Part I. Financial Information This part presents D-Wave's unaudited condensed consolidated financial statements, notes, and management's analysis [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents D-Wave's unaudited condensed consolidated financial statements, including balance sheets, income, equity, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of D-Wave's financial position, detailing assets, liabilities, and equity at specific points in time | Metric (in thousands of U.S. dollars) | September 30, 2023 | December 31, 2022 | Change | % Change | | :------------------------------------ | :------------------ | :----------------- | :----- | :------- | | Cash | $53,317 | $7,065 | $46,252 | 654.6% | | Total current assets | $58,194 | $13,925 | $44,269 | 317.9% | | Total assets | $70,179 | $26,947 | $43,232 | 160.4% | | Total current liabilities | $43,328 | $15,848 | $27,480 | 173.4% | | Total liabilities | $61,383 | $32,861 | $28,522 | 86.8% | | Total stockholders' (deficit) equity | $8,796 | $(5,914) | $14,710 | -248.7% | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) This section outlines D-Wave's financial performance over periods, reporting revenue, expenses, and net loss | Metric (in thousands of U.S. dollars) | Three months ended Sep 30, 2023 | Three months ended Sep 30, 2022 | Change | % Change | | :------------------------------------ | :------------------------------ | :------------------------------ | :----- | :------- | | Revenue | $2,562 | $1,695 | $867 | 51.1% | | Total gross profit | $1,529 | $1,041 | $488 | 46.9% | | Total operating expenses | $19,936 | $16,205 | $3,731 | 23.0% | | Loss from operations | $(18,407) | $(15,164) | $(3,243)| 21.4% | | Net loss | $(15,829) | $(13,311) | $(2,518)| 18.9% | | Net loss per share, basic and diluted | $(0.12) | $(0.11) | $(0.01)| 9.1% | | Metric (in thousands of U.S. dollars) | Nine months ended Sep 30, 2023 | Nine months ended Sep 30, 2022 | Change | % Change | | :------------------------------------ | :----------------------------- | :----------------------------- | :----- | :------- | | Revenue | $5,852 | $4,778 | $1,074 | 22.5% | | Total gross profit | $2,655 | $2,920 | $(265) | -9.1% | | Total operating expenses | $66,659 | $41,347 | $25,312| 61.2% | | Loss from operations | $(64,004) | $(38,427) | $(25,577)| 66.6% | | Net loss | $(66,335) | $(38,740) | $(27,595)| 71.2% | | Net loss per share, basic and diluted | $(0.50) | $(0.32) | $(0.18)| 56.3% | [Condensed Consolidated Statements of Stockholders' (Deficit) Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20%28Deficit%29%20Equity) This section details changes in D-Wave's equity, including additional paid-in capital and accumulated deficit | Metric (in thousands of U.S. dollars) | September 30, 2023 | December 31, 2022 | Change | | :------------------------------------ | :------------------ | :----------------- | :----- | | Additional paid-in capital | $462,385 | $381,274 | $81,111| | Accumulated deficit | $(443,132) | $(376,797) | $(66,335)| | Total stockholders' (deficit) equity | $8,796 | $(5,914) | $14,710| - For the nine months ended September 30, 2023, the company issued **39,487,104 common shares** under the Purchase Agreement, generating **$61.3 million** in proceeds, and **226,453 shares** under the ESPP for **$0.3 million**. Stock-based compensation added **$17.4 million** to additional paid-in capital[32](index=32&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports D-Wave's cash inflows and outflows from operating, investing, and financing activities | Cash Flow Activity (in thousands of U.S. dollars) | Nine months ended Sep 30, 2023 | Nine months ended Sep 30, 2022 | Change | | :------------------------------------------------ | :----------------------------- | :----------------------------- | :----- | | Net cash used in operating activities | $(45,910) | $(34,339) | $(11,571)| | Net cash used in investing activities | $(176) | $(316) | $140 |\ | Net cash provided by financing activities | $92,408 | $38,967 | $53,441|\ | Net increase in cash and cash equivalents | $46,252 | $4,281 | $41,971| - Operating cash outflows increased by **$11.6 million** YoY, primarily due to a higher net loss. Financing activities significantly increased cash, driven by **$61.3 million** from the Lincoln Park Purchase Agreement and **$29.0 million** from the Term Loan in 2023, compared to **$40.0 million** from PIPE investment and **$19.9 million** from Venture Loan in 2022[40](index=40&type=chunk)[177](index=177&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of D-Wave's accounting policies and specific financial statement line items [1. Description of business](index=15&type=section&id=1.%20Description%20of%20business) This note describes D-Wave Quantum Inc.'s core business as a commercial quantum computing company - D-Wave Quantum Inc. is a commercial quantum computing company providing professional services and web-based access to its superconducting quantum computer systems (Advantage system) and integrated software environment via its cloud service, Leap™[44](index=44&type=chunk) [2. Basis of Presentation and Summary of Significant Accounting Policies](index=15&type=section&id=2.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the financial statement basis, significant accounting policies, and going concern considerations - The Company has incurred significant net losses and negative cash flows from operations since inception, with an accumulated deficit of **$443.1 million** as of September 30, 2023. Management has determined that the Company's liquidity condition raises substantial doubt about its ability to continue as a going concern for the next year[51](index=51&type=chunk)[56](index=56&type=chunk) - The Term Loan with PSPIB provides **$50.0 million** in three tranches, with the first two tranches (**$15.0 million** each) already advanced. The third tranche of **$20.0 million** is subject to conditions, including a **$25.0 million** non-dilutive financing and a satisfactory operating budget by December 31, 2023. PSPIB waived minimum revenue covenants for Q2 and Q3 2023[52](index=52&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - The Purchase Agreement with Lincoln Park allows D-Wave to sell up to **$150 million** of common stock through November 1, 2025. For the nine months ended September 30, 2023, **$61.3 million** was raised. However, sales are subject to a **$1.00** floor price, which the stock has fallen below since October 11, 2023, potentially limiting future liquidity from this source[53](index=53&type=chunk)[172](index=172&type=chunk) Fair Value of Financial Instruments (September 30, 2023) | Description | Level | Amount (in thousands) | | :-------------------------------- | :---- | :-------------------- | | Warrant Liabilities – Public W

