Financial Performance - For the six months ended June 30, 2025, Alpha Modus reported no revenue, consistent with the same period in 2024[179]. - Operating expenses for the six months ended June 30, 2025, were $2,508,011, a significant increase from $311,464 in the same period of 2024[181]. - The net loss for the six months ended June 30, 2025, was $3,095,143, compared to a net loss of $409,733 for the same period in 2024[183]. - For the three months ended June 30, 2025, Alpha Modus also reported no revenue, mirroring the results from the same period in 2024[184]. - Operating expenses for the three months ended June 30, 2025, were $1,148,810, up from $120,553 in the same period of 2024[185]. - The net loss for the three months ended June 30, 2025, was $2,787,062, compared to a net loss of $187,037 for the same period in 2024[187]. - As of June 30, 2025, Alpha Modus had cash of $118,214 and estimated it would need to raise a minimum of $2,500,000 to maintain its growth plan[188]. - Net cash used in operating activities for the six months ended June 30, 2025, was $1,115,337, compared to $283,216 for the same period in 2024[189]. Business Developments - The business combination with Alpha Modus, Corp. was completed on December 13, 2024, marking a significant operational transition for the company[134]. - Alpha Modus has entered into a license agreement with GZ6G Technologies Corp. for AI-driven advertising solutions, with deployment expected by the end of 2024[141]. - The strategic alliance with CashX aims to provide services to the underbanked through kiosks and a mobile application, targeting a national deployment[146]. - Alpha Modus's partnership with VSBLTY focuses on enhancing customer experience using AI and data analytics in retail settings[147]. - The Company has the option to acquire Alpha Modus Ventures, LLC for a total consideration of $35,000,000 in common stock, subject to shareholder approval[171]. Intellectual Property - A patent infringement lawsuit was filed against The Kroger Company, which has since been settled, indicating active enforcement of intellectual property rights[142]. - The company has a robust intellectual property portfolio that includes method patents across various retail use cases, creating a defensible market position[140]. - Alpha Modus plans to continue its intellectual property licensing and enforcement efforts throughout 2025, although outcomes are uncertain[148]. - The Company entered into a Patent Monetization Agreement to provide litigation funding related to patent litigation against Broadcom Inc., with a structured return on proceeds[170]. Financing and Capital Structure - The Company is expected to pay off loans totaling approximately $2,375,000 at Closing, including $975,000 to Polar Multi-Strategy Master Fund and $1,400,000 to Janbella Group, LLC[154]. - The Company issued 5,295,000 shares of common stock and 7,500,000 shares of Series C Preferred Stock as merger consideration in the Business Combination[168]. - Following the Business Combination, there were 12,455,252 shares of the Company's common stock and 7,500,000 shares of Series C Preferred Stock issued and outstanding[168]. - The Company entered into a securities purchase agreement to sell a secured convertible promissory note for $2,890,000, with a net purchase price of $2,600,000[157]. - The Note has a maturity of 18 months, accrues interest at 10% per annum, and is convertible into common stock at a price equal to 90% of the lowest daily volume-weighted average price during the preceding five trading days[159][160]. - The Company amended the Note to establish a floor price of $4.00 per share, with monthly payments commencing if the stock price falls below this threshold for ten consecutive trading days[162]. - The company issued a promissory note for $2,142,857.14 to a family trust of the CEO, accruing interest at 8% per annum[173]. - The Company will incur additional annual expenses as a public company, including costs for liability insurance and increased audit and legal fees[169]. - Approximately 426,136 shares of common stock were redeemed prior to the Business Combination, resulting in only about $1.16 million of cash becoming available to the Company[168]. Market Projections - Alpha Modus reported a projected U.S. retail media advertising spend of approximately $62.35 billion in 2025, expected to surpass $97 billion by 2028[137]. - The company anticipates $3.8 trillion in digitally influenced U.S. retail sales by 2027, with 75% of in-store sales linked to digital engagement[137]. Going Concern - The company has faced substantial doubt about its ability to continue as a going concern due to recurring losses and lack of current revenues[149].
Insight Acquisition Corp.(INAQU) - 2025 Q2 - Quarterly Report