Infleqtion, Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

1. Summary of Operations and Significant Accounting Policies

Nature of Operations

Infleqtion, Inc. (and its predecessor operations, ColdQuanta, Inc. (d/b/a Infleqtion) (“Legacy Infleqtion”), collectively referred to as the “Company”) develops and commercializes quantum technology products as part of a full-stack platform, which includes offerings such as quantum sensing, quantum computing and software. The Company is headquartered in Colorado, with operations in Illinois; Wisconsin; Melbourne, Australia; and Oxford, United Kingdom (“U.K.”).

The Company was originally incorporated in the Cayman Islands on January 4, 2024 as a special purpose acquisition company under the name Churchill Capital Corp X (“CCX”) for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination involving CCX and one or more businesses. On February 12, 2026, the Company changed its jurisdiction of incorporation from the Cayman Islands to the State of Delaware through a domestication.

On February 13, 2026, CCX consummated its business combination with Legacy Infleqtion pursuant to the definitive agreement and plan of merger and reorganization (the “Merger Agreement”), dated September 8, 2025 (the “Business Combination”), whereby AH Merger Sub I, Inc., a direct, wholly owned subsidiary of CCX, merged with and into Legacy Infleqtion, with Legacy Infleqtion continuing as the surviving corporation, and immediately thereafter, such surviving corporation merged with and into AH Merger Sub II, LLC (“Merger Sub II”), another direct, wholly owned subsidiary of CCX, with Merger Sub II (renamed as “Infleqtion Quantum, LLC”) continuing as the surviving entity and as a wholly owned subsidiary of CCX. In connection with the closing of the Business Combination (the “Closing”), the Company changed its name from CCX to Infleqtion, Inc. Refer to Note 3 - Business Combination for further discussion of the Business Combination.

The Company’s Common Stock and Public Warrants (each as defined in Note 11 - Stockholders’ Equity) commenced trading on the New York Stock Exchange (“NYSE”) under the symbols “INFQ” and “INFQ WS”, respectively, on February 17, 2026.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the financial results of the Company and its wholly owned subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, these condensed consolidated financial statements reflect all adjustments that are of a normal recurring nature necessary for a fair presentation of the results of operations, financial condition and cash flows for the interim periods presented. These condensed consolidated financial statements do not include all of the information and disclosures required by GAAP for complete financial statements. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. These reclassifications had no impact on previously reported net income, total assets, or shareholders’ equity. These interim financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2025 included in the Current Report on Form 8-K/A that the Company filed with the U.S. Securities and Exchange Commission (“SEC”) on March 31, 2026.

The Business Combination was accounted for as a reverse recapitalization, with Legacy Infleqtion determined to be the accounting acquirer and CCX treated as the acquired company for financial reporting purposes. Accordingly, the transaction was treated as the equivalent of Legacy Infleqtion issuing stock for the net assets of CCX, accompanied by a recapitalization. The net assets of CCX were recorded at their historical cost, and no goodwill or other intangible assets were recorded. The Company’s consolidated financial statements following the Business Combination reflect the historical operations of Legacy Infleqtion. Reported shares and earnings per share prior to the Business Combination have been retroactively restated to reflect a defined exchange ratio of approximately 0.34740312 (the “Exchange Ratio”) established at the Business Combination.

Emerging Growth Company

The Company is an Emerging Growth Company (“EGC”) as defined under the Securities Act, as modified by the Jumpstart Our Business Startups Act (“JOBS Act”), and may take advantage of certain exemptions from reporting and disclosure requirements that apply to other public companies that are not EGCs.

Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until such standards are applicable to private companies. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard, until such time the Company is no longer considered to be an emerging growth company. At times, the Company may elect to early adopt a new or amended standard.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and the accompanying notes.

Significant estimates and judgments are inherent in the analysis and measurement of items including, but not limited to, the selection of the method to measure progress in the satisfaction of performance obligations in revenue arrangements recognized over time and the related estimate of total expected costs for the revenue arrangement, the useful lives of long-lived assets, the fair value of stock-based awards, the fair value of assets and liabilities acquired in business combinations, the fair value of contingent obligations, the fair value of assets and reporting units associated with impairment losses and the incremental borrowing rates used to determine the present value of lease liabilities. Management bases its estimates and assumptions on current facts, historical experience, expectations, forecasts, trends and various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results could differ materially from such estimates and assumptions.

Concentrations of Credit Risk and other Risks and Uncertainties

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents, available-for-sale securities and accounts receivable. The Company’s cash and cash equivalents are deposited at high-credit-quality financial institutions. The Company’s deposit balances at these institutions routinely exceed federally insured limits. The Company has not experienced any credit losses relating to its cash and cash equivalents and does not believe there is exposure to any significant credit risk on such accounts. See the section below for further information on available-for-sale securities.

The majority of the Company’s accounts receivable is derived from governmental institutions and commercial customers primarily located in the U.S., U.K., Australia and Japan. At June 30, 2026, one customer represented 40% of total accounts receivable. At December 31, 2025, the same customer represented 78% of total accounts receivable. There have been no credit losses since the Company’s inception.

The following table presents customers that accounted for more than 10% of total revenue during the periods indicated:

A significant portion of the Company’s resources are engaged in supplying services and technological equipment to the U.S. and U.K. governments and can be subject to certain business risks unique to being a government contractor. Sales to government entities may be affected by changes in procurement policies, turnover of key personnel, budget considerations, political developments abroad and other factors. In addition, the Company is subject to periodic compliance audits by the U.S. and U.K. governments.

The Company is also subject to the risks inherent in any technological business model, including the development of competing products and technologies and the related risk of obsolescence. The Company’s current focus is on research and development of quantum technology. However, the quantum technology industry is still in its early stage and the Company may not be successful in all of its research and development.

Accounting Pronouncements Recently Issued or Adopted

In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses. This ASU requires additional disclosure of the nature of expenses included in the income statement. This ASU is effective for the Company for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with the option to apply the ASU retrospectively. Early adoption is permitted. The Company is currently evaluating the extent of the impact of this ASU on the disclosures in the Company’s consolidated financial statements.

In November 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software, which modernizes accounting for internal-use software development costs, aligning with evolving technology practices. This ASU is effective for the Company for annual periods beginning after December 15, 2027, and interim periods within those annual periods. Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued (or made available for issuance). If an entity early adopts in an interim reporting period, it must adopt as of the beginning of the annual reporting period that includes that interim reporting period. The Company is currently evaluating the extent of the impact of this ASU on the Company’s consolidated financial statements.

