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<p id="xdx_804_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock_zXqTe1LtzYQ1" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Note 1. Organization Fusemachines Inc. (“Company” or “Pubco”) provide enterprise artificial intelligence solutions and services across North America, Latin America and Asia. The Company was originally incorporated on April 13, 2021 under the name CSLM Acquisition, Corp. (“CSLM”), as a Cayman Islands exempted Company, a special purpose acquisition company (“SPAC”) formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities. Upon consummation of the Business Combination, Fusemachines USA, Inc. (“Legacy Fusemachines”) became the surviving corporation and a wholly-owned subsidiary of the Company. The Company operated through the following legal entities and branch: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif">Fusemachines USA, Inc (Wholly Owned Subsidiary)</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif">Fusemachines Nepal Inc. (Wholly Owned Holding Company)</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif">Fusemachines Nepal Private Ltd. (Majority Owned Subsidiary)</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif">Fusemachines Canada Inc (Wholly Owned Subsidiary) </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif">Fusemachines India Inc. (Dormant Holding Company)</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif">Fusemachine Inc. Dominican Republic (Wholly Owned Branch)</td></tr> </table> Business Oxygen Private Limited (“BO2”), a company domiciled in Nepal, holds certain redeemable common and preferred stock of Fusemachines Nepal Private Ltd. (see Note 8 — Cumulative Mandatorily Redeemable Financial Instruments). Merger Agreement and Business Combination On January 2024, the Company entered into an Agreement and Plan of Merger (as amended in August 2024 and February 2025, the “Business Combination Agreement”) with CSLM Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of CSLM (“Merger Sub”), and Fusemachines USA, Inc. (formerly Fusemachines Inc.) (“Legacy Fusemachines”). On October 22, 2025, the Company consummated the business combination whereby (a) CSLM merged with and into CSLM Holdings, Inc., a Delaware corporation and wholly owned subsidiary of CSLM at which time the separate existence of CSLM ceased and CSLM Holdings became the surviving corporation (“Pubco”) in accordance with the Delaware General Corporation Law (“DGCL”), the Cayman Islands Companies Act (As Revised) (the “Companies Act”), the Certificate of Merger, (the “Certificate of Merger”), and the amended and restated memorandum and articles of association of CSLM (the “Domestication”); (b) the merger (the “Merger”) of Merger Sub with and into Legacy Fusemachines, pursuant to which, at the closing of the transactions contemplated by the Business Combination Agreement (the “Closing”), the separate corporate existence of Merger Sub ceased and Legacy Fusemachines became the surviving corporation and a wholly-owned subsidiary of Pubco, pursuant to the terms of the Business Combination Agreement and in accordance with the laws of the State of Delaware, as more fully described elsewhere in the Proxy Statement/Prospectus; and (c) the other transactions contemplated by the Business Combination Agreement and documents related thereto (such transactions, together with the Domestication and the Merger, the “Business Combination”). In connection with the Business Combination, Pubco was renamed “Fusemachines Inc.” (the “Company”) and Fusemachines Inc. was renamed “Fusemachines USA, Inc.” (“Legacy Fusemachines”). The common stock of the Company began trading on The Nasdaq Stock Market (Nasdaq Global Market) under the symbol “FUSE”, and the warrants trade under the symbol “FUSEW”, beginning on October 23, 2025. The Merger between CSLM and Legacy Fusemachines was accounted for as a reverse recapitalization. See Note 20 - Reverse Recapitalization for more information. Throughout the notes to the consolidated financial statements, unless otherwise noted or the context otherwise requires, the term “Company” refers to Legacy Fusemachines and its subsidiaries prior to the consummation of the Business Combination, and to Fusemachines Inc. (the publicly traded parent company) and its subsidiaries after the consummation of the Business Combination. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Covenant Fees Pursuant to the Business Combination Agreement, the Company was covenanted to deliver to CSLM its audited financial statements for the year ended December 31, 2023 and 2022 for inclusion in the registration statement on Form S-4 to be filed by CSLM in connection with the Merger, and that such audited financial statements had been prepared in conformity with GAAP applied on a consistent basis and in accordance with the requirements of the Public Company Accounting Oversight Board for public companies. The Company had covenanted to provide the audited financial statements no later than February 29, 2024, or incur delay fees in the amount equal to $35.0 thousand for the first one-month delay to March 31, 2024 (pro-rated for a partial month), $50.0 thousand for the second one-month delay to April 30, 2024, and thereafter $70.0 thousand for each subsequent one-month delay (pro-rated for any partial month). The Company provided the audited financial statements to CSLM in September 2024. As such, the Company has recorded $505 thousand of deferred transaction costs on the audited consolidated balance sheets as of December 31, 2024. On February 4, 2025, the company entered into a second amendment of the original agreement wherein the above-mentioned delay fee provision is deleted and provides the Company with relief from future penalties related to the delivery of the 2023 financial statements. Accordingly, the company recorded waiver in the year ended December 31, 2025 which have no impact in the consolidated Statements of Operations and Comprehensive Loss as the amount of provision was eliminated from the deferred transaction cost and from the Accounts Payable, Accrued expense and other current liabilities in the consolidated balance sheets.

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Note 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The Company prepares its consolidated financial statements in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding financial reporting. The consolidated financial statements include the financial statements of Fusemachines Inc. and its subsidiaries. Investments in entities where we hold at least a 20% ownership interest and have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. All intercompany balances and transactions have been eliminated. These consolidated financial statements are presented in United States Dollars (“USD” or $), which is the functional currency of the Parent Company. The consolidated financial statements as of and for the year ended December 31, 2024, included herein was derived from the audited consolidated financial statements of Legacy Fusemachines (now known as Fusemachines USA, Inc.). <p id="xdx_845_eus-gaap--PriorPeriodReclassificationAdjustmentDescription_zeM9MBZXI3T7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to the valuation of operating lease right-of-use assets, convertible notes, cumulative mandatorily redeemable common and preferred stock liability, common stock warrants, common and convertible preferred stock, current expected credit losses (“CECL”), stock-based compensation, useful lives of property and equipment and intangible assets, impairment of long-lived assets, capitalization of software development costs, forward purchase derivative liability, equity method investments and income taxes. The Company bases its estimates and judgments on historical experience, knowledge of current conditions and its beliefs of what could occur in the future, given available information. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. Changes in facts and circumstances may cause the Company to revise its estimates. Cash & cash equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. These investments are carried at cost, which approximates fair value. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Accounts Receivable and Related Allowance for Expected Credit Losses The Company classifies its right to consideration in exchange for deliverables as an accounts receivable. A receivable is a right to consideration that is unconditional (i.e., only the passage of time is required before payment is due) regardless of whether the amounts have been billed. Accounts receivable represents amounts due from the Company’s customers for AI solutions (products and services). The Company receives payments from customers based upon agreed-upon contractual terms. The timing of revenue recognition may differ from the timing of invoicing to customers. Account receivables are stated net of allowance for expected credit losses. Outstanding receivables are reviewed periodically, and allowances are provided for the estimated amount of receivables that may not be collected. The allowance for expected credit loss is based on the probability of future collection determined by applying a loss-rate method using the Company’s historical loss experience. The Company also considers reasonable and supportable current and future conditions in determining its estimated loss rates, such as external forecasts, macroeconomic trends or other factors including customer specific credit risk characteristics. The adequacy of the allowance is evaluated on a regular basis. Account balances are written off after all means of collection are exhausted and the balance is deemed uncollectible, which occurs when balances reach 365 days past due. Subsequent recoveries are credited to the allowance. Changes in the allowance are recorded as adjustments to bad debt expense in the period incurred. Bad debt expense is included in general and administrative expenses in the consolidated statements of operations and comprehensive loss. <p id="xdx_841_eus-gaap--PropertyPlantAndEquipmentPolicyTextBlock_z3GvIxFFfqPc" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Property and Equipment, net Property and equipment acquired in the ordinary course of the Company’s operations are stated at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease or the estimated useful life of the improvement. Maintenance and repairs are expensed as incurred Depreciation expense is included in general and administrative expenses in the consolidated statements of operations and comprehensive loss. <p id="xdx_896_ecustom--ScheduleOfPropertyPlantAndEquipmentTableTextBlock_zdSvQDoIAlpb" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Depreciable lives by major classification generally are as follows: Schedule of Property and Equipment, Net <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 60%"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">Useful life</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 75%; text-align: left">Computers and other hardware</td><td style="width: 2%"> </td> <td style="width: 22%; text-align: center"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MinimumMember_zNPGZ9MS3NI7" title="Property and equipment, estimated useful lives">5-<span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_z4jGEBykv859" title="Property and equipment, estimated useful lives">8 years </td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Vehicles and other fixed assets (excluding computers)</td><td> </td> <td style="text-align: center"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember__srt--RangeAxis__srt--MinimumMember_zTjuYNu1wErj" title="Property and equipment, estimated useful lives">2-<span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember__srt--RangeAxis__srt--MaximumMember_zOo9hHJjCOi9" title="Property and equipment, estimated useful lives">10 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Office, furniture, and equipment</td><td> </td> <td style="text-align: center"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MinimumMember_zCKwfgo0e4l" title="Property and equipment, estimated useful lives">2-<span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MaximumMember_zEKBS1YKP6rb" title="Property and equipment, estimated useful lives">10 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Leasehold improvements - shorter of lease term of estimated useful life</td><td> </td> <td style="text-align: center"><span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MinimumMember_zzrl8Y7M20Ch" title="Property and equipment, estimated useful lives">2-<span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MaximumMember_zJfZAV2AIuH" title="Property and equipment, estimated useful lives">10 years</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_846_eus-gaap--GoodwillAndIntangibleAssetsIntangibleAssetsPolicy_zNERm0gcpnac" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Intangible assets, net Intangible assets consists of internally developed capitalized software, which will help in the management of the AI solutions business and will be sold on a license basis. Internal use software The Company capitalizes certain costs related to internal use software acquired, modified, or developed related to the Company’s services in accordance with ASC 350, Internal use software. These capitalized costs are primarily related to salaries and other personnel costs. Costs incurred in the preliminary stages of development and the post implementation phase are expensed as incurred. The company adopts agile method of software development which is generally characterized as an iterative and more dynamic process where the planning, design and coding are less distinct and performed in short sprints. The Company analyses the nature of the development and implementation activities - i.e. whether Subtopic 350-40 characterizes them as capitalizable application development stage activities - when deciding whether the costs of those activities should be capitalized or expensed as incurred. Maintenance and training costs are expensed as incurred. The amortization expense is recorded in “General and administration” on the consolidated statements of operations and comprehensive loss. Software costs that are expensed are recorded in “Research and Development” on the consolidated statements of operations and comprehensive loss. