# EDGAR Filing Document

**Accession Number:** 0001862463
**File Stem:** 0001641172-25-024981
**Filing Date:** 2025-8
**Character Count:** 193501
**Document Hash:** 7d760b997f8e93fad0b9e8d9e822c762
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-024981.hdr.sgml**: 20250820

**ACCESSION NUMBER**: 0001641172-25-024981

**CONFORMED SUBMISSION TYPE**: 424B3

**PUBLIC DOCUMENT COUNT**: 1

**FILED AS OF DATE**: 20250820

**DATE AS OF CHANGE**: 20250820

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ALPHA MODUS HOLDINGS, INC.
- **CENTRAL INDEX KEY:** 0001862463
- **STANDARD INDUSTRIAL CLASSIFICATION:** PATENT OWNERS & LESSORS [6794]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 863386030
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 424B3
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-284810
- **FILM NUMBER:** 251236949

**BUSINESS ADDRESS:**
- **STREET 1:** 20311 CHARTWELL CENTER DR., #1469
- **CITY:** CORNELIUS
- **STATE:** NC
- **ZIP:** 28031
- **BUSINESS PHONE:** (704) 252-5050

**MAIL ADDRESS:**
- **STREET 1:** 20311 CHARTWELL CENTER DR., #1469
- **CITY:** CORNELIUS
- **STATE:** NC
- **ZIP:** 28031

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Alpha Modus Holdings, Inc.
- **DATE OF NAME CHANGE:** 20241219

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Insight Acquisition Corp. /DE
- **DATE OF NAME CHANGE:** 20210514

**Filed Pursuant to Rule 424(b)(3)<br> Registration No. 333-284810**

**PROSPECTUS SUPPLEMENT NO. 4<br> (to Prospectus dated February 14, 2025)**

**Alpha Modus Holdings, Inc.**

This prospectus supplement updates and supplements the prospectus dated February 14, 2025 (the "Prospectus"), which forms a part of our registration statement on Form S-1 (No. 333-284810). This prospectus supplement is being filed to update and supplement the information in the Prospectus with the information contained in our (i) Quarterly Report on Form 10-Q for the period ended June 30, 2025, filed with the Securities and Exchange Commission on August 12, 2025 (the "Quarterly Report"), and (ii) Current Report on Form 8-K filed with the Securities and Exchange Commission on August 15, 2025 (the "Current Report"). Accordingly, we have attached the Quarterly Report and Current Report to this prospectus supplement.

This prospectus supplement updates and supplements the information in the Prospectus and is not complete without, and may not be delivered or utilized except in combination with, the Prospectus, including any amendments or supplements thereto. This prospectus supplement should be read in conjunction with the Prospectus and if there is any inconsistency between the information in the Prospectus and this prospectus supplement, you should rely on the information in this prospectus supplement.

Investing in our securities involves risks that are described in the "Risk Factors" section beginning on page 7 of the Prospectus.

Neither the U.S. Securities and Exchange Commission, nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

The date of this prospectus supplement is August 20, 2025.

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

**(Mark One)**

**☒** **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

For the quarterly period ended **June 30, 2025**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from **____________ to ____________**

Commission File Number: 001-40775

**ALPHA MODUS HOLDINGS, INC.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **86-3386030** |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. Employer<br> Identification No.) |

---

**20311 Chartwell Center Dr., #1469**

**Cornelius, NC 28031**

(Address of principal executive offices)

**(704) 252-5050**

(Registrant's telephone number)

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Class A Common Stock, par value $0.0001 per share | AMOD | The Nasdaq Stock Market, LLC |
| Redeemable Warrants, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50 | AMODW | The Nasdaq Stock Market, LLC |

---

**Securities registered pursuant to Section 12(g) of the Act:**

None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 11, 2025, 41,959,958 shares of Class A common stock, par value $0.0001 per share ("common stock"), were issued and outstanding.

**ALPHA MODUS HOLDINGS, INC.**

**Quarterly Report on Form 10-Q**

**For the Quarter Ended June 30, 2025**

**Table of Contents**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| **[PART I. FINANCIAL INFORMATION](#a_001)** | **[PART I. FINANCIAL INFORMATION](#a_001)** | 1 |
| Item 1. | [Consolidated Financial Statements](#a_002) | 1 |
|  | [Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 (Unaudited)](#a_003) | 1 |
|  | [Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024 (Unaudited)](#a_004) | 2 |
|  | [Consolidated Statements of Changes in Stockholders' Deficit for the three and six months ended June 30, 2025 and 2024 (Unaudited)](#a_005) | 3 |
|  | [Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 (Unaudited)](#a_006) | 4 |
|  | [Notes to Consolidated Financial Statements (Unaudited)](#a_007) | 5 |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_008) | 25 |
| Item 3. | [Quantitative and Qualitative Disclosures About Market Risk](#a_009) | 34 |
| Item 4. | [Controls and Procedures](#a_010) | 34 |
| **[PART II. OTHER INFORMATION](#a_011)** | **[PART II. OTHER INFORMATION](#a_011)** | 35 |
| Item 1. | [Legal Proceedings](#a_012) | 35 |
| Item 1A. | [Risk Factors](#a_013) | 36 |
| Item 2. | [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](#a_014) | 36 |
| Item 3. | [Defaults Upon Senior Securities](#a_015) | 36 |
| Item 4. | [Mine Safety Disclosures](#a_016) | 36 |
| Item 5. | [Other Information](#a_017) | 37 |
| Item 6. | [Exhibits](#a_018) | 37 |
| [SIGNATURES](#a_019) | [SIGNATURES](#a_019) | 39 |

---

i

**PART I. FINANCIAL INFORMATION**

**Item 1. Consolidated Financial Statements**

**ALPHA MODUS HOLDINGS, INC.**

**Consolidated Balance Sheets**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| **ASSETS** |  |  |
| Current assets |  |  |
| Cash | $118214 | $735814 |
| Prepaid expenses | 409716 | 841637 |
| Franchise tax receivable | 125068 | 125068 |
| Total current assets | 652998 | 1702519 |
| Property, plant and equipment, net | 7500 | - |
| Total assets | $660498 | $1702519 |
| **LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' DEFICIT** |  |  |
| Current liabilities |  |  |
| Accounts payable | $684494 | $16487 |
| Accrued liabilities | 161827 | 37252 |
| Accrued interest payable to related party | 107235 | 79859 |
| Excise tax payable | 2348302 | 2348302 |
| Financing payable | 268694 | 663582 |
| Convertible notes payable, net of discount | 2354766 |  |
| Convertible notes payable - related party, net of discount | 35000 | 35000 |
| Note payable - related party, net of discount | 1775691 | 1375691 |
| Earnout shares and sponsor earnout shares liability | 1169 | 1053084 |
| Warrant liability | 2297700 | 1950053 |
| Total current liabilities | 10034878 | 7559310 |
| Convertible notes payable, net of discount, non-current | - | 2934543 |
| Total liabilities | 10034878 | 10493853 |
| Commitments and contingencies |  |  |
| Mezzanine equity |  |  |
| Series C preferred stock, $0.001 par value, 8,500,000 shares authorized, 4,300,000 and 7,500,000 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 41170508 | 71809025 |
| Stockholders' deficit |  |  |
| Common stock, $0.0001 par value, 490,000,000 shares authorized, 40,622,274 and 12,455,252 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 4062 | 1246 |
| Additional paid-in capital | 46374585 | 13226787 |
| Accumulated deficit | (96923535) | (93828392) |
| Total stockholders' deficit | (50544888) | (80600359) |
| Total liabilities, mezzanine equity and stockholders' deficit | $660498 | $1702519 |

---

*The accompanying notes are an integral part of the unaudited consolidated financial statements.*

**ALPHA MODUS HOLDINGS, INC.**

**Consolidated Statements of Operations**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** | **June 30, 2025** | **June 30, 2024** |
| Revenue | $- | $- | $- | $- |
| Operating expenses |  |  |  |  |
| General and administrative expenses | $623155 | $48107 | $1690225 | $124627 |
| Professional fees | 525655 | 72446 | 817786 | 186837 |
| Total operating expenses | 1148810 | 120553 | 2508011 | 311464 |
| Operating loss | (1148810) | (120553) | (2508011) | (311464) |
| Other income (expenses) |  |  |  |  |
| Patent infringement income | 13096 |  | 13096 |  |
| Interest income |  | 4 | 6 | 5 |
| Change in fair value of earnout shares liability | 12633 |  | 1051915 |  |
| Change in fair value of warrants liability | (581842) |  | (347647) |  |
| Loss on settlement of debt | (598324) |  | (598324) |  |
| Interest expense | (483815) | (66488) | (706178) | (98274) |
| Total other income (expense) | (1638252) | (66484) | (587132) | (98269) |
| Income (loss) before income tax expense | (2787062) | (187037) | (3095143) | (409733) |
| Income tax expense | - | - | - | - |
| Net loss | $(2787062) | $(187037) | $(3095143) | $(409733) |
| Loss per share, class A common stock – basic and diluted | $(0.22) | $(0.03) | $(0.25) | $(0.09) |
| Weighted average number of shares of class A common stock – basic and diluted | 12782943 | 5546278 | 12629994 | 4540691 |

---

 ****

*The accompanying notes are an integral part of the unaudited consolidated financial statements.*

**ALPHA MODUS HOLDINGS, INC.**

**Consolidated Statements Changes in Stockholders' Deficit**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock ($0.0001 Par)** | **Common Stock ($0.0001 Par)** | | | |
|  | **Shares** | **Amount** | **Additional**<br>**Paid-in Capital** | **Accumulated**<br>**Deficit** | **Total Stockholders'**<br>**Deficit** |
| Balance, December 31, 2024 | 12455252 | $1246 | $13226787 | $(93828392) | $(80600359) |
| Shares issued for services | 21528 | 2 | 58123 |  | 58125 |
| Net loss for the period | - | - | - | (308081) | (308081) |
| Balance, March 31, 2025 | 12476780 | 1248 | 13284910 | (94136473) | (80850315) |
| Shares issued for services | 102026 | 10 | 124462 |  | 124472 |
| Shares issued for financing incentive | 1250000 | 125 | 1437375 |  | 1437500 |
| Shares issued for conversion of note payable | 713600 | 71 | 891929 |  | 892000 |
| Shares issued for conversion of preferred series C shares | 26079868 | 2608 | 30635909 |  | 30638517 |
| Net loss for the period | - | - | - | (2787062) | (2787062) |
| Balance, June 30, 2025 | 40622274 | $4062 | $46374585 | $(96923535) | $(50544888) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock ($0.0001 Par)** | **Common Stock ($0.0001 Par)** | | | |
|  | **Shares** | **Amount** | **Additional**<br>**Paid-in Capital** | **Accumulated**<br>**Deficit** | **Total Stockholders'**<br>**Deficit** |
| Balance, December 31, 2023 | 3500000 | $350 | $2697132 | $(3662806) | $(965324) |
| Imputed interest discounts on related party notes |  |  |  | 4824 | 4824 |
| Shares issued for note extension with related party | 1400000 | 140 | 34860 |  | 35000 |
| Net loss for the period | - | - | - | (222696) | (222696) |
| Balance, March 31, 2024 | 4900000 | 490 | 2731992 | (3880678) | (1148196) |
| Imputed interest discounts on related party notes |  |  |  | 9263 | 9263 |
| Shares issued for cash and financing incentive | 1000000 | 100 | 24900 |  | 25000 |
| Shares issued for services | 245000 | 25 | 6100 |  | 6125 |
| Net loss for the period | - | - | - | (187037) | (187037) |
| Balance, June 30, 2024 | 6145000 | $615 | $2762992 | $(4058452) | $(1294845) |

---

*The accompanying notes are an integral part of the unaudited consolidated financial statements.*

**ALPHA MODUS HOLDINGS, INC.**

**Consolidated Statements of Cash Flows**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** |
| **Cash flows from operating activities:** |  |  |
| Net income (loss) | $(3095143) | $(409733) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| Amortization of debt discount | 500785 | 70027 |
| Shares issued for services | 182597 | 6125 |
| Change in fair value of warrant liability | 347647 |  |
| Change in fair value of earnout shares liability | (1051915) |  |
| Loss on extinguishment of debt | 598324 |  |
| Change in assets and liabilities: |  |  |
| Prepaid expenses | 431921 |  |
| Other receivables |  | 15000 |
| Accounts payable and accrued expenses | 943071 | 21344 |
| Accrued expenses - related party |  | (14226) |
| Accrued interest payable - related party | 27376 | 28247 |
| Net cash used in operating activities | (1115337) | (283216) |
| **Cash flows from investing activities:** |  |  |
| Purchase of property, plant and equipment | (7500) | - |
| Net cash provided by investing activities | (7500) |  |
| **Cash flows from financing activities:** |  |  |
| Proceeds from notes payable to related party | 800000 | 400000 |
| Repayment of notes payable to related party | (400000) | (23972) |
| Proceeds from convertible notes payable | 500000 |  |
| Repayment of financing payable | (394888) |  |
| Proceeds from sale of common stock | 125 | 25000 |
| Net cash provided by financing activities | 505237 | 401028 |
| **Net change in cash** | (617600) | 117812 |
| Cash at beginning of period | 735814 | 106809 |
| **Cash at end of period** | $118214 | $224621 |
| **Supplemental disclosures of cash flow information:** |  |  |
| Cash paid for interest | $- | $- |
| Cash paid for taxes | $- | $- |
| **Supplemental non-cash information** |  |  |
| Common shares issued as financing incentive | $1437500 | $- |
| Common shares issued from conversion of preferred series C shares | $30638517 | $- |
| Common shares issued from conversion of convertible notes payable | $892000 | $- |
| Renegotiated notes payable | $- | $453750 |
| Shares issued to related party applied directly against accumulated deficit | $- | $35000 |
| Discounts on notes payable applied directly against accumulated deficit | $- | $14087 |

---

*The accompanying notes are an integral part of the unaudited consolidated financial statements.*

**ALPHA MODUS HOLDINGS, INC.**

**Notes to Consolidated Financial Statements**

**June 30, 2025**

**(Unaudited)**

**NOTE 1 – NATURE OF OPERATIONS**

**Company Background**

Alpha Modus Corp. (the "Company," "we," "us," "our," or "Alpha Modus"), was incorporated in the State of Florida on July 11, 2014.

**Nature of Operations**

Alpha Modus was founded as an artificial intelligence software as a service provider. As of January 2020, Alpha Modus abandoned its software and deemed it not technologically feasible. Since that time, the Company has focused on developing its patents. Alpha Modus was awarded US Patent No. 10,360,571 (the "571 Patent") on July 23, 2019. Since August 2019, Alpha Modus has focused on research and development to expand claims of the 571 Patent. The Company began commercialization efforts of the 571 Patent family in 2024.

**Business Combination**

On December 13, 2024, the parties to the Business Combination Agreement consummated the Business Combination. Immediately upon the consummation of the Business Combination, Alpha Modus, Corp. ("Alpha Modus") became a wholly owned subsidiary of the Company, the Company changed its name to "Alpha Modus Holdings, Inc.," ("Holdings"). In accordance with ASC 805, in a business combination, one of the combining entities shall be identified as the accounting acquirer. Management evaluated ASC 805-10-55-11 through 55-15 to make this determination. Management assessed the various criteria to identify the accounting acquirer; form of consideration, relative voting rights, large minority interest, composition of the governing body, composition of management, terms of the exchange of equity interests and relative size. Management determined that Alpha Modus would be the accounting acquirer, based on the voting rights after the combination, large minority interest, composition of board and management and relative size. Management evaluated which entity constituted a business based on the assets acquired and liabilities assumed along with the inputs and processes of the entities. Management determined that Alpha Modus constitutes a business and that the substance of the transaction is a recapitalization of Alpha Modus often referred to as a reverse recapitalization. Accordingly, the merger will be accounted for as a reverse recapitalization in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Under this method of accounting, Holdings will be treated as the acquired company for financial reporting purposes. The net assets of Holdings will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the merger will be those of Alpha Modus. All periods prior to the Merger have been retrospectively adjusted using the Exchange Ratio for the equivalent number of shares outstanding immediately after the Closing to effect the reverse recapitalization.

In the Business Combination, the Company issued 5,295,000 shares of common stock and 7,500,000 shares of Series C Preferred Stock to Legacy Alpha Modus' shareholders as merger consideration in the Business Combination, and the Company issued 1,817,308 shares of common stock to various parties as required by the Business Combination Agreement. Immediately following the Business Combination there were 12,455,252 shares of the Company's common stock (all Class A common stock) issued and outstanding, and 7,500,000 shares of the Company's Series C Preferred Stock issued and outstanding.

**Risks and Uncertainties**

On August 16, 2022, the Inflation Reduction Act of 2022 (the "IR Act") was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the "Treasury") has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax.

Any share redemption or other share repurchase that occurs after December 31, 2022, in connection with a Business Combination, extension vote or otherwise, may be subject to the excise tax. Whether and to what extent the Company would be subject to the excise tax in connection with a Business Combination, extension vote or otherwise will depend on a number of factors, including (i) the fair market value of the redemptions and repurchases in connection with the Business Combination, extension or otherwise, (ii) the structure of a Business Combination, (iii) the nature and amount of any "PIPE" or other equity issuances in connection with a Business Combination (or otherwise issued not in connection with a Business Combination but issued within the same taxable year of a Business Combination) and (iv) the content of regulations and other guidance from the Treasury.

During the second quarter of 2024, the Internal Revenue Service issued final regulations with respect to the timing and payment of the excise tax. These regulations provided that the filing and payment deadline for any liability incurred during the period from January 1, 2023 to December 31, 2023 would be October 31, 2024. The Company is currently evaluating its options with respect to this obligation. Any amount of such excise tax not paid in full, will be subject to additional interest and penalties which are currently estimated at 10% interest per annum and a 5% underpayment penalty per month or portion of a month up to 25% of the total liability for any amount that is unpaid from November 1, 2024 until paid in full.

