Looking towards 6G wireless systems, frequency bands like the sub-terahertz (sub-THz) band (100 GHz - 300 GHz) are gaining traction for their promises of large available swaths of bandwidth to support the ever-growing data demands. However, challenges with harsh channel conditions and hardware nonlinearities in the sub-THz band require robust communication techniques with favorable properties, such as good spectral efficiency and low peak-to-average power ratio (PAPR). Recently, OTFS and its variants have garnered significant attention for their performance in severe conditions (like high delay and Doppler), making it a promising candidate for future communications. In this work, we implement Zak-OTFS for the over-the-air experiments with traditional point pilots and the new spread pilots. Notably, we design our spread-pilot waveforms with communications and sensing coexisting in the same radio resources. We define the system model and the signal design for integration onto our state-of-the-art sub-THz wireless testbed. We show successful data transmission over-the-air at 140 GHz and 240 GHz in a variety of signal-to-noise ratio (SNR) conditions. In addition, we demonstrate integrated sensing and communications (ISAC) capabilities and show PAPR improvement of over 5 dB with spread pilots compared to point pilots.