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Software developed for sale The costs incurred for the development of computer software to be sold, leased or otherwise marketed are capitalized in accordance with ASC 985, Costs of Software to be sold, leased or marketed, when technological feasibility has been established. Technological feasibility generally occurs when all planning, designing, coding and testing activities are completed that are necessary to establish that the product can be produced to meet its design specifications, including functions, features, and technical performance requirements. These capitalized costs are primarily related to salaries and other personnel costs. Schedule of Intangible Assets, Net Useful Lives <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 60%"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Useful life</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 75%; text-align: left">Internally developed software</td><td style="width: 2%"> </td> <td style="width: 22%; text-align: center"><span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--InternallyDevelopedSoftwareMember_zQ9imydDZah" title="Intangible assets, net useful lives">3 years </td><td style="width: 1%; text-align: left"> </td></tr> </table> Segment reporting Under Topic 280, an operating segment is defined as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the CODM to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. The Company operates as one operating segment with a focus on data engineering, AI consulting, and technical services. The Company’s Chief Executive Officer (“CEO”), as the Company’s chief operating decision maker, manages and allocates resources to the operations of the Company on a consolidated basis. This enables the Company’s CEO to assess the overall level of available resources and determine how best to deploy these resources across service lines in line with the Company’s long-term company-wide strategic goals. The CODM considers the Company’s net income/(loss), expenses and the components of total assets to assess the segment’s performance and make resource allocation decisions for the Company’s single segment which is consistent with that presented within these financial statements. As the Company’s operations are comprised of a single reporting segment, the Company’s segment assets are reflected on the accompanying consolidated balance sheet as “total assets” and its significant segment expenses and net loss are listed on the accompanying Consolidated Statements of Operations and Comprehensive loss. <p id="xdx_845_eus-gaap--ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock_zVt5V03m8uLa" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Impairment of Long-Lived Assets Long-lived assets, such as property and equipment and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company uses the straight-line method of depreciation and amortization. When the carrying value of an asset is more than the sum of the undiscounted expected future cash flows, an impairment is recognized. An impairment loss is measured as the excess of the asset’s carrying amount over its fair value. Intangible assets that have finite useful lives are amortized over their estimated useful lives on a straight-line basis. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset, or a significant decline in the observable market value of an asset, among others. <p id="xdx_897_eus-gaap--DetailsOfImpairmentOfLongLivedAssetsHeldAndUsedByAssetTextBlock_zDGmqzn8DVQf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">The Company holds long-lived assets in two countries worldwide. The table below presents the breakdown of the Company’s long-lived assets, based on geographic region (in thousands). Schedule of Long-lived Assets, Based on Geographic Region <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_493_20251231_ztMCAJuK0ukc" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2025</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20241231_zrKbOBG9GbI2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2024</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Long lived assets as of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">December 31,</td><td style="text-align: center; font-weight: bold"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">December 31,</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2025</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2024</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--NoncurrentAssets_iI_pn3n3_hsrt--StatementGeographicalAxis__country--NP_z9UsQZfvbel1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Nepal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">247</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">286</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--NoncurrentAssets_iI_pn3n3_hsrt--StatementGeographicalAxis__country--US_znAlCrwRKh8f" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">United States</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">264</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">249</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--NoncurrentAssets_iI_pn3n3_zuBijT1ioYIg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Total long-lived assets</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">511</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">535</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Fair Value Option (“FVO”) Election The Company entered into related party convertible notes payable, at fair value in October 2019, September 2021, and Convertible Notes payable at fair value in January 2024, (the “Convertible Notes at Fair Value”). (Refer to “Note 10 – Long-Term Debt”). As permitted under ASC 825, Financial Instruments (“ASC 825”), the Company elected the FVO to account for the Convertible Notes at Fair Value and Related Party Convertible notes at Fair Value. In accordance with ASC 825, the Company recorded them at fair value. The FVO may be applied instrument by instrument, but it is irrevocable. Subsequent changes in fair value would be recorded as a separate line in the consolidated statements of operations and comprehensive loss. As a result of applying the FVO, direct costs and fees related to the Convertible Notes at Fair Value and Related Party Convertible notes at Fair Value were expensed as incurred. The Company concluded it was appropriate to apply the FVO to Convertible Notes at Fair Value and Related Party Convertible notes at Fair Value because they are liabilities that are not, in whole or in part, classified as a component of stockholders’ equity. In addition, the Convertible Notes at Fair Value and Related Party Convertible notes at Fair Value met other applicable criteria for electing the FVO under ASC 825. <p id="xdx_84F_eus-gaap--ComprehensiveIncomePolicyPolicyTextBlock_z9NF9LM1SvWj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Accumulated Other Comprehensive Income Accumulated other comprehensive income consists of changes in the cumulative foreign currency translation adjustments. <p id="xdx_84C_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zl5AhCZ95U9c" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Revenue Recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, the Company recognizes revenue when (or as) customers obtain control of promised goods or services, in an amount that reflects the consideration which is expected to be received in exchange for those goods or services. The Company recognizes revenue following the five-step model prescribed under ASC 606: (i) identify contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenues when (or as) the Company satisfies a performance obligation. The Company applies the provisions of ASC 606 to an arrangement when a substantive contract exists and collectability is probable. The Company derives the majority of its revenue from AI Solutions (Products and Services) that largely represents professional services the Company provides to its customers to help them achieve any AI-related goals within their organization. Standard contractual arrangements are governed by Master Services Agreements (“MSAs”), which set out general terms including payment, termination rights, and intellectual property