**NOTE 2 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis of Presentation**

The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP") and pursuant to the rules and regulations of the SEC and has a year-end of December 31<sup>st</sup>.

Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented. These interim financial statements should be read in conjunction with the financial statements and notes thereto included in this filing and the Form 10-K for the year ended December 31, 2024 filed with the SEC on April 15, 2025.

**Principles of Consolidation**

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation.

**Liquidity and Going Concern**

We have incurred recurring losses since inception and expect to continue to incur losses since the Company does not have any revenue stream. On June 30, 2025, we had $118,214 in cash. Our net loss incurred for the six months ended June 30, 2025 was $3,095,143, which was a result of changes in fair value of derivative liabilities and a loss on settlement of debt. The working capital deficit was $9,381,880 on June 30, 2025. As a result, there is substantial doubt about our ability to continue as a going concern. In the event that we are unable to generate sufficient cash from our operating activities or raise additional funds, we may be required to delay, reduce or severely curtail our operations or otherwise impede our on-going business efforts, which could have a material adverse effect on our business, operating results, financial condition and long-term prospects. The Company expects to seek to obtain additional funding through increased revenues and future financings. There can be no assurance as to the availability or terms upon which such financing and capital might be available. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.

**Cash and Cash Equivalent**

Cash is comprised of cash balances. Cash is held at major financial institutions and is subject to credit risk to the extent that those balances exceed applicable Federal Deposit Insurance Corporation ("FDIC") insurance amounts of $250,000. From time to time, the Company has certain cash balances, including restricted cash, that may exceed insured limits. The Company utilizes large banking institutions that are reputable, therefore mitigating the risks.

**Concentration of Credit Risk**

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access to such funds could have a significant adverse impact on the Company's financial condition, results of operations, and cash flows.

 ****

**Use of Estimates**

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Making estimates requires management to exercise significant judgment. The more significant accounting estimates included in these consolidated financial statements are the determination of the fair value of the warrant liabilities, earnout shares and sponsor earnout shares, preferred series C stock and excise tax payable. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the consolidated financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.

**Financial Instruments**

The fair value of the Company's assets and liabilities, which qualify as financial instruments under the FASB ASC 820, "Fair Value Measurements and Disclosures," equals or approximates the carrying amounts represented in the consolidated balance sheets, except for the derivative liabilities (see Note 8).

 ****

**Fair Value Measurements**

Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers consist of:

● Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.

 ****

**Derivative Liabilities**

The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including issued stock purchase warrants and the forward purchase agreement, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and FASB ASC Topic 815, "Derivatives and Hedging" ("ASC 815"). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.

The warrants issued in the Initial Public Offering (the "Public Warrants") and the Private Placement Warrants are recognized as derivative liabilities in accordance with ASC 815. In accordance with FASB ASC Topic 820, "Fair Value of Financial Instruments" ("ASC 820"), the Company recognizes the warrant instruments as liabilities at fair value and adjusts the carrying value of the instruments to fair value at each reporting period for so long as they are outstanding. At the date of the merger, the initial fair value of the Public Warrants issued in connection with the Public Offering and the fair value of the Private Placement Warrants have been estimated using a Black-Scholes model. Subsequently, the fair value of the Public Warrants issued in connection with the Public Offering and the fair value of the Private Placement Warrants have been estimated using this same Black-Scholes model. Derivative warrant liabilities are classified as current liabilities (See note 6 for more details on warrants).

The company earnout shares and sponsor earnout shares ("earnout shares") as defined in the business combination agreement are recognized as derivative liabilities in accordance with ASC 815. In accordance with FASB ASC Topic 820, "Fair Value of Financial Instruments" ("ASC 820"), the Company recognizes the earnout shares instruments as liabilities at fair value and adjusts the carrying value of the instruments to fair value at each reporting period for so long as they are outstanding. At the date of the merger, the initial fair value of the earnout shares have been estimated using a Monte Carlo simulation model. Subsequently, the fair value of the earnout shares have been estimated using this same Monte Carlo simulation model. Derivative earnout shares liabilities are classified as current liabilities (See note 7 for more details on earnout shares).

**Net (Loss) Income Per Common Share**

Net income (loss) per common share is computed by dividing net income (loss) by the weighted average common shares outstanding during the year as defined by FASB, ASC Topic 260, *Earnings per Share*. Basic earnings per common share ("EPS") calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. The Company has 39,131,821 and 26,534,773 dilutive shares of common stock derived from three convertible notes and the series C preferred stock as of June 30, 2025 and December 31, 2024, respectively.

The calculation of diluted net (loss) income does not consider the effect of the warrants underlying the Units sold in the Initial Public Offering and the private placement warrants to purchase an aggregate of 20,700,000 shares of Class A common stock and the earnout shares and sponsor earnout shares as defined in the business combination agreement an aggregate of 2,950,000 shares of Class A common stock in the calculation of diluted (loss) income per share, because their exercise is contingent upon future events and their inclusion would be anti-dilutive under the treasury stock method.

The following tables present a reconciliation of the numerator and denominator used to compute basic and diluted net (loss) income per share:

SCHEDULE OF BASIC AND DILUTED NET (LOSS) INCOME PER SHARE

---

| | | |
|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** |
| Numerator | **June 30, 2025** | **June 30, 2024** |
| Net Income (Loss) | $(2787062) | $(187037) |
| Amortization of Debt Discounts |  |  |
| Interest Expense |  |  |
| Change in Derivative Liabilities | - | - |
| Adjusted Net Income (Loss) | $(2787062) | $(187037) |

---

---

| | | |
|:---|:---|:---|
| Denominator | **Shares** | **Shares** |
| Basic Weighted Average Number of Shares Outstanding during Period | 12782943 | 5546278 |
| Dilutive Shares | - | - |
| Diluted Weighted Average Number of Shares Outstanding during Period | 12782943 | 5546278 |
| Diluted Net Income (Loss) per Share | $(0.22) | $(0.03) |

---

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended** | **For the Six Months Ended** |
| Numerator | **June 30, 2025** | **June 30, 2024** |
| Net Income (Loss) | $(3095143) | $(409733) |
| Amortization of Debt Discounts |  |  |
| Interest Expense |  |  |
| Change in Derivative Liabilities | - | - |
| Adjusted Net Income (Loss) | $(3095143) | $(409733) |

---

---

| | | |
|:---|:---|:---|
| Denominator | **Shares** | **Shares** |
| Basic Weighted Average Number of Shares Outstanding during Period | 12629994 | 4540691 |
| Dilutive Shares | - | - |
| Diluted Weighted Average Number of Shares Outstanding during Period | 12629994 | 4540691 |
| Diluted Net Income (Loss) per Share | $(0.25) | $(0.09) |

---

**Income Taxes**

The Company accounts for income taxes in accordance with FASB ASC 740, *Income Taxes*. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and loss carryforwards and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income (loss) in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rules on deferred tax assets and liabilities is recognized in operations in the year of change. A valuation allowance is recorded when it is "more likely-than-not" that a deferred tax asset will not be realized.

Tax benefits of uncertain tax positions are recognized only if it is more likely than not that the Company will be able to sustain a position taken on an income tax return. The Company has no liability for uncertain tax positions as of June 30, 2025 and December 31, 2024. Interest and penalties in any, related to unrecognized tax benefits would be recognized as interest expense. The Company does not have any accrued interest or penalties associated with unrecognized tax benefits, nor was any significant interest expense recognized during the six months ended June 30, 2025 and 2024.

**Notes Payable**

The Company issued various notes payable to related parties. These notes payable included original issue discounts and debt issuance costs.

*Original issue discounts.* The Company accounts for the original issue discounts in accordance with Accounting Standards Codification ("ASC") No. 835-30, *Interest and Imputation of Interest*, which requires the Company to record the discount as a contra-liability and amortize it over the term of the underlying note using the interest method.

*Debt issuance costs.* The Company accounts for debt issuance costs in accordance with ASC No. 470-20, *Debt*, which requires the Company to recognize a contra-liability for costs incurred with the issuance of debt instruments. These contra-liabilities are amortized over the term of the underlying note payable using the interest method.

**Related Parties**

In accordance with ASC 850 "Related Party Disclosure", a party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated.

**Series C Preferred Stock**

During the year ended December 31, 2024, the Company amended and restated its charter to include the designation of a Series C Preferred Stock. The Amended and Restated Charter authorizes the issuance of 8,500,000 shares of preferred stock, 7,500,000 shares of which have been designated as Series C Redeemable Convertible Preferred Stock ("Series C Preferred Stock"), and 1,000,000 shares of which will be undesignated. Based on the characteristics and rights of the Series C Preferred Stock, the Company is reporting it as Mezzanine Equity (Temporary Equity) on its consolidated balance sheets. These shares were valued at the date of issuance using a Monte Carlo Simulation model. The Company determined that subsequent changes to the carrying value of the series C preferred shares will not be recognized until Redemption becomes probable of occurring. See Note 9 – Mezzanine Equity for further details.

**Recent Accounting Pronouncements**

Recently Issued Accounting Standards: Management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying consolidated financial statements.

**NOTE 3 – RELATED PARTY TRANSACTIONS**

On January 17, 2023, the Company and Janbella Group, LLC ("Janbella"), which is controlled by Alessi, entered into a secured convertible promissory note for $412,500. The note included the $75,000 balance as of December 31, 2022, an additional $300,000, and an OID of $37,500. The note matures on January 17, 2024. The OID of $37,500 was recorded as a debt discount and was being amortized over the life of the original note ending on January 17, 2024. On August 31, 2023, the Company and Janbella entered into an Amended and Restated 12% Senior Secured Promissory Note for $453,750. This note was a modification of the $412,500 note dated January 17, 2023. The Company treated this as a modification of debt. All assets of the Company are collateral for the note. In the event of a Qualified Offering prior to the maturity date, at the option of Janbella, for every dollar received in a Qualified Offering, Janbella would receive $0.50, until the outstanding principal and interest are paid. Janbella is managed by Alessi. The note is convertible at a conversion price of $1.00. In the event of a merger or consolidation, the payment due to Janbella is 200% of the principal. During the year ended December 31, 2024, the Company amortized the remaining balance of $1,747 of this discount. There was a one-time interest charge of 10%, or $41,250, which was recorded as original interest discount and is being amortized over the life of the original note ending on January 17, 2024. During the year ended December 31, 2023, the Company amortized $39,329 of this discount. As of December 31, 2023, there was a balance remaining of $1,921. During the year ended December 31, 2024, the Company amortized the remaining balance of $1,921 of this discount. On March 29, 2024, the Company extended this note to June 7, 2024 and issued 1,400,000 shares of common stock to the JanBella. The stock was valued at $0.025 per share for a total value of $35,000. The Company recorded the charge of $35,000 as a debt discount and amortized $35,000 as debt discount interest expense during the year ended December 31, 2024. As of June 30, 2025 and December 31, 2024, the balance was $453,750 and $453,750, with accrued interest $101,186 and $73,810, respectively.

On August 31, 2023, the Company and Janbella entered into an 0% Senior Secured Promissory Note for $300,000. The note matures on August 31, 2024. There is no interest. An imputed interest discount was calculated for this note of $27,273, which was recorded directly to the accumulated deficit balance. This discount is being amortized over the life of the original note ending on August 31, 2024. During the year ended December 31, 2024, the Company amortized $18,157 of this discount. As of December 31, 2024, the balance of this discount was $0. All assets of the Company are collateral for the note. As of June 30, 2025 and December 31, 2024, the balance on this note was $300,000.

On November 6, 2023, the Company and Janbella entered into an 0% Senior Secured Promissory Note for $221,941. The note matures on August 31, 2024. There is no interest. An imputed interest discount was calculated for this note of $16,804, which was recorded directly to the accumulated deficit balance. This discount is being amortized over the life of the original note ending on August 31, 2024. During the year ended December 31, 2024, the Company amortized $13,713 of this discount. As of December 31, 2024, the balance of this discount was $0. All assets of the Company are collateral for the note. As of June 30, 2025 and December 31, 2024, the balance on this note was $221,941.

On February 28, 2024, the Company and Janbella entered into a verbal agreement for a $100,000 0% Senior Secured Promissory Note. On May 17, 2024, the Company and Janbella formalized the February 28, 2024 verbal agreement by entering into an 0% Senior Secured Promissory Note for $400,000 and JanBella funded an additional $300,000. The note matures on August 31, 2024. There is no interest. An imputed interest discount was calculated for this note of $14,087, which was recorded directly to the accumulated deficit balance. This discount is being amortized over the life of the original note ending on August 31, 2024. During the year ended December 31, 2024, the Company amortized $14,087 of this discount. As of December 31, 2024, the balance of this discount was $0. All assets of the Company are collateral for the note. On December 24, 2024, the Company and Janbella entered into a verbal agreement for an additional $100,000 0% Senior Secured Promissory Note. On December 13, 2024 as part of the business combination, the Company paid $100,000 on this balance. As of June 30, 2025 and December 31, 2024, the balance on this note was $400,000 and $400,000, respectively.

On July 25, 2024, the Company issued an unsecured convertible promissory note in the aggregate principal amount of $35,000 (the "Note") to a related party, the Note being entered into in consideration of two transfers made by Jeffrey J. Gary to the Maker on April 18, 2024 for $25,000 and on May 22, 2024 for $10,000. The Note does not bear interest and matures upon the closing of an initial business combination by the Company. The principal balance may be repaid at any time. The principal balance shall be payable by the Company either: (i) in cash, or (ii) at the Payee's election in writing, by issuance of Maker's private placement warrants (the "Private Warrants"), at a price of $1.00 per Private Warrant. Each Private Warrant entitles the holder to purchase one share of Class A common stock at $11.50 per share. As of June 30, 2025 and December 31, 2024, the balance on this note was $35,000.

On March 14, 2025, the Company and Janbella entered into a verbal agreement for an additional $400,000 0% Senior Secured Promissory Note. Between March and April, 2025, the Company received $400,000 as part of this verbal agreement. On May 5, 2025, the Company paid $400,000 towards the balance of this note. During June, 2025, the Company received an additional $400,000 under the verbal agreement. As of June 30, 2025 and December 31, 2024, the balance on this note was $400,000 and $0, respectively.

**Private Placement Warrants**

Simultaneously with the closing of the Initial Public Offering, the Company consummated the Private Placement of 7,500,000 and 1,200,000 Private Placement Warrants to the Sponsor and Cantor and Odeon, respectively, for an aggregate of 8,700,000 Private Placement Warrants, at a price of $1.00 per Private Placement Warrant, generating proceeds of $8.7 million.

Each Private Placement Warrant is exercisable for one whole share of Class A common stock at a price of $11.50 per share. A portion of the proceeds from the sale of the Private Placement Warrants to the Sponsor and the underwriters was added to the proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the Private Placement Warrants will expire worthless. Except as set forth below, the Private Placement Warrants will be non-redeemable for cash and exercisable on a cashless basis so long as they are held by the Sponsor, the underwriters or their permitted transferees.

The Sponsor, the underwriters and the Company's officers and directors agreed, subject to limited exceptions, not to transfer, assign or sell any of their Private Placement Warrants until 30 days after the completion of the initial Business Combination.

**NOTE 4 –CONVERTIBLE NOTES PAYABLE**

On May 1, 2025, the Company issued a convertible promissory note in the aggregate principal amount of $500,000 (the "Note") to a lender. The Note bears interest of 15% and matures on April 30, 2026. The principal balance may be repaid at any time. The note's conversion price shall mean 90% (representing a discount of 10%) multiplied by the Trading Price (as defined below) for the Common Stock as calculated following the latest complete Trading Day prior to the Conversion Date. "Trading Price" means the five-day (5-day) volume-weighted average price of the Common Stock as reported by a reliable reporting service designated by the Holder (i.e., Bloomberg, etc.). "Trading Day" shall mean any day on which the Common Stock is tradable for any period on the principal securities exchange or other securities market on which the Common Stock is then being traded. The Note is not convertible below a floor price of $1.25 per share. As of June 30, 2025 and December 31, 2024, the balance on this note was $500,000 and $0 and accrued interest was $12,500 and $0.

**Streeterville Capital, LLC Convertible Note**

On October 23, 2024, the Company entered into a securities purchase agreement (the "SPA") with Streeterville Capital, LLC (the "Investor"), pursuant to which the Company would sell, and the Investor would purchase, a secured convertible promissory note in the original principal amount of $2,890,000 (the "Note") for a net purchase price of $2,600,000 (after deducting an original issue discount of $260,000, and payment of $30,000 for the Investor's legal, accounting, due diligence, asset monitoring, and other transaction expenses).

The SPA included customary representations, warranties and covenants by the Company and customary closing conditions. The SPA grants the Investor (i) the right to fund up to an additional $5,000,000 to the Company, with the Company's consent, through the date that is six months following repayment of the Note in full (the "Reinvestment Right"), and (ii) the exclusive right, on customary market terms, to enter into an equity line of credit or other similar financing arrangement with the Company for at least $20,000,000, through the date that is one year following the Purchase Price Date (defined below). Pursuant the SPA, Alpha Modus, Corp. was required to guarantee all of the Company's obligations under the Note and related transaction documents pursuant to a guaranty agreement (the "Guaranty"), and the Note will also be secured by security agreements (the "Security Agreements") by and between the Investor and both the Company and Alpha Modus, Corp., granting the Investor first priority security interests in all assets of the Company, as well as all assets of Alpha Modus, Corp., including all of Alpha Modus' intellectual property (and including Alpha Modus' patent portfolio) pursuant to a separate intellectual property security agreement (the "IP Security Agreement"). Additionally, the Company and Alpha Modus (collectively the "Borrowers"), and William Alessi, his entity, Janbella Group, LLC, and the trusts deemed to be beneficially owned by Mr. Alessi (each a "Capital Party" and collectively the "Capital Parties"), were required to execute at closing a subordination and voting agreement (the "Subordination Agreement") pursuant to which (i) all of the Borrowers' indebtedness and obligations to each Capital Party were subordinated to Investor, (ii) all security interests of any Capital Party were subordinate to Investor's security interests, (iii) the Borrowers would not make any payments to any Capital Party, (iv) none of the Capital Parties would accelerate any subordinated debt or equity, (v) and no Capital Party would convert or exchange their preferred stock of the Company into Common Stock, until such time as the Investor had been fully paid and all financing agreements between the Investor and the Borrowers were terminated.

