Demonstrates Path for Continued
Quantum Industry Leadership
IonQ, Inc. (“IonQ” or the “Company”), a leader in quantum
computing, today provides an update on significant progress in its
technological and commercialization efforts since the announcement
of its transaction with dMY Technology Group Inc. III (NYSE: DMYI)
in March. Over the past six months, IonQ has demonstrated
technology that is expected to allow the Company to significantly
scale the power of its quantum computers, has expanded its
footprint to all major cloud providers and major quantum developer
languages, has launched major commercial partnerships with partners
like Accenture, Softbank and the University of Maryland, and has
tripled its bookings expectations for 2021. IonQ is now many steps
closer to realizing its vision of solving the world’s most complex
problems, transforming business, society and the planet for the
better. The Company will be hosting a conference call to discuss
these updates; register here or on the dMY III Investor Relations
website to attend.
Business Highlights
IonQ’s previously announced hardware achievements enable the
continued scaling of its trapped ion quantum computers,
including:
- The industry’s first Reconfigurable Multicore Quantum
Architecture (RMQA) technology, which allows greatly increased
qubit count and power of IonQ’s quantum computers.
- Evaporated Glass Traps (EGTs), a new, IonQ-designed chipset
that affords greater control of individual qubits in a quantum
computer, paving the way for larger quantum computing cores.
- First customers running on IonQ’s latest hardware.
- IonQ’s quantum computers now run thousands of quantum jobs
routinely for customers via the cloud each week.
The Company has also partnered with several cornerstone
financial institutions to demonstrate applications of quantum
machine learning in that industry, including:
- A collaboration with the Fidelity Center for Applied Technology
(FCAT) to demonstrate how quantum computers can be used for
financial modeling. New quantum machine learning techniques were
developed for this purpose that completed training with up to 1,000
times fewer iterations than their classical counterparts, and were
able to predict rare “Black Swan” events that equivalent classical
models missed.
- A joint research project with Goldman Sachs and QCWare
demonstrating the viability of running new algorithms developed by
QCWare and Goldman Sachs which can be utilized to speed up Monte
Carlo simulations.
IonQ has broadened its footprint by making IonQ computers
available on every major cloud platform in the market.
Additionally, it is the only quantum computing hardware provider
supported by every major quantum software developer tool kit (SDK)
in the industry, further establishing IonQ’s credentials as a
leading provider of quantum computing. The Company recently
announced:
- Availability of IonQ quantum computers on the Google Cloud
Marketplace, making IonQ the first quantum computing hardware
provider on the Google platform, and the only quantum compute
supplier available on all three major cloud providers, including
Microsoft (Azure) and Amazon Web Services (AWS).
- Integration with IBM’s Qiskit, making the power of IonQ quantum
computers available to over 275,000 quantum developers using
Qiskit’s open-source quantum SDK, lowering barriers to entry for
IonQ’s platform.
- Integration of IonQ’s quantum computers with Google Cirq, a
leading open-source quantum SDK designed to expand access to
quantum computing to a broad audience.
- The launch of the second cohort of the IonQ Research Credits
Program to provide teams and individuals from qualified academic
institutions with free credits to build novel quantum algorithms on
IonQ’s cutting-edge hardware. The opening of the second cohort
comes on the tail of overwhelming demand in the first cohort of
IonQ’s Research Credits Program this June.
IonQ has also announced considerable progress on commercial
efforts, including:
- Strategic partnership with Accenture (NYSE: ACN), developing a
joint commercial framework to accelerate quantum computing business
applications globally and across all industries.
- Partnership with Softbank to jointly deploy quantum-first
solutions into the largest enterprises across the globe, including
Softbank’s portfolio companies.
- Commercial deal with the University of Maryland as part of the
University’s $20M quantum computing initiative to create the
National Quantum Lab at Maryland (Q-Lab).
- Update that the Company is on track to significantly exceed its
previously announced 2021 bookings target of $5 million dollars,
and is now projected to end the year at $15M.
Additionally, the Company announced four critical hires,
including Tom Jones as Chief People Officer, who brings decades of
human resources and talent development experience from Blue Origin,
Microsoft and Honeywell.
Second Quarter Financial Results
Recognized revenue for the second quarter of 2021 was $0.1
million compared to zero for the comparable period in 2020.
Research and development (“R&D”) expenses were $5.5 million for
the second quarter of 2021 compared to $2.7 million for the
comparable period in 2020, reflecting an increased pace of
development as the Company continues to hire and fund research
essential to executing on its technology roadmap.
