−Removed: We are developing quantum computers designed to solve some of the world’s most complex problems, and transform business, society and the planet for the better.
+Added: We are developing quantum computers and networks designed to solve some of the world’s most complex problems, and transform business, society and the planet for the better.
We believe that our proprietary technology, our architecture, and the technology exclusively available to us through license agreements will offer us advantages both in terms of research and development, as well as the commercial value of our intended product offerings.
−Removed: Today, we sell specialized quantum computing hardware together with related maintenance and support.
+Added: Today, we sell specialized quantum computing and networking hardware together with related maintenance and support.
We also sell access to several quantum computers of various qubit capacities and are in the process of researching and developing technologies for quantum computers with increasing computational capabilities.
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This cloud-based approach enables the broad availability of quantum-computing-as-a-service (“QCaaS”).
−Removed: We supplement our offerings with professional services focused on assisting our customers in applying quantum computing to their businesses.
+Added: We supplement our offerings with professional services focused on assisting our customers in applying quantum computing and networking to their businesses.
We also expect to sell full quantum computing systems to customers, either over the cloud or for local access.
+Added: We also offer quantum networking products which offer customers secure communication networks and enable networked quantum computing.
We are still in the early stages of commercial growth.
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Our ability to generate revenue sufficient to achieve profitability will depend heavily on the successful development and further commercialization of our quantum computing systems.
−Removed: Our net losses were $157.8 million and $48.5 million for the years ended December 31, 2023 and 2022, respectively, and we expect to continue to incur significant losses for the foreseeable future.
+Added: Our net losses were $331.6 million, $157.8 million and $48.5 million, for the years ended December 31, 2024, 2023 and 2022, respectively.
As of December 31, 2024, we had an accumulated deficit of $683.7 million.
−Removed: We expect to continue to incur losses for the foreseeable future as we prioritize reaching the technical milestones necessary to achieve an increasingly higher number of stable qubits and higher levels of fidelity than presently exists—prerequisites for quantum computing to reach broad quantum advantage.
+Added: We expect to continue to incur significant losses for the foreseeable future as we prioritize reaching the technical milestones necessary to achieve an increasingly higher number of algorithmic qubits and higher levels of fidelity than presently exists—prerequisites for quantum computing to reach broad quantum advantage.
The Quantum Opportunity
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Many of these problems are fundamental, involving society’s most pressing needs, such as how to live sustainably on our planet, how to cure diseases, and how to efficiently move people and goods.
−Removed: Classical computers cannot solve these problems because the calculations would take far too long (i.e., millions to trillions of years) or because the problems involve quantum systems that are far too complex to be represented on a classical computer, even if their remarkable pace of development were to continue indefinitely.
+Added: Classical computers cannot solve these problems because the calculations would take far
+Added: too long (i.e., millions to trillions of years) or because the problems involve quantum systems that are far too complex to be represented on a classical computer, even if their remarkable pace of development were to continue indefinitely.
While these problems are not solvable by today’s quantum computers, we believe that a quantum computer currently offers the best possibility for computational power that could be used to solve them.
The future success of quantum computing will be based on the development of a computer with a substantially higher number of qubits than our current computers.
−Removed: We believe that we will find solutions to these challenges and that our proprietary technology and
−Removed: architecture and the technology exclusively available to us through exclusive license agreements will offer advantages both in terms of research and development as well as the ultimate product we wish to offer customers.
+Added: We believe that we will find solutions to these challenges and that our proprietary technology and architecture and the technology exclusively available to us through exclusive license agreements will offer advantages both in terms of research and development as well as the ultimate product we wish to offer customers.
There are certainly thousands, if not millions, of important and fundamental unanswered questions about how the universe works and opportunities associated with the answers to those questions.
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• Leveraging Our Technology .
−Removed: We believe that our technology offers substantial technological advantages compared to other competing quantum computing systems.
−Removed: We intend to build upon our technological lead by leveraging our world-class team of leaders and engineers who are pioneers in quantum computing, with proven track records in innovation and technical leadership.
−Removed: To date, we have developed and assembled nine generations of quantum computer prototypes and systems, have constructed quantum operating systems and software tools, and have worked with leading cloud vendors, quantum programming languages and quantum software development kits (“SDKs”).
+Added: We believe that our technology offers substantial technological advantages compared to other competing quantum computing and networking systems.
