Good morning, everyone, and welcome to D-Wave's first quarter of fiscal year 2025 earnings conference call. Today's call is being recorded. At this time, I'd like to turn the floor over to Kevin Hunt of Investor Relations. Please go ahead. Thank you, and good morning. With me today are Dr. Alan Baratz, our Chief Executive Officer, and John Markovich, our Chief Financial Officer. Before we begin, I'd like to remind everyone that this call may contain forward-looking statements that should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent periodic SEC report. During today's call, management will provide certain information that will constitute non-GAAP financial and operational measures under SEC rules, such as non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, and bookings. Reconciliations to GAAP financial measures and certain additional information are also included in today's earnings release, which is available in the Investor Relations section of our company website at www.dwavequantum.com. I'll now hand over the call to Alan. Good morning, everyone, and thank you for joining us today. I'm really excited to share our results for the first quarter of fiscal 2025. 2025 is shaping up as one of the most significant years in D-Wave's history, especially when you consider our technical achievements, our product development milestones, our go-to-market momentum, and our financial position. Highlights of the first quarter include record quarterly revenue driven by the completion of the first Advantage System sale, additional customer applications moving into production, publication of our quantum supremacy result in science, and ongoing achievements against our aggressive product roadmap. The health of our business remains strong. In terms of some specifics on the financials, our Q1 revenue came in at a record $15 million, and we closed the quarter with a record $304 million in cash, giving us a very solid cash position that we believe is sufficient for us to reach profitability. Let me now walk you through some key business highlights, starting with technical achievements. On our last call, we proudly shared that we are the first company in the world to demonstrate quantum supremacy on a useful real-world problem. As discussed, D-Wave's 1,200 qubit prototype Advantage 2 quantum computer performed a complex magnetic material simulation in minutes and with a level of accuracy that would take nearly 1 million years to complete using one of the world's most powerful supercomputers, that supercomputer being the Frontier massively parallel GPU-based exascale supercomputer at the Oak Ridge National Laboratory. In addition, it would require more than the world's annual electricity consumption to solve this problem using that supercomputer. We do not believe any other researchers or companies have come close to achieving this demonstration. This work should be celebrated as a significant milestone for the quantum industry and a clear demonstration of quantum outperforming classical computing. Building on that demonstration, we recently published a new research paper titled "Blockchain with Proof of Quantum Work" that used quantum computation to generate and validate blockchain hashes. We believe this research, which leveraged techniques from our quantum supremacy demonstration, indicates that using quantum computation for hashing and proof of work could potentially require a fraction of the electricity used by classical resources alone and reduce electricity costs by up to a factor of 1,000. By adding quantum to traditional blockchain computation, the new architecture could enhance blockchain security and efficiency. Also, as part of this research, D-Wave scientists deployed the blockchain architecture across four of its cloud-based and helium quantum computers in Canada and the United States, performing distributed quantum computing for the first time. This is a very exciting area with potential for broad usage. In fact, we've already been contacted by several blockchain-focused organizations interested in potential partnerships, and we are open to discussions with any other interested parties. With respect to product development progress, our Advantage 2 and helium quantum computer, our sixth-generation system, has achieved important milestones on the path to general availability, which is expected by the end of this quarter. These milestones include, first, calibration of 4,400+ qubit processor chips. We have completed calibration and benchmarking of several 4,400+ qubit Advantage 2 quantum processors. The Advantage 2 QPUs have demonstrated impressive performance gains over the existing Advantage system, including double coherence time for faster time to solution, a 40% increase in energy scale for higher quality solutions, and increased qubit connectivity from 15 to 20-way to enable solutions to larger problems. With these substantial performance enhancements, we believe that Advantage 2 will be able to solve our customers' increasingly complex computational problems, especially in areas such as optimization, AI, and material science. The second milestone is fast anneal. This feature offers extended control for notably faster annealing times than previously available, which greatly reduces the impact of external disturbances such as thermal fluctuations and noise that can hinder quantum calculations. The fast anneal feature paves the way for customers to reproduce and build on D-Wave's landmark quantum supremacy results using