Alpha Modus Holdings, Inc., formerly known as Insight Acquisition Corp., reported significant financial developments following its business combination with Alpha Modus, Corp. on December 13, 2024. The company recorded a net income of $4.1 million for the year ended December 31, 2024, a notable turnaround from a net loss of $501,295 in the previous year. This shift was primarily attributed to a gain of $18.7 million from changes in the fair value of earnout shares, despite incurring operating expenses of $834,895, which increased from $391,949 in 2023 due to higher professional fees related to the merger.
The business combination resulted in the issuance of 5,295,000 shares of common stock and 7,500,000 shares of Series C Preferred Stock to Legacy Alpha Modus shareholders. Following the merger, the total number of shares outstanding rose to 12,455,252 common shares and 7,500,000 preferred shares. The company also reported a working capital deficit of $5.9 million as of December 31, 2024, raising concerns about its ability to continue as a going concern, given its lack of revenue and substantial operating losses.
Alpha Modus has focused on leveraging its patented technologies to enhance consumer experiences in retail environments. The company has initiated several licensing agreements, including a notable deal with GZ6G Technologies Corp. for AI-driven advertising solutions. Additionally, Alpha Modus has filed multiple patent infringement lawsuits against major retailers, including The Kroger Company and Walgreens, to protect its intellectual property rights.
As of the end of 2024, Alpha Modus had cash reserves of $735,814, which is insufficient to cover anticipated operational expenses. The company plans to raise at least $2.5 million to support its growth strategy. The financial outlook remains uncertain, as the company must navigate compliance with Nasdaq listing requirements and address its internal control weaknesses, which have been identified as material. The management has acknowledged the need for additional resources to enhance its financial reporting and operational capabilities as it transitions into a public company.
About ALPHA MODUS HOLDINGS, INC.
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