Churchill Capital Corp X Warrant

Company Overview

Business Model: Infleqtion, Inc. develops and commercializes quantum technology products as part of a full-stack platform, encompassing quantum sensing, quantum computing, and software. Revenue is generated through direct product sales (e.g., optical atomic clocks, RF sensors, inertial/gravitational sensors), quantum computing as a service via cloud-based access, software licensing, and government and commercial contracts. The business model balances short-term cash generation from sensing products and R&D contracts with long-term platform scalability for quantum computing and software.

Market Position: Infleqtion, Inc. is positioned as a pioneer in neutral atom architecture, which it leverages for both scalable quantum computing and field-deployable sensing. The company claims to be the only entity developing and commercializing quantum solutions across sensing, computing, and software markets. Its neutral atom platform offers advantages in qubit layout flexibility, connectivity, and scalability without requiring cryogenics, operating at room temperature with long coherence times and all-to-all connectivity. The company has demonstrated 12 logical qubits as of December 31, 2025, and a 99.73% fidelity on its controlled-Z (CZ) gate, which it believes is the highest achieved by any commercial neutral atom company.

Recent Strategic Developments:

• Business Combination: On February 13, 2026, Churchill Capital Corp X (a SPAC) consummated a business combination with ColdQuanta, Inc. (d/b/a Infleqtion), resulting in the combined entity being renamed Infleqtion, Inc.
• Quantum Computing Advancement: Achieved 12 logical qubits as of December 31, 2025, with a target of 30 logical qubits in 2026 and 100 logical qubits by 2028, a recognized threshold for commercially valuable quantum advantage. The company also targets demonstrating MegaQuOp scale (one million sequential logical operations) in 2028.
• Product Portfolio Expansion: Actively deploying high-performance quantum clocks (Tiqker) and quantum RF sensors (Sqywire) that deliver quantum advantage. Pioneering next-generation quantum inertial and gravimetric sensors (Exaqt) for GPS-denied environments.
• Software Innovation: Developed Superstaq, a proprietary software for quantum computing compilation and optimization, and Contextual Machine Learning (CML) software, based on quantum physics principles, to amplify AI performance on classical GPUs and future quantum computers.
• Strategic Partnerships: Collaborations with the U.S. Department of Defense, DARPA, NASA, SAIC, Lockheed Martin, NVIDIA, and the United Kingdom National Quantum Computing Centre. A joint effort with L3Harris was announced in December 2023 to transition the Sqywire quantum RF sensor to operational deployment under a classified U.S. Department of Defense program.

Geographic Footprint: Infleqtion, Inc. maintains offices and/or personnel in the United States (Louisville, CO; Chicago, IL; Madison, WI; Boulder, CO), the United Kingdom (Oxford), Japan, and Australia (Melbourne). Non-U.S. revenue constituted approximately 29% of total revenue for the fiscal year ended December 31, 2025. Sales efforts are concentrated in the United States, the United Kingdom, Australia, and other allied nations.

Financial Performance

Note: The financial statements provided in this 10-K filing pertain to Churchill Capital Corp X (CCX), a blank check company, prior to its business combination with ColdQuanta, Inc. (d/b/a Infleqtion). As such, the detailed operating financial performance metrics (Total Revenue, Gross Profit, Operating Income, Net Income, and associated margins) for the operating business, Infleqtion, Inc., are not available in this filing. The filing indicates that audited financial statements for Legacy Infleqtion for the year ended December 31, 2025, and related Management’s Discussion and Analysis will be filed concurrently in an amendment to a Current Report on Form 8-K.

Churchill Capital Corp X (Pre-Business Combination SPAC) Financials:

• Net Loss (2025): $(66,931,068)
• Net Loss (2024): $(51,910)

Investment in Growth:

• R&D Expenditure: Not disclosed for the operating business in this filing.
• Capital Expenditures: Not disclosed for the operating business in this filing.
• Strategic Investments: Not disclosed for the operating business in this filing.

