Fusemachines Inc. Warrants

For the fiscal year ended December 31, 2025, Fusemachines Inc. reported revenue of $7.7 million, a decrease of 12% from $8.8 million in the prior year. The company achieved a gross profit of $4.3 million, down from $4.8 million in 2024. Operating loss narrowed significantly to -$6.0 million from -$8.2 million in the prior year. Net loss improved substantially to -$0.93 million compared to a net loss of -$15.4 million in 2024, primarily driven by a $6.5 million gain on the change in fair value of convertible notes and warrant liability. The company completed a reverse recapitalization (SPAC merger) on October 22, 2025, raising approximately $9.4 million in net cash from financing activities. Despite the improvement in net loss, the company reported negative operating cash flow of -$5.5 million and an accumulated deficit of $35.1 million, raising substantial doubt about its ability to continue as a going concern.

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