Related Party Transactions

6 Months Ended

Jun. 30, 2024

Related Party Transaction [Line Items]

Related Party Transactions

13. RELATED PARTY TRANSACTIONS

Transactions with University of Maryland

The Company has contracts with UMD, including contracts to provide certain quantum computing services and facility access, to provide customized quantum computing hardware, and an operating lease. Following the departure of the Company's Chief Scientist, UMD is no longer considered a related party as of January 1, 2024. Revenue recognized from contracts entered into while UMD was a related party was $1.2 million and $1.0 million for the three months ended June 30, 2024 and 2023, respectively, and $2.4 million and $2.0 million for the six months ended June 30, 2024 and 2023, respectively.

The Company had the following balances related to contracts entered into while UMD was a related party, as reflected in the condensed consolidated balance sheets (in thousands):

	June 30,		December 31,
	2024		2023
Assets
Operating lease right-of-use asset	$	3,291	$	3,452
Liabilities
Current portion of operating lease liabilities	$	671	$	661
Unearned revenue		1,217		2,670
Operating lease liabilities, net of current portion		3,018		3,181

Transactions with Duke University

In July 2016, the Company entered into an exclusive license agreement (the “License Agreement”) and an exclusive option agreement (the “Option Agreement”) with Duke whereby the Company, in the normal course of business, has licensed certain intellectual property and, in the case of the amendments to the Option Agreements, has purchased research and development services. The Company considers these agreements to be related party transactions because the Company’s Scientific Advisor and former Chief Technology Officer serves as a professor at Duke. The Company’s Scientific Advisor and former Chief Technology Officer continues to lead the research subject to the License Agreement and Option Agreement with Duke as of June 30, 2024. The Company recognized $0.1 million of research and development expense related to these agreements during each of the three months ended June 30, 2024 and 2023, and $0.3 million of research and development expense related to these agreements during each of the six months ended June 30, 2024 and 2023.

The Company has the following balances related to these agreements, as reflected in the condensed consolidated balance sheets (in thousands):

	June 30,		December 31,
	2024		2023
Assets
Prepaid expenses and other current assets	$	520	$	520
Other noncurrent assets		545		805