Alpha Modus Holdings (AMOD) Q3 2024 earnings summary

Executive summary

• Approved business combination with Alpha Modus Corp., including merger and issuance of new Series C Preferred Stock; 426,135 shares redeemed in connection with the vote.

• Entered into a $2.89M secured convertible note with Streeterville Capital, maturing in 18 months, to fund the business combination.

• Sponsor reimbursed $1.09M to the Trust Account after prior erroneous withdrawals; management changes implemented, including new CEO and CFO appointments.

• Nasdaq issued a delisting notice due to not completing a business combination within 36 months; appeal pending.

Financial highlights

• Net loss of $236,000 for Q3 2024 and $2.7M for the nine months ended September 30, 2024, driven by derivative liability changes, G&A, franchise tax, and stock compensation expense.

• Cash and restricted cash at quarter-end totaled $11,810, with a working capital deficit of $5.27M.

• Investments held in Trust Account declined to $5.94M from $10.66M at year-end 2023, reflecting significant redemptions.

• Excise tax liability of $2.4M recognized for share redemptions; payment deadline October 31, 2024.

Outlook and guidance

• Substantial doubt exists about the ability to continue as a going concern if a business combination is not completed by December 7, 2024.

• Management intends to complete the Alpha Modus merger by the deadline; otherwise, mandatory liquidation will occur.