full-scale coherent annealing quantum computing available on the Advantage 2 system. The third milestone is error mitigation. We have demonstrated successful quantum error mitigation in the 1,200 qubit Advantage 2 annealing quantum computing prototype. The technique reduces errors in quantum simulations, producing results consistent with the quantum system maintaining a quantum state coherence for an order of magnitude longer than an unmitigated system. This technique is expected to drive performance advancements in the forthcoming full Advantage 2 system and future processes. Once we announce GA, the system will become part of the Leap quantum cloud service for use by all of our quantum computers as service customers. In addition, just a couple of weeks ago, we shared that the physical assembly of a D-Wave Advantage 2 annealing quantum system is complete at Davidson Technologies headquarters in Huntsville, Alabama. Installation is now nearing completion, and that system undergoes calibration and readiness testing. We expect that the Advantage 2 system will enable Davidson to explore and develop real-world quantum applications, particularly in optimization for some of the U.S. government's most complex problems, and then ultimately deploy those applications in a secure environment. Turning to software, we recently introduced new hybrid quantum solver capabilities and additional use cases designed to drive usage of our quantum optimization offering. Our hybrid solvers, which are capable of handling problems with up to 2 million variables, now support both integer and continuous variables, which opens up the range of use cases that can be addressed with this technology. Recent enhancements to the nonlinear hybrid quantum solver include the ability to support continuous variables with linear interactions, thus enabling new kinds of use cases such as budget allocation and resource distribution. We've also expanded our collection of optimization use cases, which now includes offer allocation, portfolio optimization, and maintenance repair operations optimization to apply hybrid quantum technology to a growing set of customer problems. We also launched an open-source toolkit designed to accelerate quantum AI and machine learning innovation. Available in D-Wave's Ocean software development kit, the package enables developers to seamlessly integrate D-Wave's quantum computers with PyTorch, a production-grade ML framework widely used to build and train deep learning models. The toolkit includes a neural network module for using a quantum computer to build and train an AI system known as a Restricted Boltzmann Machine, or an RBM. Used to learn patterns and connections from data, RBMs are an AI tool used for tasks such as making predictions, recommendations, and identifying trends or anomalies. Looking ahead, we're making progress on all aspects of our previously communicated product roadmap, which is designed to unlock new customer production application use cases in the Advantage 2 and forthcoming Advantage 3 quantum computers and beyond. It focuses on rapid innovation and scaling, including increased connectivity and coherence, next-generation digital addressing, and multi-chip processor fabrics to accelerate a path to reaching 100,000 qubits. We're also developing techniques in analog digital quantum computing to advance quantum optimization, quantum AI, and quantum research by adding digital controls to annealing quantum computing processes. Lastly, we're continuing our efforts to build scalable error-corrected gate model processors, including leveraging our proprietary cryogenic control capabilities that will likely be required in all superconducting gate model quantum computers. Now I'll turn to commercial progress. A key metric for assessing a quantum computing vendor's maturity is whether its technology is used in production to fuel daily operations for customers. We're excited to have recently announced that Ford Otosan has developed a hybrid quantum application in production, streamlining manufacturing processes for its Ford Transit line of vehicles. Using D-Wave technology, Ford Otosan reduced the scheduling time of 1,000 vehicles from 30 minutes to less than 5 minutes, a six-times improvement. Ford Otosan plans to activate quantum scheduling in additional body shops and extend to other processes, including paint shops, assembly lines, and buffer zones. Ford Otosan joins NTT DOCOMO and Pattison Food Group, customers that are also using our systems currently running production applications. We expect additional customer applications to enter production deployments over the course of 2025. In another powerful customer use case example, we announced the successful completion of a proof of concept with the pharmaceutical division of Japan Tobacco, which used the Advantage quantum computer with artificial intelligence in the drug discovery process. This new approach resulted in molecular structures that are better candidates for subsequent drug development than structures created by purely classical methods. Japan Tobacco expects that this could lead to improvements in both the quality and speed of drug development. Customer success stories like these and others were on full display at Qubits 2025, our annual user conference, which took place on March 31st and April 1st and saw record attendance. In-person attendance was up 23% year- over- year, and virtual attendees up nearly 100% year- over- year. A number of D-Wave customers