+Added: We intend to build upon our technological lead by leveraging our world-class team of leaders and engineers who are pioneers in quantum computing and networking, with proven track records in innovation and technical leadership.
+Added: To date, we have developed and assembled ten generations of quantum computer prototypes and systems, have constructed quantum operating systems and software tools, and have worked with leading cloud vendors, quantum programming languages and quantum software development kits (“SDKs”).
• Selling Direct Access to Quantum Computers .
−Removed: We sell specialized quantum computing hardware to select customers, complemented by access to quantum experts and algorithm development capabilities.
−Removed: We intend to sell direct access to the quantum computers we manufacture, with units offered on a whole system or usage basis.
+Added: We sell specialized quantum computing and networking hardware to select customers, complemented by access to quantum experts and algorithm development capabilities.
+Added: We sell direct access to the quantum computers we manufacture, with units offered on a whole system or usage basis.
We believe that by offering direct access to quantum computing, supplemented by our professional services, we can assist select customers in deepening their application of quantum solutions.
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We manufacture, own and operate quantum computers.
−Removed: Our quantum computing solution is currently delivered via AWS’s Amazon Braket, Microsoft’s Azure Quantum and Google’s Cloud Marketplace.
+Added: Our quantum computing solution is currently delivered via AWS’s Amazon Braket, Microsoft’s Azure Quantum and Google’s Cloud Marketplace as well as on our own cloud platform.
We believe that by offering QCaaS, we can accelerate the adoption of our quantum computing solutions, while efficiently promoting quantum computing across our partner ecosystems.
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We have exclusively licensed our core technology from the University of Maryland and Duke University (together, the “Universities”), and our complex technology is protected by an extensive patent portfolio.
−Removed: We intend to continue to drive innovation in quantum computing and seek intellectual property protection where appropriate to enhance our proprietary technology position.
−Removed: • Further Developing Our Quantum Computing Partner Ecosystem .
−Removed: We believe our relationships with leading technology enterprises and university research institutes will accelerate innovation, distribution and monetization of our quantum capabilities.
+Added: We intend to continue to drive innovation in quantum computing and networking and seek intellectual property protection where appropriate to enhance our proprietary technology position.
+Added: • Further Developing Our Quantum Computing and Networking Partner Ecosystem .
+Added: We believe our relationships with leading technology enterprises, government agencies, and university research institutes will accelerate innovation, distribution and monetization of our quantum capabilities.
Market Opportunity:
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A cornerstone of the global agriculture industry, the Haber-Bosch process consumes about one percent of the world’s energy and produces about one percent of the world’s carbon dioxide.
−Removed: Agronomists have attempted to model the core molecule in nature’s nitrogen fixation process, but the molecule is too large for today’s classical supercomputers to simulate.
+Added: Agronomists have attempted to model the core molecule in nature’s nitrogen fixation process, but the molecule is too large for today’s classical supercomputers to
Understanding the quantum process used in nature to fixate nitrogen could lead directly to more efficient ways for scientists to do the same.
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For example, computer-aided drug discovery in the pharmaceutical industry is limited by the computing time and resources required to simulate a large enough chemical system with sufficient accuracy to be useful.
−Removed: If future generations of more powerful quantum computers are successfully developed, we believe that we could improve the speed and accuracy of virtual high-throughput screening
−Removed: and improve the molecular docking predictions used in structure-based drug discovery, dramatically reducing the development cost of new drugs and reducing the time to market.
+Added: If future generations of more powerful quantum computers are successfully developed, we believe that we could improve the speed and accuracy of virtual high-throughput screening and improve the molecular docking predictions used in structure-based drug discovery, dramatically reducing the development cost of new drugs and reducing the time to market.
Similarly, we believe that developing a detailed understanding of chemical reactions critical to various industries, such as catalytic reaction in battery chemistry for electric vehicles, can lead to higher performing solutions with extended energy storage capacity.
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Although none of these challenges have yet been fully solved, we believe that we are well positioned to do so.
−Removed: publicly available report by a leading third-party consulting firm describes these phases—and the associated technical barriers—as paraphrased below:
+Added: A 2019 publicly available report by a leading third-party consulting firm describes these phases—and the associated technical barriers—as paraphrased below:
• Noisy and intermediate-scale quantum (NISQ) computers :
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If this barrier can be overcome, we believe that quantum computing will offer practical solutions to meaningful problems superior to those provided by classical computers.