IonQ continues to see increases in its general and
administrative expenses ("G&A") and sales and marketing
expenses as those teams continue to grow rapidly. G&A for the
second quarter of 2021 was $2.9 million, versus $0.6 million in the
comparable prior year period, and sales and marketing was $0.9
million for the quarter, versus $0.1 million for the comparable
prior year period. The Company expects these trends to continue due
to costs associated with operating as a public company, developing
the world’s most powerful quantum workforce, and rapidly scaling
IonQ as the quantum market unfolds. Net loss for the second quarter
of 2021 was $10.0 million, or $1.53 per share, compared to a net
loss of $3.7 million, or $0.68 per share, for the comparable period
in 2020.
Cash and cash equivalents decreased from $36.1 million dollars
at December 31, 2020 to $27.7 million at June 30, 2021.
Pending Transaction with dMY III
On March 8, 2021, IonQ entered into a definitive merger
agreement with dMY Technology Group, Inc. III (“dMY III”) (NYSE:
DMYI). As a result of this transaction, the Company expects to add
approximately $580 million to the balance sheet, net of transaction
fees and assuming no stockholder redemptions, which will be used to
fuel future growth and further technological innovations.
The Special Meeting to approve the pending business combination
is scheduled to be held on Tuesday, September 28, 2021 at 12 PM
Eastern time. The Special Meeting will be completely virtual and
conducted via live webcast. Holders of dMY III shares of common
stock at the close of business on the record date of August 16,
2021 are entitled to notice of the virtual Special Meeting and to
vote at the Special Meeting. If the proposals at the Special
Meeting are approved, the parties anticipate that the business
combination will close shortly thereafter, subject to the
satisfaction or waiver (as applicable) of all other closing
conditions. dMY III stockholders who need assistance voting or have
questions regarding the Special Meeting may contact dMY III’s proxy
solicitor, Morrow Sodali, by telephone at 800-662-5200 or by email
at dmyi.info@investor.morrowsodali.com.
About IonQ
IonQ, Inc. is a leader in quantum computing, with a proven track
record of innovation and deployment. IonQ’s next-generation quantum
computer is the world’s most powerful trapped-ion quantum computer,
and IonQ has defined what it believes is the best path forward to
scale. IonQ is the only company with its quantum systems available
through the cloud on Amazon Braket, Microsoft Azure, and Google
Cloud, as well as through direct API access. IonQ was founded in
2015 by Christopher Monroe and Jungsang Kim based on 25 years of
pioneering research. To learn more, visit www.ionq.com.
About dMY Technology Group, Inc. III
dMY III is a special purpose acquisition company founded by
Harry L. You and Niccolo de Masi for the purpose of effecting a
merger, capital stock exchange, asset acquisition, stock purchase,
reorganization or similar business combination with one or more
businesses or assets.
Important Information About the Merger and Where to Find
It
This communication may be deemed solicitation material in
respect of the proposed business combination between dMY III and
IonQ (the “Business Combination”). The Business Combination has
been submitted to the stockholders of dMY III and IonQ for their
approval. In connection with the vote of dMY’s stockholders, dMY
III Technology Group, Inc. III has filed relevant materials with
the SEC, including a registration statement on Form S-4, which
includes a proxy statement/prospectus. This communication does not
contain all the information that should be considered concerning
the proposed Business Combination and the other matters to be voted
upon at the annual meeting and is not intended to provide the basis
for any investment decision or any other decision in respect of
such matters. dMY III’s stockholders and other interested
parties are urged to read the definitive proxy statement, dated
August 12, 2021, and any other relevant documents that are filed or
furnished or will be filed or will be furnished with the SEC
carefully and in their entirety in connection with dMY III’s
solicitation of proxies for the special meeting to be held to
approve the Business Combination and other related matters, as
these materials will contain important information about IonQ and
dMY III and the proposed Business Combination. On or about
August 12, 2021, dMY III mailed the definitive proxy
statement/prospectus and a proxy card to each stockholder entitled
to vote at the special meeting relating to the transaction. Such
stockholders are also be able to obtain copies of these materials,
without charge, at the SEC’s website at http://www.sec.gov, at dMY
III’s website at https://www.dmytechnology.com/ or by written
request to dMY Technology Group, Inc. III, 11100 Santa Monica
Blvd., Suite 2000, Los Angeles, CA 90025.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements may be made directly in this
communication. Some of the forward-looking statements can be