Business Segment Analysis

Infleqtion, Inc. operates its business as a single operating and reportable segment. This determination is based on how the Chief Executive Officer, as the chief operating decision maker, manages the business for the purpose of assessing performance and resource allocation.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Not disclosed.
• Dividend Payments: Infleqtion, Inc. has not declared or paid cash dividends on its capital stock to date and does not anticipate paying any cash dividends in the foreseeable future, intending to retain future earnings for business development and expansion.
• Dividend Yield: Not applicable.
• Future Capital Return Commitments: No current plans to pay cash dividends.

Balance Sheet Position (Churchill Capital Corp X as of December 31, 2025):

• Cash and Equivalents: $702,154
• Cash and marketable securities held in Trust Account: $423,689,503
• Total Liabilities: $78,795,575 (includes subscription agreement liability of $75,630,352 and deferred underwriting fee payable of $3,000,000)
• Net Cash Position: Not explicitly calculated for the SPAC structure.
• Credit Rating: Not disclosed.
• Debt Maturity Profile: Not disclosed.

Cash Flow Generation (Churchill Capital Corp X for the year ended December 31, 2025):

• Operating Cash Flow: $(2,272,729) (cash used in operating activities)
• Free Cash Flow: Not disclosed.
• Cash Conversion Metrics: Not disclosed.

Operational Excellence

Production & Service Model: Infleqtion, Inc. employs a vertically integrated manufacturing approach, developing and manufacturing critical quantum hardware, components, and technology in-house. This deep integration allows for precise control over system performance, accelerated iteration cycles, and repurposing of core technology across sensing, timing, and computing platforms. The company manages production planning across its facilities to support customer and program requirements.

Supply Chain Architecture: Infleqtion, Inc. relies on third-party suppliers, including sole source suppliers, for components. The company acknowledges the need to scale and adapt its supply chain as the business grows and may partner with third parties or outsource certain manufacturing aspects in the future.

Key Suppliers & Partners:

• Cloud Providers: Google Cloud and Amazon AWS for its Superstaq service.
• Manufacturing & Integration: In-house capabilities at Boulder, Colorado, and Oxford, United Kingdom facilities.
• Strategic Collaborations: L3Harris (for Sqywire quantum RF sensor).

Facility Network:

• Manufacturing: Louisville, Colorado (corporate headquarters, R&D, manufacturing), Boulder, Colorado, and Oxford, United Kingdom (Quantum Core and Quantum Cores-family systems, system integration, testing).
• Research & Development: Louisville, Colorado (corporate headquarters), Chicago, Illinois; Madison, Wisconsin; Boulder, Colorado; Oxford, United Kingdom; and Melbourne, Australia.
• Distribution: Not explicitly detailed beyond general sales and marketing efforts.

Operational Metrics:

• Quantum Computing: Sqale system supports arrays of up to 1,600 trapped atoms, demonstrated 12 logical qubits as of December 2025, and achieved a 99.73% two-qubit CZ gate fidelity.
• Sensor Ruggedization: Technologies validated in road, sea, flight, and space environments, demonstrating resilience to vibration, motion, and interference.

Market Access & Customer Relationships

Go-to-Market Strategy: Infleqtion, Inc.'s strategy focuses on direct engagement with high-value government, national security, and commercial customers, as well as through strategic integrator partnerships. This approach facilitates early adoption of quantum sensing and computing technologies in mission-critical domains.

• Direct Sales: Enterprise sales force targeting government agencies, defense prime contractors, and scientific research institutions.
• Channel Partners: Multiple distribution agreements for its Quantum Cores product line across the United States, the United Kingdom, Europe, Australia, and Japan.
• Digital Platforms: Cloud-based access to the Sqale quantum computing system and subscription-based software offerings (Superstaq and CML).

Customer Portfolio:

• Enterprise Customers: U.S. Department of Defense, DARPA, NASA, SAIC, Lockheed Martin, NVIDIA, and the United Kingdom National Quantum Computing Centre.
• Strategic Partnerships: Co-development programs, procurement contracts, and licensing agreements with government agencies and defense prime contractors.
• Customer Concentration: Approximately 60% of total revenue for the fiscal year ended December 31, 2025, was derived from the U.S. government and its agencies. Approximately 12% of revenue for the same period was related to contracts with the United Kingdom government.

