John Markovich
This is a summary of a bonus structure that we announced when we announced the business combination in early February. The intent of this structure is to
incentivize investors to not redeem and it provides a pool of 5 million shares that gets allocated to the non-redeeming shareholders on a pro rata basis. So if you focus on the first column here,
youll see under a zero redemption scenario that the effective cost basis for the public SPAC shareholders is $8.57. And if we go over four columns to the column, thats labeled 30%, youll see that under a 30% redemption scenario
that cost basis lowers to a little over $8, or $8.08 and so on and so forth. In addition to this 5 million share bonus program for the SPAC public shareholders, we also have a separate bonus pool that we will use to adjust the cost basis for
our pipe shareholders, such that the pipe shareholders and the public SPAC shareholders enjoy the same cost basis on a per share basis.
Alan Baratz
Thanks, okay. Thanks, John. And, just to wrap it up. So, you know, as I said, D-Wave really is the only
commercial quantum computing today. We got there by starting with annealing which is a very important component of the quantum landscape. We actually think that its going to be many years before gate model systems will be able to be
commercial, which is pretty much what everybody else is pursuing. But for D-Wave, were building our business today on annealing and then well slide in the gate model as it becomes available. And
its just an upsell for us to our current customers to new application use cases. Currently were focused more on those evolutionary applications that businesses are solving today, but so hard that they cant solve them optimally,
where we can help them solve them better to deliver significant business benefits on our way to the revolutionary applications.
Alan Baratz
And with that, I will turn it back over to Quinn for Q and A.
Moderator
Great thank you, Alan. Thank you, John. I
guess I wanted to start on, on some of the use cases and, and you look at your, your four-phase model. I think it culminates in, in, you know, the quantum computes as a service offering where I believe youve said in the past, you can generate,
you know, $500,000 to $1 million per application. And so I guess my first question is, as you engage with some of these larger Fortune 500 type customers, how many applications could they ultimately run in, in a given year? I mean, are you
engaged on multiple applications? Is it sort of a land and expand strategy where you engage in one? And then they realize, Hey, weve got three or four other scheduling or optimization, tasks, and, and it sort of becomes a nice expansion
strategy.
Alan Baratz
Yeah. So it its very
much a land and expand strategy, although it differs a little bit by customer. So let me give you some examples. You know, we engaged with a Canadian grocery chain initially on employee scheduling. Once we had that problem solved, they wanted to
work on a last mile routing e-commerce grocery delivery application. And so thats in process now. GlaxoSmith clients started with codon mapping and then began working on RNA folding. PayPal started with
fraud detection and has come back to us with six other applications that theyre interested in working on with us. So, you know, thats kind of the land and expand model. Now, you know, weve got a very large company in Turkey that
started and said, we want you to come in and engage with all of our business units and broadly explore the applications that quantum might be able to benefit.
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