Alpha Modus Holdings, Inc. Liquidation Value

Alpha Modus Holdings, Inc. (AMOD) is a pre-revenue patent licensing and technology company that completed a SPAC business combination in December 2024. The liquidation posture is deeply negative. MFFAIS reports a cash liquidation value, liquid liquidation value, and operating liquidation value all at approximately -$8.5M as of the current period end (March 31, 2026), meaning total recoverable assets under standard liquidation haircuts are exceeded by liabilities at face value by roughly $8.5M with zero residual for common equity.

The asset side is minimal. Cash was $35,508 at March 31, 2026, per MD&A. Net PP&E was $127,847, up from $8,050 at December 31, 2025, driven by investing activity of $119,797 during Q1 2026. The company discloses $1.64M of prepaid stock-based compensation (Rucus/Leron consulting agreements) included in prepaid expenses. All other assets are effectively intangible or zero-haircut under the liquidation lens: no inventory, no meaningful AR, and patents that carry a $0 recovery rate under standard liquidation assumptions. The filing does not separately XBRL-tag balance sheet line items (TAG_CONTEXT is empty), preventing line-level XBRL analysis.

On the liability side, the company carries multiple convertible and promissory notes outstanding at face value. The Streeterville Capital convertible note originated December 2024 and has been subject to repeated conversions into equity through Q1 2026 (aggregate of approximately $3.75M converted in principal and accrued interest through July 2025); the remaining balance is not separately disclosed in this truncated filing, but interest expense of $590,685 in Q1 2026 versus $222,363 in Q1 2025 signals materially higher debt burden. Additional notes include a Loeb & Loeb promissory note (converted $325K principal into equity in February 2026), an Alessi trust promissory note due September 2026, a convertible note to the Nancy Helen Wallace/Haase-Dubosc Family Trust due October 2026, a convertible note to AIFirst Ventures due October 2026, and a convertible note to Alexander Haase-Dubosc due December 2026. Series C Redeemable Convertible Preferred Stock (4.3M shares outstanding, face value $10.00/share = $43M liquidation claim) ranks senior to common in liquidation under the charter. At any liquidation event, Series C holders receive $10.00 per share plus accrued dividends before common equity receives anything; this alone is a $43M senior claim against an asset base that generates $35K in cash. The going concern disclosure is explicit in MD&A: management states the company needs to raise a minimum of $2.5M to continue operations.

Q1 2026 net loss was $4.02M versus $308K in Q1 2025, a 13x increase. Operating expenses were $3.81M in Q1 2026 ($2.81M professional fees, $997K G&A), up from $1.36M in Q1 2025. The spike in professional fees reflects the Rucus/Leron consulting stock issuances ($3.42M aggregate fair value at issuance) and ongoing litigation costs. The company recognized $325K in patent infringement settlement income in Q1 2026, classified as other income rather than revenue. Cash used in operations was $1.49M in Q1 2026. The company raised $1.86M gross ($1.86M net of $69K selling costs) through its ATM facility with H.C. Wainwright during the quarter, and an additional $792K gross post-quarter through May 15, 2026. Without continued ATM drawdowns or patent settlement proceeds, the runway at the Q1 2026 burn rate is less than one month from the balance sheet date. Disclosure controls were assessed as not effective as of March 31, 2026. The filing does not separately tag any balance sheet line items in XBRL, preventing granular per-tag analysis; all quantitative values above are sourced from narrative and financial statement tables in the filing body.