Insight Acquisition Corp. Reports Significant Decline in Assets and Net Loss Amid Business Combination Efforts

As of September 30, 2024, Insight Acquisition Corp. reported total assets of $6.3 million, a significant decrease from $12.4 million at the end of 2023. Current assets also fell sharply to $380,619 from $1.7 million, primarily due to a decline in investments held in the Trust Account, which decreased to $5.9 million from $10.7 million. Total current liabilities increased to $5.7 million, up from $5.3 million, while derivative liabilities rose to $1.0 million from $623,090.

The company experienced a net loss of $236,071 for the three months ended September 30, 2024, compared to a loss of $227,581 in the same period of 2023. For the nine months ended September 30, 2024, the net loss was approximately $2.7 million, a stark contrast to a net income of $284,429 for the same period in 2023. The loss was attributed to increased general and administrative expenses, which totaled $960,000 for the nine months, alongside a $412,000 loss on the change in the fair value of derivative liabilities.

General and administrative expenses for the third quarter of 2024 were $52,630, a notable decrease from $525,375 in the same quarter of the previous year. The company reported a loss from operations of $(73,130) for the third quarter of 2024, down from $(575,375) in 2023. The accumulated deficit increased to $(14.2 million) from $(11.5 million) at the end of 2023.

Insight Acquisition Corp. is currently in the process of completing a business combination, with a deadline set for December 7, 2024. The company entered into a business combination agreement with Alpha Modus, Corp. on October 13, 2023, which was approved by stockholders on October 29, 2024. The agreement includes provisions for the issuance of 7,500,000 Series C Redeemable Convertible Preferred Stock.

The company has faced challenges, including a notice from Nasdaq regarding non-compliance with listing requirements due to the failure to complete a business combination by September 1, 2024. An appeal has been filed, with a hearing scheduled for November 14, 2024.

As of September 30, 2024, the company had $11,810 in its operating bank account and a working capital deficit of $5.3 million. The liquidity situation raises substantial doubt about the company's ability to continue as a going concern. The company has also recorded a liability of $2.4 million for excise tax based on shares redeemed during the year ended December 31, 2023.