In December 2025, the FASB issued ASU 2025-10, Accounting for Government Grants Received by Business Entities, (“ASU 2025-10”) which establishes guidance on the recognition, measurement and presentation of a government grant received by a business entity. GAAP did not provide such guidance, and many business entities have been analogizing to International Accounting Standard (“IAS”) 20 or other guidance when accounting for government grants. The ASU incorporates elements of IAS 20 into GAAP, modifying certain aspects of that standard’s scope, recognition threshold and other implementation guidance. This ASU is effective for the Company for annual periods beginning after December 15, 2029, and interim periods within those annual periods. Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued (or made available for issuance). If an entity early adopts in an interim reporting period, it must adopt as of the beginning of the annual reporting period that includes that interim reporting period. The Company is currently evaluating the extent of the impact of this ASU on the Company’s consolidated financial statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”), which improves the guidance in Topic 270 by clarifying when the interim reporting guidance is applicable. The ASU establishes a disclosure principle that requires entities to disclose events and changes occurring since the end of the most recent annual reporting period that have a material impact on the entity. The amendments are intended to clarify existing interim reporting requirements and do not change the fundamental nature of interim reporting. This ASU is effective for the Company for interim reporting periods within fiscal years beginning after December 15, 2028. Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued (or made available for issuance). The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements.

In December 2025, the FASB issued ASU 2025-12, Codification Improvements (“ASU 2025-12”), which provides targeted technical corrections and clarifications to the Accounting Standard Codification. The ASU addresses narrow-scope issues across multiple accounting topics. Among other items, the amendments clarify certain aspects of diluted earnings per share calculations when a loss from continuing operations exists. The ASU is effective for the Company for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued (or made available for issuance). If an entity early adopts in an interim reporting period, it must adopt as of the beginning of the annual reporting period that includes that interim reporting period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

Restricted Cash

At June 30, 2026 and December 31, 2025, the Company’s restricted cash totaled $1.1 million and $0.2 million, respectively, related to cash deposits for an office building lease. The restricted cash is classified as other long-term assets on the Company’s condensed consolidated balance sheets; however, it is included in the reconciliation of cash, cash equivalents and restricted cash for purposes of the consolidated statements of cash flows.

Equity Securities Without Readily Determinable Fair Values

The Company accounts for equity investments in privately held companies over which it does not have control or significant influence as equity securities without readily determinable fair values. The Company elected the measurement alternative and measures such investments at cost, less impairment, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. Adjustments are recognized in other income (expense), net.

Revenue Recognition

The Company primarily generates revenue from customers under governmental contracts and commercial contracts. Governmental revenue includes revenue recognized primarily from contracts with the U.S., U.K. and Australian governments. Commercial revenue includes revenue recognized primarily from contracts with research institutes and private companies located predominantly in the U.S. and U.K. Refer to Note 2 – Revenue Recognition for the Company’s total revenue, as presented on the consolidated statement of operations and comprehensive loss, disaggregated by the geographic locations of the Company’s customers and the percentage of total revenue derived from governmental customers.

The Company’s government contracts are primarily related to research and development projects or the development of a product to agreed-upon specifications. Government contracts are typically either report-based research in which various activities are significantly integrated into the final report that is provided, or contracts are prototype- or product-based development in which the Company provides a significant service of integrating development activities throughout the term of the contract into the final prototype or product.

In certain instances, government contracts may contain multiple performance obligations where the Company delivers multiple final reports or multiple products across one or more phases in which the customer can benefit from the standalone good or service and each good or service is separately identifiable from other goods and services provided by the Company. Generally, the Company recognizes revenue over time as control of the goods or services is transferred to the customer. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided.

The Company generally uses an input method to measure progress toward completion for performance obligations satisfied over time, based on costs incurred relative to total estimated costs (cost-to-cost), as this method best depicts the transfer of control to the customer. The costs incurred are predominantly related to labor and materials, incurrence of which is indicative of progress and transfer of value to the customer. Under this method, revenue is recognized based on the proportion of costs incurred to date relative to total estimated costs, which includes an estimate of the total expected margin for fixed-price arrangements, where the transaction price is fixed. For contracts subject to the applicable loss provisions under U.S. GAAP, if the estimated total costs exceed the consideration the Company expects to receive, the Company recognizes the entire estimated loss in the period in which the loss becomes evident. Accounting for long-term contracts requires significant judgment and estimation, which could be considerably different if the underlying circumstances were to change. When adjustments to estimated contract revenue or costs are required, changes from prior estimates are recognized on a cumulative catch-up basis in the period of change.

The Company’s government contracts may include fixed and/or variable consideration. The resulting consideration is contracted either as a firm fixed price (which typically includes variable consideration contingent upon customer acceptance) or a cost-plus fixed fee arrangement (which includes fixed and variable consideration). Under a cost-plus fixed fee arrangement, the amount of variable consideration consists of direct and indirect costs plus a fixed fee.

The Company exercises judgment when estimating variable consideration to determine whether the most likely amount or expected value method should be used. Estimation of costs is based on historical knowledge and engineering expertise of tasks and components required to complete the project. A provisional rate, which is used as an initial estimate of indirect costs, is established through agreement with the government for all government contracts. Variable consideration is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur.

Contracts with commercial customers generally contain separate performance obligations, as each individual product can be transferred independently of each other to the customer. Revenues under commercial contracts are generally recognized at a point in time when the Company satisfies its performance obligations and control of the goods or services transfers to the customer. Control typically transfers to the customer when the goods are shipped but can also transfer when the customer receives and accepts the goods, based on the terms of the contract. The transaction price for revenues under commercial contracts is fixed and stated in the contract with the customer. There are no forms of variable consideration or discounts offered for early payment in commercial contracts. The Company’s commercial contracts typically include a standard one-year warranty period. These assurance-type warranties do not represent separate performance obligations because the warranties are only for the products to comply with agreed-upon specifications, and they do not provide the Company’s customers with any additional distinct services. The Company has elected the practical expedient, enabling it to recognize shipping and handling costs performed after a customer obtains control of the good as fulfillment of the original performance obligation, rather than as a separate performance obligation, and includes such costs as a component of the transaction price.

The Company also has commercial service contracts that are primarily related to quantum software research and development projects. These contracts typically have a single performance obligation. The Company recognizes revenue over time as control of the goods or services is transferred to the customer. In these instances, the contracts have provisions that are deemed to transfer control to the customer over time. Similar to government service contracts, the Company generally uses an input measure of progress for its contracts based on costs incurred.

The transaction price for both government and commercial contracts typically does not include a significant financing component. For all contracts with customers, the Company has elected to exclude sales taxes from the transaction price.

The Company’s contracts may be subsequently modified to include changes in specifications, requirements or price, which may create new or change existing enforceable rights and obligations. Depending on the nature of the modification, the Company considers whether to account for the modification as an adjustment to the existing contract or as a separate contract. Generally, modifications to the Company’s contracts are either separate contracts or are not distinct from the existing contract due to the significant integration and interrelated tasks provided in the context of the contract. Modifications to add non-distinct services are accounted for as if they were part of the existing contract and recognized as a cumulative adjustment to revenue.

