ALPHA MODUS HOLDINGS, INC.

Previous wording

Alpha Modus had operating expenses of $3,807,146 for the three months ended March 31, 2026, compared to $1,359,201 for the three months ended March 31, 2025. The increase was primarily due to an increase in professional fees and payroll expenses.

Current wording

Alpha Modus had operating expenses of $2,560,210 for the three months ended June 30, 2026, compared to $1,148,810 for the three months ended June 30, 2025. The increase was primarily due to an increase in professional fees and payroll expenses.

Previous wording

Alpha Modus had a net loss of $4,020,831 for the three months ended March 31, 2026, compared to a net loss of $308,081 for the three months ended March 31, 2025. The increase in net loss during the three months ended March 31, 2026, as compared to the net loss during the three months ended March 31, 2025, was primarily due to the increase in professional fees of $2,518,009 and decrease of gain in change in fair value of earnout shares of $1,039,282 during the three months ended March 31, 2026, described above.

Current wording

Alpha Modus had a net loss of $2,149,060 for the three months ended June 30, 2026, compared to a net loss of $2,787,062 for the three months ended June 30, 2025. The decrease in net loss during the three months ended June 30, 2026, as compared to the net loss during the three months ended June 30, 2025, was primarily due to the increase in change in fair value of warrants and decrease in loss on settlement of debt partially offset by the increase in professional fees described above.

Previous wording

Alpha Modus had total other expense of $213,685 for the three months ended March 31, 2026, compared to total other income of $1,051,120 for the three months ended March 31, 2025. The decrease was primarily due to the patent infringement income of $325,000, an increase of $368,322 in interest expense, an increase of $6,929 in loss on settlement of debt, a decrease of $25,266 in change in fair value of warrants liability and a decrease of $1,039,282 in gain of change in fair value of business combination earnout shares liability, as compared to total other income of $1,051,120 for the three months ended March 31, 2025. The Company has generated income attributable to settlements of patent infringement and intellectual property enforcement matters. Under the current interpretation and application of GAAP, these proceeds are classified as “Other Income” rather than operating revenue within the consolidated statements of operations. Alpha Modus had $325,000 and $0 other income during the three months ended March 31, 2026 and 2025, respectively.

Current wording

Alpha Modus had total other income of $197,465 for the six months ended June 30, 2026, compared to total other expense of $587,132 for the six months ended June 30, 2025. The increase was primarily due to patent infringement income of $325,000, an increase of $1,480,777 in change in fair value of warrants liability, the change in the loss on settlement of debt of $591,395 and the shareholder settlement expense of $150,000, partially offset by a decrease of $1,051,915 in change in fair value of business combination earnout shares liability, an increase of $286,926 in interest expense, and an increase of $110,632 in change in derivative liability for the six months ended June 30, 2026, as compared to the comparative period in 2025. The Company has generated income attributable to settlements of patent infringement and intellectual property enforcement matters. Under the current interpretation and application of GAAP, these proceeds are classified as “Other Income” rather than operating revenue within the consolidated statements of operations. Alpha Modus had $325,000 and $13,096 other income during the six months ended June 30, 2026 and 2025, respectively.

Previous wording

As of March 31, 2026, Alpha Modus had cash of $35,508. We do not have sufficient resources to execute all of our business plans. We expect to incur significant expenses during the next twelve months of operations, including expenses associated with being 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 doubt about Alpha Modus’ ability to continue as a going concern.

Current wording

As of June 30, 2026, Alpha Modus had cash of $2,001,007. We do not have sufficient resources to execute all of our business plans. We expect to incur significant expenses during the next twelve months of operations, including expenses associated with being 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 doubt about Alpha Modus’ ability to continue as a going concern.

Previous wording

Net cash used in operating activities was $1,488,596 for the three months ended March 31, 2026, compared to $594,147 for the three months ended March 31, 2025.

Current wording

Net cash used in operating activities was $2,402,992 for the six months ended June 30, 2026, compared to $1,115,337 for the six months ended June 30, 2025.

Previous wording

We had net cash used in investing activities for the three months ended March 31, 2026, of $119,797, compared to $0 for the three months ended March 31, 2025.

Current wording

We had net cash used in investing activities for the six months ended June 30, 2026, of $119,797, compared to $7,500 for the six months ended June 30, 2025.

Previous wording

We had net cash provided by financing activities for the three months ended March 31, 2026, of $1,575,901, compared to $6,610 for the three months ended March 31, 2025.

Current wording

We had net cash provided by financing activities for the six months ended June 30, 2026, of $4,455,796, compared to $505,237 for the six months ended June 30, 2025.

Previous wording

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.

Current wording

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, except that we have entered into a Security Purchase Agreement with Streeterville Capital, LLC, pursuant to which we may or may not be able to raise additional capital. Our inability to raise funds for our operations in the future will have a severe negative impact on our ability to remain a viable company.