Company: IONQ
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000950170-25-027722
Chunk: 35

Company: IonQ, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 6
Chunk 35
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: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.Capitalized internal-use software development costs

     Description of the Matter
      
     As discussed in Note 2 and Note 7 to the consolidated financial statements, the Company capitalizes certain costs related to internal-use software incurred during the application development stage. The Company capitalized $6.8 million of internal-use software costs in the year ended December 31, 2024 and had total capitalized internal-use software costs, net of accumulated amortization, of $10.6 million as of December 31, 2024. Capitalized internal-use software is recorded within intangible assets, net on the consolidated balance sheets.  Auditing the Company’s capitalization of internal-use software development costs was especially challenging because management’s determination of which development activities qualify for capitalization requires significant judgment, as only those costs incurred in certain stages of software development and which result in additional functionality can be capitalized in accordance with the applicable accounting standards.

     How We Addressed the Matter in Our Audit
      
     To test the Company’s capitalization of internal-use software development costs, we performed audit procedures that included, among others, testing a sample of capitalized internal-use software development costs related to upgrades and enhancements to existing internal-use software projects.  For each sample, we inspected underlying documentation to evaluate whether the development activities were capitalizable under 

F-2

     the applicable accounting standards. In addition, we inquired of a sample of the individuals performing the internal-use software development activities, and their supervisors, regarding the specific nature, stage of development, and time incurred on the projects selected for testing. 
    
   /s/ Ernst & Young LLPWe have served as the Company’s auditor since 2020. Tysons, VirginiaFebruary 26, 2025 

F-3

 Report of Independent Registered Public Accounting FirmTo the Stockholders and the Board of Directors of IonQ, Inc. Opinion on Internal Control Over Financing ReportingWe have audited IonQ, Inc.’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control—Integrated Framework issued by the