presented use cases based on D-Wave technology, including Davidson Technologies, Japan Tobacco, the Jülich Supercomputing Center, NTT DOCOMO, Pusan National University, Quantum Research Sciences, SAS, the University of Southern California, and more. We're also seeing strong interest in the Leap Quantum Launch Pad program, which is a three-month trial that provides access to D-Wave's quantum computing systems, our Leap real-time quantum cloud service, and our team of quantum experts for project support. Market demand has been strong, with the first customer intending to convert from free trial to paid engagement in less than two months. We continue to believe that this program will expand the universe of organizations using quantum to solve their complex problems today. To summarize, we are executing against our technology roadmaps and our go-to-market plans, and this is beginning to show up in our financial results. We are seeing growing interest in D-Wave's quantum computing solutions, as evidenced by a myriad of factors, including increased website traffic, which is up 153% from October of 2024 to March of 2025, as well as media coverage with strong news stories mentioning D-Wave up 803% from February to March of 2025. It is evident to us that the D-Wave message is resonating. Customers are eager to start exploring and adopting the technology, and the world is beginning to recognize the leadership role we're playing in ushering in the area of quantum computing. We could not be more excited about the future of D-Wave. With that, I'll hand it over to John to provide a review of our first quarter fiscal 2025 results. Thank you, Alan, and thank you to everyone taking the time to participate in today's call. In my review of the fiscal 2025 first quarter results, I will be providing non-GAAP operating metrics, including bookings, as well as non-GAAP financial metrics that include non-GAAP gross profit, non-GAAP gross margins, and adjusted EBITDA loss, as we believe these metrics improve investors' ability to evaluate our underlying operating performance. These measures are defined in the tables at the bottom of today's earnings press release, with the non-GAAP financial metrics for the most part adjusting for non-cash and non-recurring expenses. With respect to revenue, revenue in the first quarter fiscal 2025 totaled a record $15 million, which represented an increase of $12.5 million, or 509%, from the first quarter of fiscal 2024 revenue of $2.5 million, with the magnitude of the increase highly influenced by the sale of an Advantage 2 annealing quantum computing system to the Jülich Supercomputing Center. They constituted approximately $12.6 million of the quarterly revenue, with QCaaS and professional services comprising the balance. Bookings for the first quarter were $1.6 million, a decrease of $2.9 million, or 64%, when compared to the fiscal 2024 first quarter bookings of $4.5 million, with professional services bookings comprising more than 50% of the first quarter bookings. With respect to our customers, we continue to broaden and diversify our customer base across commercial, research, and government organizations. In comparing the most recent trailing four quarters with the immediately preceding trailing four quarters, D-Wave had a total of 133 customers compared to a total of 128 customers, with the 133 customers including 69 commercial customers, 25% or 36% of which are Forbes Global 2000 customers, where we are seeing some significant pickup in sales pipeline activity, 52 research customers, and 12 government customers. With respect to gross profit, our GAAP gross profit for the fiscal 2025 first quarter was a record $13.9 million, an increase of $12.2 million, or 736%, from the fiscal 2024 first quarter GAAP gross profit of $1.7 million. Non-GAAP gross profit for the first quarter was a record $14 million, an increase of $12.2 million, or 644%, from the fiscal 2024 first quarter non-GAAP gross profit of $1.9 million, with the magnitude of the year-over-year increase in both GAAP and non-GAAP gross profit due primarily to the higher margin Advantage 2 system sale. With respect to gross margins, the GAAP gross margin for the first quarter was 92.5%, an increase of 25.2%, from the fiscal 2024 first quarter GAAP gross margin of 67.3%. The non-GAAP gross margin for the first quarter was 93.6%, an increase of 17%, from the fiscal 2024 first quarter non-GAAP gross margin of 76.6%. The net loss for the first quarter of fiscal 2025 was $5.4 million, or $0.02 per share, compared with a net loss of $17.3 million, or $0.11 per share, in the first quarter of fiscal 2024, with the lower net loss driven primarily by the $12.2 million increase in gross profit that was heavily influenced by the sale of the Advantage 2 annealing quantum computing system. This represents the company's lowest quarterly loss since becoming a public company in August of 2022. Adjusted EBITDA loss for the first quarter was $6.1 million, a decrease of $6.8 million, or 53%, from the fiscal 2024 first quarter adjusted EBITDA loss of $12.9 million, with the decrease due primarily to the year-over-year increase in revenue and the associated gross profit, partially offset by higher operating expenses that are related to the increased investment in our go-to-market and research and development organizations. Now I'll transition to the balance sheet and liquidity. As of March 31st, D-Wave's consolidated cash position totaled a record $304.3 million, and as previously