Business Combination and Corporate Structure - Alpha Modus completed a business combination with Alpha Modus, Corp. on December 13, 2024, changing its name to Alpha Modus Holdings, Inc. [241] - 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 [264] - Approximately 426,136 shares of common stock were redeemed prior to the business combination, resulting in $1.16 million of cash becoming available [264] - The company incurred $361,643 in acquisition costs during the business combination [279] - Alpha Modus is classified as an emerging growth company and plans to take advantage of the extended transition period for new financial accounting standards [282] Intellectual Property and Licensing - The company has developed patented solutions for retailers and consumer brands, enhancing consumer experience at the point of sale [242] - Alpha Modus entered into a license agreement with GZ6G Technologies Corp. on January 11, 2024, to co-develop AI-driven advertising solutions, with deployment expected by the end of 2024 [243] - A license agreement with Xalles Holdings Inc. was established on April 10, 2024, focusing on self-service kiosks for unbanked and underbanked consumers, with services expected to launch by the end of 2024 [245] - Alpha Modus plans to continue its intellectual property licensing and enforcement efforts throughout 2025 [246] - The company initiated multiple patent infringement lawsuits against major retailers, including The Kroger Company and Walgreen Co., to protect its intellectual property [244] Financial Performance - For the year ended December 31, 2024, Alpha Modus reported no revenue, consistent with the previous year [273] - Operating expenses increased to $834,895 for the year ended December 31, 2024, up from $391,949 in 2023, primarily due to higher professional fees related to the merger [274] - Alpha Modus recorded total other income of $4,938,162 for the year ended December 31, 2024, compared to total other expense of $109,346 in 2023 [275] - The company achieved a net income of $4,103,067 for the year ended December 31, 2024, a significant improvement from a net loss of $501,295 in 2023 [276] - Cash used in operations was $1,676,499 for the year ended December 31, 2024, compared to $515,181 in 2023 [278] Debt and Financing - The company entered a securities purchase agreement on October 23, 2024, for a secured convertible promissory note of $2,890,000, with a net purchase price of $2,600,000 [254] - The note will accrue interest at 10% per annum and is convertible into common stock at a price based on the lowest daily volume-weighted average price [256][257] - The company amended the terms of the note on December 12, 2024, establishing a floor price of $4.00 per share for conversion [258] - Monthly payments under the note will commence on March 16, 2025, if the closing bid price remains below the floor price for ten consecutive trading days [260] - As of December 31, 2024, Alpha Modus had cash of $735,814 and estimated needing to raise a minimum of $2,500,000 to support operations [277]
Insight Acquisition Corp.(INAQU) - 2024 Q4 - Annual Report