Zapata Quantum Reports No Revenue for Q2 2025, Net Income Turnaround Amid Restructuring

Zapata Quantum, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2025. The company, which underwent a merger with Andretti Acquisition Corp. in March 2024, recorded no revenue for the second quarter of 2025, a stark decline from $2.0 million in the same period of 2024. This drop is attributed to the company's operational cessation initiated in October 2024 due to insufficient financial resources. The total revenue for the first half of 2025 also remained at zero, compared to $3.2 million for the first half of 2024.

The company's operating expenses for the second quarter of 2025 were $584,000, a significant reduction from $8.1 million in the prior year, primarily due to the cessation of operations. General and administrative expenses accounted for the majority of the current quarter's costs, totaling $584,000, down from $4.3 million in the previous year. The company reported a net income of $2.7 million for the quarter, a substantial turnaround from a net loss of $15.6 million in the same quarter of 2024. This improvement was largely driven by gains from extinguishments of liabilities and a favorable shift in other income.

Zapata's balance sheet as of June 30, 2025, showed total assets of $3.8 million, up from $2.7 million at the end of 2024. The increase was primarily due to cash and cash equivalents rising to $1.4 million from $359,000. The company’s total liabilities decreased to $23.1 million from $26.2 million, reflecting ongoing restructuring efforts, including the conversion of debt into equity. The stockholders' deficit improved to $19.4 million from $23.5 million, indicating a positive shift in the company's financial health.

In terms of strategic developments, Zapata has focused on restructuring its operations to restart its core business, which includes delivering subscription-based quantum computing solutions. The company raised $3 million through convertible notes and $1.5 million from the sale of Series A Convertible Preferred Stock in 2025. Additionally, it entered into conversion agreements with creditors to settle approximately $11.7 million in liabilities through equity issuance. The company is actively pursuing further capital-raising efforts to support its operations and has engaged in advisory agreements to facilitate this process.

Looking ahead, Zapata Quantum's management has expressed optimism about its ability to raise additional capital and resume operations, although they acknowledge substantial doubt about the company's ability to continue as a going concern without further funding. The company plans to leverage its patented technology and existing partnerships to enhance its market position in the quantum computing sector, aiming to provide solutions that address the growing demand for quantum and hybrid quantum-classical computing applications.