The Note matured 18 months following the date the purchase price is delivered to the Company (the "Purchase Price Date"), accrued interest of 10% per annum, was prepayable (after providing five trading days' notice) at a 20% premium to the then-outstanding balance of the Note, and was convertible into Class A common stock ("Common Stock") of the Company as described below. Within 30 days of the Purchase Price Date, the Company was obligated to file a registration statement on Form S-1 with the SEC registering a number of shares of Common Stock issuable upon conversion of the Note, and such registration statement was filed as described below.

The Note was convertible at the election of the Investor into shares of Common Stock at any time following the earlier of the effective date of the registration statement described above or one year following the Purchase Price Date, at a conversion price equal to 90% multiplied by the lowest daily volume-weighted average price during the five trading days preceding conversion, and provided that (i) the Investor may not convert the Note into shares of Common Stock to the extent that such conversion would result in the Investor's beneficial ownership of Common Stock being in excess of 4.99% (or 9.99% if the Company's market capitalization is less than $10 million), and provided that (ii) the Note is not convertible into a total cumulative number of shares of Common Stock in excess of the number of shares of Common Stock permitted by Nasdaq Listing Rule 5635 (the "Exchange Cap"). Pursuant to the terms of the Note, the Company was required to, within 120 days of the Purchase Price Date, seek shareholder approval of the Note and the issuance of shares of Common Stock, issuable upon conversion of the Note and pursuant to the Reinvestment Right, in excess of the Exchange Cap (the "Shareholder Approvals"). If such shareholder approval is not obtained within 120 days, the Company was required to continue to seek shareholder approval every three months thereafter until shareholder approval is obtained. Pursuant to the Subordination Agreement, each Capital Party was required to vote all of their shares of Company stock in favor of the Shareholder Approvals. Under the SPA, the Company was required to initially reserve 7,500,000 shares of its Common Stock for issuance to the Investor under the Note, and the Company was required to add additional shares to the reserve in increments of 100,000 shares when requested by the Investor if at the time of the request the number of shares being held in reserve is less than three times the number of shares of Common Stock equal to the outstanding balance under the Note divided by the applicable conversion price at that time.

On December 12, 2024, the Company amended the SPA (the "Amended SPA") to revise the terms of the Note. Pursuant to the Amended SPA, the Note was not convertible below a floor price of $4.00/share, but if the closing bid price of the Company's common stock is less than the floor price for ten consecutive trading days, the Company is required to begin making monthly payments under the Note on the date that is 90 days following the original funding date.

On or about December 13, 2024, the Company issued the Note to the Investor, the Note was funded on or about December 16, 2024, and the closing bid price of the Company's common stock was subsequently less than the $4.00 floor price for more than ten consecutive trading days, which, under the terms of the Amended SPA, would have required the Company to begin making monthly payments under the Note, with those monthly payments commencing on March 16, 2025, and with those monthly payments being equal to 120% multiplied by the outstanding balance divided by the lesser of 6 or the number of months remaining until the Note's maturity date.

On January 27, 2025, the Company and the Investor entered into an amendment to the Note providing that (i) the Company was not required to begin making monthly payments under the Note until May 16, 2025, (ii) the monthly payments will equal $485,000 plus all accrued but unpaid interest, multiplied by 120%, and (iii) the Company would pay to the Investor 50% of all proceeds received by the Company from any equity line of credit or similar arrangement within one trading day of receipt by the Company.

On April 28, 2025, the Company and the Investor entered into a second amendment to the Note (the "Second Amendment") providing that (i) the 20% prepayment penalty under the Note was eliminated, but the outstanding balance of the Note was increased to $3,597,502 (i.e., the outstanding balance under the Note as of April 28, 2025, plus the prepayment penalty of 20% as of April 28, 2025), (ii) the Company would have the right on up to three occasions to extend the monthly payment start date for one month, with the outstanding balance automatically increasing by one percent for each extension, (iii) the monthly payments would equal $582,000 plus all accrued but unpaid interest, (iv) the floor price was reduced to $1.25, (v) the Investor's beneficial ownership limitation was increased to 9.99%, (vi) the Company agreed to hold a stockholder meeting within 60 days to approve the issuances to the Investor under the Note and under an equity line of credit agreement with the Investor in excess of the Exchange Cap (as such term was defined in the Note), (vii) the Company agreed to sell the Investor 1,250,000 shares of common stock (the "Pre-Delivery Shares") for $125, which Pre-Delivery Shares shall be used by the Investor only as pre-delivery shares under the Note and a future equity line of credit agreement between the Company and the Investor, (viii) the Company agreed to file a registration statement to register the Pre-Delivery Shares and other shares of common stock issuable to the Investor upon conversion of the Note, and (ix) the Investor provided its written consent to the Company entering into the Patent Monetization Agreement and Option Agreement described below.

A registration statement registering shares for resale by the Investor was filed by the Company with the SEC pursuant to the Company's obligations under the Second Amendment to register Pre-Delivery Shares and other shares of common stock issuable to the Investor upon conversion of the Note (of which 1,250,000 Pre-Delivery Shares and 3,000,000 other conversion shares were registered for resale in that registration statement). That registration statement was declared effective by the SEC on May 23, 2025. On May 29, 2025, the Investor converted $767,000 of the Note into 613,600 shares of Company common stock. On June 11, 2025, the Investor converted $125,000 of the Note into 100,000 shares of Company common stock. On July 10, 2025, the Investor converted $162,500 of the Note into 130,000 shares of Company common stock. On July 16, 2025, the Investor converted $150,000 of the Note into 120,000 shares of Company common stock. On July 23, 2025, the Investor converted an aggregate of $2,545,500 of the Note into 2,036,400 shares of Company common stock, leaving a balance due to the Investor under the Note of approximately $11,312, which the Company paid on July 23, 2025, satisfying the note in full. On or about July 25, 2025, the Company repurchased the 1,250,000 Pre-Delivery Shares from the Investor for $125, and on or about August 6, 2025, the Pre-Delivery Shares were returned to the Company by the Investor and cancelled.

The Company recorded a debt discount of $290,000 in connection with this Note. During the year ended December 31, 2024, the Company amortized $9,543 as debt discount interest expense. As of December 31, 2024, the balance of the debt discount was $280,457. During the three months ended March 31, 2025, the Company amortized $124,058 as debt discount interest expense. As of March 31, 2025, the balance of the debt discount was $156,399. On April 28, 2025, the Company amortized the remaining balance of $156,399 as part of the note amendment. Per ASC 470, the Company evaluated the consideration given for the amendment to the note and determined that the note was extinguished, based on the conclusion that there was a greater than 10% change in the present value of the cash flows of the new loan, compared to the old loan. The Company recognized a loss on extinguishment of debt of $598,324 in relation to this note amendment. On April 28, 2025, the Company issued 1,250,000 shares of common stock as financing incentive in connection with the amendment. These shares were valued at $1.15 per share for a total value of $1,437,500. Streeterville paid $125 for these shares and the Company recorded a debt discount on the amended note of $1,437,375. During the six months ended June 30, 2025, the Company amortized $220,328 as debt discount interest expense. As of June 30, 2025, the balance of the debt discount was $1,217,047. During the six months ended June 30, 2025, the Company issued 713,600 shares of common stock pursuant to conversion notices for $892,000 in principal and accrued interest. As of June 30, 2025 and December 31, 2024, the balance was $2,746,813 and $2,890,000 with accrued interest of $14,497 and $14,450, respectively.

**Loeb & Loeb, LLP Convertible Note**

On December 13, 2024, the Company entered into a Convertible Promissory Note for $325,000 with Loeb & Loeb, LLP for services rendered in connection with the business combination.

The maturity date (the "Maturity Date") of this promissory note is the earlier of (i) 12 months from the issue date referenced above (the "Issue Date"), or (ii) the date that is 10 business days following the date that the Issuer repays Streeterville Capital, LLC (the "Lender") in full, and the Maturity Date is the date upon which the Principal Sum, as well as any unpaid interest and other fees hereunder, shall be due and payable.

<u>Interest; Monthly Payment; Additional Payments</u>. Interest shall not accrue on the Principal Sum except as set forth elsewhere herein. The Issuer shall make monthly payments of $25,000 beginning December 1, 2024. Additionally, the Issuer shall use at least 50% of the proceeds from any capital raise in excess of $1,000,000 following completion of the Issuer's Business Combination with Alpha Modus, Corp. to pay any remaining balance under the Note

<u>Conversion</u>. If the Issuer is no longer subject to the Lender's variable rate transaction prohibition or the Lender has consented to conversion of this promissory note as set forth herein, the Holder shall have the right, at its election, to convert all or part of the outstanding and unpaid Principal Sum, as well as any other fees pursuant to the terms hereof but not including interest, into shares of fully paid and non-assessable shares of the Issuer's common stock, $0.0001 par value per share (the "Conversion Shares") as per the following conversion formula: number of shares receivable upon conversion equals the dollar conversion amount divided by the Conversion Price (as defined hereinafter). The "Conversion Price" shall equal 90% of the 5-day volume-weighted average price ("VWAP") of the Issuer's common stock at the time of conversion as reported by Bloomberg L.P. Unless otherwise agreed in writing by both parties, at no time will the Holder convert any amount of the Note into common stock that would result in the Holder owning more than 4.99% of the common stock outstanding of the Issuer. Conversion Shares may be delivered to the Issuer by method of the Holder's choice (including but not limited to email, facsimile, mail, overnight courier, or personal delivery). If no objection is delivered from the Issuer to the Holder regarding any variable or calculation of the conversion notice within 24 hours of delivery of the conversion notice, the Issuer shall have been thereafter deemed to have irrevocably confirmed and irrevocably ratified such notice of conversion and waived any objection thereto. The Issuer shall deliver the Conversion Shares from any conversion to the Holder (in any name directed by the Holder) within three (3) business days of conversion notice delivery.

<u>Registration Rights</u>. Provided this Note has become convertible, the Issuer represents, warrants and agrees that with respect to the Conversion Shares, the Holder will have registration rights identical to the registration rights provided to Insight Acquisition Sponsor LLC in the Amended and Restated Registration Rights Agreement, dated as of October 13, 2023, including, but not limited to the following: (i) two demand registrations of the sale of the Conversion Shares at the Company's expense, and (ii) unlimited "piggyback" registration rights for a period of five (5) years after the Issue Date at the Company's expense. The Company shall execute and deliver the Joinder Agreement, attached hereto as Exhibit A. In the event the registration statement covering the Conversion Shares is not effective within 120 days of the Issue Date, then the principal amount due the Note will increase by one and one-half percent (1.5%) and will continue to increase by one and one-half percent (1.5%) for each thirty (30) day period such registration statement is not declared effective.

As of June 30, 2025 and December 31, 2024, the balance was $325,000 and $325,000, respectively.

**NOTE 5 – FINANCING PAYABLE**

On December 16, 2024, the Company entered into a financing arrangement for an insurance policy. The Company financed $663,582 of the insurance premiums with an interest rate of 7.5%. The Company is required to make 10 payments of $68,642 with the first payment being due on January 16, 2025. During the six months ended June 30, 2025, the company made six payments totaling $411,942, of which $394,888 was principal and $17,054 was interest. As of June 30, 2025 and December 31, 2024, the balance of this financing arrangement was $268,694 and $663,582, respectively

**NOTE 6 – WARRANTS**

As of June 30, 2025 and December 31, 2024, the Company has 12,000,000 Public Warrants and 8,700,000 Private Placement Warrants outstanding.

Public Warrants may only be exercised for a whole number of shares. No fractional Public Warrants will be issued upon separation of the Units and only whole Public Warrants will trade. The Public Warrants will become exercisable 30 days after the completion of a Business Combination; provided that the Company has an effective registration statement under the Securities Act covering the shares of Class A common stock issuable upon exercise of the Public Warrants and a current prospectus relating to them is available (or the Company permits holders to exercise their Public Warrants on a cashless basis and such cashless exercise is exempt from registration under the Securities Act). The Company agreed that as soon as practicable, but in no event later than 15 business days after the closing of the initial Business Combination, the Company will use its best efforts to file with the SEC and have an effective registration statement covering the shares of Class A common stock issuable upon exercise of the warrants and to maintain a current prospectus relating to those shares of Class A common stock until the warrants expire or are redeemed. If a registration statement covering the Class A common stock issuable upon exercise of the warrants is not effective by the 60th business day after the closing of the initial Business Combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a "cashless basis" in accordance with Section 3(a)(9) of the Securities Act or another exemption. Notwithstanding the above, if the Company's shares of Class A common stock are at the time of any exercise of a warrant not listed on a national securities exchange such that they satisfy the definition of a "covered security" under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a "cashless basis" in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elect, it will not be required to file or maintain in effect a registration statement, and in the event the Company does not so elect, it will use its best efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.

The warrants have an exercise price of $11.50 per share, subject to adjustments, and will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation. In addition, if (x) the Company issues additional shares of Class A common stock or equity-linked securities for capital raising purposes in connection with the closing of the initial Business Combination at an issue price or effective issue price of less than $9.20 per share of Class A common stock (with such issue price or effective issue price to be determined in good faith by the board of directors and, in the case of any such issuance to the Initial Stockholders or their affiliates, without taking into account any Founder Shares held by the Initial Stockholders or such affiliates, as applicable, prior to such issuance) (the "Newly Issued Price"), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of the initial Business Combination on the date of the consummation of the initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of Class A common stock during the 20 trading day period starting on the trading day prior to the day on which the Company consummates its initial Business Combination (such price, the "Market Value") is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger price described below under "Redemption of warrants" will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price.

The Private Placement Warrants are identical to the Public Warrants, except that the Private Placement Warrants and the shares of Class A common stock issuable upon exercise of the Private Placement Warrants will not be transferable, assignable or salable until the completion of a Business Combination, subject to certain limited exceptions. Additionally, except as set forth below, the Private Placement Warrants will be non-redeemable so long as they are held by the Sponsor, the underwriters or their permitted transferees. If the Private Placement Warrants are held by someone other than the Sponsor, the underwriters or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

***Redemption of warrants****.* Once the warrants become exercisable, the Company may redeem the outstanding warrants for cash (except as described herein with respect to the Private Placement Warrants):

● in whole and not in part;

● at a price of $0.01 per warrant;

● upon a minimum of 30 days' prior written notice of redemption; and

● if, and only if, the closing price of Class A common stock equals or exceeds $18.00 per share (as adjusted) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders.

**NOTE 7 – EARNOUT SHARES AND SPONSOR EARNOUT SHARES**

The stockholders of Alpha Modus, Corp. may be issued up to 2,200,000 additional shares of Company common stock (the "Earnout Shares"). The Earnout Shares will be earned and issued in one-third (1/3) increments (of approximately 733,333 shares) if, for any twenty (20) trading days within any thirty (30)-consecutive trading day period beginning at least 180 days after the Closing and on or prior to the 5-year anniversary of the Closing, the VWAP of the Company's common stock equals or exceeds $13.00 per share, $15.00 per share and $18.00 per share (as equitably adjusted for stock splits, stock dividends, combinations, recapitalizations and the like after the Closing), respectively, with all remaining Earnout Shares earned and issued upon certain changes of control of the Company at or prior to the 5-year anniversary of the Closing.

Additionally, at the Closing, the Company's sponsor, Insight Acquisition Sponsor LLC (the "Sponsor") was required to deposit 750,000 shares of Company common stock into escrow (the "Sponsor Earnout Shares"), and the Sponsor Earnout Shares will be released to the Sponsor according to the same milestones and timelines applicable to the Earnout Shares described above (earned and issued in one-third (1/3) increments of approximately 250,000 shares).

"Closing Share Price" means, for any security as of any date(s), the dollar volume-weighted average price for such security on the principal securities exchange or securities market on which such security is then traded during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg through its "HP" function (set to weighted average) or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time and ending at 4:00:00 p.m., New York time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported by OTC Markets Group Inc. If the Closing Share Price cannot be calculated for such security on such date(s) on any of the foregoing bases, the Closing Share Price of such security on such date(s) shall be the fair market value per share on such date(s) as reasonably determined by the Company.

If the condition for more than one Milestone is achieved, the Company Earnout Shares to be issued in connection with such Milestone shall be cumulative with any Company Earnout Shares earned prior to such time and the Escrowed Sponsor Shares to be released from escrow to Sponsor shall be cumulative with any Escrowed Sponsor Shares released prior to such time in connection with the achievement of any other Milestone; provided that, for the avoidance of doubt, the Company Earnout Shares in respect of each Milestone will be issued and earned only once and the aggregate Company Earnout Shares issued shall in no event exceed 2,200,000 shares of Class A Common Stock.

If, at or following the 5-year anniversary of the Closing Date, the $13.00 Share Price Milestone, $15.00 Share Price Milestone and/or the $18.00 Share Price Milestone have not occurred, none of the Earnout Shares that related to that particular Milestone shall be issued, and the Escrowed Sponsor Shares that have not been released from escrow to Sponsor shall automatically without further action be forfeited and deemed cancelled.