reported, we paid off our secured term loan in the fourth quarter of last year. During the fiscal 2025 first quarter, D-Wave raised $146.2 million in equity through its third at-the-market common stock issuance program, and as of the end of the quarter, we had $37.8 million in available issuance capacity under the equity line of credit with Lincoln Park Capital Fund, with the investment commitment running through October of this year. D-Wave's ability to utilize the ELOC is subject to a number of conditions, including having a sufficient number of registered shares and the stock price being above a dollar a share. In addition, we exited the first quarter with a record $207.4 million in shareholders' equity. To conclude, as we have previously stated, we believe that D-Wave has the opportunity to be the first independent, publicly held quantum computing company to achieve sustained profitability and to achieve this milestone with substantially less funding than required by any other independent, publicly held quantum computing company. With that, we will now open the call for questions. Thank you. We will now be conducting a question-and-answer session. We ask that you limit yourself to one question and one follow-up. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from the line of Harsh Kumar with Piper Sandler. Please proceed with your question. Hey, Sarah. First of all, strong congratulations on a number of runs, very strong quarter, your quantum supremacy, and then also calibration at a product-level calibration for 4,500 Advantage 2 system. I had a question, a couple of questions actually, but I'll keep it to two and get back in line. Alan, maybe you could talk about Davidson Technologies. This sounds to me like another system sale that you've been working on. Maybe you could clarify, if possible, for us if this is another one of the three that you have been referring to previously. It sounds like the system is being calibrated or being assembled right now. Maybe you could give us an update on where you are, when you think it might happen, and then I've got a follow-up. Okay. Sure, Harsh, and thanks for the positive comments upfront. First of all, Davidson is not one of the other handful of potential system sale opportunities that I commented on during our last earnings call. I also did say that system sales tend to take time, and while we have a handful that we are working on and some maybe sooner than others, these are long-lead sales opportunities, so it will take us some time to get there. We're encouraged by the level of interest based on, in part, the supremacy results and the demonstration of capabilities that the system has when you're able to control more of the operating parameters than possible through the quantum cloud service. Having your own system makes sense if that is the direction that you would like to move in, as well as the fact that we were able to announce that we had completed our first system sale, and we are open for business with that type of business model. With respect to the partnership with Davidson, this really is focused on working together with Davidson to help identify, develop, and ultimately deploy applications to support the U.S. government and specifically defense and security hard optimization applications, with the goal being that initially the system would be a part of the lease environment while the R&D work is being done in a non-classified fashion, but that ultimately the system would end up in a secured facility to be able to run secure applications. That is the nature of the partnership with Davidson. Can I ask a follow-up on that before I jump to the next question? The system seems to be based out of Alabama. Can you talk about—this seems like a tangential offshoot setup of business arrangement outside of the sale. How do the economics work? Is it like regular economics, like it's just another one of your systems that happens to be on the side of another customer? Harsh, we have not disclosed any of the details associated with the economics associated with that partnership. That is just something that you're going to have to wait for. Sorry. Harsh, we have not disclosed any of the details associated with the economics associated with that partnership. That is just something that you're going to have to wait for. Sorry. Harsh, we have not disclosed any of the details associated with the economics associated with that partnership. That is just something that you're going to have to wait for. Sorry. I respect that. That is fine. I had a totally different question. The more I work on quantum computing, the more I realize that error correction and cryogenic control are two big issues in the industry. You guys seem to be ahead of others in that. I know it's going to be a mouthful of an answer because it's two big technologies that I'm asking you to discuss, but maybe if you could just summarize for us how you stack up in error correction and cryogenic control versus the rest of your peers in quantum. First of all, we are world leaders in cryogenic control. In fact, we are the only company in the world that has cryogenic control operational today. Frankly, as I commented previously, at least every superconducting gate model quantum company is going to need this technology. For the most part, they haven't even started working on it yet, and we have it operational today. The reason why we have it operational today is because we needed it for our annealing quantum computing. That's why