identified by the use of forward-looking words. Statements that are
not historical in nature, including the words “anticipate,”
“expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,”
“targets,” “projects,” “should,” “could,” “would,” “may,” “will,”
“forecast” and other similar expressions are intended to identify
forward-looking statements. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this press release, including but not
limited to: (i) the risk that the transaction may not be completed
in a timely manner or at all, which may adversely affect the price
of dMY’s securities; (ii) the risk that the transaction may not be
completed by dMY’s business combination deadline and the potential
failure to obtain an extension of the business combination deadline
if sought by dMY; (iii) the failure to satisfy the conditions to
the consummation of the transaction, including the approval of the
merger agreement by the stockholders of dMY, the satisfaction of
the minimum trust account amount following any redemptions by dMY's
public stockholders and the receipt of certain governmental and
regulatory approvals; (iv) the lack of a third-party valuation in
determining whether or not to pursue the proposed transaction; (v)
the inability to complete the PIPE transaction; (vi) the occurrence
of any event, change or other circumstance that could give rise to
the termination of the merger agreement; (vii) the effect of the
announcement or pendency of the transaction on IonQ’s business
relationships, operating results and business generally; (viii)
risks that the proposed transaction disrupts current plans and
operations of IonQ; (ix) the outcome of any legal proceedings that
may be instituted against IonQ or against dMY related to the merger
agreement or the proposed transaction; (x) the ability to maintain
the listing of dMY’s securities on a national securities exchange;
(xi) changes in the competitive industries in which IonQ operates,
variations in operating performance across competitors, changes in
laws and regulations affecting IonQ’s business and changes in the
combined capital structure; (xii) the ability to implement business
plans, forecasts and other expectations after the completion of the
proposed transaction, and identify and realize additional
opportunities; (xiii) the risk of downturns in the market and the
technology industry including, but not limited to, as a result of
the COVID-19 pandemic; and (xiv) costs related to the transaction
and the failure to realize anticipated benefits of the transaction
or to realize estimated pro forma results and underlying
assumptions, including with respect to estimated stockholder
redemptions. The foregoing list of factors is not exhaustive. You
should carefully consider the foregoing factors and the other risks
and uncertainties described in the “Risk Factors” section of the
registration statement on Form S-4 and other documents filed by dMY
from time to time with the SEC. These filings identify and address
other important risks and uncertainties that could cause actual
events and results to differ materially from those contained in the
forward-looking statements. Forward-looking statements speak only
as of the date they are made. Readers are cautioned not to put
undue reliance on forward-looking statements, and dMY and IonQ
assume no obligation and do not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise. Neither dMY nor IonQ gives any
assurance that either dMY or IonQ, or the combined company, will
achieve its expectations.
No Offer or Solicitation
This communication is for informational purposes only and does
not constitute an offer or invitation for the sale or purchase of
securities, assets or the business described herein or a commitment
to dMY III or IonQ with respect to any of the foregoing, and this
communication shall not form the basis of any contract, nor is it a
solicitation of any vote, consent, or approval in any jurisdiction
pursuant to or in connection with the Business Combination or
otherwise, nor shall there be any sale, issuance or transfer of
securities in any jurisdiction in contravention of applicable
law.
Participants in Solicitation
dMY III and IonQ, and their respective directors and executive
officers, may be deemed participants in the solicitation of proxies
of dMY III’s stockholders in respect of the Business Combination.
Information about the directors and executive officers of dMY III
is set forth in dMY III’s filings with the SEC. Information about
the directors and executive officers of IonQ and more detailed
information regarding the identity of all potential participants,
and their direct and indirect interests by security holdings or
otherwise, are set forth in the definitive proxy
statement/prospectus for the Business Combination. Additional
information regarding the identity of all potential participants in
the solicitation of proxies to dMY III’s stockholders in connection
with the proposed Business Combination and other matters to be
voted upon at the special meeting, and their direct and indirect
interests, by security holdings or otherwise, are included in the
definitive proxy statement/prospectus.