In the event that after the Closing and prior the 5-year anniversary of the Closing Date, there is a Change of Control, the $13.00 Share Price Milestone, $15.00 Share Price Milestone, and/or the $18.00 Share Price Milestone, as applicable, shall be deemed to have occurred to the extent any such Milestone has not been achieved prior to the date of such Change of Control. For purposes hereof, a "Change of Control" means the occurrence in a single transaction or as a result of a series of related transactions, of one or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;a) any
 person or any group of persons acting together which would constitute a "group" for purposes of Section 13(d) of the
 Exchange Act or any successor provisions thereto (a "Group") (excluding a corporation or other entity owned, directly
 or indirectly, by the stockholders in substantially the same proportions as their ownership of stock of IAC) (x) is or becomes the
 beneficial owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of
 then outstanding voting securities or (y) has or acquires control of the Board;

b) a
 merger, consolidation, reorganization or similar business combination transaction involving the Company, and, immediately after the
 consummation of such transaction or series of transactions, either (x) the Board immediately prior to the merger or consolidation
 does not constitute at least a majority of the board of directors of the company surviving the merger or, if the surviving company
 is a Subsidiary, the ultimate parent thereof, or (y) the voting securities of the Company immediately prior to such merger or consolidation
 do not continue to represent or are not converted into more than 50% of the combined voting power of the then outstanding voting
 securities of the person resulting from such transaction or series of transactions or, if the surviving company is a Subsidiary,
 the ultimate parent thereof; or

c) the
 sale, lease or other disposition, directly or indirectly, by the Company of all or substantially all of the assets of the Company
 and its Subsidiaries, taken as a whole, other than such sale, lease or other disposition of all or substantially all of the assets
 of the Company and its Subsidiaries, taken as a whole, to an entity at least a majority of the combined voting power of the voting
 securities of which are owned, directly or indirectly, by stockholders of the Company.

If the Company shall, at any time or from time to time, after the date hereof effect a subdivision, stock split, stock dividend, reorganization, combination, recapitalization or similar transaction affecting the outstanding shares of Class A Common Stock, the number of Earnout Shares issuable hereunder (and the number of Escrowed Sponsor Shares to be released), and the stock price targets set forth above shall be equitably adjusted for such subdivision, stock split, stock dividend, reorganization, combination, recapitalization or similar transaction. Any adjustment under this paragraph shall become effective at the close of business on the date the subdivision or combination becomes effective (which shall be the "ex" date, if any, with respect to any such event).

**NOTE 8 – FAIR VALUE MEASUREMENTS**

The following table present information about the Company's liabilities that are measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024 and indicate the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value:

The fair value of financial instruments on June 30, 2025 are summarized below:

SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS

---

| | | | |
|:---|:---|:---|:---|
| **Description** | **Quoted Prices in Active Markets (Level 1)** | **Significant Other Observable Inputs (Level 2)** | **Significant Other Unobservable Inputs (Level 3)** |
| **Liabilities:** |  |  |  |
| Derivative liabilities-public warrants | $- | $- | $1332000 |
| Derivative liabilities-private warrants | $- | $- | $965700 |
| Derivative liabilities-earnout shares | $- | $- | $872 |
| Derivative liabilities-sponsor earnout shares | $- | $- | $297 |
| Total | $- | $- | $2298869 |
| **Mezzanine Equity:** |  |  |  |
| Series C preferred stock | $- | $- | $41170508 |

---

The fair value of financial instruments on December 31, 2024 are summarized below:

---

| | | | |
|:---|:---|:---|:---|
| **Description** | **Quoted Prices in**<br> **Active Markets**<br> **(Level 1)** | **Significant Other**<br> **Observable Inputs**<br> **(Level 2)** | **Significant Other**<br> **Unobservable Inputs**<br> **(Level 3)** |
| **Liabilities:** |  |  |  |
| Derivative liabilities-public warrants | $- | $- | $1020000 |
| Derivative liabilities-private warrants | $- | $- | $930053 |
| Derivative liabilities-earnout shares | $- | $- | $785351 |
| Derivative liabilities-sponsor earnout shares | $- | $- | $267733 |
| Total | $- | $- | $3003137 |
| **Mezzanine Equity:** |  |  |  |
| Series C preferred stock | $- | $- | $71809025 |

---

The initial and subsequent fair values of the Public Warrants issued in connection with the Initial Public Offering and the fair value of the Private Placement Warrants have been estimated using a Black-Scholes model. For the six months ended June 30, 2025 and 2024, the Company recognized a loss to the statement of operations resulting from an increase in the fair value of warrant liabilities of $347,647 and $0, respectively, presented as change in fair value of derivative warrant liabilities on the accompanying consolidated statements of operations.

The following table provides quantitative information regarding Level 3 fair value measurements inputs at their measurement dates: June 30, 2025 and December 31, 2024:

SCHEDULE OF QUANTITATIVE INFORMATION REGARDING LEVEL 3 FAIR VALUE MEASUREMENTS INPUTS

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Exercise price | $11.50 | $11.50 |
| Stock price | $1.14 | $3.00 |
| Public warrant price | $0.1110 | $0.085 |
| Volatility | N/A | 33.50% |
| Risk-free rate | 3.76% | 4.38% |
| Dividend yield | 0.00% | 0.00% |

---

The initial fair value of the Company Earnout Shares and the fair value of the Sponsor Earnout Shares have been estimated using a Monte Carlo simulation model. For the six months ended June 30, 2025 and 2024, the Company recognized a gain to the statement of operations resulting from a decrease in the fair value of liabilities of approximately $1,051,915 and $0, respectively, presented as change in fair value of derivative earnout shares and sponsor earnout shares liabilities on the accompanying consolidated statements of operations.

The following table provides quantitative information regarding Level 3 fair value measurements inputs at their measurement dates: June 30, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Stock price | $1.14 | $3.00 |
| Volatility | 26.70% | 33.50% |
| Risk-free rate | 3.76% | 4.38% |
| Dividend yield | 0.00% | 0.00% |

---

The initial fair value of the Series C Preferred Stock has been estimated using a Monte Carlo simulation model at the business combination date of December 13, 2024. For the year ended December 31, 2024, the Company recognized the fair value of the Series C Preferred Stock of approximately $71,809,025, presented as mezzanine equity on the accompanying consolidated balance sheets.

The following table provides quantitative information regarding Level 3 fair value measurements inputs at the measurement date: December 13, 2024:

SCHEDULE OF QUANTITATIVE INFORMATION REGARDING LEVEL 3 FAIR VALUE MEASUREMENTS INPUTS

---

| | |
|:---|:---|
|  | **December 13, 2024** |
| Stock price | $9.50 |
| Volatility | 26.50% |
| Risk-free rate | 4.25% |
| Dividend yield | 0.00% |

---

**NOTE 9 – MEZZANINE EQUITY**

**Series C Preferred Stock**

On December 13, 2024 as part of the business combination, the Company issued 7,500,000 shares of series C preferred stock to Legacy Alpha Modus shareholders in exchange for the same number of Legacy Alpha Modus' common stock. Management reviewed ASC 480, ASC 805, ASC 815, ASC 820 and ASC 825 to determine the proper treatment of the series C preferred shares. Management concluded that the series C preferred shares qualify as temporary equity under ASC 815; therefore, the Company will recognize the series C preferred shares within mezzanine equity in its balance sheet. In accordance with ASC 480, the series C preferred shares will be initially recorded and measured at fair value; however, when estimating the fair value of the series C preferred shares, the Company has followed the guidance in ASC 820, "Fair Value Measurement". Because Redemption is contingent upon the occurrence of certain events that have not been met, subsequent changes to the carrying value of the series C preferred shares will not be recognized until Redemption becomes probable of occurring.

In the consolidated financial statements, the series C preferred shares are being presented as being issued in 2023 when a Legacy Alpha Modus shareholder converted Legacy Alpha Modus series B preferred shares in preparation for the pending business combination. The consolidated financial statements reflect the 10 shares of series B preferred stock converting into 7,500,000 shares of series C preferred stock and 2,334,092 shares of class A common stock.

On June 30, 2025, the Company issued 26,079,868 shares of common stock for the conversion of 3,200,000 shares of preferred series C stock. These shares carrying value was $30,638,517, which was moved from mezzanine equity to shareholders' equity. As of June 30, 2025 and December 31, 2024, there were 4,300,000 and 7,500,000 shares of series C preferred stock issued and outstanding, respectively.

**NOTE 10 – STOCKHOLDERS' EQUITY**

 

*Preferred Stock*

The Amended and Restated Charter authorizes the issuance of 8,500,000 shares of preferred stock, 7,500,000 shares of which have been designated as Series C Redeemable Convertible Preferred Stock ("Series C Preferred Stock"), and 1,000,000 shares of which will be undesignated (see Note 9 – Mezzanine Equity).

The Series C Preferred Stock has the following rights:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. **Ranking**. The Series
 C Preferred Stock will rank senior to the IAC common stock and other classes of IAC preferred stock with respect to rights upon liquidation,
 winding up or dissolution.

II. **Voting**. Each share
 of Series C Preferred Stock shall entitle the holder to one vote on all matters submitted to the vote of IAC's shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. **Dividends**. The Series
 C Preferred Stock shall be treated pari passu with the IAC common stock except that the dividends per share payable on the Series
 C Preferred Stock shall equal the dividend per share declared on each share of IAC common stock multiplied by $10.00 (the "Face
 Value") and divided by the applicable Conversion Price (as defined below). "Conversion Price" means a price per
 share equal to the lesser of either the Face Value, or (a) if no Trigger Event (as defined below) has occurred, 100% of the average
 of the 5 lowest closing bid prices of the IAC common stock during the 10 days preceding the conversion notice date (the "Measurement
 Period"), not to exceed 100% of the lowest sales price on the last day of the Measurement Period, or (b) following any Trigger
 Event, 50.0% of the average of the lowest closing bid prices of the common stock during the Measurement Period, not to exceed 50.0%
 of the lowest sales price on the last day of such Measurement Period. "Trigger Event" generally means (a) a failure of
 a holder of Series C Preferred Stock to receive conversion shares when required or any agreement between IAC and the Series C Preferred
 Stockholder that is either (x) related to the payment of cash or delivery of conversion shares, or (y) curable, has not occurred
 before, and is not cured within 5 trading days of notice; (c) IAC's suspension from trading or delisting from its principal
 trading exchange or market; (d) notification of an intention for IAC or its transfer agent not to comply with a conversion notice;
 (e) IAC's bankruptcy, insolvency, reorganization, liquidation or similar proceedings; (f) the appointment of a custodian, receiver
 or similar official for IAC; (g) the entry of judgments against IAC in excess of $500,000 which are not stayed or satisfied within
 30 days of entry; (h) IAC's failure to comply with reporting requirements of Securities Exchange Act; (i) the initiation of
 any regulatory, administrative or enforcement proceeding against IAC; or (j) any material provision of the designation of the Series
 C Preferred Stock ceases to be valid or is contested.

IV. **Liquidation**. Upon
 any liquidation, dissolution or winding up of IAC, holders of Series C Preferred Stock shall be paid the Face Value per share, plus
 any accrued but unpaid dividends (the "Liquidation Value").

V. **Redemption**. IAC
 shall be obligated to pay holders the Liquidation Value to redeem the Series C Preferred Stock upon the occurrence of a Deemed Liquidation
 Event (as defined below) or Trigger Event (as defined below). "Deemed Liquidation Event" generally means (a) a merger
 or consolidation where IAC or a subsidiary is a party to the merger and IAC issues shares of stock (except for domicile mergers and
 mergers not constituting a change of control); (b) IAC issues convertible or equity securities that senior to the Series C Preferred
 Stock in any respect; (c) a holder does not receive conversion shares upon conversion of the Series C Preferred Stock within 5 trading
 days due to the occurrence of an event that is solely within the control of IAC; (d) trading of the common stock is halted or suspended
 for 10 or more consecutive trading days due to the occurrence of an event that is solely within the control of IAC; or (e) a sale
 or other disposition of substantially all the assets of IAC that is not approved by the holders of the Series C Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. **Conversion**. Shares
 of Series C Preferred Stock are not convertible until 18 months following Closing of the Business Combination so long as a Trigger
 Event has not occurred. Beginning 18 months following Closing of the Business Combination, or following the occurrence of a Trigger
 Event, shares of Series C Preferred Stock are convertible at election of the holder at the then-applicable Conversion Price.

 

*Common Stock*

**Class A Common Stock *-***The Company is authorized to issue 200,000,000 shares of Class A common stock with a par value of $0.0001 per share. As of June 30, 2025 and December 31, 2024, there were 40,622,274 and 12,455,252 shares of Class A common stock issued and outstanding, respectively.

On March 29, 2024, the Company issued 1,400,000 shares of Class A common stock to JanBella, a related party, as part of the note extension for the note that had matured on January 17, 2024. The shares of common stock were valued at $0.025 per share for a total value of $35,000. The Company recorded the charge of $35,000 as a debt discount and amortized $35,000 as debt discount interest expense during the year ended December 31, 2024.

On April 11, 2024, the Company entered into an agreement to retain Maxim Group LLC ("Maxim") to provide capital market advisory and investment banking services to the Company. The Company shall issue to Maxim (or its designees) an aggregate of 50,000 shares of Class A common stock, which shall be converted into shares of the surviving publicly traded entity (the "Capital Markets Advisory Fee Stock"). The Capital Markets Advisory Fee Stock issued to Maxim shall be registered in the Company's S-4 Registration Statement (in connection with the De-SPAC Transaction), unrestricted and freely tradeable. In connection with the closing of the De-SPAC Transaction, the Company shall pay to Maxim a non-refundable advisory fee of $300,000, payable upon the Company or its successor's first capital raise (including any self-directed capital raises) after the closing of the De-SPAC Transaction (the "Advisory Fee"). The 50,000 shares of common stock have been valued at $0.025 per share for a total value of $1,250.

On May 14, 2024, the Company entered into an agreement with Pickwick Capital Partners, LLC ("Pickwick"). The Company and Pickwick previously entered into a certain letter agreement dated March 7, 2023, pursuant to which Pickwick would provide the Company corporate finance and strategic advisory services, and would be compensated for those services (the "Letter Agreement"). During the term of the Letter Agreement, Pickwick introduced the Company to Insight Acquisition Corp., a special purpose acquisition company ("Insight"), and the Company and Insight have entered into a business combination agreement (the "Business Combination"), thereby entitling Pickwick to payment of a success fee under the Letter Agreement. This agreement determined the value of the success fee and method of payment. In accordance with this agreement, the Company issued 195,000 shares of Class A common stock to Pickwick. These shares were valued at $0.025 per share for a total value of $4,875.

On May 16, 2024, the Company entered into a subscription agreement with Polar Multi-Strategy Master Fund ("Polar"), in which Polar agreed to purchase 1,000,000 shares of Class A common stock for $25,000. These shares have been valued at $0.025 per share for a total value of $25,000. On December 12, 2024, the Company and Polar entered into a forfeiture agreement, in which, Polar agreed to surrender 850,000 shares of Class A common stock which were immediately cancelled by the Company.

On December 13, 2024, the Company issued 5,767,944 shares of class A common stock as part of the business combination agreement, which is being treated as a reverse recapitalization for accounting purposes. At this time, the Company recognized the fair value of the Series C preferred stock of $71,809,025 (see Note 8 – Fair Value Measurements and Note 9 – Mezzanine Equity). Also, as part of the business combination agreement, the Company issued 1,392,308 shares of Class A common stock to JanBella as a forbearance fee, since its note was not paid off as part of the business combination. These shares were valued at the market price of $9.50 per share for a total value of $13,226,926, which the Company recognized as a forbearance fee expense in the consolidated statements of operations.

On January 5, 2025, the Company issued 2,632 shares of Class A common stock to each of the four non-employee directors for the quarterly issuance set out in the director agreements. These shares were valued as of the closing price of the Company's common stock on January 3, 2025 at $2.51 per share. The Company recognized $28,425 in stock-based compensation expense.

On January 5, 2025, the Company issued 11,000 shares of Class A common stock to two individuals for services rendered as a bonus for their diligence and efforts with the merger. These shares were valued of the closing price of the Company's common stock on January 3, 2025 at $2.51 per share. The Company recognized $29,700 in stock-based compensation expense.

On or about April 30, 2025, the Company issued 1,250,000 shares of Class A common stock to Streeterville Capital, LLC as a financing incentive in association with the note amendment entered into by the lender and the Company. These shares were valued as of the closing price of the Company's common stock at $1.15 per share. Streeterville Capital, LLC paid $125 for these shares and the Company recognized $1,437,375 as a debt discount against the convertible note and will amortize the discount over the remaining life of the convertible note.

On or about April 30, 2025, the Company issued 15,690 shares of Class A common stock to each of the four non-employee directors for the quarterly issuance set out in the director agreements. These shares were valued as of the closing price of the Company's common stock on April 28, 2025 at $1.22 per share. The Company recognized $76,567 in stock-based compensation expense.

On or about April 30, 2025, the Company issued 39,266 shares of Class A common stock to the Company's Chief Revenue Officer, Thomas Gallagher, in consideration of his $62,500 quarterly fee pursuant to his employment agreement. These shares were valued as of the closing price of the Company's common stock on April 28, 2025 at $1.22 per share. The Company recognized $47,905 in stock-based compensation expense.