Geographic Revenue Distribution:

• Non-U.S. Revenue: Approximately 29% of total revenue for the fiscal year ended December 31, 2025.
• Growth Markets: Focus on the United States, the United Kingdom, Australia, and Japan.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The quantum technology industry is in its early stages, characterized by rapid technological evolution, competitive pricing, and evolving government regulation and industry standards. The global quantum sensing market (including timing) is projected to reach approximately $30 billion by 2040, and the global quantum computing market is expected to reach approximately $130 billion by 2040.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Quantum Sensing: Microchip Technology, SiTime, Safran Electronics & Defense, Oscilloquartz (traditional atomic clocks/time synchronization); other quantum sensor startups.
• Quantum Computing: IonQ (trapped ion), IBM and Rigetti (superconducting circuits), PsiQuantum (photonic qubits).
• Software: Other quantum software and middleware providers.

Emerging Competitive Threats: The industry is characterized by new or emerging entrants seeking to develop competing quantum solutions. Advances in classical computing could also delay the timing of quantum advantage.

Competitive Response Strategy: Infleqtion, Inc. employs a dual-track approach: advancing toward 100+ logical qubit systems while simultaneously commercializing quantum sensors that already deliver advantage. This is supported by its scalable, flexible, room-temperature neutral atom architecture, vertically integrated full-stack platform, demonstrated product execution, diversified revenue model, and strategic partnerships.

Risk Assessment Framework

Strategic & Market Risks

• Market Dynamics: The business involves technology that is not mature, facing significant barriers in producing products to desired technical specifications. Estimates of market opportunity and growth forecasts may be inaccurate. The quantum technology industry is in its early stages and volatile, with potential for slower-than-expected development or negative publicity.
• Technology Disruption: Risk that quantum computing technology may take decades to be realized, or that other companies' quantum computers may achieve broad quantum advantage sooner, rendering Infleqtion, Inc.'s technology obsolete. Advances in classical computing may prove more robust for longer than anticipated.
• Customer Concentration: Significant portion of total sales derived from the U.S. government and its agencies (approx. 60% in 2025) and the UK government (approx. 12% in 2025), exposing the company to budgetary constraints, spending reductions, and contract termination risks.
• Growth Management: Inability to scale the business quickly enough to meet customer and market demand, manage growth effectively, or attract and retain key employees with specialized knowledge.

Operational & Execution Risks

• Supply Chain Vulnerabilities: Reliance on third-party suppliers, including sole source suppliers, for critical components, posing risks of delays, increased costs, or production halts.
• Product Quality: Products may contain defects in design and manufacture, leading to performance issues, repairs, recalls, or design changes.
• IT Systems & Data Security: Information technology systems or those of third parties (e.g., cloud providers) could be compromised by cyber-attacks, leading to disruptions, data loss, regulatory actions, litigation, and reputational harm. Compliance with U.S. Department of Defense Cybersecurity Maturity Model Certification (CMMC) and NIST-SP 800-171 requirements is critical for government contracts.
• Generative AI Tools: Use of generative AI tools may pose risks to proprietary software and systems, limit intellectual property protection, and expose the company to legal liability (e.g., infringement claims, security vulnerabilities, data leakage).
• Internal Controls: Legacy Infleqtion identified material weaknesses in internal control over financial reporting, which are currently being remediated. Ineffective remediation or future weaknesses could impair financial reporting accuracy and compliance.

Financial & Regulatory Risks

• Capital Requirements: Requires substantial additional capital to pursue business objectives and respond to opportunities, with no assurance that financing will be available on favorable terms.
• Tax Attributes: Ability to use net operating loss carryforwards (approx. $117.4 million as of December 31, 2025) may be limited by ownership changes (e.g., Section 382 of the Code).
• Regulatory Compliance: Subject to U.S. and international regulations on export controls, dual-use technologies, economic sanctions, data privacy (EU GDPR, UK GDPR, Australia's Privacy Act, CCPA, PIPL), FDA registration for Tiqker, and environmental laws. Non-compliance can lead to fines, penalties, and business limitations.
• Government Contracts: Contracts with government entities subject the company to risks including early termination, audits, investigations, and penalties.
• Intellectual Property Licensing: Heavy reliance on licenses from third parties (e.g., University of Colorado, Wisconsin Alumni Research Foundation), with risks of termination, scope disputes, or failure to meet obligations.