−Removed: • Full-scale fault tolerance :
+Added: • Fault-tolerant quantum computing (FTQC) :
This last stage will see large modular quantum computers with enough power to tackle a wide array of commercial applications relevant to many sectors of the economy.
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The technical barrier will be the adoption of a modular quantum computer architecture that allows the scalable manufacturing of large quantum computer systems.
−Removed: Building a Quantum Computer
−Removed: Requirements for Building Useful Quantum Computers
−Removed: Quantum computers are difficult to build and operate because the physical system of qubits must be nearly perfectly isolated from its environment to faithfully store quantum information.
+Added: In a 2024 update of the previously referenced publicly available report, the third-party consulting firm detailed $50 billion in total government and private investment in quantum technology and estimated up to $2 trillion in economic value from quantum computing in the next ten years.
+Added: Building a Quantum Computer or a Quantum Network
+Added: Requirements for Building Useful Quantum Computers and Networks
+Added: Quantum computers and networks are difficult to build and operate because the physical system of qubits must be nearly perfectly isolated from its environment to faithfully store quantum information.
Yet the system must also be precisely controlled through the application of quantum gate operations, and it must ultimately be measured with high accuracy.
−Removed: A practical quantum computer requires well-isolated, near-perfect qubits that are cheap, replicable and scalable, along with the ability to initialize, control and measure their states.
−Removed: Breakthroughs in physics, engineering, and classical computing were prerequisites for building a quantum computer, which is why for many decades the task was beyond the limits of available technology.
+Added: A practical quantum computer or network requires well-isolated, near-perfect qubits that are cheap, replicable and scalable, along with the ability to initialize, control and measure their states.
+Added: Breakthroughs in physics, engineering, and classical computing were prerequisites for building a quantum computer or network, which is why for many decades the task was beyond the limits of available technology.
To execute computational tasks, a quantum computer must be able to (i) initialize and store quantum information in qubits, (ii) operate quantum gates to modify information stored in qubits and (iii) output measurable results.
Each of these steps must be accomplished with sufficiently low error rates to produce reliable results.
−Removed: Moreover, to be practical, a quantum computer must be economical in cost and scalable in compute power (i.e., the number of qubits and the number of gate operations) to handle real world problems.
−Removed: The development of large-scale quantum computing systems is still in early stages, and several potential engineering architectures for how to build a quantum computer have emerged.
+Added: Moreover, to be practical, a quantum computer or network must be economical in cost and scalable in compute power (i.e., the number of qubits and the number of gate operations) to handle real world problems.
+Added: The development of large-scale quantum computing and networking systems is still in early stages, and several potential engineering architectures for how to build a quantum computer or network have emerged.
We are developing quantum computers based on individual atoms as the core qubit technology, which we believe has key advantages in scaling.
The ability to produce cheap error-corrected qubits at scale in a modular architecture is one of the key differentiators of our approach.
−Removed: Today, we have achieved many engineering firsts in this field and we believe that, with our focus on achieving additional technical milestones over the next few years, we are well positioned to bring quantum computing advantage to the commercial market.
+Added: We have achieved many engineering firsts in this field and we believe that, with our focus on achieving additional technical milestones over the next few years, we are well positioned to bring quantum computing advantage to the commercial market.
Scientific Approaches to Quantum Computing
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This is because the qubits themselves are not in thermal contact with the environment, as they are electromagnetically confined in free space inside a vacuum chamber.
−Removed: Although modest cryogenics (< 10 degrees above absolute zero) can be used to dramatically improve the vacuum environment, the inherent properties of the qubits themselves do not degrade at room temperature.
+Added: Although modest cryogenics (< 10 degrees above absolute zero) can be used to dramatically improve the vacuum environment, the inherent properties of the qubits
+Added: themselves do not degrade at room temperature.
The laser-cooling of the qubits themselves is extremely efficient because the atomic ions have very little mass and this requires just a single low-power laser beam (microwatts).
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In fact, high-fidelity gates with speeds comparable to those of solid-state qubits have been realized in several research laboratories.
−Removed: We expect that our future quantum computers based on barium ions will be faster, more powerful, more easily interconnected, and that feature more uptime for customers.
+Added: We expect that our future quantum computers based on barium ions will be faster, more powerful, more easily interconnected, and will feature more uptime for customers.
