XML 43 R19.htm IDEA: XBRL DOCUMENT
v3.22.4

Income Tax | 12 Months Ended
--- | ---
Dec. 31, 2021
D-Wave Systems Inc. [Member] |
Income Tax |
10. | Income taxes
Income tax expense The following table presents domestic and foreign components of loss before income taxes for the years ended December 31, 2021, and 2020 (in thousands):
|  | Years ended December 31, |
|  | 2021 |  |  | 2020 |
Domestic |  | $ | (27,205 | ) |  | $ | (7,784 | )
International |  |  | (4,340 | ) |  |  | (2,235 | )
Net loss before income taxes |  | $ | (31,545 | ) |  | $ | (10,019 | )
Significant components of the Company’s deferred income tax assets and liabilities as of December 31, 2021, and 2020 are as follows:
|  | Years ended December 31, |
|  | 2021 |  |  | 2020 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 59,916 |  |  | $ | 54,018 |
Research and development credit carryforwards |  |  | 13,675 |  |  |  | 12,003 |
Scientific research and experimental development deductions |  |  | 23,071 |  |  |  | 20,137 |
Depreciation and amortization |  |  | 5,634 |  |  |  | 5,256 |
Convertible notes |  |  | (4 | ) |  |  | 1,156 |
Deferred revenue |  |  | 165 |  |  |  | 401 |
Other accruals and reserves |  |  | 730 |  |  |  | 440 |
Total deferred tax assets |  |  | 103,187 |  |  |  | 93,411 |
Valuation Allowance |  |  | (97,143 | ) |  |  | (89,139 | )
Total deferred tax assets, net |  | $ | 6,044 |  |  | $ | 4,272 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Marketable securities |  |  | (315 | ) |  |  | — |
Loans payable |  |  | (5,729 | ) |  |  | (4,272 | )
Total deferred tax liabilities |  |  | (6,044 | ) |  |  | (4,272 | )
Net deferred tax assets |  | $ | — |  |  | $ | — |
The effective tax rate differs from the statutory rate, primarily due to the Company’s history of incurring losses, which have not been utilized, the foreign rate differential related to subsidiary earnings, and other permanent differences. A summary reconciliation of the effective tax rate calculated at the combined Canadian federal and provincial statutory corporate tax rate is as follows:
|  | Years ended December 31, |
|  | 2021 |  |  | 2020 |
Federal and provincial statutory tax rate |  |  | 27 | % |  |  | 27 | %
Foreign losses taxed at different rates |  |  | 0 | % |  |  | 1 | %
Research and development credits |  |  | 0 | % |  |  | (3 | )%
Permanent differences |  |  | (2 | )% |  |  | 18 | %
Other |  |  | 1 | % |  |  | 7 | %
Change in valuation allowance |  |  | (26 | )% |  |  | (50 | )%
Effective tax rate |  |  | 0 | % |  |  | 0 | %
Realization of deferred tax assets is dependent upon future earnings, if any, the timing and the amount of which are uncertain. As of December 31, 2021, the Company maintained a valuation allowance with respect to its subsidiaries’ net operating losses that it believes is more likely than not that the deferred tax asset will not be realized. The Company will continue to reassess the valuation allowance annually and if future evidence allows for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly. As of December 31, 2021, the Company had Canadian tax losses carried forward of approximately $155.7 million that will expire between 2027 and 2041 as well as Scientific Research and Experimental Development expenditures of approximately $100.3 million that can be carried forward indefinitely, which are available to be applied against future taxable income. In addition, the Company has investment tax credits of approximately $13.5 million that will expire between 2023 and 2041 that are available to be applied against future Canadian federal income taxes payable. The Company also has US tax losses carried forward of approximately $43.9 million which may be applied against future taxable income, of which $18.4 million will expire between 2032 and 2037, while $25.5 million can be carried forward indefinitely. Future utilization of US tax losses carried forward is subject to certain limitations under the Internal Revenue Code (IRC), including limitations under IRC section 382. The Company has not performed a full analysis under IRC section 382.

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | dei_LegalEntityAxis=qbts_DwaveSystemMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |