06:20 AM EDT, 10/14/2024 (MT Newswires) -- Zapata Computing Holdings ( ZPTA ) said late Friday in a Form 8-K filing with the US Securities and Exchange Commission that its board has approved the cessation of the company's operations due to insolvency.

A recent drop in share price triggered a $2.5 million cash obligation for Zapata pursuant to an equity purchase deal with Sandia Investment Management, according to the filing.

Current and expected future financial obligations are currently greater than the fair market value of the company's assets, and the company will not likely be able to satisfy all of its obligations, it said.

Zapata said it does not expect to start bankruptcy proceedings or to seek shareholder approval for the cessation of its business.

In connection with the decision, the company said it has terminated nearly all of its employees, but retained a small number of staff, including CFO Sumit Kapur, to facilitate the termination of business activities.

Kapur will also serve as CEO succeeding Christopher Savoie, who already resigned as of Oct. 7.

Meanwhile, chief technology officer Yudong Cao will transition to a part-time role after Oct. 16.

Price: 0.0770, Change: -0.18, Percent Change: -70.50