Moreover, we believe that as systems with other qubit technologies scale up, their restricted connectivity and high error-correction overhead will significantly slow down their overall computation time, which we believe will make the trapped ion approach more competitive in terms of operational speed.
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This all-to-all connectivity is one of the key reasons we believe our systems will be computationally powerful.
+Added: Notably, our architectural approach to scaling quantum computers across several QPUs has also contributed to IonQ's work in quantum networking.
Gate Configuration
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In 2020, a team of researchers at the University of Maryland, including some current IonQ employees, demonstrated the first fault-tolerant error-corrected qubit using 13 trapped ion qubits.
−Removed: With our unique architecture, we believe quantum error-correction can be completely coded in software, allowing varying levels and depths of quantum error-correction to be deployed as needed.
−Removed: Because the ion qubits feature very low idle and native error rates and are highly connected, we expect the error-correction overhead to be about 16:1 to achieve the first useful quantum applications.
−Removed: This contrasts with other approaches, for which we estimate the overhead to be in the range of 1,000:1 to 100,000:1.
+Added: In 2024, we announced a partial error correction scheme which proposes a 3:1 qubit overhead to reduce noise and error in certain quantum gates that we believe we may implement in future generations of IonQ quantum computers.
+Added: With our unique architecture, we believe quantum error-correction can be coded in hardware and software, allowing varying levels and depths of quantum error-correction to be deployed as needed.
+Added: Because the ion qubits feature very low idle and native error rates and are highly connected, to achieve the first useful quantum applications we expect the error-correction overhead to be significantly lower than other approaches, for which we estimate the overhead to be on the order of at least 1,000:1.
We believe our architectural decisions will make our systems uniquely capable of achieving scale.
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Department of Energy’s Pacific Northwest National Laboratory (“PNNL”), we were able to shrink the barium source material down to a microscopic scale.
−Removed: We believe this is significant because it will allow us to reduce the size of core system components, an important step in the creation of quantum computers small enough to be networked together.
+Added: We believe this is significant because it is evidence of our continued progress to reduce the size of core system components, an important step in the creation of quantum computers small enough to be networked together.
However, meeting future milestones included in our roadmap is not guaranteed and is dependent on various technological advancements, which could take longer than expected to realize or turn out to be impossible to achieve.
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We expect our future systems to be modular networks of many QPUs working together as a large quantum computer, similar to how classical data centers are designed, constructed and operated today.
−Removed: Our engineering effort is focused on reducing the size, weight, cost and power consumption of the QPUs that will be the center of each generation of the modular quantum computer, while increasing the number of QPUs manufactured each year.
+Added: Our engineering effort is focused on reducing the size, weight, cost, and power consumption of the QPUs that will be the center of each generation of the modular quantum computer, while increasing the number of QPUs
+Added: manufactured each year.
We intend to focus on achieving these engineering efforts over the next several years.
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Today, we believe that there are a large number of quantum algorithms widely thought to offer advantages over classical algorithms in that each of these algorithms can solve a problem more efficiently, or in a different manner, than a classical algorithm.
−Removed: Our business model is premised on the belief that businesses with access to quantum computers will likely have a competitive advantage in the future.
−Removed: We envision providing quantum computing services, complemented by access to quantum experts and algorithm development capabilities, to solve some of the most challenging issues facing corporations, governments and other large-scale entities today.
−Removed: We intend to manufacture, own and operate quantum computers, with compute units being offered to potential customers through system hardware sales and on a QCaaS basis.
+Added: Our business model is premised on the belief that businesses with access to quantum computers and networks will likely have a competitive advantage in the future.
+Added: We provide quantum computing and networking services, complemented by access to quantum experts and algorithm development capabilities, designed to solve some of the most challenging issues facing corporations, governments and other large-scale entities today.
+Added: We manufacture, own and operate quantum computers and networks, with compute units being offered to potential customers through system hardware sales and on a QCaaS basis and network units being offered through hardware sales.
+Added: We manufacture specialized quantum computers for specific use cases for customers including government agencies.
+Added: We also provide quantum networking solutions to augment existing networks with quantum capabilities.
We expect our target markets to experience two stages of quantum algorithm deployment:
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We intend to form long-term partnerships with select industry-leading companies (aligned with our technology roadmap) to co-develop end-to-end solutions for the partner and to provide an early-adopter advantage to the partner in their industry.
