Financial Performance - For the three months ended September 30, 2025, Alpha Modus reported no revenue, consistent with the same period in 2024[190]. - Operating expenses increased to $1,217,858 for the three months ended September 30, 2025, compared to $286,131 in the same period of 2024, primarily due to higher professional fees and payroll expenses[191]. - Total other expenses for the three months ended September 30, 2025, were $3,041,741, with $2,817,337 attributed to interest expense, compared to only $29,615 in total other expenses in the same period of 2024[192]. - Alpha Modus experienced a net loss of $4,259,599 for the three months ended September 30, 2025, a significant increase from a net loss of $315,746 in the same period of 2024[193]. - For the nine months ended September 30, 2025, Alpha Modus had no revenue, mirroring the same period in 2024[194]. - Operating expenses for the nine months ended September 30, 2025, rose to $3,725,869 from $597,595 in the same period of 2024[195]. - Total other expenses for the nine months ended September 30, 2025, amounted to $3,628,873, with $3,523,515 as interest expense, compared to $127,884 in the same period of 2024[196]. - The net loss for the nine months ended September 30, 2025, was $7,354,742, compared to a net loss of $725,479 for the same period in 2024[197]. - As of September 30, 2025, Alpha Modus had cash of $75,705 and estimated needing to raise a minimum of $2,500,000 to support operations[198]. - Net cash used in operating activities was $2,055,673 for the nine months ended September 30, 2025, compared to $541,826 for the same period in 2024[199]. Business Strategy and Operations - 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[149]. - The company aims to deploy services under a license agreement with GZ6G Technologies by the end of 2024, expanding event venue service offerings in late 2025[154]. - Alpha Modus's strategic alliance with CashX focuses on providing services to the underbanked via kiosks, targeting a national deployment of kiosks and a mobile application[158]. - The company has developed comprehensive end-to-end patented solutions for retailers, enhancing consumer experiences at the point of sale[147]. Intellectual Property - The company has initiated multiple patent infringement lawsuits against major retailers, including The Kroger Company and Walgreen Co., to protect its intellectual property[155]. - Alpha Modus's technology ecosystem includes AI-driven solutions for real-time inventory management and personalized advertising, enhancing customer engagement at the point of sale[153]. - The company has a robust intellectual property portfolio that includes method patents across various retail use cases, creating defensible market positions[152]. - Alpha Modus intends to continue its intellectual property licensing and enforcement efforts throughout 2025, although future success is uncertain[160]. Financial Transactions 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[165]. - 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[178]. - Following the Business Combination, there were 12,455,252 shares of the Company's common stock issued and outstanding[178]. - The Company entered into a securities purchase agreement to sell a secured convertible promissory note with an original principal amount of $2,890,000 for a net purchase price of $2,600,000[168]. - The Note has a maturity of 18 months and accrues interest at a rate of 10% per annum, with a conversion option into common stock[170]. - 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[172]. - The Company and the Investor agreed to a second amendment to the Note, increasing the outstanding balance to $3,597,501.71 and reducing the floor price to $1.25[175]. - The Company has not made any payments under the Patent Monetization Agreement as of September 30, 2025, and does not expect to receive any payments under this agreement[180]. - The Company received the right to acquire Alpha Modus Ventures, LLC for an option exercise price of $300,000 and shares valued at $35,000,000, pending shareholder approval[181]. - The Business Combination was accounted for as a reverse recapitalization, treating the Company as the acquired entity for financial reporting purposes[177].
Insight Acquisition (INAQ) - 2025 Q3 - Quarterly Report