we are able to control 5,000 qubits with just a couple of hundred I/O lines, and why we believe we'll be able to control even 100,000 qubits with just a couple of hundred I/O lines. Everybody in the supercomputing quantum computing space will ultimately need this capability in order to be able to scale their processes, and we're the only company in the world that has it today. We've got a significant patent portfolio basically built around that capability. With respect to error correction, I think we've mentioned this before, but annealing quantum computers do not need the same type or level of error correction that's required by gate-model quantum computers. While we've developed some error mitigation technologies that are very useful for annealing quantum computing, we have not built the kind of error correction that is required for gate models. Now, under our gate model program, we are working on that today, but unlike cryogenic control, where we have it in hand, almost commercial grade, we do not yet have that for gate model systems. We do not yet have error correction for gate model systems. Thank you. Our next question comes from the line of Craig Ellis with B. Riley Securities. Please proceed with your question. Yeah, thanks for taking the question, and congratulations, guys, on the technical and financial accomplishments in the quarter. Alan, I wanted to start with you with the first question. You mentioned that there were numerous blockchain application partnerships that were inbound, and it sounds like initially engaged. Can you just provide more color on the opportunity that you see in that area? Yeah. Craig, we're not blockchain experts, and as a result, while we've developed an architecture and prototyped it and have it operational today that we think could be of real value to the blockchain industry, we're not going to pursue that ourselves. We would pursue that only in partnership with some organization for which that really is their focus and their business. As a result, we were encouraged when a number of companies and investors, frankly, who have expertise and are interested in the space, approached us to talk about actual applications and opportunities to leverage this technology. We are working through that to make a determination around what would be the best way, if at all, to commercialize this. The only thing I will say, though, is for blockchain, as well as we've talked about AI as well, and we're working on how the quantum computers can basically enhance AI and machine learning, both model training and inference. What's interesting to us and really compelling about the blockchain and AI opportunities is we actually think they drive the system sale model of our business more than the quantum computers as a service model of our business. While quantum optimization and supporting customers that have applications that they need to run in support of their day-to-day business operations really continues to be a QCaaS quantum computers as a service-oriented business, we think blockchain and AI will kind of enhance the system sale component of the model. I have to caution you, it's early days. Certainly, and the continuous compute nature of blockchain and AI makes it understandable why there might be more of a system sale interest there. John, I'll switch to you for the second question, and it's really a clarification and then a follow-up. The clarification on the 93.6% gross margin, super high level, is that a proxy for how the model could work when we have a full system sale in the quarter where there are some one-time items that might have benefited that? And then you did mention that there's been an uptick in pipeline activity. If you could just elaborate on that, that would be great. Thank you. Sure. Generally, it is a proxy, Craig, that as we've previously outlined, we have a database of one system sale, being this one. So each deal is going to have unique elements to it. As it relates to the actual sale of the systems component of these types of arrangements, the gross margins will clearly be higher than what our average consolidated gross margin is, as we just demonstrated in the first quarter. Having said that, there could be some variability relative to what we saw here in the first quarter, but generally, they'll be higher than the QCaaS margins that are typically in the 70%-80% range. Your second question had to do with pipeline? Yes, John. Yes. We are seeing a very, very healthy sales pipeline, and what is most interesting about it is we now have a fair number of larger organizations, including a number of Forbes Global 2000 companies. That's the positive element of what's happening in the pipeline. Associated with that, these deals typically take longer because you're dealing with larger organizations that have, in many cases, complex procurement processes. I'll also point out, with respect to our customer count numbers that I provided earlier, that over the last two sequential quarters, we've seen an increase in the average revenue per commercial customer as well as the average revenue per government customer. Although the customer count has not increased dramatically, underlying that is a growth in the average revenue per commercial account and government account over the last two sequential quarters. Thank you. Our next question comes from the line of Quinn Bolton with Needham & Company. Please proceed with your question. Hey, guys. Let me also offer my congratulations on the financial and