The Company performs an allocation of the transaction price when there is more than one performance obligation included in the same contract and the performance obligations are satisfied at different times. Allocation of the total transaction price is determined based on the stand-alone selling price of each item relative to the total contract value. When stand-alone selling prices are not directly observable, the Company estimates stand-alone selling price using an expected cost-plus margin approach. The Company considers market conditions and historical data to estimate its costs plus a specified margin, which may be adjusted for differences in product, customers or other factors.

The timing of revenue recognition, billings and cash collection may result in contract assets, unbilled receivables or contract liabilities. Contract assets arise when revenue recognized exceeds the amount billed to customers and represent the Company’s right to consideration that is subject to conditions other than the passage of time. Unbilled receivables arise when revenue recognized exceeds the amount billed to customers and represent the Company’s unconditional right to consideration, for which only the passage of time is required. Contract liabilities arise when the Company receives consideration from customers in advance of providing goods or services and represent the Company’s obligations to satisfy performance obligations. Contract liabilities are recognized as revenue when (or as) the performance obligations are satisfied. Contract assets and unbilled receivables are generally classified as current assets, and contract liabilities are generally classified as current liabilities, in the consolidated balance sheets. Contract assets are presented within prepaid and other current assets in the consolidated balance sheets.

Stock-Based Compensation

The Company accounts for stock-based compensation in accordance with Accounting Standards Codification (“ASC”) 718, Compensation – Stock Compensation. The Company’s stock-based compensation awards are all equity-classified and consist of stock options, restricted stock awards (“RSA”), and restricted stock units ("RSU"). The Company has sufficient authorized but unissued common shares to satisfy all of the outstanding warrants and stock-based compensation awards. At the Closing, all shares of convertible redeemable preferred stock were automatically surrendered and exchanged for the right to receive shares of Common Stock; comparative periods reflect the historical capitalization structure. Stock-based compensation cost is measured based on the fair value of the awards as determined on the grant date. The Company recognizes stock-based compensation expense using the graded attribution method in which expense is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the stock option, RSA, or RSU as if the award was, in substance, multiple awards. The Company accounts for forfeitures as they occur.

The fair value of each stock option is determined on the date of grant using the Black-Scholes option-pricing model, which requires the use of accounting judgment and financial estimates, including estimates of the fair value of the underlying Legacy Infleqtion common stock and the fair value of the Company’s Common Stock (as further described below), the expected term, estimated volatility, risk-free interest rate and expected dividend yield. The fair value of RSAs and RSUs is determined based on the fair market value of the Company’s Common Stock on the grant date.

Prior to the Closing, Legacy Infleqtion’s common stock was not publicly traded and therefore quoted market prices were not available. Accordingly, fair market value was determined by the Company’s Board of Directors (the “Board”), through an independent third-party valuation using a probability weighted expected return method. The valuation considers several factors requiring extensive use of judgment, including recently completed equity transactions, historical and forecasted financial performance, selection of peer companies, the estimated value and probability of future equity transactions, including the likelihood of the consummation of the Business Combination, and other relevant qualitative and quantitative inputs. After the Closing, the quoted market price of the Company’s publicly traded common stock is used as the fair value of the Common Stock.

Fair Value Measurements

The carrying value of certain financial instruments held by the Company are measured at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines the fair value of its financial instruments based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. As a basis for considering such assumptions, the following hierarchy lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market:

•Level 1 – Observable inputs such as quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities;

•Level 2 – Observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or model-derived valuations whose significant inputs are observable; and

•Level 3 – Unobservable inputs that are significant to the measurement of fair value but are supported by little to no market data, requiring the Company to develop its own assumptions.

Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and consideration of factors specific to the asset or liability.

Changes in assumptions or in market conditions could significantly affect the estimates. The Company determines whether transfers have occurred between levels in the fair value hierarchy by reassessing the inputs used in determining fair value at the end of each reporting period.

The following tables set forth the fair value of financial instruments that were measured at fair value on a recurring basis (in thousands):

There was a transfer out of Level 3 of the fair value hierarchy during the six months ended June 30, 2026, as described below.

Prior to the Closing, the Company’s contingent obligation was classified within Level 3 of the fair value hierarchy and remeasured at fair value at each reporting date during 2025. The fair value measurement relied primarily on the estimated fair value of the Company’s stock, which was not publicly traded. Estimating the fair value of the Company’s Common Stock required management to assess the probability-weighted outcomes associated with remaining a private company and completing a Business Combination at each measurement date.

Subsequent to the Closing, the contingent obligation is classified within Level 1 of the fair value hierarchy based on the quoted market price of the Company’s Common Stock. Refer to Note 9 - Commitments and Contingenciesfor information regarding the nature and accounting of the contingent obligation.

The Company’s money market funds, presented within cash and cash equivalents on the condensed consolidated balance sheets, are classified within Level 1 of the fair value hierarchy as the fair value is based on quoted prices in active markets. The Company’s available-for-sale securities are classified within Level 1 and Level 2 of the fair value hierarchy. Level 1 fair values are based on quoted prices in active markets for identical assets, and Level 2 fair values are based on observable market inputs.

The Company’s financial assets and liabilities that are not measured at fair value on a recurring basis consist of cash and cash equivalents (excluding the short-term investments and money markets funds in the table above), accounts receivable, accounts payable, accrued liabilities and deferred consideration payable. The carrying amounts of these financial assets and liabilities approximate their fair value due to the short-term nature of these instruments.

The Company’s non-financial assets, which primarily consist of property and equipment, goodwill and intangible assets, are not required to be measured at fair value on a recurring basis and instead are reported at their cost basis. However, on a periodic basis whenever events or changes in circumstances indicate that their carrying amount may not be fully recoverable, non-financial assets are assessed for impairment. The fair value measurements, in such instances, are based on market participant assumptions which would fall within Level 3 of the fair value hierarchy.

Correction of Immaterial Errors

Subsequent to the original issuance of the Company's condensed and/or consolidated financial statements for the periods presented below, the Company identified a errors related to revenue recognition and GAAP accounting methodology for the provision of expected losses for a certain contracts. Management evaluated the error and the impact to previously issued financial statements based upon ASC 250, Accounting Changes and Error Corrections. Based on this evaluation, management has concluded that the adjustments and impact of these errors are not material to any previously issued financial statements.

To correct the immaterial errors, the Company elected to revise the condensed and/or consolidated financial statements for the periods presented below which are expected to be included in subsequent filings. Included below is a summary of the previously reported amounts, the impact of these adjustments and the as-adjusted amounts for each of the impacted periods.

2. Revenue Recognition

The Company recognizes revenue at a point in time or over time consistent with how it satisfies its performance obligations and transfers control to its customers.

