin-bottom:0.11pt;margin-top:6pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of the condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s condensed consolidated financial statements and accompanying notes as of the date of the condensed consolidated financial statements. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. On an ongoing basis, management evaluates its estimates as there are changes in circumstances, facts, and experience.</span></div>The Company’s accounting estimates and assumptions may change over time in response to risks and uncertainties, including uncertainty in the current economic environment due to inflation, increased interest rates, Ukraine/Russia conflict, and any evolutions thereof. The change could be material in future periods. As of the date of issuance of these condensed consolidated financial statements, the Company is not aware of any specific event or circumstances that would require the Company to update estimates, judgments or revise the carrying value of any assets or liabilities. Actual results may differ from those estimates or assumptions.
CY2023Q1 us-gaap Equity Securities Without Readily Determinable Fair Value Amount
EquitySecuritiesWithoutReadilyDeterminableFairValueAmount
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RevenueFromContractWithCustomerExcludingAssessedTax
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ScientificResearchAndExperimentalDevelopmentInvestmentTaxCredit
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ScientificResearchAndExperimentalDevelopmentInvestmentTaxCredit
400000 usd
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1.4541326
CY2022Q3 qbts Recapitalization Exchange Ratio
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ContractWithCustomerLiabilityAdditions
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ContractWithCustomerLiabilityRevenueRecognizedIncludingOpeningBalance
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P12M
CY2022Q4 us-gaap Revenue Remaining Performance Obligation
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P12M
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2459000 usd
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CY2023Q1 us-gaap Prepaid Insurance
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CY2023Q1 qbts Directors And Officers Insurance Current
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1449000 usd
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328000 usd
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ReceivableResearchIncentivesCurrent
264000 usd
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AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
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2041000 usd
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2294000 usd
CY2023Q1 us-gaap Depreciation
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300000 usd
CY2022Q1 us-gaap Depreciation
Depreciation
300000 usd
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InterestExpenseDebt
1808000 usd
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DebtInstrumentForeignExchangeGainLoss
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CY2022 qbts Debt Instrument Foreign Exchange Gain Loss
DebtInstrumentForeignExchangeGainLoss
1903000 usd
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2483000 usd
CY2023Q1 qbts Debt Instrument Discount Government Assistance
DebtInstrumentDiscountGovernmentAssistance
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CY2022 qbts Debt Instrument Discount Government Assistance
DebtInstrumentDiscountGovernmentAssistance
5673000 usd
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34000 usd
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19459000 usd
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CY2022Q3 qbts Class Of Warrant Or Right Redemption Share Price Threshold Trading Days
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20 day
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P30D
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0
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CY2023Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
0.81
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
40000 usd
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
45731 shares
CY2023Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
1.14
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod
26821 shares
CY2023Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice
0.81
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
14642411 shares
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
1.72
CY2023Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P7Y5M12D
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
11919869 shares
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
1.02
CY2023Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P6Y8M1D
CY2023Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
3544841 shares
CY2023Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
3.84
CY2023Q1 qbts Share Based Compensation Arrangement By Share Based Payment Award Options Nonvested Weighted Average Remaining Contractual Term
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsNonvestedWeightedAverageRemainingContractualTerm
P8Y9M
CY2023Q1 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions
6400000 usd
CY2023Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested In Period Fair Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1
1200000 usd
CY2022Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested In Period Fair Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1
500000 usd
CY2023Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
6755000 usd
CY2022Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
783000 usd
CY2023Q1 us-gaap Lease Cost
LeaseCost
400000 usd
CY2022Q1 us-gaap Lease Cost
LeaseCost
400000 usd
CY2023Q1 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-24608000 usd
CY2023Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-24608000 usd
CY2022Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-11657000 usd
CY2022Q1 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-11657000 usd
CY2023Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
123144097 shares
CY2023Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
123144097 shares
CY2022Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
125385841 shares
CY2022Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
125385841 shares
CY2023Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.20
CY2023Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.20
CY2022Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.09
CY2022Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.09
CY2023Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
41969132 shares
CY2022Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
17292166 shares
CY2023Q1 dei Document Period End Date
DocumentPeriodEndDate
2023-03-31

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