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________ For the transition period from ___________ and ____________ Commission file number 001-41468 D-WAVE QUANTUM INC. (Exact name of registrant as specified in its charter) ________________________ (State or other jurisdiction of incorporation or organization) 3033 Beta Avenue, Burnaby, British Columbia, Canada V5G 4M9 FORM 10-Q ________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECT ...

TABLE OF CONTENTS As filed with the U.S. Securities and Exchange Commission on July 10, 2023 Registration No. 333-269732 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 3 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 D-Wave Quantum Inc. (Exact Name of Registrant as Specified in its Certificate of Incorporation) (State or Other Jurisdiction of Incorporation or Organization) (Primary Standard Industrial Classification Code Number) Delaware 7374 88-10 ...

TABLE OF CONTENTS As filed with the U.S. Securities and Exchange Commission on June 27, 2023 Registration No. 333-269732 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 2 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 (State or Other Jurisdiction of Incorporation or Organization) (Primary Standard Industrial Classification Code Number) Delaware 7374 88-1068854 (IRS Employer Identification Number) 3033 Beta Avenue Burnaby, British Columbia V5G 4M9 Ca ...

TABLE OF CONTENTS As filed with the U.S. Securities and Exchange Commission on June 1, 2023 Registration No. 333-269732 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 1 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 D-Wave Quantum Inc. (Exact Name of Registrant as Specified in its Certificate of Incorporation) (State or Other Jurisdiction of Incorporation or Organization) (Primary Standard Industrial Classification Code Number) Delaware 7374 88-106 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________ FORM 10-Q ________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ and ____________ Commission file number 001-41468 D-WAVE QUANTUM INC. (Exact n ...