Disaggregated Revenue

The table below presents revenue from government customers as a percentage of total revenue for the periods indicated:

The Company’s revenues disaggregated by customer location is as follows (in thousands):

The following table depicts the disaggregation of revenue by timing of transfer of products or services (in thousands):

A receivable is recorded when the Company has an unconditional right to receive payment based on the satisfaction of performance obligations. Amounts for which the Company’s right to consideration is conditional upon factors other than the passage of time are recorded as contract assets. The balance of accounts receivable was $5.4 million and $9.5 million as of June 30, 2026 and December 31, 2025, respectively, as shown on the condensed consolidated balance sheets.

A reconciliation of the beginning and ending balances of contract assets, unbilled receivables and contract liabilities for the period is shown in the table below (in thousands):

The Company expects to recognize revenue of $8.9 million, $12.5 million,$0.2 million, and$0.9 million from remaining performance obligations that are unsatisfied (or partially unsatisfied) for non-cancelable contracts in the six months ended

December 31, 2026, and the years ended December 31, 2027, December 31, 2028, and thereafter, respectively. The increase in contract assets, unbilled receivables and contract liabilities from the year ended December 31, 2025 to the period ended June 30, 2026 were primarily driven by the timing of revenue recognition, customer billings and advance payments associated with the increased revenue activity during the year.

3. Business Combination

On February 13, 2026, CCX consummated the Business Combination with Legacy Infleqtion pursuant to the Merger Agreement dated September 8, 2025. At the Closing of the Business Combination, each issued and outstanding share of Legacy Infleqtion common stock, preferred stock and restricted stock was automatically surrendered and exchanged for the right to receive shares of CCX common stock, par value $0.0001 per share, based on the Exchange Ratio, representing the Company’s Common Stock after the Closing. Immediately following the Business Combination, there were 216,471,927 shares of the Company’s Common Stock and 10,424,967 warrants outstanding.

Substantially concurrently with the Closing, pursuant to the subscription agreements entered into on September 8, 2025, by and among CCX and certain investors (collectively, the “PIPE Investors”), the Company issued and sold to the PIPE Investors an aggregate of 12,654,760 shares of the Company’s Common Stock for an aggregate purchase price of $126.5 million.

The following table summarizes the proceeds from the Business Combination for the six months ended June 30, 2026 (in thousands):

The number of shares of Common Stock issued immediately following the consummation of the Business Combination:

Transaction Costs

Transaction costs consisted of direct legal, consulting, audit-related and other professional fees related to the consummation of the Business Combination. Upon the Closing, total transaction costs directly related to the issuance of shares of Common Stock totaling $9.3 million were recognized as a reduction of additional paid-in capital. Certain other costs associated with the Business Combination of $11.5 million did not qualify for capitalization and were expensed as selling, general and administrative expenses in the condensed consolidated statement of operations and comprehensive loss during the six months ended June 30, 2026.

4. Investments

Available-for-sale Securities

The following table summarizes the unrealized positions of the Company’s available-for-sale securities disaggregated by class of instrument as of June 30, 2026 and December 31, 2025 (in thousands):

The following table provides the amortized cost and fair value of the Company’s available-for-sale securities by contractual maturity as of June 30, 2026 and December 31, 2025 (in thousands):

Accrued interest receivable on available-for-sale debt securities is included in both amortized cost in the tables above and the available-for-sale securities balance presented on the condensed consolidated balance sheets. There wereno realized gains or losses on available-for-sale securities during the three and six months ended June 30, 2026 and 2025.

For marketable securities classified as available-for-sale that are in an unrealized loss position as of the balance sheet date, the Company assesses whether or not it intends to sell the security, or more-likely-than-not will be required to sell the security, before recovery of its amortized cost basis which would require a write-down to fair value through net loss. As of June 30, 2026 certain available-for-sale securities were in an unrealized loss position. The Company has evaluated these securities and determined that the unrealized losses are primarily attributable to changes in interest rates and other market factors rather than credit-related factors. The Company does not intend to sell these securities before recovery of their amortized cost basis. As of December 31, 2025, there wereno available-for-sale debt securities in a loss position. An allowance for credit losses was not deemed necessary related to available-for-sale securities as of June 30, 2026 and December 31, 2025.

Refer to Note 1 - Summary of Operations and Significant Accounting Policies for the Company’s valuation techniques and fair value hierarchy disclosures.

Non-marketable Equity Securities

In May 2026, the Company purchased 78,532 shares of Series A-2 Preferred Stock of a privately held company for aggregate cash consideration of$3.0 million. The investment is carried at cost and included in prepaid expenses and other assets on the condensed consolidated balance sheets.

As of June 30, 2026, the carrying amount of the investment was$3.0 million. From acquisition through June 30, 2026, the Company recorded no impairment charges or observable price adjustments related to the investment.

5. Inventories

Major classifications of inventories are as follows (in thousands):

6. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):

7. Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

For the three months ended June 30, 2026 and 2025, depreciation and amortization expenses were $1.0 million and $0.9 million, respectively. For the six months ended June 30, 2026 and 2025, depreciation and amortization expenses were $1.9 million and $1.6 million, respectively.

8. Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

During the three months ended June 30, 2026, certain employees and former employees exercised vested stock options. In connection with these exercises, the Company collected approximately $27.4 million from the option holders to satisfy applicable federal and state income and employment tax withholding obligations and expected to collect an additional $3.5 million of related cash receivables within prepaid expense and other current assets on the condensed consolidated balance sheet. As of June 30, 2026, approximately $30.9 million of these amounts had not yet been remitted to the applicable taxing authorities and was recorded within accrued liabilities on the condensed consolidated balance sheet.

Additionally, as of June 30, 2026 and December 31, 2025, the Company recorded a contract loss provision of $0.1 million and $0.3 million, respectively, related to estimated future costs associated with a loss contract. The provision was recorded within accrued liabilities on the condensed consolidated balance sheet.

9. Commitments and Contingencies

Contingent Obligations

On January 25, 2024, the Company acquired 100% of the equity of Morton (the “Morton Acquisition”). Morton specialized in the development and manufacturing of advanced silicon photonics-based component and sub-system technologies. The acquisition date fair value purchase consideration of $3.9 million consisted of $2.6 million of cash, $0.4 million of common stock, $0.4 million of contingent consideration and $0.5 million of other payments and adjustments.

In May 2025, the Company amended the equity purchase agreement related to the Morton Acquisition. The amendment added new milestones that, if achieved, require the Company to make the remaining contingent cash payments of approximately $0.2 million and result in the vesting of the remaining 569,444 outstanding shares of restricted common stock.

The contingent obligation is classified as a liability and was initially measured at fair value based on an assessment of the likelihood that the related milestones would be achieved. The contingent obligation is subsequently remeasured at fair value each reporting period, with changes recognized in earnings. Refer to Note 1 - Summary of Operations and Significant Accounting Policies for information regarding the valuation methodology and inputs used in measuring the contingent obligation. In the fourth quarter of 2025, certain milestones were achieved, and the Company settled $2.3 million of the contingent obligation, consisting of $0.1 million in cash payments and the vesting of 329,678 shares of restricted common stock with an estimated fair value of $2.2 million. During the three months ended June 30, 2026 and 2025, the Company recognized $0.8 million and $2.0 million, respectively, of selling, general and administrative expenses related to the contingent obligation. During the six months ended June 30, 2026 and 2025, the Company recognized $1.5 million and $2.0 million of such expenses, respectively. These amounts were based upon changes in the fair value of the unvested shares of Common Stock during the applicable periods. The remaining balance of the contingent obligation included in accrued liabilities on the condensed consolidated balance sheet was $3.3 million as of June 30, 2026.

In January 2024, the Company completed the SiNoptiq, Inc. asset acquisition. The asset acquisition provides for contingent payments to the sellers of up to $1.5 million in cash and 512,092 restricted shares of Series B convertible redeemable preferred stock for achieving certain sales- and development-based milestones. The rights to these contingent payments expire on January 26, 2028. At the acquisition date, the Company assessed the likelihood that the contingencies would be met and concluded that achievement of the contingencies was not probable. The Company does not expect this assessment to change. Additional information regarding the SiNoptiq, Inc. asset acquisition and related contingent consideration is provided in Note 6 - Prepaid Expenses and Other Current Assets of the Company’s consolidated financial statements for the year ended December 31, 2025, included in the Current Report on Form 8-K/A filed with the SEC on March 31, 2026.

Indemnification

In the ordinary course of business, the Company enters into contractual arrangements under which it may agree to indemnify counterparties for any losses incurred resulting from breaches of representations, failures to perform or claims and losses arising from certain events specified in the applicable contract. The Company has also entered into indemnification agreements with certain of its officers and directors.

The Company’s maximum exposure under such indemnities is unknown and has not been estimated, as this would involve future claims that may be made against the Company that have not occurred. To date, the Company has not made any payments related to these indemnities and believes the risk of material obligations under these indemnities to be remote. Accordingly, the Company has not accrued any liabilities related to such indemnification obligations in the condensed consolidated financial statements.

Legal Matters

From time to time, the Company may become involved in certain legal proceedings and claims incidental to the normal course of its business. As of June 30, 2026 and December 31, 2025, management is not aware of any pending or threatened litigation that could have a material impact on the condensed consolidated financial statements.

Potential IRS Interest and Penalties

The Company is evaluating potential interest and penalties related to the timing of an Internal Revenue Service payment associated with employee stock option exercises. The Company is unable to reasonably estimate the amount or range of potential loss as of June 30, 2026. No liability has been recorded for any potential penalties and interest.

Exclusive License Agreement with University of Wisconsin

In October 2019, the Company entered into an exclusive license agreement with the Wisconsin Alumni Research Foundation (“WARF”) (the “WARF License Agreement”). Under the WARF License Agreement, the Company is granted an exclusive (subject to standard carve-outs), worldwide, sub-licensable license, in all fields, to make, have made, use, have used, offer for sale, sell, have sold and import products and services that would be covered by the patents listed in the WARF License Agreement. The WARF License Agreement provides the Company with exclusive rights to the listed patents, subject to certain WARF reservations.

In consideration for the rights granted under the WARF License Agreement, the Company paid a $50 thousand upfront license fee. The Company is also obligated to pay earned royalties on net sales of products, including pass-through sales-based royalties on sublicensee sales, a sublicense consideration percentage for sublicenses executed on or before December 31, 2022, and annual minimum royalties per calendar year. These minimum royalties were first due in the Company’s fiscal year 2026 and are creditable against that year’s earned royalties. The Company paidno minimum royalties during the three months ended June 30, 2026 and paid $25 thousand during the six months ended June 30, 2026.

Exclusive License Agreement with University of Colorado

In June 2021, the Company entered into an exclusive license agreement with the Regents of the University of Colorado (the “Exclusive CU License Agreement”). Under the Exclusive CU License Agreement, the Company is granted an exclusive (subject to standard carve-outs), worldwide, sub-licensable license, in all fields, to make, have made, use, have used, offer for sale, sell, have sold and import products and services that would be covered by the patents listed in the Exclusive CU License Agreement.

The Exclusive CU License Agreement provides the Company with exclusive rights to the listed patent portfolio in all fields, subject to (a) reserved rights for CU and other non-profit employers of the inventors and authors of the licensed patents and software and other research institutions to use the inventions for research, education, clinical and non-commercial purposes and (b) U.S. Government rights in federally funded intellectual property under the Bayh-Dole Act and other regulations.

In consideration for the rights granted under the Exclusive CU License Agreement, the Company paid a $0.1 million license fee, and will pay annual license maintenance fees (creditable against royalties), a royalty on net sales of non-software products in the low single digits, with royalties on sales to the government fluctuating by a single-digit percentage, depending on volume, a royalty on net sales of licensed software products in the mid-single digits and a sublicense revenue percentage share in the low double digits for sublicenses (with higher rates for sublicenses executed in the first or second year).

Non-Exclusive License Agreement with the University of Colorado

In February 2012, the Company entered into a non-exclusive license agreement with the Regents of the University of Colorado (the “Non-Exclusive CU License Agreement”), as amended. Under the Non-Exclusive CU License Agreement, the Company is granted a non-exclusive, worldwide license, in all fields to make, use, sell, offer for sale, lease and import products and processes that would infringe certain licensed patents co-owned with, or solely owned by, SRI International, Inc. listed in the Non-Exclusive CU License Agreement. The Non-Exclusive CU License Agreement also grants the Company a license to CU’s know how related to such patents. The license grant in the preceding sentence is exclusive as to CU’s interests in the patents listed in the Non-Exclusive CU License Agreement. The Non-Exclusive CU License Agreement is predicated on an inter-institutional agreement, pursuant to which the CU obtained the right to grant us the licenses under the Non-Exclusive CU License Agreement from SRI International, Inc.

The Non-Exclusive CU License Agreement provides the Company rights to the listed patent portfolio subject to reserved rights for CU to the Company’s own research and education, SRI International’s rights to the patents and U.S. Government rights under the Bayh-Dole Act and other regulations. In consideration for the rights granted under the Non-Exclusive CU License Agreement, the Company will pay a royalty on net sales.

10. Convertible Redeemable Preferred Stock

Prior to the Closing, Legacy Infleqtion had 383,532,609 shares of convertible redeemable preferred stock outstanding, each convertible into shares of Legacy Infleqtion’s common stock on aone to one basis at the option of the holder, at any time and without the payment of additional consideration. Upon the Closing, all outstanding shares of preferred stock were automatically surrendered and exchanged for the right to receive 133,240,425 shares of the Company’s Common Stock based on the Exchange Ratio. As of June 30, 2026, no shares of convertible redeemable preferred stock were outstanding.

