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CORNELIUS, N.C. - Alpha Modus, Corp., a subsidiary of Alpha Modus Holdings Inc. (NASDAQ:AMOD), a $46 million market cap company whose stock has declined over 90% in the past year, announced Wednesday it has filed a patent infringement lawsuit against Canadian-based A2Z Cust2Mate Solutions Corp., a provider of AI-powered smart shopping carts. According to InvestingPro data, the company’s shares are currently trading near their 52-week low of $1.07, compared to a high of $13.49.
The lawsuit, filed on August 25 in the U.S. District Court for the Eastern District of Texas, alleges that Cust2Mate has infringed on five Alpha Modus patents related to retail technology. These patents cover functionalities including real-time inventory management, customer assistance through monitoring, AI-powered retail inventory management, store layout optimization, and in-store shopping systems.
According to the complaint, Cust2Mate’s smart cart products directly infringe on these patents by tracking items in carts, analyzing consumer behavior, enabling in-cart payments, and delivering personalized promotions.
"This action reinforces our role as a leader and protector of AI-driven retail innovation," said William Alessi, CEO of Alpha Modus Holdings Inc., in the press release statement. InvestingPro analysis indicates the company faces financial challenges, with a weak overall health score of 0.41 and current liabilities exceeding liquid assets.
The lawsuit seeks damages, injunctive relief, and enforcement of Alpha Modus’s intellectual property rights. The company claims the patents at issue cover technologies being tested and deployed by major retailers and technology companies worldwide.
Alpha Modus develops AI technologies, intelligent kiosks, and consumer engagement tools for the retail sector. The company states that its patents represent foundational technology in the evolving retail technology landscape. Trading at a P/E ratio of 28.91, InvestingPro analysis suggests the stock is currently fairly valued, with additional insights and 8 more ProTips available to subscribers.
In other recent news, Alpha Modus Holdings Inc. has made significant strides in restructuring its financial framework. The company announced the elimination of approximately $41 million in mezzanine equity through a capital restructuring agreement, which also removes all preferred stock from its balance sheet. This move involved an exchange with The Alessi 2023 Irrevocable Trust, where 4.3 million shares of Series C Preferred Stock were swapped for over 40 million shares of Class A common stock. Additionally, Alpha Modus has resolved all variable rate debt associated with its DESPAC process, marking the end of a six-month strategic initiative to maintain its capital structure. On the technology front, Alpha Modus has partnered with VSBLTY Groupe Technologies Corp. to expand its AI-powered retail technology offerings in the United States. This partnership includes a reseller and technology integration agreement that features revenue-sharing models for media sales and data monetization. Furthermore, Alpha Modus has filed a patent infringement lawsuit against Cooler Screens, Inc., alleging infringement of its patented technologies related to in-store consumer engagement and analytics. These developments highlight the company’s ongoing efforts to strengthen its financial position and expand its technological capabilities.
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