FUSE

Fusemachines is a freshly de-SPAC'd (business combination closed Oct 22, 2025) agentic-AI services micro-cap whose numbers describe a distressed, not a growth, story. FY2025 revenue FELL 12.5% to $7.71M while the company posted a -$5.95M operating loss (-77.2% operating margin). The headline 94% narrowing of net loss to -$928K is misleading: it sits ~$5M below the operating loss, a gap typical of de-SPAC non-operating items (warrant/derivative fair-value swings), not a real turn in the underlying business, which still burned -$5.53M in operating cash. Decent 55.8% gross margins can't offset a shrinking top line and a cost base far above it.

The balance sheet is the disqualifier. Stockholders' equity is NEGATIVE -$14.6M, total liabilities ($22.1M) are nearly 3x total assets ($7.54M), and current liabilities ($20.0M) dwarf current assets ($6.25M) — roughly -$13.75M of negative working capital. Accumulated deficit is -$35.1M. The company's own auditor issued a going-concern explanatory paragraph, and the 10-K states plainly it 'require[s] substantial additional funding, which may not be available on acceptable terms, or at all.' The $9.40M de-SPAC cash cushion covers under two years of the current burn before dilution or distress.