Geopolitical & External Risks

• Geopolitical Exposure: International operations subject the company to risks associated with foreign laws, enforcement of intellectual property, regulatory changes, supply chain challenges, and political instability (e.g., Ukraine, Middle East conflicts).
• Trade Relations: Changes in trade policies, tariffs, and export restrictions (e.g., U.S. government actions on advanced computing) could adversely impact the ability to obtain components or sell products internationally.
• Natural Disasters & Public Health: Significant natural disasters, power outages, or infectious disease outbreaks could disrupt business operations, supply chains, and product deployment.

Innovation & Technology Leadership

Research & Development Focus: Infleqtion, Inc. operates a vertically integrated, full-stack proprietary quantum platform. Its R&D efforts span neutral atom hardware (quantum cores), control systems, photonics, middleware, and application-layer software. A key focus is leveraging the overlap across quantum sensing and quantum computing, where advancements in one area (e.g., atom cooling for inertial sensors) directly inform and improve others (e.g., quantum computers).

Core Technology Areas:

• Neutral Atom Architecture: Utilizes individual cesium or rubidium atoms, trapped and manipulated using laser systems, as qubits for computing or sensing elements for time, inertial, or RF measurements. This architecture enables room-temperature operation, long coherence times, all-to-all connectivity, and reconfigurability.
• Quantum Computing (Sqale): As of December 2025, Sqale supports arrays of up to 1,600 trapped atoms, demonstrated 12 logical qubits, and achieved a 99.73% two-qubit CZ gate fidelity.
• Quantum Sensing:
  • Tiqker: A compact optical atomic clock delivering precision timing.
  • SqyWire: A rugged RF quantum sensor for detecting and analyzing RF signals.
  • Exaqt: A family of inertial and gravitational sensors for GPS-denied navigation.
• Quantum Software:
  • Superstaq: Proprietary middleware platform for compiling, optimizing, and executing quantum programs, supporting hybrid quantum-classical workflows and cross-platform compatibility.
  • Contextual Machine Learning (CML): Quantum-inspired classical AI tool enhancing AI workloads by improving inference behavior for long context window datasets, demonstrating >10x memory savings versus Transformer technology.

Innovation Pipeline: The quantum computing roadmap targets achieving 100 logical qubits by 2028 and demonstrating MegaQuOp scale (one million sequential logical operations) in 2028. The sensing roadmap focuses on improving sensitivity and stability, reducing SWaP (size, weight, and power), and achieving broader integration across defense and critical infrastructure applications.

Intellectual Property Portfolio:

• Patent Strategy: As of December 31, 2025, Infleqtion, Inc. held 125 issued patents and 108 pending applications, with issued patents expiring between 2028 and 2044. The portfolio is deepest in neutral atom systems, quantum cores, and sensing techniques.
• Licensing Programs:
  • Non-Exclusive License Agreement with the Regents of the University of Colorado: Entered February 2012, amended, granting non-exclusive, worldwide license for certain patents and know-how, with low single-digit royalties on net sales.
  • Exclusive License Agreement with the Regents of the University of Colorado: Entered June 2021, granting exclusive, worldwide, sub-licensable license for certain patents and software, with a $130,000 license fee and low to mid-single-digit royalties on net sales.
  • Exclusive License Agreement with the Wisconsin Alumni Research Foundation (WARF): Entered October 2019, granting exclusive, worldwide, sub-licensable license for certain patents, with a $50,000 license fee and low single-digit royalties on net sales.
• IP Litigation: Not disclosed as material.

Technology Partnerships: Infleqtion, Inc. engages in strategic alliances and research collaborations with entities such as the U.S. Department of Energy (DOE), DARPA, NASA, SAIC, Lockheed Martin, NVIDIA, and the United Kingdom National Quantum Computing Centre.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: Not explicitly detailed beyond the executive team and board composition.

