Company: IONQ
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000950170-25-027722
Chunk: 43

Company: IonQ, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 6
Chunk 43
---
 10,188

           $
           11,467

          On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance for credit losses. This assessment is based on management’s evaluation of relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the receivable. The Company did not have any allowance for credit losses as of either December 31, 2024 or 2023. Materials and Supplies, Net Materials and supplies, including spare parts, are carried at average cost and recorded in prepaid expenses and other current assets in the consolidated balance sheets. Materials and supplies used in the production of quantum computing systems to be made commercially available are capitalized to property and equipment when installed. Materials and supplies used to support customer contracts, for maintenance, or for research and development efforts are expensed when consumed. The Company capitalized $7.2 million, $3.6 million and $1.3 million of materials and supplies to property and equipment for the years ended December 31, 2024, 2023 and 2022, respectively. Materials and supplies are evaluated regularly for excess quantities and obsolescence. This evaluation includes analysis of the Company's current and future strategic plans, risk of technological obsolescence, and general market conditions. Excess and obsolescence charges were $1.3 million during the year ended December 31, 2024, and less than $0.1 million during the years ended December 31, 2023 and 2022. The following table summarizes the activity in the Company’s excess and obsolescence reserve against materials and supplies (in thousands): 

           2024

           2023

           Beginning balance
            
           $
           65

           $
           —

           Provisions

           1,331

           65

           Recoveries

           (55
           )

           —

           Ending balance
            
           $
           1,341

           $
           65

         Investments Management determines the appropriate classification of investments at the time of purchase based upon management’s intent with regard to such investments. The Company primarily invests in debt securities and classifies its investments as available-for-sale at the time of purchase if they are available to support either current or future operations. This classification is re-evaluated at each balance sheet date. Investments not considered cash equivalents, with remaining contractual maturities of one year or less from the balance sheet date