ownership. Detailed scope, pricing, and performance obligations are defined in Statements of Work (“SOWs”), which are executed for each engagement or project phase. The Company’s contracts for AI Services have different terms based on the scope and complexity of engagements; pricing for the majority of contracts are invoiced monthly on a time-and-materials basis. The Company notes that its contracts meet the requirements for over-time revenue recognition, as the customer is simultaneously receiving the benefits and able to consume the benefits of the services being provided. For professional services that are distinct and billed on a time-and-materials basis, revenue is generally recognized as the services are provided, which is reflective of the transfer of the services to the customer. The Company elected the “right to invoice” practical expedient based on the Company’s right to invoice a customer at an amount that approximates the value to the customer and the performance completed to date. The Company also provides AI Education Services which represents a customized curriculum of educational services provided to train the customer’s C-suite on AI for Business. The Company provides AI Education Services over time as the course proceeds and the students retain knowledge over time. Thus, the customer receives and consumes benefits as the Company performs the AI Education Services, and revenue is recognized overtime. Company’s AI Solutions includes product revenues primarily comprising of software license fees from sales of term-based license contracts, under which we grant customers the license right to use the software for a specified period (i.e. when the customer can access, use, and benefit from the software license). Term software licenses are satisfied at a point in time and associated revenue is recognized upon the later of 1) delivery of the software, or 2) the beginning of the period in which the customer has received the license right to use the software. For customer contracts that include software license fees, implementation and/or other consulting services, the portion of the transaction price allocated to software licenses is generally recognized when delivered. Implementation, customization, or model tuning services if applicable, when included, are evaluated as separate performance obligations when they are distinct from the software and not highly interdependent. These services are generally satisfied over time as the work progresses. During the year ended December 31, 2025 and December 31, 2024, the product revenues were insignificant. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements For most contracts, the Company uses a Master Service Agreements (“MSA”) to govern the overall relevant terms and conditions of the business agreement, and a Statement of Work (“SOW”) to specify the services delivered and the associated prices. Performance obligations specific to each individual contract are defined within the terms of each SOW. Each performance obligation is identified based on the services that will be transferred to our customer that are both capable of being distinct and are distinct within the context of the contract. The transaction price is determined based on the consideration to which the Company will be entitled and expect to receive in exchange for transferring services to the customer. Consideration for some contracts may include variable consideration including volume discounts and rebates. If the consideration promised includes a variable amount, the Company only includes estimated amounts of consideration in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. These estimates require management judgments and estimates. The determination of whether to constrain consideration in the transaction is based on historical, current, and forecasted information that is reasonably available to the Company, taking into consideration the type of customer, the transaction, and specific facts and circumstances of each arrangement. The Company uses judgement to determine if collectability of consideration is uncertain, and accordingly, revenue recognition is deferred until the uncertainty is resolved and cash is collected. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days of the invoice date. In certain arrangements, the Company will receive payment from a customer either before or after the performance obligation to which the invoice relates has been satisfied. As a practical expedient, the Company does not account for significant financing components if the period between when it transfers the promised good or service to the customer and when the customer pays for the product or service will be one year or less. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on its relative standalone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. For items that are not sold separately, the Company estimates the stand-alone selling prices using other observable inputs. As Fusemachines Inc. is the sole reportable segment, all revenues are attributed to the sole segment. Contract Balances Differences in timing between revenue recognition and cash collection result in contract assets and contract liabilities. The Company classifies these assets as unbilled revenue; the liabilities are classified as deferred revenue. Deferred revenue represents the amounts billed or cash payments received in advance of revenue recognition at the end of the reporting period. These amounts are recorded in deferred revenue until revenue is recognized through delivery of service or upon meeting the performance obligation. The Company’s deferred revenue represents contract liabilities. Generally, when billing occurs subsequent to revenue recognition, the Company reports unbilled revenue on the consolidated balance sheets. Cost of Revenue Consists principally of consulting and payroll expenses as well as stock-based compensation expense that are assigned to customer projects. <p id="xdx_84E_ecustom--SellingAndMarketingExpensePolicyTextBlock_z0n3HoiyNxp8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Selling and Marketing Expenses Selling and marketing expenses represent costs incurred to promote the Company’s services offered, including salaries, benefits and related costs of our sales and marketing personnel, and represent costs of advertising and other selling and marketing expenses. All sales and marketing costs are expensed as incurred. <p id="xdx_84F_eus-gaap--SellingGeneralAndAdministrativeExpensesPolicyTextBlock_zlhilyGO3nr7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">General and Administrative Expenses Consists of expenses associated with general and administrative functions of the business such as the costs of salaries, stock-based compensation expense, Information Technology (“IT”) infrastructure, allowance for expected credit losses, travel, legal and accounting services, insurance, rent, software and tools, meals, other professional services activities, and certain non-income taxes. Defined Contribution Plan Contributions to defined contribution plans are expensed in the period in which services are rendered by the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements <p id="xdx_847_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zQbG6j0zSee5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Stock-Based Compensation Stock-based compensation expense attributable to equity awards granted to employees and non-employees is measured at the grant date based on the fair value of the award. For employee awards, the expense is recognized on a straight-line