Company: IONQ
Filing Date: 2025-07-07
Form Type: 424B5
Source: 0001193125-25-155901
Chunk: 39

Company: IonQ, Inc.
Filing Date: 2025-07-07
Form: 424B5
Chunk 39
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 tax consequences of a cashless exercise could differ from the consequences upon the exercise of a
Series A Warrant described in the preceding paragraph.

The tax consequences of a cashless exercise of Series A Warrants are not clear
under current tax law. A cashless exercise may be nontaxable, either because the exercise is not a realization event or because the exercise is treated as a recapitalization for United States federal income tax purposes. In either situation, a U.S.
holder’s tax basis in the Warrant Shares would generally equal the holder’s tax basis in the Series A Warrants. If the cashless exercise were treated as not being a realization event, it is unclear whether a U.S. holder’s holding
period for the Warrant Shares would commence on the date of exercise of the Series A Warrants or the day following the date of exercise of the Series A Warrants. If, however, the cashless exercise were treated as a recapitalization, the holding
period of the Warrant Shares would include the holding period of the Series A Warrants.

It is also possible that a cashless exercise
could be treated in part as a taxable exchange in which gain or loss is recognized. In such event, a U.S. holder would be deemed to have surrendered a number of Series A Warrants having a value equal to the exercise price for the total number of
Series A Warrants to be exercised. The U.S. holder would recognize capital gain or loss in an amount equal to the difference between the fair market value of the Series A Warrants deemed surrendered and the U.S. holder’s tax basis in the Series
A Warrants deemed surrendered. In this case, a U.S. holder’s tax basis in the Warrant Shares would equal the sum of the U.S. holder’s tax basis in the Series A Warrants deemed exercised and the exercise price of such Series A Warrants. It
is unclear whether a U.S. holder’s holding period for Warrant Shares would commence on the date of exercise of the Series A Warrants or the day following the date of exercise of the Series A Warrants; however, in either case the holding
period will not include the period during which the U.S. holder held the Series A Warrants.

Due to the absence of authority on the United
States federal income tax treatment of a cashless exercise, including when a U.S. holder’s holding period would commence with respect to the Warrant Shares received, there can be no assurance which, if any