On May 27, 2025, the Company entered into an exchange agreement (the "Exchange Agreement") with four family trusts of the Company's CEO, William Alessi, pursuant to which the trusts would exchange an aggregate of 3,200,000 shares of Series C Preferred Stock (800,000 shares held in the name of The WRA 2023 Irrevocable Trust, 800,000 shares held in the name of The Janet Alessi 2023 Irrevocable Trust, 800,000 shares held in the name of The Isabella Alessi 2023 Irrevocable Trust, and 800,000 shares held in the name of The Kim Alessi Richter Irrevocable Trust, all of which are deemed to be beneficially owned by Mr. Alessi as Mr. Alessi's spouse is the trustee of each of the trusts) for an aggregate of 26,079,868 shares of Class A common stock (with each of the trusts being issued 6,519,967 shares of common stock). In the Exchange Agreement, each of the trusts agreed not to sell or otherwise transfer the shares of common stock to be received in the exchange until June 13, 2026 (except for permitted transfers to an affiliate). On or about June 29, 2025, the trusts' preferred shares were cancelled, and 26,079,868 shares of Class A common stock were issued to the trusts. These shares carrying value was $30,638,517, which was moved from mezzanine equity to shareholders' equity.

On May 29, 2025, the Company issued 613,600 shares of Class A common stock to Streeterville Capital, LLC pursuant to its partial conversion of the Note issued by the Company to Streeterville Capital, LLC on or about December 13, 2024, described above. The lender converted $767,000 in principal and accrued interest.

On June 11, 2025, the Company issued 100,000 shares of Class A common stock to Streeterville Capital, LLC pursuant to its partial conversion of the Note issued by the Company to Streeterville Capital, LLC on or about December 13, 2024, described above. The lender converted $125,000 in principal and accrued interest.

**Class B Common Stock *-*** The Company is authorized to issue 20,000,000 shares of Class B common stock with a par value of $0.0001 per share. As of June 30, 2025 and December 31, 2024, there were zero shares of Class B common stock issued and outstanding.

Common stockholders of record are entitled to one vote for each share held on all matters to be voted on by stockholders. Holders of Class B common stock and holders of Class A common stock will vote together as a single class, except as required by applicable law or stock exchange rule.

**NOTE 11 – SEGMENT INFORMATION**

The Company operates as one operating segment. The Company's chief operating decision maker ("CODM") is its chief executive officers, who review financial information presented on a consolidated basis. The CODM uses consolidated operating margin and net income (loss) to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the allocation of budget between cost of revenues, sales and marketing, professional fees, and general and administrative expenses.

The following table presents selected financial information with respect to the Company's single operating segment for the three and six months ended June 30, 2025 and 2024:

SCHEDULE OF FINANCIAL INFORMATION

---

| | | |
|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** |
| Revenue | $- | $- |
| Operating expenses |  |  |
| General and administrative expenses | 623155 | 48107 |
| Professional fees | 525655 | 72446 |
| Total operating expenses | 1148810 | 120553 |
| Operating loss | (1148810) | (120553) |
| Operating margin | -100% | -100% |
| Other income (expenses) |  |  |
| Patent infringement income | 13096 |  |
| Interest income |  | 4 |
| Change in fair value of earnout shares liability | 12633 |  |
| Change in fair value of warrants liability | (581842) |  |
| Loss on settlement of debt | (598324) |  |
| Interest expense | (483815) | (66488) |
| Total other income (expense) | (1638252) | (66484) |
| Income (loss) before income tax expense | (2787062) | (187037) |
| Income tax expense | - | - |
| Net income (loss) | $(2787062) | $(187037) |

---

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** |
| Revenue | $- | $- |
| Operating expenses |  |  |
| General and administrative expenses | 1690225 | 124627 |
| Professional fees | 817786 | 186837 |
| Total operating expenses | 2508011 | 311464 |
| Operating loss | (2508011) | (311464) |
| Operating margin | -100% | -100% |
| Other income (expenses) |  |  |
| Patent infringement income | 13096 |  |
| Interest income | 6 | 5 |
| Change in fair value of earnout shares liability | 1051915 |  |
| Change in fair value of warrants liability | (347647) |  |
| Loss on settlement of debt | (598324) |  |
| Interest expense | (706178) | (98274) |
| Total other income (expense) | (587132) | (98269) |
| Income (loss) before income tax expense | (3095143) | (409733) |
| Income tax expense | - | - |
| Net income (loss) | $(3095143) | $(409733) |

---

The Company's had $7,500 and $0 in long-lived tangible assets as of June 30, 2025 and December 31, 2024, respectively.

**NOTE 12 – COMMITMENTS AND CONTINGENCIES**

The Company is subject, from time to time, to claims by third parties under various legal disputes. The defense of such claims, or any adverse outcome relating to any such claims, could have a material adverse effect on the Company's liquidity, financial condition and cash flows.

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company's management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company's legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.

**NOTE 13 – SUBSEQUENT EVENTS**

The Company has evaluated subsequent events through the date the financial statements were issued. The Company has determined that there are no other such events that warrant disclosure or recognition in the financial statements, except as noted below.

On July 10, 2025, the Company and the Alessi 2023 Irrevocable Trust, which is controlled by Alessi, entered into a convertible promissory note in the aggregate principal amount of $2,142,857 (the "Note"). The Note bears interest of 8% and matures on April 30, 2026. The Note carries an original interest discount ("OID") of $642,857. The Company received $1,500,000 in cash. The principal balance may be repaid at any time. The note's conversion price shall mean $5.00.

On July 16, 2025, the Company issued 21,113 shares of Class A common stock to each of the four non-employee directors for the quarterly issuance set out in the director agreements.

On July 16, 2025, the Company issued 52,832 shares of Class A common stock to the Company's Chief Revenue Officer, Thomas Gallagher, in consideration of his $62,500 quarterly fee pursuant to his employment agreement.

On July 16, 2025, the Company issued 25,000 shares of Class A common stock to an individual for services rendered to the Company.

On July 16, 2025, the Company issued 1,000 shares of Class A common stock to a sales consultant for sales services rendered during the second quarter.

On July 17, 2025, the Company issued 138,000 shares of Class A common stock to the Nancy Helen Wallace and Gerard Haase-Dubosc Family Trust, a third-party lender to the Company, in partial settlement of the $500,000 promissory note owed to the lender.

On July 21, 2025, CashX and CashX, LLC (collectively "CashX") entered into a new license agreement with the Company, pursuant to which Cash X granted the Company an exclusive, perpetual, and irrevocable license to use CashX's mobile application, kiosk application, back office application and prepaid card to sell related products in the United States, the Company agreed to pay CashX $1,000 initially, and issue CashX $10,000,000 of the Company's common stock (valued based on the closing of the Company's common stock on July 21, 2025) upon the Company generating either (i) at least $1,000,000 in earnings before interest, taxes, and depreciation from the sale of licensed products resulting exclusively from CashX's efforts, or (ii) at least $5,000,000 in gross revenues from the sale of the licensed products resulting exclusively from CashX's efforts, and subject to the Company obtaining shareholder approval of such issuance (such that no more than 19.99% of the Company's common stock shall be issuable to CashX prior to receipt of shareholder approval). Under the license agreement, the Company is also obligated to employ its best its best efforts to (i) secure general operating capital until the Company is cash flow positive, and (ii) spend a minimum of $500,000 up to a maximum of $2,000,000 over 24 months to use the licensed intellectual property to make, have made, use, offer to sell, sell, and import licensed products. As part of this investment, the Company shall make an initial investment of $250,000 payable to CashX structured as follows: (i) $50,000 payable upon the commercial release of the CashX mobile application, (ii) $100,000 payable upon certification of the "Deltrix" kiosk and confirmation that all associated services are functional and operating as intended, and (iii) $100,000 payable upon certification of the "Genmega" kiosk and confirmation that all associated services are functional and operating as intended. The remaining investment, up to the $2,000,000 maximum aggregate commitment, and satisfaction of the other material conditions agreed to by the parties, shall be considered satisfied upon the effectiveness of a registration statement covering an offering of Company common stock in an amount not less than $2,000,000.

During July 2025, the Company issued 2,286,400 shares of Class A common stock to Streeterville Capital, LLC pursuant to five conversion notices for $2,858,000 in principal and accrued interest on the Note entered into on December 13, 2024, as further described in Note 4. The remaining Note balance of $11,312 following the conversions was paid in cash to Streeterville Capital, LLC, fully satisfying the Note. On or about July 25, 2025, the Company repurchased the 1,250,000 Pre-Delivery Shares from Streeterville Capital, LLC for $125, and on or about August 6, 2025, the Pre-Delivery Shares were returned to the Company and cancelled.

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

 

*References to the "Company," "Alpha Modus Holdings, Inc.," "Alpha Modus," "our," "us" or "we" refer to Alpha Modus Holdings, Inc. The following discussion and analysis of the Company's financial condition and results of operations should be read in conjunction with the unaudited interim consolidated financial statements and the notes thereto contained elsewhere in this report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.*

**Cautionary Note Regarding Forward-Looking Statements**

Some of the statements contained in this Quarterly Report on Form 10-Q may constitute "forward-looking statements" for purposes of the federal securities laws. Our forward-looking statements include, but are not limited to, statements regarding our or our management team's expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "will," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this Quarterly Report on Form 10-Q are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

**Company Background**

 ****

The Company was a blank check company known as "Insight Acquisition Corp." On December 13, 2024, the Company completed a business combination with Alpha Modus, Corp., a Florida corporation. At closing of the business combination, the Company's name was changed to "Alpha Modus Holdings, Inc.," and the Company's operations are now those of Alpha Modus, Corp.

Alpha Modus offers technology as a service, with the goal of revolutionizing the retail industry with smart technology. Its core technologies were previously deployed on IBM's Bluemix platform and earned a Beacon Award by IBM 2016 for Best New Application on IBM Cloud from an Entrepreneur. Alpha Modus has been recognized by IBM Watson as a thought leader in technology. As technological innovation is at the core of the company, Alpha Modus has developed comprehensive end-to-end patented solutions for retailers and consumer brands to bring innovation to consumers and enhance their experience at the point of sale.

**Vision & Mission**

The Alpha Modus technology ecosystem aims to be the engine behind the most transformative retail and digital commerce experiences globally. Alpha Modus is focused on (i) empowering innovation through a scalable, IP-driven platform to deliver transformative retail and digital commerce experiences, (ii) combining technology, services and strategic partnerships to provide a comprehensive ecosystem to drive growth, and (iii) enabling IP-powered innovation across retail, digital engagement, and connected commerce, leveraging its diverse patent portfolio to unlock new opportunities.

**Market Dynamics**

There was approximately $62.35 billion U.S. retail media advertising spend in 2025, which is projected to surpass $97 billion in 2028 (eMarketer, Jan 29, 2025, https://www.emarketer.com/content/retail-media-forecast-report-update). Approximately $3.8 trillion in digitally influenced U.S. retail sales are expected in 2027, with 75% of in-store sales tied to digital engagement (Profitero+, June 17, 2025, https://www.profitero.com/blog/digitally-influenced-sales-phrase-that-unlocks-buyin-budget-for-ecommerce-leader). 53% of retailers deploy AI-powered signage, kiosks, & in-store targeting (NVIDIA, https://images.nvidia.com/aem-dam/Solutions/documents/retail-state-of-ai-report.pdf). Financial service kiosks for the underbanked are growing at approximately 16% CAGR (2025-2030) (Grand View Research, https://www.grandviewresearch.com/industry-analysis/bank-kiosk-market). AI personalization will influence approximately $1.3 trillion in retail spend by 2025 (Qualtrics, March 18, 2025 https://www.qualtrics.com/news/qualtrics-report-executives-are-hesitant-to-lead-in-ai-transformation-putting-up-to-1-3-trillion-at-risk/).

**Ecosystem Overview**

The Alpha Modus ecosystem is an intellectual property-driven environment that combines patented technologies, service infrastructure, and strategic partnerships to power scalable, defensible innovation across retail, digital engagement, and connected commerce. This ecosystem enables IP-powered innovation by integrating a robust patent portfolio with flexible licensing, a comprehensive service suite, and a growing partner network. Alpha Modus services are targeted to solution design, support and maintenance, installation and monitoring, call center support, data analytics, and strategy and planning to optimize AI retail applications. Alpha Modus's software and technological solutions are focused on AI/machine learning, mobile applications, retail management, customer loyalty, and strategy and planning to enhance retail experiences. Alpha Modus's hardware and infrastructure solutions are focused on tablets and displays, kiosks, and mobile devices as essential hardware components supporting AI retail technologies and customer engagement.

**Competitive Advantage**

Alpha Modus collaborates with retail technology and service providers to expand market reach and capabilities. The Company's strategic alliances enable integration of diverse technologies and service offerings, and these partnerships enhance scalability and reduce friction in technology deployment.

Additionally, the Company's robust intellectual property portfolio includes method patents across retail numerous retail use cases. Patents create defensible market positions and unlock ecosystem advantage. Alpha Modus's technology ecosystem is designed to empower retail technologies into a unified scalable environment. Alpha Modus' patent portfolio forms the backbone of its IP-driven ecosystem, covering core methods that power many of today's AI applications in brick-and-mortar retail—such as smart kiosks, dynamic displays, targeted promotions, consumer analytics, and immersive in-store engagement.

Key AI-based focus areas of the Company's technology include the following:

● Real-Time Inventory Management – Alert sales associates, managers, distributors or brands immediately when inventory is low or out of stock. Help prevent lost sales and improves customer satisfaction by maintaining inventory control in brick-and-mortar and at the point of purchase.

● Ads Based on Real-Time Customer Data – Serve customized ads or product information in real time based on customer demographic metadata such as age, gender, and emotions. Incorporate third party external data such as geo-location, weather, and events to tailor ads dynamically. Enhance customer engagement by providing relevant and timely information at the point of sale.

● Customer Assistance Alerts (Shrinkage/Theft Prevention) – Real-time alerts to sales associates for customers needing assistance or suspicious activities at self-checkout, improving customer satisfaction and reducing loss through proactive theft prevention.

● Smart Planograms – Using in-store data such as dwell time and foot traffic, AI determines optimal display layouts and product placements, improving store flow and increasing sales opportunities.

● Driving Traffic into Brick-and-Mortar Retail – Stores and brands can leverage customer metadata such as search history, voice, age, gender, and location to send targeted ads for in-store purchases. This customization improves the shopper's experience by delivering relevant promotions and product recommendations directly at the point of purchase.

● AI-Generated Ads – Not all ads fit every customer, but brands can use customer data and images to generate targeted and customized ads at the point of purchase. This approach is targeted to enhance the customer experience and drive improved sales by showing the right message to the right audience at the right time.

**Recent Developments**

On January 11, 2024, Alpha Modus entered into a license agreement with GZ6G Technologies Corp. ("GZ6G"), which gives GZ6G the right to use Alpha Modus' patented intellectual property, and pertains to GZ6G's promotional, advertising, and operational functions, including co-development arrangements with Alpha Modus for AI-driven advertising solutions for stadiums and event management. Alpha Modus intends to deploy services under the license by the end of 2024, expand event venue service offerings in late 2025, and expand service offerings in additional industries in 2024.

On January 16, 2024, Alpha Modus initiated a patent infringement action against The Kroger Company alleging patent infringement of several Alpha Modus patents encompassing retail marketing and advertising data-driven technologies to enhance consumer's in-store experience at the point of decision, which action has since been settled. On November 12, 2024, Alpha Modus initiated a patent infringement lawsuit against Brookshire Grocery Co. alleging infringement of several Alpha Modus patents pertaining to its '571 patent portfolio, '825 patent portfolio, '672 patent portfolio, '890 patent portfolio and '880 patent portfolio, which encompass retail marketing and advertising data-driven technologies to enhance consumers' in-store experience at the point of decision. On December 17, 2024, Alpha Modus filed a similar patent infringement lawsuit against Wakefern Food Corporation and Shelf Nine LLC (which has since been settled). On February 3, 2025, Alpha Modus filed a patent infringement lawsuit against Walgreen Co. On April 15, 2025, Alpha Modus filed a patent infringement lawsuit against Optisigns, Inc.

On April 10, 2024, Alpha Modus entered into a license agreement with Xalles Holdings Inc. and its subsidiary, CashXAI Inc. ("CashX"), which gives CashX the exclusive right to use all of Alpha Modus's patented intellectual property in connection with CashX's promotional, advertising, and operational functions, including co-development arrangements with Alpha Modus, within the Exclusive Industry. The "Exclusive Industry" means the industry relating to self-service kiosks located in retail food, drug and convenience stores for the purpose of serving Unbanked and Underbanked consumers, by offering banking, phone and insurance solutions to the consumer. An "Unbanked" consumer means a person that does not have a checking or savings account with an FDIC-insured institution, and an "Underbanked" consumer means a person that has or had a checking or savings account with an FDIC-insured institution, but regularly uses non-traditional banks such as Venmo or the Cash App, or lenders such as a check cashing company or payday lender. Alpha Modus intends to immediately deploy services under the license.

On July 21, 2025, CashX and CashX, LLC (collectively "CashX") entered into a new license agreement with Alpha Modus, pursuant to which Cash X granted Alpha Modus an exclusive, perpetual, and irrevocable license to use CashX's mobile application, kiosk application, back office application and prepaid card to sell related products in the United States, Alpha Modus agreed to pay CashX $1,000 initially, and issue CashX $10,000,000 of Alpha Modus's common stock (valued based on the closing of the Company's common stock on July 21, 2025) upon Alpha Modus generating either (i) at least $1,000,000 in earnings before interest, taxes, and depreciation from the sale of licensed products resulting exclusively from CashX's efforts, or (ii) at least $5,000,000 in gross revenues from the sale of the licensed products resulting exclusively from CashX's efforts, and subject to Alpha Modus obtaining shareholder approval of such issuance (such that no more than 19.99% of Alpha Modus's common stock shall be issuable to CashX prior to receipt of shareholder approval). Under the license agreement, Alpha Modus is also obligated to employ its best its best efforts to (i) secure general operating capital until Alpha Modus is cash flow positive, and (ii) spend a minimum of $500,000 up to a maximum of $2,000,000 over 24 months to use the licensed intellectual property to make, have made, use, offer to sell, sell, and import licensed products. As part of this investment, Alpha Modus shall make an initial investment of $250,000 payable to CashX structured as follows: (i) $50,000 payable upon the commercial release of the CashX mobile application, (ii) $100,000 payable upon certification of the "Deltrix" kiosk and confirmation that all associated services are functional and operating as intended, and (iii) $100,000 payable upon certification of the "Genmega" kiosk and confirmation that all associated services are functional and operating as intended. The remaining investment, up to the $2,000,000 maximum aggregate commitment, and satisfaction of the other material conditions agreed to by the parties, shall be considered satisfied upon the effectiveness of a registration statement covering an offering of Alpha Modus common stock in an amount not less than $2,000,000.