technical milestones in the quarter. I'm not sure if it's for John or Alan, but just a clarification on the system sale. I think last quarter, when you discussed this sale, you mentioned that there's an option for an upgrade to the Advantage 2 processor. In today's script, you're saying that you have installed an Advantage 2 system, and so I'm wondering, did the system sale price you recognized, did that include the upgrade option, or is that upgrade option for the QPU still available to be deployed sometime later this year or next? Sorry, Quinn. I think you confused two different things here. The Jülich system installation that has been handed over to Jülich an Advantage system with the option to upgrade to Advantage 2. The Davidson system is an Advantage 2 system installed from the outset. Yes, the upgrade of the system at Jülich is still to be done. Okay. Maybe I misheard that. I thought in the script you had referred to the Jülich system as Advantage 2, so my apologies. That option is still available for later this year. Alan, the second question I had is you talked about NTT DOCOMO, Pattison, and Ford Otosan moving to production. Can you just discuss the pipeline of additional customers moving applications? How are you feeling about converting additional customers or more applications than the three I mentioned into production over the course of the year? Thank you. Yeah. I can't give you any specifics. We've talked in the past about what's involved in progressing a customer from proof- of- concept through to benchmarking, through to kind of the work that needs to be done on their internal infrastructure environment in order to move the application into production, all on the path to moving into production. That does take some time. That having been said, maybe the best way to think about this is to think about all the entities, whether that's companies or partners or institutions that showed up at qubit and were on stage in one way or another, either giving a presentation or as a part of the keynote in panel discussions, what have you. These are all companies that we are working with, and that can give you a sense of what the pipeline might look like on the path to production. Thank you. Our next question comes from the line of Suji Desilva, with Roth Capital Partners. Please proceed with your question. Good morning, Alan. Good morning, John. Congrats on all the progress here. I think, John or Alan, you talked about the increasing revenue per customer. Can you talk about the shape that's taking anecdotally? Are you seeing maybe one application going to two, or is it more that you're seeing one application getting the customer brought into the approach and then kind of looking to spread it across multiple applications? What are you seeing more anecdotally? John, do you want to take that? Sure. I mean, typically, Suji, we're starting with one application, and depending on how that goes, then there's the opportunity for multiple opportunities or multiple applications. But typically, we start with a focus on successfully executing one initial application. Even though there's interest or maybe interest in multiple applications, the objective is to get the first application into production as quickly as possible. Suji, I think the only thing I might add to that is that part of the reason why we're seeing this growth is that, as John commented, we're starting to now engage with larger companies who are interested in having us help them to build out the proof of concept versus just kind of buy a small amount of quantum computers as a service and do a do-it-yourself kind of effort. That, of course, drives larger deals for us. Okay, Alan. John, thanks for that color. I think you mentioned, John, with the funding level you have now that you're funded to profitability. Can you give us some help here on what your thoughts are on what a revenue run rate might be when you reach profitability? And within that, what the mix at that point might be on an annual basis, maybe Advantage systems versus service revenue? Quick answer, Suji, is we've not quantified what that revenue run rate is as it relates to achieving profitability, nor have we provided any timing. What we have outlined, and we did this in a January press release, based upon the closing of the most recent ATM, that we have sufficient liquidity to get us to that point in time of sustained profitability and positive cash flow. Thank you. Our next question comes from the line of Tyler Anderson with Craig- Hallum. Please proceed with your question. Good morning, gentlemen. Congratulations, and thank you for taking my question. And specifically, congratulations on the error mitigation. I was just wondering if this is available as a library for customers who purchase systems, and if you could quote the coherence time difference between the 1.2K and the 4.4K processors that you're seeing. Okay. First of all, the coherence times on the 1.2K and 4.4K are the same. These are both Advantage 2 processors where the chips were fabricated using essentially the same fabrication process and the same materials. The only difference is the number of qubits on the chip. What drives the coherence time is the materials and the fab process, and basically the reduction in noise through that fab process. Since these chips are using the same process, the same materials, they essentially have the same coherence time, with one being 1,200 qubits on the chip and the other being 4,400 qubits on the chip. With respect