−Removed: IonQ has announced co-development agreements with Hyundai Motor Company to pursue solutions for battery chemistry and with ZapataAI and the US Defense Advanced Research Projects Agency (DARPA), to help establish the next generation of benchmarking for quantum computers.
+Added: IonQ has announced co-development agreements with Ansys for computer aided design (CAD) and engineering and with the US Defense Advanced Research Projects Agency (DARPA) to help establish the next generation of benchmarking for quantum computers.
• Preferred compute agreements with clients .
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• Dedicated hardware .
−Removed: We sell certain specialized quantum computing hardware to select customers.
−Removed: We also anticipate manufacturing and selling complete quantum systems for dedicated use by a single customer, to be hosted on premises by the customer or remotely by us.
+Added: We sell certain specialized quantum computing and networking hardware to select customers.
+Added: We also expect to manufacture and sell complete quantum systems and networks for dedicated use by a single customer, to be hosted on premises by the customer or remotely by us.
• Cloud access to quantum computing .
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We expect the technical complexity of the solutions required for quantum algorithms to address how each application area will impact the timing of that market’s inflection point and transition from the development phase to the application phase.
−Removed: During the NISQ computing era, we expect quantum machine learning to be the first solution to transition into broadly available applications.
+Added: We expect computational chemistry and optimization to be among the first solutions to transition into broadly available applications.
Additional markets taking advantage of quantum material science research and optimization speed-ups may come online next if broad-scale quantum advantage becomes accessible.
−Removed: If our quantum computers achieve full-scale fault tolerance, a diverse array of industries, ranging from quantum chemistry to deeper optimization, may be able to be transitioned to the application phase.
+Added: If our quantum computers achieve full-scale fault tolerance, a diverse array of industries, ranging from quantum machine learning to deeper optimization, may be able to be transitioned to the application phase.
Customers and Prospects
−Removed: Quantum Computing Systems and Hardware
−Removed: We sell certain specialized quantum computing hardware to select customers.
−Removed: We are also engaged with certain prospects who are interested in purchasing partial or entire quantum computing systems, either over the cloud or for local access.
+Added: Quantum Computing and Networking Systems and Hardware
+Added: We sell certain specialized quantum computing and networking hardware to select customers.
+Added: We are also engaged with certain prospects who are interested in purchasing partial or entire quantum computing and networking systems, either over the cloud or for local access.
Direct Access Customers
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We expect our standard offerings will include additional bundled value-add services in exchange for an annual commitment, such as reserved system time, consultations with solution scientists, and other application and integration support.
−Removed: We sell access to our quantum computing solutions via AWS’s Amazon Braket, Microsoft’s Azure Quantum, and Google’s Cloud Marketplace, and directly to select customers via our own cloud service.
+Added: We provide access to our quantum computing solutions via AWS’s Amazon Braket, Microsoft’s Azure Quantum, and Google’s Cloud Marketplace, and sell access directly to select customers via our own cloud service.
Making systems available through the cloud in both cases enables wide distribution.
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Our contracts with government agencies are typically structured in phases, with each phase subject to satisfaction of certain conditions.
−Removed: Agreements with the University of Maryland and Duke University
−Removed: Exclusive License Agreement
−Removed: In July 2016, we entered into a license agreement with the University of Maryland ("UMD") and Duke University (“Duke”), which was subsequently amended in September 2017, October 2017, October 2018, February 2021, April 2021, September 2021, and January 2023 (as amended, the “License Agreement”), under which we obtained a worldwide, royalty-free, sublicensable license under certain patents, know-how and other intellectual property to develop, manufacture and commercialize products for use in certain licensed fields, the scope of which includes the application of the licensed intellectual property in ion trap quantum computing.
−Removed: The License Agreement provides an exclusive license under the Universities’ interest in all patents (and non-exclusive for other types of intellectual property), subject to certain governmental rights and retained rights by the Universities and other non-profit institutions to use and practice the licensed patents and technology for internal research and other non-profit purposes.
−Removed: We also entered into an exclusive option agreement (“Option Agreement”) with each of the Universities in 2016 whereby we have the right to exclusively license additional intellectual property developed by the Universities by exercising an annual option and issuing a certain number of common shares to each of Duke and UMD.