Alpha Modus's CashX strategic alliance is focused on providing services to the underbanked via kiosks placed in retail locations, as well as a mobile application. The Company is targeting a national deployment of kiosks and a mobile application to support underbanked populations. Services include check cashing, money transfer and bill payments. Additional offerings such as gift cards, event tickets, and mobile top ups are anticipated. Comprehensive setup, installation, maintenance, and ongoing support of kiosks is anticipated to ensure service reliability.

Alpha Modus's strategic alliance with VSBLTY is focused on the use of data and AI in retail settings to enhance the customer experience. VSBLTY offerings include the following: VisionCaptor™ uses artificial intelligence and machine learning to deliver targeted display content at the point of purchase. DataCaptor™ leverages camera and sensor technology through AI tools, enabling real-time analytics and anonymous audience data based on who and what the camera sees. VSBLTY Metrics offers industry-leading measurement that can validate media impressions at the point of sale.

Alpha Modus intends to continue its intellectual property licensing and enforcement efforts throughout 2025. No assurances can be given that any of these plans will come to fruition or that, if implemented, they will necessarily yield positive results.

Although Alpha Modus' audited financial statements for the years ended December 31, 2024 and 2023, were prepared under the assumption that it would continue operations as a going concern, the report of its independent registered public accounting firm that accompanies its financial statements for the years ended December 31, 2024 and 2023, contains a going concern qualification in which such firm expressed substantial doubt about Alpha Modus' ability to continue as a going concern, based on its financial statements and results at that time, including its lack of current revenues, recurring losses from operations and net capital deficiency.

**Business Combination**

The Company was originally incorporated in Delaware on April 20, 2021, as a special purpose acquisition company under the name "Insight Acquisition Corp." ("INAQ").

On October 13, 2023, the Company and Alpha Modus, Corp. entered into the Business Combination Agreement, which was subsequently amended on June 21, 2024. Pursuant to the Business Combination Agreement, as amended, Alpha Modus, Corp., and the Company agreed that (i) each share of Alpha Modus, Corp. common stock (other than those properly exercising any applicable appraisal rights under applicable law) would be converted into (A) one share of Company common stock, and (B) the contingent right to receive a pro rata portion of the Earnout Shares (as defined below) (which may be zero); and (iii) each share of Alpha Modus, Corp. preferred stock (other than those properly exercising any applicable appraisal rights under applicable law) would be converted into (A) one share of Company Series C Preferred Stock, and (B) the contingent right to receive a pro rata portion of the Earnout Shares (as defined below) (which may be zero) (collectively the "Merger Consideration").

The stockholders of Alpha Modus, Corp. may be issued up to 2,200,000 additional shares of Company common stock (the "Earnout Shares"). The Earnout Shares will be earned and issued in one-third (1/3) increments (of approximately 733,333 shares) if, for any twenty (20) trading days within any thirty (30)-consecutive trading day period beginning at least 180 days after the Closing and on or prior to the 5-year anniversary of the Closing, the VWAP of the Company's common stock equals or exceeds $13.00 per share, $15.00 per share and $18.00 per share (as equitably adjusted for stock splits, stock dividends, combinations, recapitalizations and the like after the Closing), respectively, with all remaining Earnout Shares earned and issued upon certain changes of control of IAC at or prior to the 5-year anniversary of the Closing.

Additionally, at the Closing, the Company's sponsor, Insight Acquisition Sponsor LLC (the "Sponsor") was required to deposit 750,000 shares of Company common stock into escrow (the "Sponsor Earnout Shares"), and the Sponsor Earnout Shares will be released to the Sponsor according to the same milestones and timelines applicable to the Earnout Shares described above. Additionally, the Company and the Sponsor agreed that the Sponsor will forfeit and cancel 750,000 shares of Company common stock at Closing. Finally, at the Closing, (i) the Company will to use its best efforts to pay off the Company's loan(s) from Polar Multi-Strategy Master Fund ("Polar") (expected to be approximately $975,000 at Closing), (ii) the Company will use its best efforts to pay Alpha Modus, Corp.'s loans from Janbella Group, LLC ("Janbella") (expected to be approximately $1,400,000 at Closing), (iii) the Company will issue to Janbella 1,392,308 shares of Company common stock, (iv) the Company will issue to Michael Singer 125,000 shares of Company common stock, (v) the Company will issue to Cantor Fitzgerald & Co. ("Cantor") 210,000 shares of Company common stock, and (vi) the Company will issue to Odeon Capital Group, LLC ("Odeon") 90,000 shares of Company common stock.

Cantor, the representative of the underwriters in the Company's original IPO in September 2021, was entitled to a deferred underwriting commission upon the closing of the Business Combination of $6,600,000, which amount was not subject to change based on redemption levels. On June 20, 2024, Cantor and Odeon entered into fee modification agreements with the Company pursuant to which (i) Cantor would be issued 210,000 shares of Company common stock and Odeon would be issued 90,000 shares of Company common stock at the closing of the Business Combination, and (ii) Cantor and Odeon would waive the right to any further underwriting commissions or other payments by the Company under its Underwriting Agreement with them, subject to the other terms of those fee modification agreements.

On October 29, 2024, Company stockholders approved the Business Combination and other transactions and proposal presented within the proxy statement/prospectus in connection with Business Combination transactions.

**Financing in Connection with Business Combination**

On October 23, 2024, the Company entered into a securities purchase agreement (the "SPA") with Streeterville Capital, LLC (the "Investor"), pursuant to which the Company would sell, and the Investor would purchase, a secured convertible promissory note in the original principal amount of $2,890,000 (the "Note") for a net purchase price of $2,600,000 (after deducting an original issue discount of $260,000, and payment of $30,000 for the Investor's legal, accounting, due diligence, asset monitoring, and other transaction expenses).

The SPA included customary representations, warranties and covenants by the Company and customary closing conditions. The SPA grants the Investor (i) the right to fund up to an additional $5,000,000 to the Company, with the Company's consent, through the date that is six months following repayment of the Note in full (the "Reinvestment Right"), and (ii) the exclusive right, on customary market terms, to enter into an equity line of credit or other similar financing arrangement with the Company for at least $20,000,000, through the date that is one year following the Purchase Price Date (defined below). Pursuant the SPA, Alpha Modus, Corp. was required to guarantee all of the Company's obligations under the Note and related transaction documents pursuant to a guaranty agreement (the "Guaranty"), and the Note will also be secured by security agreements (the "Security Agreements") by and between the Investor and both the Company and Alpha Modus, Corp., granting the Investor first priority security interests in all assets of the Company, as well as all assets of Alpha Modus, Corp., including all of Alpha Modus' intellectual property (and including Alpha Modus' patent portfolio) pursuant to a separate intellectual property security agreement (the "IP Security Agreement"). Additionally, the Company and Alpha Modus (collectively the "Borrowers"), and William Alessi, his entity, Janbella Group, LLC, and the trusts deemed to be beneficially owned by Mr. Alessi (each a "Capital Party" and collectively the "Capital Parties"), were required to execute at closing a subordination and voting agreement (the "Subordination Agreement") pursuant to which (i) all of the Borrowers' indebtedness and obligations to each Capital Party were subordinated to Investor, (ii) all security interests of any Capital Party were subordinate to Investor's security interests, (iii) the Borrowers would not make any payments to any Capital Party, (iv) none of the Capital Parties would accelerate any subordinated debt or equity, (v) and no Capital Party would convert or exchange their preferred stock of the Company into Common Stock, until such time as the Investor had been fully paid and all financing agreements between the Investor and the Borrowers were terminated.

The Note matured 18 months following the date the purchase price is delivered to the Company (the "Purchase Price Date"), accrued interest of 10% per annum, was prepayable (after providing five trading days' notice) at a 20% premium to the then-outstanding balance of the Note, and was convertible into Class A common stock ("Common Stock") of the Company as described below. Within 30 days of the Purchase Price Date, the Company was obligated to file a registration statement on Form S-1 with the SEC registering a number of shares of Common Stock issuable upon conversion of the Note, and such registration statement was filed as described below.

The Note was convertible at the election of the Investor into shares of Common Stock at any time following the earlier of the effective date of the registration statement described above or one year following the Purchase Price Date, at a conversion price equal to 90% multiplied by the lowest daily volume-weighted average price during the five trading days preceding conversion, and provided that (i) the Investor may not convert the Note into shares of Common Stock to the extent that such conversion would result in the Investor's beneficial ownership of Common Stock being in excess of 4.99% (or 9.99% if the Company's market capitalization is less than $10 million), and provided that (ii) the Note is not convertible into a total cumulative number of shares of Common Stock in excess of the number of shares of Common Stock permitted by Nasdaq Listing Rule 5635 (the "Exchange Cap"). Pursuant to the terms of the Note, the Company was required to, within 120 days of the Purchase Price Date, seek shareholder approval of the Note and the issuance of shares of Common Stock, issuable upon conversion of the Note and pursuant to the Reinvestment Right, in excess of the Exchange Cap (the "Shareholder Approvals"). If such shareholder approval is not obtained within 120 days, the Company was required to continue to seek shareholder approval every three months thereafter until shareholder approval is obtained. Pursuant to the Subordination Agreement, each Capital Party was required to vote all of their shares of Company stock in favor of the Shareholder Approvals. Under the SPA, the Company was required to initially reserve 7,500,000 shares of its Common Stock for issuance to the Investor under the Note, and the Company was required to add additional shares to the reserve in increments of 100,000 shares when requested by the Investor if at the time of the request the number of shares being held in reserve is less than three times the number of shares of Common Stock equal to the outstanding balance under the Note divided by the applicable conversion price at that time.

On December 12, 2024, the Company amended the SPA (the "Amended SPA") to revise the terms of the Note. Pursuant to the Amended SPA, the Note was not convertible below a floor price of $4.00/share, but if the closing bid price of the Company's common stock is less than the floor price for ten consecutive trading days, the Company is required to begin making monthly payments under the Note on the date that is 90 days following the original funding date.

On or about December 13, 2024, the Company issued the Note to the Investor, the Note was funded on or about December 16, 2024, and the closing bid price of the Company's common stock was subsequently less than the $4.00 floor price for more than ten consecutive trading days, which, under the terms of the Amended SPA, would have required the Company to begin making monthly payments under the Note, with those monthly payments commencing on March 16, 2025, and with those monthly payments being equal to 120% multiplied by the outstanding balance divided by the lesser of 6 or the number of months remaining until the Note's maturity date.

On January 27, 2025, the Company and the Investor entered into an amendment to the Note providing that (i) the Company was not required to begin making monthly payments under the Note until May 16, 2025, (ii) the monthly payments will equal $485,000.00 plus all accrued but unpaid interest, multiplied by 120%, and (iii) the Company would pay to the Investor 50% of all proceeds received by the Company from any equity line of credit or similar arrangement within one trading day of receipt by the Company.

On April 28, 2025, the Company and the Investor entered into a second amendment to the Note (the "Second Amendment") providing that (i) the 20% prepayment penalty under the Note was eliminated, but the outstanding balance of the Note was increased to $3,597,501.71 (i.e., the outstanding balance under the Note as of April 28, 2025, plus the prepayment penalty of 20% as of April 28, 2025), (ii) the Company would have the right on up to three occasions to extend the monthly payment start date for one month, with the outstanding balance automatically increasing by one percent for each extension, (iii) the monthly payments would equal $582,000 plus all accrued but unpaid interest, (iv) the floor price was reduced to $1.25, (v) the Investor's beneficial ownership limitation was increased to 9.99%, (vi) the Company agreed to hold a stockholder meeting within 60 days to approve the issuances to the Investor under the Note and under an equity line of credit agreement with the Investor in excess of the Exchange Cap (as such term was defined in the Note), (vii) the Company agreed to sell the Investor 1,250,000 shares of common stock (the "Pre-Delivery Shares") for $125, which Pre-Delivery Shares shall be used by the Investor only as pre-delivery shares under the Note and a future equity line of credit agreement between the Company and the Investor, (viii) the Company agreed to file a registration statement to register the Pre-Delivery Shares and other shares of common stock issuable to the Investor upon conversion of the Note, and (ix) the Investor provided its written consent to the Company entering into the Patent Monetization Agreement and Option Agreement described below.

A registration statement registering shares for resale by the Investor was filed by the Company with the SEC pursuant to the Company's obligations under the Second Amendment to register Pre-Delivery Shares and other shares of common stock issuable to the Investor upon conversion of the Note (of which 1,250,000 Pre-Delivery Shares and 3,000,000 other conversion shares were registered for resale in that registration statement). That registration statement was declared effective by the SEC on May 23, 2025. On May 29, 2025, the Investor converted $767,000 of the Note into 613,600 shares of Company common stock. On June 11, 2025, the Investor converted $125,000 of the Note into 100,000 shares of Company common stock. On July 10, 2025, the Investor converted $162,500 of the Note into 130,000 shares of Company common stock. On July 16, 2025, the Investor converted $150,000 of the Note into 120,000 shares of Company common stock. On July 23, 2025, the Investor converted an aggregate of $2,545,500 of the Note into 2,036,400 shares of Company common stock, leaving a balance due to the Investor under the Note of approximately $11,312.28, which the Company paid on July 23, 2025, satisfying the note in full. On or about July 25, 2025, the Company repurchased the 1,250,000 Pre-Delivery Shares from the Investor for $125, and on or about August 6, 2025, the Pre-Delivery Shares were returned to the Company by the Investor and cancelled.

**Business Combination Closing**

On December 13, 2024, the parties to the Business Combination Agreement consummated the Business Combination, and in connection with closing issued the Note to the Investor, and entered into the Guaranty, Security Agreements, IP Security Agreement, and Subordination Agreement. Immediately upon the consummation of the Business Combination, Alpha Modus, Corp. became a wholly owned subsidiary of the Company, the Company changed its name to "Alpha Modus Holdings, Inc.," and the Company is now listed on Nasdaq under the symbol "AMOD". The Business Combination was accounted for as a reverse recapitalization. Under this method of accounting, INAQ is treated as the acquired company for financial statement reporting purposes. See "*Unaudited Pro Forma Condensed Combined Financial Information and Other Data*." Legacy Alpha Modus's financial statements for previous periods will be disclosed in the Company's future periodic reports filed with the SEC.

In connection with the Business Combination, approximately 426,136 shares of common stock were redeemed, which represented a significant portion of the publicly traded shares outstanding immediately prior to the Business Combination and resulted in only approximately $1.16 million of cash from the INAQ trust account becoming available to Alpha Modus in connection with the closing of the Business Combination. In the Business Combination, the Company issued 5,295,000 shares of common stock and 7,500,000 shares of Series C Preferred Stock to Legacy Alpha Modus's shareholders as merger consideration in the Business Combination, and the Company issued 1,817,308 shares of common stock to various parties as required by the Business Combination Agreement. Immediately following the Business Combination, including the redemption of shares described above, there were 12,455,252 shares of the Company's common stock (all shares of Class A common stock) issued and outstanding, and 7,500,000 shares of the Company's Series C Preferred Stock issued and outstanding.

As a result of becoming a publicly traded company, we will need to hire additional personnel and implement procedures and processes to address public company regulatory requirements and customary practices. We expect to incur additional annual expenses as a public company for, among other things, directors' and officers' liability insurance, director fees and additional internal and external accounting and legal and administrative resources, including increased audit and legal fees.

**Other Recent Developments**

On April 28, 2025, the Company entered into a Patent Monetization Agreement (the "Patent Monetization Agreement") with Alpha Modus Ventures, LLC, a North Carolina limited liability company controlled by the Company's Chief Executive Officer, William Alessi ("AMV"), pursuant to which the Company agreed to provide litigation funding to AMV in connection with AMV's recently filed patent litigation suit against Broadcom Inc. for infringement of AMV's patents relating to methods and apparatus for transporting of fibre channel data over ethernet (U.S. Patent Nos. 11,108,591, 11,303,473, and 11,310,077), and the parties agreed that the gross proceeds from the litigation would first be paid to the Company until it has received the return of amounts funded for the litigation, and then 65% to the Company until it has received a five times return, then 45% to the Company until it has received an additional two times return, and then 35% to the Company.

On April 28, 2025, and in connection with entering into the Patent Monetization Agreement, the Company entered into an Option Agreement (the "Option Agreement") with AMV's owners (Janbella Group, LLC, an entity controlled by Mr. Alessi, and Chris Chumas, the Company's Chief Sales Officer), pursuant to which the Company received the right to acquire AMV from its owners for an option exercise price consisting of the following: (i) the termination by the Company of the Patent Monetization Agreement and AMV's related payment obligations to the Company under the Patent Monetization Agreement, (ii) the payment of $300,000 to Janbella Group, LLC (in satisfaction of which Janbella Group, LLC will release AMV of its $300,000 repayment obligation to Janbella Group, LLC) as soon as the Investor (defined above) has been repaid in full, and (iii) the issuance by the Company to AMV's owners in the aggregate of a number of shares of common stock equal to $35,000,000 divided by the closing price of the Company's common stock immediately prior to closing, which closing shall not occur until the Company's shareholders have approved such transaction and issuance of common stock as required by Nasdaq's listing rules.