Board Composition: The Board consists of seven members and is divided into three classes. As of March 31, 2026, the Board includes Catherine Lego (Chairman), Eric Bjornholt, Kristina Johnson, Dawn Meyerriecks, and David Singer, in addition to CEO Matthew Kinsella. The Board has established an Audit Committee (chaired by Eric Bjornholt), a Compensation Committee (chaired by Kristina Johnson), and a Nominating and Corporate Governance Committee (chaired by Dawn Meyerriecks). All committee members are independent directors as defined by SEC and NYSE rules.

Human Capital Strategy

Workforce Composition: As of December 31, 2025, Infleqtion, Inc. had 205 employees, with 203 being full-time. Over 160 employees are physicists and engineers, and approximately 78% hold advanced engineering and scientific degrees. Approximately 55% of employees are based in the greater Denver, Colorado metropolitan area.

Talent Management:

• Acquisition & Retention: The company's future success is highly dependent on its ability to attract and retain executive officers, key employees, and other qualified personnel, particularly in engineering, software development, sales, and R&D.
• Employee Value Proposition: Not explicitly detailed beyond general statements about the competitive market for skilled workers.

Diversity & Development: Not explicitly detailed. Culture & Engagement: Not explicitly detailed.

Environmental & Social Impact

Environmental Commitments:

• Climate Strategy: Not explicitly detailed.
• Carbon Neutrality: Not explicitly detailed.
• Renewable Energy: Not explicitly detailed.

Supply Chain Sustainability: Not explicitly detailed.

Social Impact Initiatives: Not explicitly detailed.

Business Cyclicality & Seasonality

Demand Patterns: Not explicitly detailed.

Economic Sensitivity: Infleqtion, Inc.'s results of operations may be affected by negative conditions in the global economy, including changes in GDP growth, inflation, financial and credit market fluctuations, international trade relations, pandemics, natural catastrophes, warfare, and terrorist attacks. These conditions could lead to decreased business investments, reduced customer budgets, and potential delays or cancellations of product and service purchases.

Industry Cycles: Not explicitly detailed.

Planning & Forecasting: Not explicitly detailed.

Regulatory Environment & Compliance

Regulatory Framework: Infleqtion, Inc. is subject to a complex and evolving regulatory landscape.

• Industry-Specific Regulations: U.S. and international regulations on export controls, dual-use technologies, and sensitive research. The Tiqker product is subject to U.S. Food and Drug Administration (FDA) registration and reporting requirements as an electronic product prior to commercialization.
• International Compliance: Compliance with multi-jurisdictional requirements, including those in the UK, Japan, and Australia.

Trade & Export Controls: The company is subject to various restrictions under export controls, import laws, and economic sanctions of the United States, the United Kingdom, and other jurisdictions. This includes the U.S. Export Administration Regulations, International Traffic in Arms Regulations, U.S. Customs regulations, and Office of Foreign Assets Control sanctions. Recent export controls on quantum computing hardware and related software/technology at specified levels of technological advancement are noted.

Legal Proceedings: Management believes there are currently no claims or actions pending against Infleqtion, Inc. that could have a material adverse effect on its results of operations, financial condition, or cash flows.

Tax Strategy & Considerations

Tax Profile: Infleqtion, Inc. is subject to income and other taxes in the United States and other jurisdictions. As of December 31, 2025, the company had U.S. federal and state net operating loss (NOL) carryforwards of approximately $117.4 million. A full valuation allowance has been recorded related to these NOL carryforwards and other deferred tax assets due to uncertainty regarding the ultimate realization of future benefits.

Geographic Tax Planning: Not explicitly detailed beyond general statements about international tax structures and transfer pricing.

Tax Reform Impact: The U.S. government's One Big Beautiful Bill Act (OBBBA) passed on July 4, 2025, reinstated immediate expensing of certain U.S.-incurred research and experimental expenses for tax years beginning after December 31, 2024.

Insurance & Risk Transfer

Risk Management Framework: Infleqtion, Inc. maintains cybersecurity insurance. The company is contractually obligated to maintain general liability/product liability insurance under its license agreements with the University of Colorado. No other specific details on risk transfer mechanisms are provided.