to error mitigation, the error mitigation essentially gives us the effect of a 10x increase in coherence times for certain types of problems over the base coherence time. We said that Advantage 2 has two times the coherence time over Advantage, and with error mitigation, we get another 10x on Advantage 2. That would put Advantage to a 20x over Advantage, or 10x Advantage 2 error mitigated versus Advantage 2 not error mitigated. In my comment, I said for material simulation problems. The error mitigation technique works for certain classes of problems. It's particularly good for simulation problems. Okay. Great. Thank you. That's good color. Could you discuss whether the Davidson installation has been garnering system sale attention from clients or the government? Because it seemed like your installation stole some thunder from other events in the area when they had to change their date. And then how much of that system sales in Q2 is it percent? Or any color on that? Okay. So again, we haven't disclosed any of the terms of the Davidson relationship, so I can't go into any detail there. What I will say is that we have an enormous amount of interest in systems from governments and supercomputing centers around the world, but frankly, less so in the United States. We talked about this before, but there is a strong gate model bias in the U.S. government. That is something that we are working hard to address, and we're making incremental progress, but we are not there yet. We believe it's a huge mistake on the part of the U.S. government because, frankly, other governments around the world are looking at quantum computing to help solve important hard problems today, recognizing that annealing can do that while a gate model can. The U.S., in my view, admittedly, somewhat biased, is falling way behind on this and really needs to get that sorted out. I would not say that we're seeing a lot of interest from the U.S. government in system sales at this point in time. Our next question comes from the line of Harsh Kumar, a follow-up question. Please proceed with your question. I think, Alan, you might have just answered my question. I was going to ask you about, with the change in the U.S. government, what you're seeing, but I think you just answered that one, so I'll let that be. You did talk about blockchain, hashing, and that you will need a partner, like a strong partner that you will work with. That's the only way it seems like you want to go to market on that. I was curious if you might share what kind of characteristics would you look for in a partner for something like that. Would it be like a crypto exchange or I don't even know that much about blockchain. Maybe you could just educate us a little bit on what kind of partner you will need. Sure. Let me just make a further comment on the U.S. government since you started there. Look, the Trump administration is still relatively new. Not even all of his appointments have been installed yet, including in areas that are technology-related. We are hopeful that with the change in administration, there will be an increased interest in and focus on quantum computing and in looking at all forms of quantum computing, as well as looking at near-term applications versus long-term research. We're starting to see a little bit of turnover in some of the key positions that, frankly, have been part of the challenge that we've been facing. We are hopeful, but we're not there yet. We just need to see how this will play out over the next several months. Of course, we continue to be very focused on helping to educate and engage with the U.S. government because, frankly, we want to be helpful, and we think we can be helpful, and we'd like to get that level of engagement and support. With respect to blockchain, it's not only about cryptocurrency, Harsh. It's about protecting assets, protecting important information. Elon Musk has talked about putting the U.S. government ledger on a blockchain. The important elements of blockchain are that, A, it's very secure, and B, it's immutable. I mean, you can't change it, right? It is a great way to kind of enshrine important information in a way that can't be modified or subverted in some way. You could put health records in a blockchain, for example. You could put financial ledgers in a blockchain. These are all interesting and useful applications. The type of partner, we're kind of open-minded on it, but it could go the route of application-oriented, or it could go the route of kind of generic service. We're still trying to work through that. Very helpful, Alan. Thank you. Thank you. Our next question is another follow-up question from the line of Tyler Anderson. Please proceed with your question. Thanks for taking my follow-up, guys. If you're gate on annealing or you're a gate alone system, can the gate model be toggled through software, or does this require hardware tweaks? If it's hardware, does this take a long time and can non-research customers do this themselves? Does it require new guts and controls within the solution fridge? Okay. I'm not sure I understand your question, but let me make some comments, and then if I have not addressed it, feel free to kind of refine the question. Our annealing quantum computer and our gate model development work are two separate quantum computing systems. They are very different architectures. There's a lot of underlying technology that can be leveraged from the annealing quantum system into the gate model quantum