−Removed: We are obligated to use commercially reasonable efforts to commercialize the inventions covered by the licensed patent rights and achieve certain milestones, including the hiring of a Chief Executive Officer, obtaining equity financing by specified times and such other milestones that we may specify in a development plan provided by us to the Universities.
−Removed: We have met all existing milestones as provided for in the License Agreement, have not included any additional milestones in any development plan provided to the Universities, and no longer have any obligation to submit any future development plans to the Universities.
−Removed: We are also responsible for the prosecution and maintenance of the licensed patents, at our expense and using commercially reasonable efforts.
−Removed: We have the sole right to enforce the licensed patents, at our expense.
−Removed: We may terminate the License Agreement at any time for any reason with at least 90 days’ written notice to UMD.
−Removed: UMD and Duke may terminate the License Agreement if we enter into an insolvency-related event or in the event of our material breach of the agreement or other specified obligations therein, in each case, that remains uncured for 90 days after the date that it is provided with written notice of such breach by either university.
−Removed: In consideration for the rights granted to us under the License Agreement, we issued UMD and Duke shares of our common stock.
−Removed: Pursuant to Duke’s policy, Jungsang Kim, our Chief Technology Officer and Director, may receive remuneration from Duke relating to any stock we have issued to Duke.
−Removed: Option Agreement with Duke University
−Removed: In July 2016, we entered into an option agreement with Duke, which was subsequently amended in December 2020 and March 2021 (as amended, the “Duke Option Agreement”), under which it obtained the right to add Duke's interests in certain patents or other intellectual property to the License Agreement, including if they were developed by Jungsang Kim, Christopher Monroe or Kenneth Brown, a professor at Duke, or by individuals under their respective supervision and such patents or intellectual property relates to the field of quantum information processing devices.
−Removed: We have added patents and other intellectual property to the License Agreement through the Duke Option Agreement.
−Removed: Pursuant to the terms of the Duke Option Agreement, we issued Duke shares of common stock, including shares of common stock issued pursuant to the amendment of the Duke Option Agreement.
−Removed: The Duke Option Agreement terminates in July 2026.
+Added: Commercial Agreements with the University of Maryland
Lease with the University of Maryland
In March 2020, we entered into an amended and restated office lease with UMD for the lease of our corporate headquarters and our research and development and manufacturing facility.
−Removed: This lease expires on December 31, 2030.
−Removed: We may terminate this lease with not less than 120 days written notice beginning in year six.
−Removed: Any early termination will result in a termination fee ranging from $2.5 million in year six to $0.5 million in year ten, with each year subject to a reduction of $0.5 million.
−Removed: Annual base rent starts at $0.7 million and increases approximately 3.0% each subsequent year.
+Added: This lease expires on November 30, 2030.
Contracts with the University of Maryland
−Removed: In September 2021, we entered into a contract with UMD to provide certain quantum computing services and facility access (the “UMD Quantum Agreement”) related to the National Quantum Lab at UMD in exchange for payments totaling $14.0 million over three years.
−Removed: Over the term of the contract, we estimate that we will make payments to UMD of approximately $1.4 million, including a contribution of $1.0 million to establish the IonQ Endowed Professorship in the College of Computer, Mathematical and Natural Sciences at UMD.
−Removed: The pledge and other estimated payments to UMD will not be an exchange for distinct goods or services under the provisions of ASC 606 and therefore are considered a reduction of the transaction price for the UMD Quantum Agreement.
−Removed: The transaction price is currently estimated at $12.6 million, reflecting this reduction.
−Removed: In July 2022, we entered into an agreement to provide customized quantum computing hardware to UMD for a transaction price of $0.7 million.
+Added: In September 2021, we entered into a contract with UMD to provide certain quantum computing services and facility access, and in July 2022, we entered into a contract with UMD to provide customized quantum computing hardware.
There are many other approaches to quantum computing that use qubit technology besides the trapped ion approach we are taking.
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The advantages to this approach are that photons are cheap to generate, they can remain coherent depending on the property of the photons used as the qubit, and they integrate well with recently-developed silicon photonics technology;
−Removed: however, the disadvantages of photonic qubit approaches include the lack of high-quality storage
−Removed: devices for the qubits (photons move at the speed of light) and weak gate interactions (photons do not interact with one another easily).