On May 27, 2025, the Company entered into an exchange agreement (the "Exchange Agreement") with four family trusts of the Company's CEO, William Alessi, pursuant to which the trusts would exchange an aggregate of 3,200,000 shares of Series C Preferred Stock (800,000 shares held in the name of The WRA 2023 Irrevocable Trust, 800,000 shares held in the name of The Janet Alessi 2023 Irrevocable Trust, 800,000 shares held in the name of The Isabella Alessi 2023 Irrevocable Trust, and 800,000 shares held in the name of The Kim Alessi Richter Irrevocable Trust, all of which are deemed to be beneficially owned by Mr. Alessi as Mr. Alessi's spouse is the trustee of each of the trusts) for an aggregate of 26,079,868 shares of Class A common stock (with each of the trusts being issued 6,519,967 shares of common stock). In the Exchange Agreement, each of the trusts agreed not to sell or otherwise transfer the shares of common stock to be received in the exchange until June 13, 2026 (except for permitted transfers to an affiliate). On or about June 29, 2025, the trusts' preferred shares were cancelled, and 26,079,868 shares of common stock were issued to the trusts.

On July 15, 2025, the Company issued a promissory note to The Alessi 2023 Irrevocable Trust (the "<u>Lender</u>"), one of the family trusts of the Company's CEO, William Alessi, in the original principal amount of $2,142,857.14, in consideration of $1,500,000 in funding received by the Company from the Lender on or about July 10, 2025. The note accrues interest at eight percent (8%) per annum, matures on April 30, 2026, and is convertible into shares of common stock of the Company at the election of the holder at a $5.00 per share conversion price.

As described above, as of July 23, 2025, the Note issued to Streeterville Capital, LLC had been fully satisfied.

**Critical Accounting Policies and Estimates**

***Basis of Presentation***

Critical accounting policies are those that, in management's view, are most important to the portrayal of a company's financial condition and results of operations and most demanding on their calls on judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. While our significant accounting policies are described in more detail in Note 2 to our financial statements appearing elsewhere in this annual report, we believe that the following accounting policies are those most critical to the judgments and estimates used in the preparation of our financial statements.

***Derivative Liabilities***

The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including issued stock purchase warrants and the forward purchase agreement, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and FASB ASC Topic 815, "Derivatives and Hedging" ("ASC 815"). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.

The company earnout shares and sponsor earnout shares ("earnout shares") as defined in the business combination agreement are recognized as derivative liabilities in accordance with ASC 815. In accordance with FASB ASC Topic 820, "Fair Value of Financial Instruments" ("ASC 820"), the Company recognizes the earnout shares instruments as liabilities at fair value and adjusts the carrying value of the instruments to fair value at each reporting period for so long as they are outstanding. At the date of the merger, the initial fair value of the earnout shares have been estimated using a Monte Carlo simulation model. Subsequently, the fair value of the earnout shares have been estimated using this same Monte Carlo simulation model. Derivative earnout shares liabilities are classified as current liabilities (See note 7 for more details on earnout shares).

**Off-balance Sheet Arrangements**

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

**Results of Operations**

*<u>For the Six Months ended June 30, 2025, compared to the Six Months ended June 30, 2024</u>*

Revenue

Alpha Modus had no revenue during the six months ended June 30, 2025 and 2024.

Operating Expenses

Alpha Modus had operating expenses of $2,508,011 for the six months ended June 30, 2025, compared to $311,464 for the six months ended June 30, 2024. The increase was primarily due to an increase in professional fees, insurance premiums, payroll expenses and investor relations expenses.

Other Income/Expenses

Alpha Modus had total other expense of $587,132 for the six months ended June 30, 2025, $706,178 of which was interest expense, $347,647 of which was a loss in change in fair value of warrants liability, $1,051,915 of which was a gain of change in fair value of earnout shares liability and $598,324 in loss on settlement of debt, as compared to total other expense of $98,269, $98,274 of which was interest expense during the six months ended June 30, 2024.

Net Loss

Alpha Modus had a net loss of $3,095,143 for the six months ended June 30, 2025, compared to a net loss of $409,733 for the six months ended June 30, 2024. The increase in net loss during the six months ended June 30, 2025, as compared to the net loss during the six months ended June 30, 2024, was primarily due to the gain in change in fair value of earnout shares of $1,051,915, the loss in change in fair value of warrants liability of $347,647 and the loss on settlement of debt of $598,324 during the six months ended June 30, 2025, described above.

*<u>For the Three Months ended June 30, 2025, compared to the Three Months ended June 30, 2024</u>*

Revenue

Alpha Modus had no revenue during the three months ended June 30, 2025 and 2024.

Operating Expenses

Alpha Modus had operating expenses of $1,148,810 for the three months ended June 30, 2025, compared to $120,553 for the three months ended June 30, 2024. The increase was primarily due to an increase in professional fees, insurance premiums, payroll expenses and investor relations expenses.

Other Income/Expenses

Alpha Modus had total other expense of $1,638,252 for the three months ended June 30, 2025, $483,815 of which was interest expense, $581,842 of which was a loss in change in fair value of warrants liability, $12,633 of which was a gain of change in fair value of earnout shares liability and $598,324 of which was a loss on settlement of debt, as compared to total other expense of $66,484, $66,488 of which was interest expense during the three months ended June 30, 2024.

Net Loss

Alpha Modus had a net loss of $2,787,062 for the three months ended June 30, 2025, compared to a net loss of $187,037 for the three months ended June 30, 2024. The increase in net loss during the three months ended June 30, 2025, as compared to the net loss during the three months ended June 30, 2024, was primarily due to the gain in change in fair value of earnout shares of $12,633, the loss in change in fair value of warrants liability of $581,842 and the loss on settlement of debt of $598,324 during the three months ended June 30, 2025, described above.

Liquidity and Capital Resources

As of June 30, 2025, Alpha Modus had cash of $118,214. We do not have sufficient resources to effectuate our business. We expect to incur significant expenses during the next twelve months of operations, including as a result of becoming a public company. We estimate that these expenses will be comprised primarily of general expenses including overhead, legal and accounting fees. To maintain our plan of growth, we believe we will need to raise a minimum of an additional $2,500,000. These factors, along with the lack of current Company revenues, raise substantial doubts about Alpha Modus' ability to continue as a going concern.

Net cash used in operating activities was $1,115,337 for the six months ended June 30, 2025, compared to $283,216 for the six months ended June 30, 2024.

We had net cash used in investing activities for the six months ended June 30, 2025, of $7,500, compared to $0 for the six months ended June 30, 2024.

We had net cash provided by financing activities for the six months ended June 30, 2025, of $505,237, compared to $401,028 for the six months ended June 30, 2024.

We will have to raise funds to pay for our expenses. We may have to borrow money from shareholders or issue debt or equity or enter into a strategic arrangement with a third party. There can be no assurance that additional capital will be available to us. We currently have no arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources. Since we have no such arrangements or plans currently in effect, our inability to raise funds for our operations will have a severe negative impact on our ability to remain a viable company.

**Emerging Growth Company Status**

Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can choose not to take advantage of the extended transition period and comply with the requirements that apply to non-emerging growth companies, and any such election to not take advantage of the extended transition period is irrevocable.

The Company is an "emerging growth company" as defined in Section 2(a) of the Securities Act and has elected to take advantage of the benefits of the extended transition period for new or revised financial accounting standards. Following the consummation of the Business Combination, Alpha Modus expects to remain an emerging growth company at least through the end of the 2026 fiscal year and to continue to take advantage of the benefits of the extended transition period, although it may decide to early adopt such new or revised accounting standards to the extent permitted by such standards. This may make it difficult or impossible to compare Alpha Modus' financial results with the financial results of another public company that is either not an emerging growth company or is an emerging growth company that has chosen not to take advantage of the extended transition period exemptions because of the potential differences in accounting standards used.

Subject to certain conditions set forth in the JOBS Act, if, as an emerging growth company, we intend to rely on such exemptions, we are not required to, among other things: (i) provide an auditor's attestation report on our system of internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act; (ii) provide all of the compensation disclosure that may be required of non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act; (iii) comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements (auditor discussion and analysis); and (iv) disclose certain executive compensation-related items such as the correlation between executive compensation and performance and comparisons of the Chief Executive Officer's compensation to median employee compensation.

We will remain an emerging growth company under the JOBS Act until the earliest of (i) the last day of our first fiscal year following the fifth anniversary of the IAC IPO, (ii) the last date of our fiscal year in which we have total annual gross revenue of at least $1.07 billion, (iii) the date on we are deemed to be a "large accelerated filer" under the rules of the SEC with at least $700.0 million of outstanding common equity held by non-affiliates, or (iv) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the previous three years.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk**

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

**Item 4. Controls and Procedures**

 

*Evaluation of Disclosure Controls and Procedures*

Under the supervision and with the participation of our management, including our principal executive officer and principal financial and accounting officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period ended June 30, 2025, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, our principal executive officer and principal financial officer have concluded that during the period covered by this report, our disclosure controls and procedures were not effective as of June 30, 2025.

*Changes in Internal Control over Financial Reporting*

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Management intends to remediate the identified material weakness by implementing a more timely reporting schedule and incorporating additional reviews of the financial statement support for future quarters.

**PART II - OTHER INFORMATION**

**Item 1. Legal Proceedings**

From time to time, the Company may be involved in litigation relating to claims arising out of commercial operations in the normal course of business. As of the Closing Date, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the Company's results of operations except as set forth below.

On January 16, 2024, Alpha Modus filed a patent infringement lawsuit against The Kroger Company alleging patent infringement of several Alpha Modus patents pertaining to the Company's '571 patent portfolio encompassing retail marketing and advertising data-driven technologies to enhance consumer's in-store experience at the point of decision. The complaint was filed in the United States District Court for the Eastern District of Texas (case no. 2:2024cv00022), and the case has since been settled.

On November 12, 2024, Alpha Modus filed a patent infringement lawsuit against Brookshire Grocery Co. alleging infringement of several Alpha Modus patents pertaining to its '571 patent portfolio, '825 patent portfolio, '672 patent portfolio, '890 patent portfolio and '880 patent portfolio, which encompass retail marketing and advertising data-driven technologies to enhance consumers' in-store experience at the point of decision. The complaint was filed in the United States District Court for the Eastern District of Texas (case no. 2:2024cv00919), and the case is in its initial pleading stage.

On December 17, 2024, Alpha Modus filed a patent infringement lawsuit against Wakefern Food Corporation and Shelf Nine LLC alleging infringement of several Alpha Modus patents pertaining to its '571 patent portfolio, '825 patent portfolio, '672 patent portfolio, '890 patent portfolio and '880 patent portfolio, which encompass retail marketing and advertising data-driven technologies to enhance consumers' in-store experience at the point of decision. The complaint was filed in the United States District Court for the Eastern District of Texas (case no. 2:2024cv01056), and the case has since been settled.

On February 3, 2025, Alpha Modus filed a patent infringement lawsuit against Walgreen Co. alleging infringement of several Alpha Modus patents pertaining to its '571 patent portfolio, '825 patent portfolio, '672 patent portfolio, '890 patent portfolio and '880 patent portfolio, which encompass retail marketing and advertising data-driven technologies to enhance consumers' in-store experience at the point of decision. The complaint was filed in the United States District Court for the Eastern District of Texas (case no. 2:2025cv00120), and the case is in its initial pleading stage.

On April 15, 2025, Alpha Modus filed a patent infringement lawsuit against Optisigns, Inc. alleging infringement of several Alpha Modus patents pertaining to its '571 patent portfolio, '825 patent portfolio, '672 patent portfolio, '890 patent portfolio and '880 patent portfolio, which encompass retail marketing and advertising data-driven technologies to enhance consumers' in-store experience at the point of decision. The complaint was filed in the United States District Court for the Southern District of Texas (case no. 4:2025cv01727), and the case is in its initial pleading stage.

**Item 1A. Risk Factors**

Factors that could cause our actual results to differ materially from those in this Quarterly Report are any of the risks described in our Annual Report on Form 10-K filed with the SEC on April 15, 2025, and our registration statement on Form S-1 filed with the SEC on May 9, 2025 (as subsequently amended). Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.

**Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities.**

During the three months ended June 30, 2025, the Company issued the following unregistered securities:

On or about April 30, 2025, the Company issued 15,690 shares of Class A common stock to each of the four non-employee directors of the Company in consideration of the directors' $25,000 quarterly fee pursuant to their director agreements, based on the 10-day average closing price of the Company's common stock as of the end of the first quarter, or approximately $1.59 per share.

On or about April 30, 2025, the Company issued 39,266 shares of Class A common stock to the Company's Chief Revenue Officer, Thomas Gallagher, in consideration of his $62,500 quarterly fee pursuant to his employment agreement, based on the 10-day average closing price of the Company's common stock as of the end of the first quarter, or approximately $1.59 per share.

On or about April 30, 2025, the Company issued the 1,250,000 Pre-Delivery Shares to Streeterville Capital, LLC pursuant to the Second Amendment to the Note as described in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" above.

On May 27, 2025, the Company entered into an exchange agreement (the "Exchange Agreement") with four family trusts of the Company's CEO, William Alessi, pursuant to which the trusts would exchange an aggregate of 3,200,000 shares of Series C Preferred Stock (800,000 shares held in the name of The WRA 2023 Irrevocable Trust, 800,000 shares held in the name of The Janet Alessi 2023 Irrevocable Trust, 800,000 shares held in the name of The Isabella Alessi 2023 Irrevocable Trust, and 800,000 shares held in the name of The Kim Alessi Richter Irrevocable Trust, all of which are deemed to be beneficially owned by Mr. Alessi as Mr. Alessi's spouse is the trustee of each of the trusts) for an aggregate of 26,079,868 shares of Class A common stock (with each of the trusts being issued 6,519,967 shares of common stock). In the Exchange Agreement, each of the trusts agreed not to sell or otherwise transfer the shares of common stock to be received in the exchange until June 13, 2026 (except for permitted transfers to an affiliate). On or about June 29, 2025, the trusts' preferred shares were cancelled, and 26,079,868 shares of Class A common stock were issued to the trusts. The Company issued the shares to the trusts pursuant to the exemption from the registration requirements of the Securities Act provided by Section 3(a)(9) of the Securities Act, as the shares of common stock were issued in exchange for shares of preferred stock of the Company, and there was no renumeration for the solicitation of the exchange.

The Company issued the foregoing securities pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D promulgated thereunder, as the shareholders were accredited and/or financially sophisticated and had adequate access, through business or other relationships, to information about the Company, and the sales did not involve a public offering of securities or any general solicitation.

**Item 3. Defaults upon Senior Securities**

None.

**Item 4. Mine Safety Disclosures.**

Not applicable.

**Item 5. Other Information.**

*Rule 10b5-1 Trading Arrangements*

During the three months ended June 30, 2025, none of our directors or officers (as defined in Exchange Act Rule 16a-1(f)) adopted or terminated a "Rule 10b5–1 trading arrangement" or a "non-Rule 10b5–1 trading arrangement," each as defined in Item 408 of Regulation S-K, except as set forth below:

On or about March 10, 2025, each of the entities whose shares of Company securities are beneficially owned by Company CEO and director, William Alessi, entered into a written plan for the purchase or sale of securities of the Company intended to satisfy the affirmative defense conditions of Rule 10b5-1(c), with sale of Company common stock occurring as follows: sales will only occur on a trading day when the daily volume of the Company's common stock as reported on Bloomberg has exceeded at least 750,000 shares, sales will only occur at a price 10% higher than the closing price on the prior trading day, sales on a given day will not constitute more than 10% of the trading volume that day, and sales will not occur at a price per share less than $4.00 per share. The plans will terminate on March 9, 2026, unless terminated earlier pursuant to the provisions of the plans. The number of shares of common stock that may be sold under each plan is as follows: Janbella Group, LLC – 934,616 shares; The Alessi 2023 Irrevocable Trust – 139,784 shares; The Alessi Revocable Trust – 610,216 shares; The Isabella Alessi 2023 Irrevocable Trust – 200,000 shares; The Janet Alessi 2023 Irrevocable Trust – 200,000 shares; The Kim Alessi Richter 2023 Irrevocable Trust – 200,000 shares; and The WRA 2023 Irrevocable Trust – 200,000 shares. On April 30, 2025, each of The Alessi Revocable Trust, The Isabella Alessi 2023 Irrevocable Trust, The Janet Alessi 2023 Irrevocable Trust, The Kim Alessi Richter 2023 Irrevocable Trust, and The WRA 2023 Irrevocable Trust determined to terminate their 10b5 plans, but on July 10, 2025, each of the trusts determined to reinstate their 10b5 plans. No shares have been sold under any of the plans.

