$FUSEW

Fusemachines Inc.

CIK:0002033383|SEC Filings

Condensed Consolidated Interim Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 1,794	$ 2,034	$ 3,673	$ 3,987
Cost of revenue	(831)	(828)	(1,762)	(1,692)
Gross Profit	963	1,206	1,911	2,295
Operating expenses:
Selling and marketing	383	333	795	641
General and administrative	2,978	1,566	6,251	3,499
Research and development	292	159	590	324
Total operating expenses	3,653	2,058	7,636	4,464
Loss from operations	(2,690)	(852)	(5,725)	(2,169)
Other (expense) income:
Interest expense	(52)	(73)	(106)	(139)
Loss on extinguishment of convertible notes payable				(391)
Gain on extinguishment of payable	8		507
Gain/(loss) on change in fair value of convertible notes and warrant liability	(10)	(2,860)	49	(1,344)
Gain/(loss) on change in fair value of forward purchase derivative liability	20		1,608
Other (expense) income	(125)	(1)	(50)	4
Total other (expense)/income, net	(159)	(2,934)	2,008	(1,870)
Loss before income taxes	(2,849)	(3,786)	(3,717)	(4,039)
Provision for income tax			(4)
Net loss	(2,849)	(3,786)	(3,721)	(4,039)
Deemed dividend related to Shortfall Warrants modification			(84)
Net loss attributable to common stockholders (i)	$ (2,849)	$ (3,786)	$ (3,805)	$ (4,039)
Weighted-average common shares outstanding - basic	28,965,344	7,270,964	28,952,133	7,270,964
Weighted-average common shares outstanding - diluted	28,965,344	7,270,964	28,952,133	7,270,964
Net Loss per common share - basic	$ (0.10)	$ (0.52)	$ (0.13)	$ (0.56)
Net Loss per common share - diluted	$ (0.10)	$ (0.52)	$ (0.13)	$ (0.56)
Comprehensive income (loss)
Change in foreign currency translation adjustment			$ 9
Total comprehensive loss	$ (2,849)	$ (3,786)	$ (3,712)	$ (4,039)

Condensed Consolidated Interim Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net Loss	$ (3,721)	$ (4,039)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property and equipment	50	50
Amortization of intangible assets	67	42
Provision for credit losses	(44)	61
Stock-based compensation	878	118
Amortization of right-of-use assets	43	43
Changes in fair value of convertible notes at fair value and warrant liability	(49)	1,344
Change in fair value of forward purchase derivative liability	(1,608)
Accretion of cumulative mandatorily redeemable common and preferred stock liability	55	47
Loss on extinguishment of convertible notes payable		391
Gain on extinguishment of payable	(507)
Unrealized foreign exchange gain/(loss)		(1)
Changes in operating assets and liabilities:
Accounts receivable, current, net	109	285
Unbilled revenue	(16)	1
Prepaid expenses and other current assets	289	37
Accounts receivable, net		4
Other assets	1	(6)
Accounts payable	550	1,589
Operating lease liabilities	(39)	(34)
Accrued expenses and other current liabilities	431	(27)
Deferred revenue		(54)
Net cash used in operating activities	(3,511)	(149)
Cash flows from investing activities
Costs capitalized for internally developed software	(88)	(54)
Purchases of property and equipment	(27)	(6)
Net cash used in investing activities	(115)	(60)
Cash flows from financing activities
Proceeds from convertible notes payable		180
Payment of premium financing obligation	(251)
Proceeds from premium financing obligation	28
Net cash (used in) / provided by financing activities	(223)	180
Effect of exchange rate changes on cash and cash equivalents	(4)
Net change in cash and cash equivalents	(3,853)	(29)
Cash and cash equivalents at beginning of the period	4,221	500
Cash and cash equivalents at end of the period	368	471
Supplemental disclosures of cash flow information
Cash paid for income taxes	19	15
Interest paid on the short-term debt (premium financing)	8
Non-cash investing and financing activities:
Deemed dividend related to shortfall warrant modification	84
Unpaid deferred transaction costs as of the end of the period		364
Waiver of deferred transaction costs as of the end of the period		505
Issuance of shares vested upon repayment and forgiveness of 2023 Promissory Notes		3
(Loss)/Gain on extinguishment of debt		(391)
Common Stock issued upon cashless exercise of stock options	$ 39

Condensed Consolidated Interim Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 368	$ 4,221
Accounts receivable, net	1,134	1,264
Unbilled revenue	16	16
Prepaid expenses and other current assets	469	753
Total current assets	1,987	6,254
Property and equipment, net	270	305
Intangible assets, net	226	206
Deferred tax assets	11	11
Operating lease right-of-use assets	664	744
Other assets	14	16
Total assets	3,172	7,536
Current liabilities:
Accounts payable	5,173	5,012
Accrued expenses and other current liabilities	4,972	4,618
Related party loan payable	300	300
Operating lease liability, current	89	85
Forward purchase derivative liability	8,084	9,692
Short term debt	119	342
Total current liabilities	18,737	20,049
Accounts payable non-current		143
Warrant liability	72	121
Cumulative mandatorily redeemable common and preferred stock liability	1,050	1,048
Operating lease liability	667	751
Total liabilities	20,526	22,112
Commitments and Contingencies
Stockholder’s deficit:
Convertible preferred stock ($0.0001 par value, 5,000,000 shares authorized as of June 30, 2026 and December 31, 2025, respectively; Nil shares issued as of June 30, 2026 and December 31, 2025, respectively ; Nil shares outstanding as of June 30, 2026 and December 31, 2025)
Common stock ($0.0001 par value, 500,000,000 shares authorized as of June 30,2026 and December 31, 2025; 28,985,302 shares and 28,938,266 shares issued and outstanding as of June 30,2026 and December 31, 2025 respectively)	3	3
Additional paid in capital	32,329	31,311
Share subscription receivable	(11,005)	(11,005)
Accumulated deficit	(38,950)	(35,145)
Accumulated other comprehensive income	269	260
Total stockholders’ deficit	(17,354)	(14,576)
Total liabilities and stockholders’ deficit	$ 3,172	$ 7,536