IonQ, Inc. Condensed Balance Sheets (unaudited) (in
thousands)
June 30, December 31,
2021
2020
Assets: Current assets: Cash and cash equivalents
$ 27,692
$ 36,120
Accounts receivable
420
390
Prepaid expenses and other current assets
4,853
2,069
Total current assets
32,965
38,579
Property and equipment, net
15,558
11,988
Operating lease - right of use assets
4,164
4,296
Intangible assets, net
5,110
2,687
Other noncurrent assets
2,596
2,928
Total Assets
$ 60,393
$ 60,478
Liabilities, Convertible Redeemable Preferred Stock and
Warrants, andStockholders' Deficit Current liabilities:
Accounts payable
$ 4,635
$ 538
Accrued expenses
1,688
608
Current portion of operating lease liabilities
559
495
Unearned revenue
100
240
Current portion of stock option early exercise liabilities
1,525
-
Total current liabilities
8,507
1,881
Operating lease liabilities, net of current portion
3,716
3,776
Unearned revenue, net of current portion
1,533
1,118
Stock option early exercise liabilities, net of current portion
3,228
-
Total liabilities
$ 16,984
$ 6,775
Convertible Redeemable Preferred Stock and Warrants: Series
A convertible redeemable preferred stock
1,925
1,925
Series B convertible redeemable preferred stock
21,111
21,111
Series B-1 convertible redeemable preferred stock
61,867
61,867
Warrants for Series B-1 convertible redeemable preferred stock
566
566
Stockholders' Deficit: Common stock
1
1
Additional paid-in capital
14,865
7,838
Accumulated deficit
(56,926)
(39,605)
Total stockholders' deficit
(42,060)
(31,766)
Total Liabilities, Convertible Redeemable Preferred Stock, Warrants
andStockholders' Deficit
$ 60,393
$ 60,478
IonQ, Inc. Condensed Statements of Operations and
Comprehensive Loss (unaudited) (in thousands, except share and
per share data)
Three Months Ended Six Months
Ended June 30, June 30,
2021
2020
2021
2020
Revenue
$ 93
$ -
$ 218
$ -
Costs and expenses: Cost of revenue (excluding depreciation and
amortization)
327
-
508
-
Research and development
5,477
2,696
9,131
5,304
Sales and marketing
871
101
1,098
182
General and administrative
2,904
609
5,860
1,113
Depreciation and amortization
502
340
947
623
Total operating costs and expenses
10,081
3,746
17,544
7,222
Loss from operations
(9,988)
(3,746)
(17,326)
(7,222)
Other income
2
79
5
294
Loss before benefit for income taxes
(9,986)
(3,667)
(17,321)
(6,928)
Benefit for income taxes
-
-
-
-
Net loss and comprehensive loss
$ (9,986)
$ (3,667)
$ (17,321)
$ (6,928)
Net loss per share attributable to common stockholders -
basic and diluted
$ (1.53)
$ (0.68)
$ (2.68)
$ (1.31)
Weighted average shares used in computing net loss per share
attributable tocommon stockholders - basis and diluted
6,535,917
5,389,336
6,471,023
5,288,692
IonQ, Inc. Condensed Statements of Cash Flows
(unaudited) (in thousands)
Six Months Ended June 30,
2021
2020
Cash flows from operating activities: Net loss
$ (17,321)
$ (6,928)
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization
947
623
Non-cash research and development arrangements
1,001
-
Amortization of warrant
125
-
Stock-based compensation
3,874
500
Non-cash operating lease expense
122
32
Changes in operating assets and liabilities: Accounts receivable
(30)
92
Prepaid expenses and other current assets
(2,710)
(435)
Other noncurrent assets
(53)
-
Accounts payable
3,025
(155)
Accrued expenses
913
(86)
Operating lease liabilities
11
3
Unearned revenue
275
375
Net cash used in operating activities
(9,821)
(5,979)
Cash flows from investing activities: Purchases of
property and equipment
(2,997)
(6,126)
Capitalized software development costs
(764)
(526)
Intangible asset acquisition costs
(241)
(140)
Proceeds from disposal of assets
3
1
Net cash used in investing activities
(3,999)
(6,791)
Cash flows from financing activities: Proceeds from
stock options exercised
5,392
15
Net cash provided by financing activities
5,392
15
Net change in cash and cash equivalents
(8,428)
(12,755)
Cash and cash equivalents at the beginning of the period
36,120
59,527
Cash and cash equivalents at the end of the period
$ 27,692
$ 46,772
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210922005359/en/
IonQ Investor Contact: Michael Bowen and Ryan Gardella
IonQIR@icrinc.com
IonQ Media contact: Mission North
ionq@missionnorth.com
dMY III Investor Contact: Niccolo de Masi dMY Technology
Group, Inc. III niccolo@dmytechnology.com 310-600-6667
dMY III Media Contact: ICR Inc. dmypr@icrinc.com
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