The following table summarizes the exchange of Legacy Infleqtion’s convertible redeemable preferred stock upon the Closing:

11. Stockholders’ Equity

On February 17, 2026, the Company’s Common Stock and Public Warrants began trading on the NYSE. Pursuant to the terms of the Company’s amended and restated certificate of incorporation, the Company is authorized to issue

1,400,000,000 of common stock, par value $0.0001 per share (“Common Stock”), and 100,000,000 shares of preferred stock, par value of $0.0001 per share.

Common Stock

Holders of Common Stock are entitled to one vote for each share of Common Stock held at all meetings of stockholders. The number of authorized shares of Common Stock may be increased or decreased by the affirmative vote of the majority of holders of outstanding shares of the Company’s capital stock.

Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of Common Stock are entitled to receive dividends, if any, as may be declared from time to time by the Board, out of legally available funds. Common Stock is not entitled to preemptive, conversion or subscription rights, and is not subject to redemption or sinking fund provisions. Each holder is entitled to one vote per share on any matter that is submitted to a vote of the Company’s stockholders, including the election of directors, and does not have cumulative voting rights in the election of directors. If the Company becomes subject to a liquidation, dissolution or winding-up, the net assets legally available for distribution to stockholders would be distributable ratably among the holders of Common Stock.

As of June 30, 2026 the Company had 224,681,185 shares of Common Stock issued and outstanding.

Preferred Stock

As of June 30, 2026 there wereno shares of preferred stock issued or outstanding. The voting, dividend and liquidation rights of the holders of the Common Stock are subject to and qualified by the rights of the holders of the preferred stock of any series as may be designated by the Board upon any issuance of preferred stock of any series.

Warrants

As of June 30, 2026, the Company had 10,412,167 warrants outstanding. As part of its initial public offering (“IPO”), CCX issued 41,400,000 units, each of which consisted of one Class A Ordinary Share of CCX, par value $0.0001 per share (“Class A Ordinary Shares”), and one-quarter of one redeemable warrant (the “Public Warrants”). Simultaneously with the closing of the IPO, CCX completed the sale of 300,000 private units, each of which consisted of one Class A Ordinary Share and one-quarter of one warrant. At Closing, all of the units previously issued separated into their component parts of one Class A Ordinary Share and one-quarter of one whole warrant. Immediately thereafter, a mandatory exchange of the Class A Ordinary Shares for shares of Common Stock was effected, on a one-for-one basis and each then-issued and outstanding warrant to acquire Class A Ordinary Shares converted automatically into a warrant to acquire a corresponding number of shares of Common Stock, on a one-for-one basis. On February 13, 2026, the units, the Class A Ordinary Shares and the Public Warrants ceased trading on The Nasdaq Capital Market, and subsequently, following the Closing of the Business Combination, the Company’s Common Stock and Public Warrants began trading on the NYSE.

Each whole warrant entitles the holder to purchase one share of the Company’s Common Stock at an exercise price of $11.50 per share, subject to adjustment. The warrants became exercisable beginning 30 days after the consummation of the Company’s Business Combination. The Public Warrants will expire February 13, 2031, or earlier upon redemption or liquidation, while the private placement warrants do not expire except upon liquidation.

The Company may redeem the Public Warrants for $0.01 per warrant, at its option, at any time during the period in which the Public Warrants are exercisable, if the reported last sale price of the Company’s Common Stock equals or exceeds $18.00 per share for the specified trading period and other conditions are met. During the six months ended June 30, 2026, holders exercised 12,800 Public Warrants, resulting in the issuance of 1,825 shares of common stock and a corresponding increase in additional paid-in capital.

Founder Shares

At the Closing, the Company had 10,350,000 shares of common stock (the “Founder Shares”) originally issued to Churchill Sponsor X, LLC (the “Sponsor”) outstanding, all of which were entitled to vote. In addition,300,000 private placement units were issued to the Sponsor as part of a private placement. Pursuant to an agreement with the Sponsor,1,500,000 of the Founder Shares became subject to earnout provisions and were unvested as of the Closing. The unvested Founder Shares will vest only if, within five years after closing, either (i) the volume weighted average price of the

Common Stock equals or exceeds $12.00 per share for any 15 trading days within any 180 consecutive trading day period or (ii) a change of control occurs in which the per-share price received or implied is at least $12.00.

In April 2026, the market-based vesting condition associated with 1,500,000 unvested Founder Shares was satisfied, as the volume weighted average price of the Company’s Common Stock met or exceeded$12.00 pershare for the requisite trading period. Accordingly, these Founder Shares vested in full.

12. Stock-Based Compensation

Stock Incentive Plan

Prior to the Closing, Legacy Infleqtion maintained its 2017 Stock Incentive Plan (the “2017 Plan”), under which it granted stock options and restricted stock awards to purchase or directly issue shares of common stock to employees, officers, directors, consultants and advisors. Upon the Closing, outstanding awards under the 2017 Plan were assumed by the Company and converted into awards exercisable for shares of the Company’s Common Stock using the Exchange Ratio. Prior to the Closing 53,165,588 shares of common stock were reserved for issuance under the 2017 Plan. No new awards may be granted under the 2017 Plan following the Closing.

On February 12, 2026, the Company’s stockholders approved the Infleqtion, Inc. 2026 Equity Incentive Plan (the “2026 Plan”), which was ratified by the Board on February 13, 2026. The 2026 Plan permits the granting of stock options, restricted stock awards and other equity-based awards to employees, directors, and consultants. As of June 30, 2026,33,419,882 shares of common stock were reserved for issuance under the 2026 Plan.

Stock Options

The following table summarizes the Company’s stock option activity (in thousands, except share and per share amounts):

The Company has elected to account for forfeitures as they occur. Accordingly, the total number of options, weighted average exercise price, weighted average remaining contractual life, and aggregate intrinsic value of options vested and expected to vest were the same as those of the options outstanding as of June 30, 2026. The aggregate intrinsic value in the table above represents the difference between the exercise price of the underlying stock options and the fair value of the Company’s Common Stock for the respective date. The total intrinsic value of options exercised during the six months ended June 30, 2026 was $124.5 million. The total grant date fair value of options vested during the six months ended June 30, 2026 was $6.3 million.

Restricted Stock

During the six months ended June 30, 2026, certain restricted shares issued in connection with the Morton Acquisition vested upon the achievement of specified contingent payment milestones. See Note 9 - Commitments and Contingenciesfor additional information regarding the contingent payment arrangement.

The table below presents the activity of the RSAs:

During thesix months ended June 30, 2026, the Company issued RSUs to certain employees and non-employees that have service-based vesting conditions.

