Investment Thesis
Alpha Modus Holdings is in severe financial distress with negative stockholders' equity of -$51.6M, indicating the company is technically insolvent. The company is bleeding cash with -$2.1M operating cash flow, minimal revenue of $6K, and massive operating losses. The fundamentals show a company likely headed toward restructuring or dissolution.
Strengths
- Minimal capital expenditure requirements suggest asset-light business model
- Patent owner classification could theoretically generate licensing revenue
- Some liquid assets remain ($75.7K cash)
Risks
- Negative stockholders' equity of -$51.6M indicates technical insolvency and liabilities exceed all assets
- Operating cash flow of -$2.1M shows the company is burning cash with minimal revenue generation
- Current ratio of 0.04x indicates severe liquidity crisis - only $0.04 in current assets per $1 of current liabilities
- Revenue of $6K is insignificant relative to $10.8M in liabilities
- Massive negative margins (operating margin -62M%, net margin -122M%) indicate complete inability to generate profit
- Zero insider purchases in last 90 days suggests no confidence from management
Key Metrics to Watch
- Stockholders' equity trajectory and debt restructuring announcements
- Monthly operating cash flow burn rate
- Licensing revenue realization from patent portfolio
Financial Metrics
Revenue
6.0
Net Income
-7.4M
EPS (Diluted)
$-0.33
Free Cash Flow
-2.1M
Total Assets
403.3K
Cash
75.7K
Profitability Ratios
Gross Margin
N/A
Operating Margin
-62,097,816.7%
Net Margin
-122,579,033.3%
ROE
N/A
ROA
-1,823.8%
FCF Margin
-34,395,383.3%
Balance Sheet & Liquidity
Current Ratio
0.04x
Quick Ratio
0.04x
Debt/Equity
N/A
Debt/Assets
2,678.6%
Interest Coverage
-2.59x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-19T18:30:36.046517 |
Data as of: 2025-09-30 |
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