Alpha Modus Holdings (AMOD) Q2 2024 earnings summary

Executive summary

• Blank check company focused on completing a business combination, with no operating revenues to date and activities centered on formation, IPO, and target search.

• Entered into and amended a business combination agreement with Alpha Modus, extending the outside date to September 9, 2024, and modifying share exchange and earnout terms.

• Significant redemptions of Class A shares occurred during extension votes, reducing trust account assets and outstanding shares.

• Leadership changes included the removal of the CEO/CFO, appointment of a new CFO, and forfeiture of deferred compensation.

Financial highlights

• As of June 30, 2024, total assets were $6.5 million, down from $12.4 million at December 31, 2023, mainly due to redemptions.

• Net loss for the three months ended June 30, 2024 was $1.8 million, compared to a net loss of $258,000 for the same period in 2023.

• Net loss for the six months ended June 30, 2024 was $2.4 million, compared to net income of $637,000 for the same period in 2023.

• Trust account balance decreased to $5.9 million from $10.7 million at year-end 2023.

• Significant expenses included $1.1 million in stock compensation and $456,000 in interest expense on debt discount for the six months ended June 30, 2024.

Outlook and guidance

• The company has until December 7, 2024 (with monthly extensions) to complete a business combination or face mandatory liquidation.

• Management expresses substantial doubt about the ability to continue as a going concern due to insufficient liquidity and the risk of not completing a business combination.