+Added: however, the disadvantages of photonic qubit approaches include the lack of high-quality storage devices for the qubits (photons move at the speed of light) and weak gate interactions (photons do not interact with one another easily).
Both of these problems lead to photon loss during computation.
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We have accumulated a broad patent portfolio, both owned and exclusively licensed, across a range of technological fronts that relate to our systems and will continue to protect our inventions in the United States and other countries.
−Removed: Our patent portfolio is deepest in the area of devices, methods and algorithms for controlling and manipulating trapped ions for quantum computing.
+Added: Our patent portfolio is deepest in the area
+Added: of devices, methods and algorithms for controlling and manipulating trapped ions for quantum computing.
Our trade secrets primarily cover the design, configuration, operation and testing of our trapped-ion quantum computers.
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Our issued patents expire between 2029 and 2043.
+Added: Exclusive License Agreement with the University of Maryland and Duke University
+Added: In July 2016, we entered into a license agreement with the University of Maryland (“UMD”) and Duke University (“Duke”), or the Universities, which was subsequently amended in September 2017, October 2017, October 2018, February 2021, April 2021, September 2021, January 2023, and February 2024 (as amended, the “License Agreement”), under which we obtained a worldwide, royalty-free, sublicensable license under certain patents, know-how and other intellectual property to develop, manufacture and commercialize products for use in certain licensed fields, the scope of which includes the application of the licensed intellectual property in ion trap quantum computing.
+Added: The License Agreement provides an exclusive license under the Universities’ interest in all patents (and non-exclusive for other types of intellectual property), subject to certain governmental rights and retained rights by the Universities and other non-profit institutions to use and practice the licensed patents and technology for internal research and other non-profit purposes.
+Added: We also entered into an exclusive option agreement (“Option Agreement”) with each of the Universities in 2016 whereby we have the right to exclusively license additional intellectual property developed by the Universities by exercising an annual option and issuing a certain number of common shares to each of Duke and UMD.
+Added: We are obligated to use commercially reasonable efforts to commercialize the inventions covered by the licensed patent rights and achieve certain milestones, including the hiring of a Chief Executive Officer, obtaining equity financing by specified times and such other milestones that we may specify in a development plan provided by us to the Universities.
+Added: We have met all existing milestones as provided for in the License Agreement, have not included any additional milestones in any development plan provided to the Universities, and no longer have any obligation to submit any future development plans to the Universities.
+Added: We are also responsible for the prosecution and maintenance of the licensed patents, at our expense and using commercially reasonable efforts.
+Added: We have the sole right to enforce the licensed patents, at our expense.
+Added: We may terminate the License Agreement at any time for any reason with at least 90 days’ written notice to UMD.
+Added: UMD and Duke may terminate the License Agreement if we enter into an insolvency-related event or in the event of our material breach of the agreement or other specified obligations therein, in each case, that remains uncured for 90 days after the date that it is provided with written notice of such breach by either university.
+Added: In consideration for the rights granted to us under the License Agreement, we issued UMD and Duke shares of our common stock.
+Added: Option Agreement with Duke University
+Added: In July 2016, we entered into an option agreement with Duke, which was subsequently amended in December 2020 and March 2021 (as amended, the “Duke Option Agreement”), under which we obtained the right to add Duke's interests in certain patents or other intellectual property to the License Agreement, including if they were developed by Jungsang Kim, Christopher Monroe, a professor at Duke and our former Chief Scientist, or Kenneth Brown, a professor at Duke, or by individuals under their respective supervision and such patents or intellectual property relates to the field of quantum information processing devices.
+Added: We have added patents and other intellectual property to the License Agreement through the Duke Option Agreement.
+Added: Pursuant to the terms of the Duke Option Agreement, we issued Duke shares of common stock, including shares of common stock issued pursuant to the amendment of the Duke Option Agreement.
+Added: The Duke Option Agreement terminates in July 2026.
Human Capital Management
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We also engage a small number of consultants and contractors to supplement our permanent workforce.
−Removed: A majority of our employees are engaged in research and development and related functions, and more than half of our research and development employees hold advanced engineering and scientific degrees, including many from the world’s top universities.
+Added: A majority of our employees are engaged in research and development and related functions, and a significant portion of our research and development employees hold advanced engineering and scientific degrees, including many from the world’s top universities.
To date, we have not experienced any work stoppages and maintain good working relationships with our employees.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.