Financial Data and Key Metrics Changes - Revenue in Q1 2023 was $1.6 million, a decrease of $129,000 or 7.5% compared to Q1 2022 [10] - Non-GAAP gross profit for Q1 was $852,000, a decrease of $317,000 or 27.1% from $1.2 million in Q1 2022 [14] - GAAP operating expenses in Q1 were $25.1 million, compared to $12 million in the same period last year [15] - Net loss for Q1 was $24.6 million or $0.20 per share, compared to a net loss of $11.7 million or $0.09 per share in Q1 2022 [51] - Adjusted EBITDA for Q1 was a negative $16.9 million, compared to a negative $9.8 million in Q1 2022 [51] Business Line Data and Key Metrics Changes - Quantum Computing as a Service (QCaaS) revenue totaled $1.2 million in Q1, representing 74% of total revenue, down from 81% in the previous year [11] - Bookings for Q1 were $2.9 million, an increase of 297% compared to Q1 2022, marking the fifth consecutive quarter of growth [24][31] - The average deal size for QCaaS and Professional Services combined increased by 430% year-over-year and by 68% sequentially from Q4 to Q1 [6] Market Data and Key Metrics Changes - The company has 65 revenue-producing commercial customers, up from 63 in the previous four quarters, with commercial revenue increasing by 30% [13] - Total customers, including commercial, educational, and government accounts, increased to 109 from 106 in the previous four quarters [13] Company Strategy and Development Direction - D-Wave is positioned as the only company offering quantum annealing technology commercially, aiming to accelerate the adoption of quantum computing [4] - The company is focusing on integrating quantum technology with artificial intelligence and machine learning to optimize business processes [8] - D-Wave is developing its next-generation system, Advantage 2, which is expected to feature over 7,000 qubits and improved coherence [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue guidance of $12 million to $13 million for the full fiscal year, representing year-over-year growth of 67% to 80% [17] - The company noted that customer interest in quantum computing is growing, with many companies recognizing the need to adopt quantum solutions now [85] - Management emphasized that the sales cycle is shortening, with more inbound inquiries leading to faster deal closures [48][90] Other Important Information - D-Wave raised approximately $20 million under the Equity Line of Credit (ELOC), including $15.7 million in Q1 2023 [16] - The company completed a $50 million secured term loan agreement, with an initial advance of $15 million received [52] Q&A Session Summary Question: What are the drivers behind the revenue recognition for professional services? - Management clarified that the complexity of professional services agreements affects revenue recognition timing, but there have been no fundamental changes in agreement structures [19] Question: How is the company addressing issues related to AI hallucinations? - Management indicated that their feature selection work in AI could help mitigate hallucinations by filtering out irrelevant data [40][59] Question: What is the outlook for deal sizes and customer engagement? - Management noted that while deal sizes are increasing, the focus is on helping current customers move to production and upselling services [82] Question: How does the company plan to achieve its EBITDA guidance? - Management stated that achieving the EBITDA target will depend on revenue growth and improved gross margins as the mix shifts towards higher-margin QCaaS [106] Question: Is the economic environment impacting the sales cycle? - Management reported no significant impact from the economic environment, with increased awareness of D-Wave's commercial quantum computing capabilities [72]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission file number 001-41468 D-Wave Quantum Inc. (Exact name of registrant as specified in its charter) (Sta ...

Table of Contents As filed with the U.S. Securities and Exchange Commission on February 13, 2023 Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 D-Wave Quantum Inc. (Exact Name of Registrant as Specified in its Certificate of Incorporation) (State or Other Jurisdiction of Incorporation or Organization) (Primary Standard Industrial Classification Code Number) Delaware 7374 88-1068854 (IRS Employer I ...

D-Wave Quantum Inc. (NYSE:QBTS) Q3 2022 Earnings Call Transcript November 10, 2022 8:00 AM ET Company Participants Kevin Hunt - Investor Relations Alan Baratz - Chief Executive Officer John Markovich - Chief Financial Officer Conference Call Participants David Williams - Benchmark Harsh Kumar - Piper Sandler Suji Desilva - Roth Capital Richard Shannon - Craig-Hallum Kevin Garrigan - WestPark Capital Operator Good morning, and welcome to the D-Wave Third Quarter Earnings Call. All participants will be in lis ...