basis over the requisite service period for awards that actually vest, which is generally the period from the grant date to the end of the vesting period. For non-employee awards, the expense for awards that actually vest is recognized based on when the goods or services are provided. The Company records stock-based compensation in accordance with ASC Topic 718, Compensation – Stock Compensation (“ASC 718”). This standard requires all equity-based payments to employees and non-employees, including grants of employee stock options and restricted stock awards, to be recognized in the consolidated statements of operations and comprehensive loss based on the grant date fair value of the award. The stock-based compensation expense is recognized on a straight-line basis over the requisite service period of the award, which is generally the period from the accounting grant date to the end of the vesting period. The Company elected to account for forfeitures of awards as they occur. Since the adoption of ASU 2018-07, Improvements to Nonemployee Stock-Based Payment Accounting, the measurement date for non-employee awards is the date of grant, and stock-based compensation costs are recognized in the same period and in the same manner as if the entity had paid cash for the goods or services. Stock-based compensation expense is classified as general and administrative, cost of revenue, selling and marketing and research and development expenses in the consolidated statements of operations and comprehensive loss. The Company estimates the fair value of stock option awards granted using the Black Scholes Merton option pricing formula (the “Black-Scholes Model”). This model requires various significant judgmental assumptions in order to derive a final fair value determination for each type of award, including the expected term, expected volatility, expected dividend yield, risk-free interest rate and fair value of the Company’s stock on the date of grant. The expected option term for options granted is calculated using the “simplified method”. This election was made based on the lack of sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The simplified method defines the expected term as the average of the contractual term and the vesting period. Estimated volatility is based on similar entities whose stock prices are publicly traded. The Company uses the historical volatilities of similar entities due to the lack of sufficient historical data for the Company’s common stock price. The Company estimates volatility based upon the observed historical volatilities of comparable companies over a lookback period commensurate with the estimated holding period, adjusted for relative leverage using the Black-Scholes-Merton formula. Dividend yields are based on the Company’s history and expected future actions. The Company has not declared or paid dividends to date and does not anticipate declaring dividends. As such, the dividend yield has been estimated to be zero. The risk-free interest rate is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the stock option award was granted with a maturity equal to the expected term of the stock option award. All grants of stock options generally have an exercise price equal to or greater than the fair market value of the Company’s common stock on the date of grant. The fair value of the shares of common stock underlying the stock options has historically been determined by the Company’s Board of directors as there was no public market for the underlying common stock prior to October 22, 2025. In estimating the fair value of its stock, the Company uses a third-party valuation specialist and considers factors it believes are material to the valuation process, including but not limited to, the price at which recent equity was issued by the Company to independent third parties or transacted between third parties, any indications of value from offers to acquire the Company, actual and projected financial results, risks, prospects, economic and market conditions, and estimates of weighted average cost of capital. The Company believes the combination of these factors provides an appropriate estimate of the expected fair value of the Company and reflects the best estimate of the fair value of the Company’s common stock at each grant date. Notes Receivable from Stockholders From time to time the Company has entered into promissory note agreements with certain employees for the purpose of financing the early exercise of the Company’s stock options. Although the shares of common stock purchased by the employees in exchange for the promissory notes are considered legally issued, the Company does not consider them outstanding for accounting purposes. Instead, the Company treats them as restricted until the options are fully vested and the outstanding principal and accrued interest on the notes are repaid in full. Unvested shares for which the promissory notes are fully satisfied are recorded as a share repurchase liability and as shares vest are recognized to additional paid-in capital in the Consolidated Balance Sheets. Advertising Cost Advertising costs are expensed as incurred. Advertising costs were $61.8 thousand and $126.2 thousand for the years ended December 31, 2025, and 2024, respectively, which are included in selling and marketing costs on the consolidated statements of operations and comprehensive loss. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Income Taxes The provision for income taxes includes federal, state, local and foreign taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the consolidated financial statements carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. Changes to enacted tax rates would result in either increases or decreases in the provision for income taxes in the period of changes The realizability of deferred tax assets is primarily dependent on future earnings. The Company evaluates the realizability of deferred tax assets and recognizes a valuation allowance when it is more likely than not that all, or a portion of, deferred tax assets will not be realized. A reduction in estimated forecasted results may require that we record valuation allowances against deferred tax assets. Once a valuation allowance has been established, it will be maintained until there is sufficient positive evidence to conclude that it is more likely than not that the deferred tax assets will be realized. A pattern of sustained profitability will generally be considered as sufficient positive evidence to reverse a valuation allowance. If the allowance is reversed in a future period, the income tax provision will be correspondingly reduced. Accordingly, the increase and decrease of valuation allowances could have a significant negative or positive impact on future earnings The United States subjects corporations to taxes on Global Intangible Low-Taxed Income (“GILTI”) earned by certain foreign subsidiaries. The Company elected to provide for the tax expense related to GILTI in the year the tax is incurred. Deferred Transaction Costs The Company records deferred transaction costs, which consist of legal, accounting, and other fees related to the preparation of the Merger. (Refer to “Note 1 – Organization”). The deferred transaction costs will be offset against proceeds from the transaction upon the effectiveness of the Business Combination. Fusemachines Inc. incurred transaction cost of $1,873 thousands, consisting of deferred transaction cost, banking fees, legal fees, and other professional fees as at October 22, 2025, which has been recorded as