The table below presents the activity of the RSUs:

Compensation Cost

Total stock-based compensation expense is included within the condensed consolidated statement of operations and comprehensive loss as follows (in thousands):

Unvested Stock Options and Restricted Stock

As of June 30, 2026, unrecognized stock-based compensation expense related to unvested stock option awards was $40.1 million, which the Company expects to recognize over a weighted-average period of 1.8 years. Unrecognized stock-based compensation expense related to unvested RSUs was $7.6 million as of June 30, 2026 and is expected to be recognized over a weighted average period of 1.7 years. Unrecognized stock-based compensation expense related to unvested RSAs as of June 30, 2026 wasnil. The remaining unvested restricted awards relate to the Morton Acquisition and are not recognized as compensation expense. See Note 9 - Commitments and Contingencies for additional information regarding the contingent obligation.

13. Income Taxes

The Company recordedno income tax provision for the three and six months ended June 30, 2026 and 2025, because of anticipated losses for the fiscal year 2026 and actual losses incurred in 2025.

The Company estimates its annual effective income tax rate in recording its quarterly provision for income taxes in the various jurisdictions in which it operates. The Company recordedno income tax expense for the three and six months ended June 30, 2026, because the Company expects to incur a tax loss in the current year. Similarly, no income tax expense was recognized for the year ended December 31, 2025.

The Company had a deferred tax asset of $57.4 million and $46.2 million at June 30, 2026 and December 31, 2025, respectively. Realization of the deferred tax asset is dependent, in part, on generating sufficient taxable income. The Company has recorded a 100% valuation allowance against the deferred tax asset because it is not more likely than not that the benefits of these deferred tax assets will be realizable.

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (“OBBBA”) into law. This act makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. According to ASC 740, Income Taxes, the effects of changes in tax rates and laws on deferred tax balances must be recognized in the period in which the legislation is enacted. The Company has evaluated the provisions of the Act and determined that it did not have a material impact on the Company’s condensed consolidated financial statements through June 30, 2026, nor does the Company currently anticipate that the OBBBA will have a material impact on its consolidated financial statements in the future.

Authoritative guidance for uncertainty in income taxes requires that the Company recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an examination. The Company has reviewed its tax positions and determined there were no uncertain tax positions requiring recognition in the consolidated financial statements.

The Company has not recorded any interest or penalties associated with unrecognized tax benefits for the three and six months ended June 30, 2026 and June 30, 2025.

14. Leases

The following table presents the Company’s operating lease expense and supplemental cash flow information for the periods presented (in thousands):

The weighted-average remaining lease term and weighted-average discount rate for operating leases were as follows:

Undiscounted future minimum lease payments as of June 30, 2026 were as follows (in thousands):

Undiscounted future minimum lease payments presented above are net of a $6.3 million tenant improvement allowance associated with the Louisville lease amendment described below, which is including amounts expected to be received from the landlord from 2026 through 2029.

Lease Amendments

Louisville

In April 2026, the Company executed an amendment to its operating lease for its Louisville, Colorado facility. The amendment increases the leased premises by approximately 68,000 square feet and extends the lease expiration date from March 31, 2030 to August 31, 2037.

Incremental lease payments associated with the amendment total approximately $25.1 million over the extended term. These total lease payments are offset by $6.3 million in lessor reimbursed tenant leasehold improvement costs. This increases the total right of use asset and lease liability balances associated with the Louisville lease to $9.4 million and $10.1 million, respectively, based on an incremental borrowing rate of 7.96%. The Company has elected the practical expedient to not separate lease and non-lease components.

This agreement does not contain an implicit rate. As such, the discount rate used to calculate the lease liability was based on the Company's incremental borrowing rate, which was estimated utilizing the Company's current synthetic credit borrowing rate and adjusted for the lease term.

At the Company's option, the terms of this lease can be renewed fortwo-five year periods. These optional renewal periods have not been included in the lease term.

The remeasurement of the right of use asset and lease liability due to this amendment resulted in a non-cash adjustment to operating lease right-of-use (“ROU”)assets and operating lease liabilities of $8.2 million and $8.4 million, respectively. This remeasurement includes a$0.2 million reduction to the ROU assets due to a lease incentive in the form Furniture, Fixtures, and Equipment ("FF&E") acquired through the amendment.

Oxford

In June 2026, the Company executed an amendment to its operating lease for its Oxford, U.K. facility. The amendment increases the leased premises by approximately 44,000 square feet and extends the lease expiration date from October 6, 2034 to June 9, 2036.

Incremental lease payments associated with the amendment total approximately$6.2 million over the extended term. This increases the total right of use asset and lease liability balances associated with the Oxford lease to$4.0 million and$3.9 million, respectively, based on an incremental borrowing rate of 9.75%. The Company has elected the practical expedient to not separate lease and non-lease components.

This agreement does not contain an implicit rate. As such, the discount rate used to calculate the lease liability was based on the Company's incremental borrowing rate, which was estimated utilizing the Company's current synthetic credit borrowing rate and adjusted for lease term.

This agreement does not contain the option to renew or extend the lease term.

The remeasurement of the right of use asset and lease liability due to this amendment resulted in a non-cash adjustment to operating lease ROU assets and operating lease liabilities of $1.4 million and $1.4 million, respectively.

Melbourne

In May 2025, the Company executed an agreement to lease office space in Melbourne for its Australian operations. The agreement is for approximately 1,900 square feet and expires on March 30, 2028.

Incremental lease payments associated with the agreement total approximately$0.2 million over the extended term. The Company recorded right of use asset and lease liability balances associated with the Australia lease of$0.3 million and$0.3 million, respectively, based on an incremental borrowing rate of 7.06%.

This agreement does not contain an implicit rate. As such, the discount rate used to calculate the lease liability was based on the Company's incremental borrowing rate, which was estimated utilizing the Company's current synthetic credit borrowing rate and adjusted for lease term.

The recognition of the right of use asset and lease liability due to this agreement resulted in a non-cash adjustment to operating lease ROU assets and operating lease liabilities of $0.3 million and $0.3 million, respectively, as of June 30, 2025.

Chicago

In May 2026, the Company entered into an operating lease agreement for office space in Chicago, Illinois. The leased premises comprise approximately 7,900 square feet. The lease term commences on July 1, 2026 and expires on March 31, 2034. Minimum lease payments under the agreement total approximately $1.8 million over the term.

Because the lease had not commenced as of June 30, 2026, the Company did not recognize arelated right-of-use asset or lease liability in the accompanying condensed consolidated financial statements.

15. Related Party Transactions

Transactions with Universities

University of Colorado Boulder

The Company considers the University of Colorado Boulder to be a related party because the Company’s Co-Founder and Chief Science Officer concurrently serves as a professor at the University of Colorado Boulder. The Company sponsors research projects and utilizes laboratory equipment at the University of Colorado Boulder.