**Item 6. Exhibits.**

The following exhibits are filed or furnished as a part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Incorporated By Reference** | **Incorporated By Reference** | **Incorporated By Reference** |
| <br>**Exhibit No.** | <br>**Description** | **Form** | **Exhibit** | **Filing Date** |
| 2.1# | [Business Combination Agreement, dated as of October 13, 2023, by and among Insight Acquisition Corp., IAC Merger Sub Inc. and Alpha Modus, Corp.](https://www.sec.gov/Archives/edgar/data/1862463/000101376223004184/ea186792ex2-1_insightacq.htm) | 8-K | 2.1 | 10/17/2023 |
| 2.2# | [First Amendment to the Business Combination Agreement, dated as of June 21, 2024, by and among Insight Acquisition Corp., IAC Merger Sub Inc. and Alpha Modus, Corp.](https://www.sec.gov/Archives/edgar/data/1862463/000121390024055299/ea020808901ex2-1_insight.htm) | 8-K | 2.1 | 6/24/2024 |
| 3.1 | [Second Amended and Restated Certificate of Incorporation](https://www.sec.gov/Archives/edgar/data/1862463/000149315224050829/ex3-1.htm) | 8-K | 3.1 | 12/19/2024 |
| 3.2 | [Amended and Restated Bylaws](https://www.sec.gov/Archives/edgar/data/1862463/000149315224050829/ex3-2.htm) | 8-K | 3.2 | 12/19/2024 |
| 10.1 | [Securities Purchase Agreement, dated October 23, 2024, by and between Insight Acquisition Corp. and Streeterville Capital, LLC](https://www.sec.gov/Archives/edgar/data/1862463/000121390024089989/ea021844901ex10-1_insight.htm) | 8-K | 10.1 | 10/23/2024 |
| 10.2 | [Amendment to Securities Purchase Agreement, dated December 12, 2024, by and between Insight Acquisition Corp. and Streeterville Capital, LLC](https://www.sec.gov/Archives/edgar/data/1862463/000121390024108352/ea022461401ex10-1_insight.htm) | 8-K | 10.1 | 12/12/2024 |
| 10.3 | [Stockholder Support Agreement, dated as of October 13, 2023, by and among Insight Acquisition Corp., Alpha Modus, Corp. and The Alessi 2020 Irrevocable Trust](https://www.sec.gov/Archives/edgar/data/1862463/000101376223004184/ea186792ex10-2_insightacq.htm) | 8-K | 10.2 | 10/17/2023 |
| 10.4 | [Amended and Restated Registration Rights Agreement, dated as of October 13, 2023, by and among Insight Acquisition Corp., Alpha Modus, Corp., Insight Acquisition Sponsor LLC and IPO underwriters of Insight Acquisition Corp.](https://www.sec.gov/Archives/edgar/data/1862463/000101376223004184/ea186792ex10-5_insightacq.htm) | 8-K | 10.5 | 10/17/2023 |
| 10.5 | [Confidentiality and Lock-Up Agreement, dated as of October 13, 2023, by and among Alpha Modus, Corp., Insight Acquisition Corp., and the Stockholder Parties](https://www.sec.gov/Archives/edgar/data/1862463/000101376223004184/ea186792ex10-4_insightacq.htm) | 8-K | 10.4 | 10/17/2023 |
| 10.6 | [Lock-Up Agreement, dated as of October 13, 2023, by and among Alpha Modus, Corp., Insight Acquisition Corp. and Insight Acquisition Sponsor LLC](https://www.sec.gov/Archives/edgar/data/1862463/000101376223004184/ea186792ex10-3_insightacq.htm) | 8-K | 10.3 | 10/17/2023 |
| 10.7 | [Stockholder Support Agreement, dated as of October 13, 2023, by and among Insight Acquisition Corp., Alpha Modus, Corp. and Insight Acquisition Sponsor LLC](https://www.sec.gov/Archives/edgar/data/1862463/000101376223004184/ea186792ex10-1_insightacq.htm) | 8-K | 10.1 | 10/17/2023 |
| 10.8 | [Promissory Note issued by Alpha Modus Holdings, Inc. to Loeb & Loeb LLP](https://www.sec.gov/Archives/edgar/data/1862463/000149315224050829/ex10-8.htm) | 8-K | 10.8 | 12/19/2024 |
| 10.9++ | [Employment Agreement, dated December 13, 2024, by and between Alpha Modus Holdings, Inc. and William Alessi](https://www.sec.gov/Archives/edgar/data/1862463/000149315224050829/ex10-9.htm) | 8-K | 10.9 | 12/19/2024 |
| 10.10++ | [Employment Agreement, dated December 13, 2024, by and between Alpha Modus Holdings, Inc. and Rodney Sperry](https://www.sec.gov/Archives/edgar/data/1862463/000149315224050829/ex10-10.htm) | 8-K | 10.10 | 12/19/2024 |
| 10.11++ | [Employment Agreement, dated December 13, 2024, by and between Alpha Modus Holdings, Inc. and Chris Chumas](https://www.sec.gov/Archives/edgar/data/1862463/000149315224050829/ex10-11.htm) | 8-K | 10.11 | 12/19/2024 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| 10.12 | [Subscription Agreement, dated August 30, 2023, by and among Insight Acquisition Corp., Insight Acquisition Sponsor, LLC and Polar Multi-Strategy Master Fund](https://www.sec.gov/Archives/edgar/data/1862463/000101376223006701/f10q0623ex10-10_insightacq.htm) | 10-Q | 10.1 | 10/25/2023 |
| 10.13 | [Amendment to Subscription Agreement, dated May 15, 2024, by and among Insight Acquisition Corp., Insight Acquisition Sponsor, LLC and Polar Multi-Strategy Master Fund](https://www.sec.gov/Archives/edgar/data/1862463/000121390024050124/ea020728701ex10-15_insight.htm) | 10-Q | 10.15 | 6/6/2024 |
| 10.14 | [Subscription Agreement, dated April 26, 2024, and accepted by Alpha Modus, Corp. on May 16, 2024, by and among Alpha Modus, Corp. and Polar Multi-Strategy Master Fund](https://www.sec.gov/Archives/edgar/data/1862463/000121390024058951/ea020746901ex10-15_insight.htm) | S-4/A | 10.15 | 7/3/2024 |
| 10.15 | [Extension Agreement, dated March 29, 2024, by and among Alpha Modus, Corp. and Janbella Group, LLC](https://www.sec.gov/Archives/edgar/data/1862463/000121390024058951/ea020746901ex10-16_insight.htm) | S-4/A | 10.16 | 7/3/2024 |
| 10.16 | [Intellectual Property License Agreement, dated January 8, 2024, by and among Alpha Modus, Corp. and GZ6G Technologies Corp](https://www.sec.gov/Archives/edgar/data/1862463/000101376224002855/ea020746904ex10-17_insight.htm) | S-4/A | 10.17 | 7/31/2024 |
| 10.16 | [Intellectual Property License Agreement, dated April 10, 2024, by and among Alpha Modus, Corp., Xalles Holdings Inc., and CashXAI Inc.](https://www.sec.gov/Archives/edgar/data/1862463/000101376224002855/ea020746904ex10-18_insight.htm) | S-4/A | 10.18 | 7/31/2024 |
| 10.17 | [Fee Waiver Agreement, dated June 21, 2024, among Insight Acquisition Corp., Insight Acquisition Sponsor LLC and Michael Singer](https://www.sec.gov/Archives/edgar/data/1862463/000121390024055299/ea020808901ex10-1_insight.htm) | 8-K | 10.1 | 6/24/2024 |
| 10.18 | [Settlement Agreement, dated June 20, 2024, by and among Odeon Capital Group LLC and Insight Acquisition Corp.](https://www.sec.gov/Archives/edgar/data/1862463/000121390024055299/ea020808901ex1-2_insight.htm) | 8-K | 1.2 | 6/24/2024 |
| 10.19 | [Fee Modification Agreement, dated June 20, 2024, among Cantor Fitzgerald & Co., Insight Acquisition Corp., and Alpha Modus, Corp.](https://www.sec.gov/Archives/edgar/data/1862463/000121390024055299/ea020808901ex1-1_insight.htm) | 8-K | 1.1 | 6/24/2024 |
| 10.20 | [Patent Monetization Agreement, dated April 28, 2025, by and between Alpha Modus Holdings, Inc., and Alpha Modus Ventures, LLC](https://www.sec.gov/Archives/edgar/data/1862463/000164117225008369/ex10-1.htm) | 8-K | 10.1 | 5/2/2025 |
| 10.21 | [Option Agreement, dated April 28, 2025, by and between Alpha Modus Holdings, Inc., and Janbella Group, LLC, and Chris Chumas](https://www.sec.gov/Archives/edgar/data/1862463/000164117225008369/ex10-2.htm) | 8-K | 10.2 | 5/2/2025 |
| 10.22 | [Amendment #2 to Secured Convertible Promissory Note, dated April 28, 2025, by and between Alpha Modus Holdings, Inc. and Streeterville Capital, LLC](https://www.sec.gov/Archives/edgar/data/1862463/000164117225008369/ex10-3.htm) | 8-K | 10.3 | 5/2/2025 |
| 10.23 | [Exchange Agreement, dated May 27, 2025, by and between Alpha Modus Holdings, Inc., and The WRA 2023 Irrevocable Trust, The Janet Alessi 2023 Irrevocable Trust, The Isabella Alessi 2023 Irrevocable Trust, and The Kim Alessi Richter Irrevocable Trust](https://www.sec.gov/Archives/edgar/data/1862463/000164117225013105/ex10-1.htm) | 8-K | 10.1 | 5/30/2025 |
| 10.24++ | [Amended Employment Agreement, dated July 1, 2025, by and between Alpha Modus Holdings, Inc., and Rodney Sperry](https://www.sec.gov/Archives/edgar/data/1862463/000164117225019599/ex10-1.htm) | 8-K | 10.1 | 7/15/2025 |
| 10.25 | [Promissory Note Due April 30, 2026, issued by Alpha Modus Holdings, Inc. to The Alessi 2023 Irrevocable Trust, dated July 10, 2025](https://www.sec.gov/Archives/edgar/data/1862463/000164117225020058/ex10-1.htm) | 8-K | 10.1 | 7/17/2025 |
| 10.26 | [Intellectual Property License Agreement, dated July 21, 2025, by and between Alpha Modus Holdings, Inc., CashXAI, Inc., and CashX, LLC](https://www.sec.gov/Archives/edgar/data/1862463/000164117225020627/ex10-1.htm) | 8-K | 10.1 | 7/23/2025 |
| 21.1 | [List of Subsidiaries](https://www.sec.gov/Archives/edgar/data/1862463/000149315224050829/ex21-1.htm) | 8-K | 21.1 | 12/19/2024 |
| 31.1\* | [Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](#ex_001) |  |  |  |
| 31.2\* | [Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](#ex_002) |  |  |  |
| 32.1\* | [Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](#ex_003) |  |  |  |
| 32.2\* | [Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](#ex_004) |  |  |  |
| 101.INS\* | Inline XBRL Taxonomy Extension Schema Document. |  |  |  |
| 101.SCH\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |  |  |  |
| 101.CAL\* | Inline XBRL Taxonomy Extension Definition Linkbase Document. |  |  |  |
| 101.DEF\* | Inline XBRL Taxonomy Extension Label Linkbase Document. |  |  |  |
| 101.LAB\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |  |  |  |
| 101.PRE\* | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document, which is contained in Exhibit 101). |  |  |  |
| 104\* | Inline XBRL Taxonomy Extension Schema Document. |  |  |  |

---

---

| | |
|:---|:---|
| ++ | Indicates a management or compensatory plan. |
| \* | Filed or furnished herewith. |
| # | Certain exhibits and schedules to these exhibits have been omitted in accordance with Item 601(b)(2) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted exhibit or schedule to the SEC upon its request. |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Dated: August 11, 2025 | **ALPHA MODUS HOLDINGS, INC.** | **ALPHA MODUS HOLDINGS, INC.** |
|  | By: | */s/ William Alessi* |
|  | Name: | William Alessi |
|  | Title: | Chief Executive Officer<br> (Principal executive officer) |
| Dated: August 11, 2025 | **ALPHA MODUS HOLDINGS, INC.** | **ALPHA MODUS HOLDINGS, INC.** |
|  | By: | */s/ Rodney Sperry* |
|  | Name: | Rodney Sperry |
|  | Title: | Chief Financial Officer<br> (Principal financial and accounting officer) |

---

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO RULES 13a-14(a) AND 15d-14(a)**

**UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, William Alessi, certify that:

1. I
 have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, of Alpha Modus Holdings, Inc.;

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
 to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to
 the period covered by this report;

3. Based
 on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
 respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in
 this report;

4. The
 registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures
 (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange
 Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;a. Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
 to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal
 control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision,
 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
 external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness
 of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness
 of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report
 any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent
 fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is
 reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's
 other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting,
 to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the
 equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies
 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely
 affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not
 material, that involves management or other employees who have a significant role in the registrant's internal controls over
 financial reporting.

---

| | | |
|:---|:---|:---|
| Date: August 11, 2025 | By: | */s/ William Alessi* |
|  |  | William Alessi |
|  |  | Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO RULES 13a-14(a) AND 15d-14(a)<br> UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Rodney Sperry, certify that:

1. I
 have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, of Alpha Modus Holdings, Inc.;

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
 to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to
 the period covered by this report;

3. Based
 on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
 respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in
 this report;

4. The
 registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures
 (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;a. Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
 to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal
 control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision,
 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
 external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness
 of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness
 of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report
 any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent
 fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is
 reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's
 other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting,
 to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the
 equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies
 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely
 affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not
 material, that involves management or other employees who have a significant role in the registrant's internal controls over
 financial reporting.

---

| | | |
|:---|:---|:---|
| Date: August 11, 2025 | By: | */s/ Rodney Sperry* |
|  |  | Rodney Sperry |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial and Accounting Officer) |

---

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Alpha Modus Holdings, Inc. (the "<u>Company"</u>) on Form 10-Q for the quarter ended June 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "<u>Report"</u>), I, William Alessi, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;(1) the Report fully complies
 with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained
 in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: August 11, 2025 | */s/ William Alessi* | */s/ William Alessi* |
|  | Name: | William Alessi |
|  | Title: | Chief Executive Officer (Principal Executive Officer) |

---

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Alpha Modus Holdings, Inc. (the "Company") on Form 10-Q for the quarter ended June 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Rodney Sperry, Chief Financial Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;(1) the Report fully complies
 with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained
 in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: August 11, 2025 | */s/ Rodney Sperry* | */s/ Rodney Sperry* |
|  | Name: | Rodney Sperry |
|  | Title: | Chief Financial Officer |
|  |  | (Principal Financial and Accounting Officer) |

---

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

Date of Report (Date of earliest event reported): **August 14, 2025**

**ALPHA MODUS HOLDINGS, INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-40775** | **86-3386030** |
| (State or other jurisdiction<br> of incorporation) | (Commission<br> File Number) | (IRS Employer<br> Identification No.) |

---

**20311 Chartwell Center Dr., #1469**

**<u>Cornelius, NC 28031</u>**

(Address of principal executive offices, including zip code)

Registrant's telephone number, including area code: **(704) 252-5050**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Class A Common Stock, par value $0.0001 per share | AMOD | The Nasdaq Stock Market, LLC |
| Redeemable Warrants, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50 | AMODW | The Nasdaq Stock Market, LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 1.01. Entry into a Material Definitive Agreement.**

On August 14, 2025, Alpha Modus Holdings, Inc. (the "<u>Company</u>") entered into an exchange agreement (the "<u>Exchange Agreement</u>") with a family trust of the Company's CEO, William Alessi, pursuant to which the trust will exchange an aggregate of 4,300,000 shares of Series C Preferred Stock (held in the name of The Alessi 2023 Irrevocable Trust, and which shares are deemed to be beneficially owned by Mr. Alessi as Mr. Alessi's spouse is the trustee of the trust) for an aggregate of 40,111,940 shares of Class A common stock. In the Exchange Agreement, the trust agreed not to sell or otherwise transfer the shares of common stock to be received in the exchange until June 13, 2026 (except for permitted transfers to an affiliate).

The foregoing description of the Exchange Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated by reference herein.

**Item 3.02. Unregistered Sales of Equity Securities.**

The disclosure provided above in Item 1.01 above is incorporated by reference into this Item 3.02. The shares of common stock will be issued to the trust in reliance on the exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended, as the shares of common stock will be issued in exchange for shares of Series C Preferred Stock, there was no additional consideration for the exchange, and there was no remuneration for the solicitation of the exchange.

**Item 9.01. Financial Statements and Exhibits.**

(d) Exhibits

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 10.1 | [Exchange Agreement, dated August 14, 2025, by and between Alpha Modus Holdings, Inc., and The Alessi 2023 Irrevocable Trust](#ex_006) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL Document) |

---

\* Filed herewith.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **ALPHA MODUS HOLDINGS, INC.** | **ALPHA MODUS HOLDINGS, INC.** |
| Date: August 15, 2025 | By: | */s/ William Alessi* |
|  | Name: | William Alessi |
|  | Title: | President and Chief Executive Officer |

---

**Exhibit 10.1**

**EXCHANGE AGREEMENT**

THIS EXCHANGE AGREEMENT (this "Agreement"), dated effective as of August 14, 2025, is entered into by and between Alpha Modus Holdings, Inc. (the "Company"), and The Alessi 2023 Irrevocable Trust (the "Stockholder").

1. <u>Exchange</u>. In consideration of the return and cancellation of 4,300,000 shares of Series C Preferred Stock by the Stockholder, the Company shall issue 40,111,940 shares of Class A common stock to the Stockholder. The Stockholder shall not sell or transfer such shares (except to an affiliate) until June 13, 2026.

2. <u>Miscellaneous</u>. This Agreement set forth the parties' final and entire agreement with respect to the subject matter hereof, may not be changed or terminated orally and shall be governed by and shall be construed in accordance with the laws of the State of North Carolina applicable to contracts made and to be performed in North Carolina.

IN WITNESS WHEREOF, the parties have duly executed this Option Agreement on the date first above written.

---

| | |
|:---|:---|
| **<u>COMPANY:</u>** | **<u>COMPANY:</u>** |
| ALPHA MODUS HOLDINGS, INC. | ALPHA MODUS HOLDINGS, INC. |
| By: | /s/ William Alessi |
|  | William Alessi |
|  | CEO |

---

---

| | |
|:---|:---|
| **<u>STOCKHOLDER:</u>** | **<u>STOCKHOLDER:</u>** |
| The Alessi 2023 Irrevocable Trust | The Alessi 2023 Irrevocable Trust |
| By: | /s/ Sonia Alessi |
|  | Sonia Alessi |
|  | Trustee |

---