a reduction to Additional paid-in capital as a direct and incremental cost of the reverse recapitalization. Convertible Preferred Stock The Company applies the guidance enumerated in ASC Subtopic 480-10, Distinguishing Liabilities from Equity-Overall (“ASC 480-10”), when determining the classification and measurement of convertible preferred stock. Convertible preferred stock subject to mandatory redemption are classified as liability instruments and are initially measured at fair value in accordance with ASC 480-10 and accreted to their redemption value under the effective interest method. All other issuances of convertible preferred stock are subject to the classification and measurement principles of ASC 480-10. Accordingly, the Company classifies conditionally redeemable preferred stock (if any), which includes preferred stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control, as temporary equity. At all other times, the Company classifies its convertible preferred stock in stockholder’s deficit. Research and Development Costs The Company accounts for research and development costs in accordance with the ASC 730, Research and Development. Under ASC 730, all research and development costs are expensed as incurred, with the exception of certain software development costs discussed above. Our research and development costs consist primarily of payroll costs associated with software product development, testing, quality assurance, documentation, enhancements and upgrades for existing customers under maintenance. Research and Development costs were $720 thousand and $732 thousand for the years ended December 31, 2025 and 2024 respectively, which are included in the consolidated statements of operations and comprehensive loss. Net Loss per Share The Company applies the two-class method to compute basic and diluted net loss per share attributable to common shareholders, when shares meet the definition of participating securities. The two-class method determines net loss per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income (loss) available to common shareholders for the period to be allocated between common and participating securities based upon their respective rights to share in the earnings as if all income (loss) for the period had been distributed. The Company reported a net loss attributable to common shareholders for the year ended December 31, 2025 and 2024. Basic net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average number of shares of common stock outstanding during the year. Diluted net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted average number of shares outstanding, plus the impact of potential common shares, if dilutive, resulting from the potential exercise of warrants or options, and the potential conversion of preferred stock or convertible notes, into common stock, under the if-converted method. Due to the net losses for the year ended December 31, 2025 and 2024, basic and dilutive net loss per share were the same, as the effect of potentially dilutive securities would have been anti-dilutive Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the specific terms of the instruments in accordance with FASB ASC Topic 480, Distinguishing Liabilities from Equity (“ASC 480”) and FASB ASC Topic 815, Derivatives and Hedging (“ASC 815”). Shortfall warrants, public and private warrants, and warrants issued in connection with convertible notes were evaluated under ASC 480 and ASC 815-40 and determined not to meet the criteria for liability classification. These warrants are indexed to the Company’s own stock and meet the requirements for equity classification. Accordingly, such warrants are recorded within stockholders’ equity and are not subsequently remeasured. All other warrants that do not meet the criteria for equity classification are accounted for as liabilities and measured at fair value, with changes in fair value recognized in the consolidated statement of operations and comprehensive loss in each reporting period. <p id="xdx_845_eus-gaap--CommitmentsAndContingenciesPolicyTextBlock_zhrLmj9GJWCa" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Commitments and Contingencies The Company may at times be involved in litigation in the ordinary course of business. The Company will, from time to time, when appropriate in management’s estimation, record adequate reserves in the Company’s consolidated financial statements for pending litigation. Currently there are no material pending or threatened litigation matters that management believes require accrual or disclosure in addition to those presented in the Note on Litigation (refer Note 17 – Commitments and Contingencies). <p id="xdx_845_eus-gaap--ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock_zdyQDlrOnlzf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Foreign Currency Translation and Remeasurement Assets and liabilities of consolidated foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at period-end exchange rates and revenues and expenses are translated into U.S. dollars using average exchange rates during the year. Equity transactions are translated using historical exchange rates. The adjustment resulting from translating the consolidated financial statements of such foreign subsidiaries into U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of Accumulated other comprehensive loss. Risks and Uncertainties As a result of its global operations, the Company may be subject to certain inherent risks. Concentration of Credit - Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents, and accounts receivable. The Company maintains cash and cash equivalents with financial institutions. The Company believes its credit policies reflect normal industry terms and business risk and there is no expectation of non-performance by the counterparties. Accounts receivables are generally dispersed across many customers operating in different industries; therefore, concentration of credit risk is limited. If any of the Company’s customers enter bankruptcy protection or otherwise take steps to alleviate their financial distress, the Company’s credit losses and write-offs of receivables could increase, which would negatively impact its results of operations. Significant Customers and Suppliers — The concentration of credit risk with respect to accounts receivable is primarily limited to certain customers to which the Company makes substantial sales. To minimize credit risk related to accounts receivable, the Company maintains allowances for potential credit losses based on historical loss patterns as well as future expectations. As of December 31, 2025 and December 31, 2024, the Company had three and four customers whose accounts receivable balance accounted for at least 10% of the Company’s consolidated accounts receivables, respectively. These customers accounted for approximately <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zQ0fUw800Fk7" title="Concentration risk, percentage"><span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zMxZ3wS6NNb7" title="Concentration risk, percentage">47.64% and <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--FourCustomersMember_zRPcrh3zhZ66" title="Concentration risk, percentage"><span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--FourCustomersMember_zSKVDs5SrPUi" title="Concentration risk, percentage">61.6% of the Company’s receivables at the end of the respective periods. For the year ended December 31, 2025 and 2024, the Company had three and two customers whose revenue accounted for at least 10% of the Company’s