The Company recognized cost of services of $1 thousand and $16 thousand during the three months ended June 30, 2026 and 2025, respectively, and cost of services of $5 thousand and $34 thousand during the six months ended June 30, 2026 and 2025, respectively. These expenses relate to the use of laboratory equipment. The Company recognizedno service revenue from the University of Colorado Boulder during any of the periods presented.

There wereno accounts receivable outstanding as of June 30, 2026 and December 31, 2025. Accrued liabilities were $1 thousand as of June 30, 2026, and there wereno accrued liabilities outstanding as of December 31, 2025.

University of Wisconsin-Madison

The Company’s Chief Scientist for Quantum Information concurrently serves as a professor at the University of Wisconsin-Madison. In his role as a researcher and professor at the university, he has been granted patents held by WARF. Additionally, in June 2016, the Company entered into a research agreement with the Board of Regents of the University of Wisconsin System on behalf of the University of Wisconsin-Madison to provide research, data and findings in accordance with the terms of the contract and subsequent amendments. The Company recorded $0.1 million and $0.1 million of research and development expenses in each of the three months ended June 30, 2026 and 2025, respectively, and $0.2 million and $0.3 million during the six months ended June 30, 2026 and 2025, respectively. Total accrued liabilities of $0.1 million and $0.3 million were outstanding as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026, the Company had incurred $4.9 million of its total $5.1 million committed funding.

Other Transactions

The Company entered into a consulting agreement with the spouse of a member of the Company’s management to provide consulting services on various research and development and customer contracts. The Company paid $20 thousand and $40 thousand for the three and six months ended June 30, 2025, respectively. No such expenses were incurred for the three and six months ended June 30, 2026, as the consultant was subsequently hired by the Company as Senior Vice President/General Manager, Quantum Sensing Solutions. There wereno accounts payable outstanding as of June 30, 2026 and December 31, 2025.

The Company occasionally enters into consulting agreements with members of the Company’s Board of Directors and/or investors in the Company to serve in executive roles based on the business needs. In 2025, the Company entered into a consulting agreement with Grant Dollens, a member of Legacy Infleqtion’s Board of Directors and the former Interim Chief Financial Officer of Infleqtion. Under the terms of the agreement, Mr. Dollens provided financial and accounting services to the Company and received compensation at a rate of $15 thousand per month. The consulting agreement with Mr. Dollens ended in the fourth quarter of 2025 upon the Company hiring its current Chief Financial Officer.

In 2026, in connection with the termination of the consulting agreement, the Company entered into a release agreement with Mr. Dollens and paid him a one-time cash payment of $0.8 million in exchange for a limited release of certain claims related to compensation under the consulting agreement.

Including the payment under the release agreement, the Company paid Mr. Dollens $0.8 million and $0.1 million for the three months ended June 30, 2026 and 2025, respectively, and $0.8 million and $0.1 million during the six months ended June 30, 2026 and 2025, respectively. No amounts were payable to Mr. Dollens as of June 30, 2026. Total accounts payable of $36 thousand were outstanding as of December 31, 2025.

During 2025, the Company engaged DRS Daylight Solutions, Inc. (“DRS Daylight”) to provide engineering and programming services to the Company. At that time, Mr. Day was a member of Legacy Infleqtion’s Board of Directors and served as an executive of DRS Daylight. Mr. Day subsequently departed DRS Daylight and joined Monarch Quantum, a company controlled by Mr. Day, and the Company transitioned the services agreement to Monarch Quantum. Mr. Day resigned from the Board in the fourth quarter of 2025.

Under the terms of these arrangements, Monarch Quantum provided engineering and programming services to the Company. The Company incurred expenses of $2.4 million and $0 during the three months ended June 30, 2026 and 2025, respectively, and $3.2 million and $0 during the six months ended June 30, 2026 and 2025, respectively. Total accounts payable and accrued liabilities of $0.7 million and $1.8 million were outstanding as of June 30, 2026 and December 31, 2025, respectively.

In December 2025, Eric Bjornholt was appointed to the Company’s Board of Directors. Mr. Bjornholt serves as the Chief Financial Officer of Microchip Technology Inc. During the year ended December 31, 2025, the Company purchased laboratory equipment from Microchip Technology Inc. The Company incurredno expenses related to Microchip Technology Inc. for the three and six months ended June 30, 2026 and 2025, respectively. There wereno accounts payable as of June 30, 2026, compared to $64 thousand as of December 31, 2025, respectively.

16. Loss Per Share

Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding for the period. The following table sets forth the computation of basic net loss per share attributable to common stockholders (in thousands, except share and per share amounts):

Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding in the basic net loss per share calculation plus the number of potential shares of common stock that would be issued assuming exercise or conversion of all potentially dilutive securities. For the three and six months ended June 30, 2026 and 2025, diluted net loss per share is the same as basic net loss per share as the inclusion of potentially dilutive shares would have been anti-dilutive.

The following table summarizes the outstanding shares of potentially dilutive securities that were excluded from the computation of diluted net loss per share attributable to common stockholders, as their effect would be anti-dilutive:

The restricted stock awards, while legally outstanding, are not considered participating securities as any rights to dividends during the vesting period are forfeitable. The warrants are also not participating securities, as holders do not have rights to receive dividends or dividend equivalents unless and until the warrants are exercised.

17. Segment Information

The Company derives revenues from customers by providing quantum computing solutions to its government and commercial customers from multiple locations throughout the world, but manages the business activities on a consolidated basis. The Company’s Chief Executive Officer is the chief operating decision maker (“CODM”). Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by CODM.

The CODM reviews financial information on a consolidated basis for the purposes of making operating decisions, allocating resources and evaluating financial performance. Accordingly, the Company determined that it operates in a single operating and reportable segment.

The measure used by the CODM to assess performance and make operating decisions is net income or loss as reported on the condensed consolidated statements of operations and comprehensive loss. The Company’s condensed consolidated net income or loss is used by the CODM to identify underlying trends in the performance of the business and compare the Company’s financial performance against competitors.

Significant expense categories reviewed by the CODM include cost of revenue, research and development and selling, general and administrative expenses. Other segment items consist of the remaining income and expense items presented in the condensed consolidated statement of operations and comprehensive loss. Total assets reviewed by the CODM are those presented on the condensed consolidated balance sheets and purchases of property and equipment reviewed by the CODM are those reported on the condensed consolidated statements of cash flows.

Refer to Note 1 - Summary of Operations and Significant Accounting Policies for information regarding significant customer concentrations and Note 2 - Revenue Recognitionfor revenue by geographic area.

18. Subsequent Events

The Company has evaluated subsequent events through the date the condensed consolidated financial statements were issued for disclosure or recognition within these financial statements and no items requiring disclosures were identified.