system, but they are different architectures. They are different hardware systems. It's not the case that you can take our annealing quantum computer and somehow toggle it to run as a gate model system. That is not the case. As I said, two different architectures, two different hardware systems, but synergy between them in the sense that important technologies that we develop for annealing, like cryogenic control, can be applied in development of the gate model system. Second thing I'll say is our annealing quantum computers are very far advanced today. Advantage 2 will be our sixth-generation annealing quantum computer, and they are commercial systems today. In fact, they're the only quantum computers in the world that are truly commercial today, supporting customer business applications and production. Our gate model system is still in the early R&D phase. Now, the only other thing I'll say is I did talk about digital analog controls in our annealing quantum computer, and that may be where your question came from. One of the things that we have been able to demonstrate is the ability to take our annealing quantum computer and perform some digital operations on it. Do not think of this as all the gate model controls and operations. That's not the case. Some of them, like being able to directly excite a qubit or being able to take the state of one qubit and move it to another qubit, these are some gate model controls that, when applied to an annealing quantum computer, can actually deliver some very interesting capabilities for optimization applications. What we're working on is applying some digital controls—read that as some of the gate model controls—to the annealing fabric to improve some of the capabilities of the annealing quantum system, but separate from that, building a full gate model quantum computer. Okay. Just to reframe quickly, and I got one more follow-up. Can somebody swap out the QPU with the existing control hardware that they have if they bought a previous system, or do they need to buy a full new system and swap out the control from the one they have? If what you want to do is to upgrade from one annealing quantum computer to another, for example, from Advantage to an Advantage 2, that's essentially a chip change and some minor I/O modifications, but not a whole new system. If what you want to do is go from an Advantage annealing quantum computer to, say, a D-Wave gate model quantum computer at some point in the future, you would not need a new solution refrigerator, but you would need to change out both the chip and pretty much all of the I/O and controls. Okay. For your Advantage 2, the 4,000-qubit one, is this accessible to certain customers? Are you generating revenues on that, or are you still waiting to release this broadly? Okay. We have the 1,200-qubit prototype Advantage 2 in our elite quantum cloud service that any customer can use today. Our 4,400-qubit full-scale Advantage 2 quantum computer, we will make generally available before the end of this quarter, before the end of Q2. At that point, it will be a part of our quantum cloud service for any customers to make use of it, as well as kind of being the primary processor that we would use in any remote installation. Awesome. Thank you. I appreciate you taking my question. Thank you. Our next question is another follow-up question from the line of Craig Ellis. Please proceed with your question. Thanks for taking the follow-up. Alan, at Qubits 2025, you presented a long-term technology roadmap that included scaling up to, I believe it was, 20K and 100K qubit systems. Can you just elaborate a little bit on the reaction you got from customers and partners at the event and since the event on that roadmap? Yeah. I mean, as you'd expect it, excitement. I mean, the truth of the matter is, and I think I've talked about this before, obviously, with more qubit and more connectivity, we are able to solve larger and more complex problems on the quantum computer. Now, today, the way we solve larger and more complex problems that can be solved natively on the quantum computer is by using our hybrid solvers. It's a very powerful technology. The more of the problem that we can solve natively on the quantum computer, the greater the advantage over classical. While we have many customers that today, through the hybrid solvers, are seeing improvements over classical solutions, and as a result, they're seeing a good ROI, that's why we've got three customers with applications in production and more that are on the path to production. If we were able to solve more or all of the problems on the quantum computer, the improvement would be significantly larger, right, and an even stronger ROI. The excitement is around the ability to, on the one hand, enable additional use cases that aren't yet possible, and on the other hand, see increased benefit over classical for things where benefit is already today being seen. That's helpful. Thank you. Thank you. This concludes our question- and- answer session. I'd like to turn the floor back over to Dr. Baratz for closing comments. Okay. Thank you all again for taking the time to be here with us today. Frankly, we see only tailwinds as we continue to blaze the trail of quantum computing innovation and adoption. I've never been more confident in our business, our technology, our commercial opportunities, and our truly remarkable team. Thanks again for taking the time to join us today. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.