Zapata Quantum, Inc. Annual Report - How They Did This Year

This year, Zapata Quantum went through some pretty big changes, especially on the corporate side. Here's a look at what happened:

Major Corporate Shake-Up: The Merger!

The biggest news for Zapata Quantum in 2024 was a major corporate restructuring. On March 28, 2024, the company completed a "reverse recapitalization" by merging with Andretti Acquisition Corp. This process allowed the original private Zapata Quantum to become publicly traded by combining with an existing public shell company (Andretti Acquisition Corp., often called a SPAC). This move significantly changed the company's ownership structure, impacting the original Zapata equity holders, Andretti's public shareholders, and other key investors.

Funding and Financial Moves

To support these changes and ongoing operations, Zapata Quantum made several financial moves:

• Senior Notes: The company issued Senior Notes (a type of debt) around the time of the merger in March 2024. They also had Senior Secured Notes that were issued in late 2023 and early 2024. Some of these Senior Secured Notes can be converted into new company common stock, meaning debt holders could become shareholders.
• Forward Purchase Agreements: Zapata Quantum entered into a "Forward Purchase Agreement" in October 2024. This financial arrangement can help provide future capital. There was also a partial early termination of one of these agreements in April 2024, indicating adjustments to their financing strategy.

Who's Buying from Zapata? (Customer Concentration)

In 2024, Zapata Quantum had a few key customers driving their sales revenue: Customer A, Customer B, Customer C, and Customer D. Customer A was also a significant source of their accounts receivable (money owed to them).

Compared to 2023, there was a shift in their customer base:

• Customer D became a notable revenue source in 2024, whereas they were not highlighted as a top customer in 2023.
• Conversely, Customer E, who was a significant revenue and accounts receivable source in 2023, was no longer listed among the top customers in 2024.

This indicates a change in their customer base, with new relationships potentially growing while others might have scaled back.

What's Next? (Subsequent Events)

The company has indicated subsequent events planned for 2025, including potential activities in the first and second quarters, and further actions related to the Forward Purchase Agreement in January and June 2025. This suggests continued financial and operational developments are on the horizon.

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Key Takeaways for Investors:

• Public Listing: Zapata Quantum became a publicly traded company on March 28, 2024, through a merger with Andretti Acquisition Corp., significantly altering its ownership structure.
• Diverse Funding: The company secured funding through Senior Notes issued in late 2023, early 2024, and March 2024, some of which are convertible into stock. They also utilized Forward Purchase Agreements, with some adjustments made in April and October 2024.
• Evolving Customer Base: In 2024, key customers included Customer A, B, C, and D, with Customer A being a major source of receivables. There was a notable shift from 2023, with Customer D emerging as a new top customer and Customer E no longer listed among the top.
• Future Plans: The company has outlined plans for continued financial and operational activities in 2025, including further actions related to the Forward Purchase Agreement.