consolidated revenue, respectively. These customers accounted for approximately <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zQE8AAkOrJb9" title="Concentration risk, percentage"><span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zeFMyIenYHE7" title="Concentration risk, percentage">42.2 % and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--OneCustomersMember_zs5pfNgtWsIi" title="Concentration risk, percentage"><span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--OneCustomersMember_zPMDui2Vsmug" title="Concentration risk, percentage">23.9 % of the Company’s total revenue at the end of the respective periods. The Company pays its suppliers on normal commercial terms and does not believe that there is any significant supply risk from its suppliers. As of December 31, 2025, and December 31, 2024, the Company had three and three suppliers whose account payable accounted for at least 10% of the Company’s consolidated account payables, respectively. These suppliers accounted for approximately <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--ThreeSuppliersMember_z2Chp1JNxHbf" title="Concentration risk, percentage"><span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--ThreeSuppliersMember_zC7Xw39MrnQi" title="Concentration risk, percentage">57.0% and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--ThreeSupplierMember_zLGKyrbdqR37" title="Concentration risk, percentage"><span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--ThreeSupplierMember_z7btKpv2bJ16" title="Concentration risk, percentage">61.4% of the Company’s total payables at the end of the respective periods. Foreign currency risk - The Company’s global operations are conducted predominantly in U.S. dollars. While revenue is generated in U.S. dollars, the Company incurs expenses in other currencies, principally, Nepalese rupees and Canadian dollars. The Company’s international operations expose it to risk of adverse fluctuations in foreign currency exchange rates through the remeasurement of foreign currency denominated assets and liabilities (both third-party and intercompany) and translation of earnings and cash flows into U.S. dollars. Interest rate risk - The Company is exposed to market risk from changes in interest rates. Exposure to interest rate risk results primarily from variable rates related to cash, short-term investments, and the Company’s borrowings. The Company does not believe it is exposed to material direct risks associated with changes in interest rates related to these deposits, investments and borrowings. Geopolitical risks - As a result of its global operations, the Company is exposed to geopolitical risks, including ongoing and potential wars, terrorism, sanctions and trade disputes. These developments may disrupt supply chains and data flows, restrict access to critical technology and infrastructure (including AI-enabling hardware and cloud services), and increase cybersecurity and compliance risks. As a result of its global operations, the Company may be subject to certain inherent risks. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Leases The Company’s lease portfolio includes one real estate leases under operating lease agreements. At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company’s assessment is based on whether: (i) the contract involves the use of a distinct identified asset, (ii) the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term of the contract, and (iii) the Company has the right to direct the use of the asset. Upon the adoption of ASC 842, the Company elected the package of practical expedients to not (i) reassess whether any expired or existing contracts are or contain a lease, (ii) reassess historical lease classifications for existing leases, and (iii) reassess initial direct costs for existing leases. The Company also elected the practical expedient to account for lease and non-lease components as a single lease component. Accordingly, the Company shall include non-lease components with lease payments for the purpose of calculating lease assets and liabilities to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments The Company exempts leases with an initial term of 12 months or less from balance sheet recognition and, for all classes of assets, combines non-lease components with lease components. Lease assets are tested for impairment in the same manner as long-lived assets used in operations. The Company evaluates the classification of its leases as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: (i) the lease transfers ownership of the asset by the end of the lease term, (ii) the lease contains an option to purchase the asset that is reasonably certain to be exercised, (iii) the lease term is for a major part of the remaining useful life of the asset, (iv) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset, or (v) the leased asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. A lease is classified as an operating lease if it does not meet any of these criteria. The Company recognizes right-of-use assets and lease liabilities based on the present value of lease payments over the lease term at the commencement date of the lease (or January 1, 2022, for existing leases upon the adoption of Topic 842). The discount rate implicit within the Company’s leases is generally not determinable; therefore, the Company determines the discount rate using its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company records rent expense for short-term leases and operating leases, some of which have escalating rent payments, on a straight-line basis over the lease term For additional information regarding the Company’s lease arrangements, refer to “Note 18 - Leases” Related Parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related party also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party control or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Going Concern The Company’s consolidated financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of December 31, 2025, the Company had cash of approximately $4,221 thousand. For the years ended December 31, 2025, the Company used approximately $5,529 thousand in cash for operating activities. Historically, the Company has incurred recurring net losses from operations and negative cash flows from operating activities. As of December 31, 2025, the Company had an accumulated deficit of approximately $35,145 thousand. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern within one year of the date these consolidated financial statements were issued. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders and debt holders. Specifically, continuation is contingent on the Company’s ability to obtain necessary equity to continue operations, and ultimately the Company’s ability to generate profit from sales and positive operating cash flows, which is not assured. On October 22, 2025, Merger Sub merged with and into Legacy Fusemachines, with Legacy Fusemachines continuing as the surviving company and becoming a wholly owned subsidiary of Fusemachines Inc. In connection with the closing, approximately $14.0 million in cash was received for the issuance of shares of Fusemachines Inc. common stock. All convertible notes were settled through the issuance of Fusemachines Inc. common stock, and certain promissory notes were repaid in cash upon closing. Following the business combination, the net balance of cash and cash equivalents was approximately $9.4 million. The Company’s trade payables, accrued expenses, and other current liabilities exceed the net cash and cash equivalents balance. Management is evaluating initiatives to streamline operations through reductions in headcount and consultant costs, and continued negotiations with vendors to achieve more favorable terms. In addition, the Company’s business plan anticipates a measured growth trajectory supported by new client acquisitions and expansion of existing customer relationships. While these actions are expected to enhance the Company’s financial position and extend its operational runway once implemented, they remain in the planning and negotiation stages. As of the date on which these consolidated financial statements were available to be issued, we believe that the cash on hand, and additional investments available through issuance of new common stock, will be inadequate to satisfy the Company’s working capital and capital expenditure requirements for at least the next twelve months. The ability of the Company to continue as a going concern is dependent upon management’s plan to raise additional capital from issuance of equity or receive additional borrowings to fund the Company’s operating and investing activities over the next year. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Investment in Equity Securities The Company’s equity investment comprises of investments in equity securities of private Companies. These equity investments are accounted for under the equity method, and initially recorded at estimated fair value, less any impairment. The Company’s share of gains and losses if any from these equity method investments are included in the consolidated statements of operations and comprehensive loss, net of income tax provision. Equity investments are reviewed regularly to determine whether there is a decline in estimated fair value below the carrying amount. If there is a decline that is other-than-temporary, the investment is written down to estimated fair value. When evaluating the equity investment for impairment, the Company performs a qualitative and quantitative assessment to evaluate whether a decline in estimated fair value below the carrying amount is other-than- temporary. The qualitative assessment includes a review of macroeconomic conditions, industry and market considerations, the investee’s recent operating results and trends, recent acquisitions and sales of the investee securities, and other publicly available data, among other factors. If the Company determines that the decline is other-than-temporary, the Company records an impairment loss to write the equity investment to the estimated fair value. Treasury Stock The Company records treasury stock activities under the cost method whereby the cost of the acquired stock is recorded as treasury stock. The Company’s accounting policy upon the formal retirement of treasury stock is to deduct the par value from the Company’s common stock and to reflect any excess cost over par value as a reduction to additional paid-in capital (to the extent created by previous issuances of the shares) and then retained earnings. In connection with the consummation of the Business Combination on October 22, 2025, treasury shares previously held by the Company totaling 438,903 shares, with an aggregate carrying value of approximately $2.9 million, were excluded from the share exchange and did not participate in the reverse recapitalization. As treasury shares are not considered outstanding, these shares were effectively retired in connection with the transaction and accordingly are not reflected as outstanding shares of common stock following the closing of the Business Combination. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Emerging Growth Company (EGC) The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Embedded Derivatives ASC 815 requires companies to bifurcate certain features from their host instruments and account for them as free-standing derivative financial instruments should certain criteria be met. We evaluate our financial instruments to determine whether such instruments are derivatives or contain features that qualify as embedded derivatives. Embedded derivatives must be separately measured from the host contract if all the requirements for bifurcation are met. The assessment of the conditions surrounding the bifurcation of embedded derivatives depends on the nature of the host contract and the features of the derivatives. Bifurcated embedded derivatives are recognized at fair value, with changes in fair value recognized in the consolidated statements of operations each period. Bifurcated embedded derivatives are classified with the related host contract in our consolidated balance sheets. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity is re-assessed at the end of each reporting period. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements <p id="xdx_840_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_z6cWZuKdsQx4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Recent Accounting Pronouncements New Accounting Pronouncements Not Yet Adopted The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board. Management periodically reviews newly issued accounting standards to determine their potential impact on the Company’s consolidated financial statements and related disclosures. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures- In December 2023, the FASB issued this ASU to update income tax disclosure requirements, primarily related to the income tax rate reconciliation and income taxes paid information. This update is effective on a prospective basis for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. In March 2024, the SEC issued its final climate disclosure rules (Rule 1), which require the disclosure of climate-related information in annual reports and registration statements, beginning with annual reports for the year ending December 31, 2025. The rules require disclosure in the audited financial statements of certain effects of severe weather events and other natural conditions above certain financial thresholds, as well as amounts related to carbon offsets and renewable energy credits or certificates, if material. We are currently evaluating the impact of the new rules and continue to monitor the status of the related legal challenges. ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures. In November 2024, the FASB issued this ASU that requires more detailed disclosure about certain costs and expenses presented in the income statement, including inventory purchases, employee compensation, selling expense and depreciation expense. The new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The guidance does not affect recognition or measurement in our consolidated financial statements. ASU 2024-04 Debt - Debt with Conversion and Other Options - Induced Conversions of Convertible Debt Instruments. In November 2024, the FASB issued this ASU which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as induced conversions or extinguishments. The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities that have adopted the amendments in Update 2020-06. We are currently evaluating the impact this guidance will have on our consolidated financial statements. In May 2025, the FASB issued Accounting Standards Update No. 2025-04, Compensation – Stock Compensation (Topic 718) and Revenue from Contracts With Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer (“ASU 2025-04”). ASU 2025-04 revises the definition of a performance condition, eliminates the forfeiture policy election for service conditions, and clarifies that the variable consideration constraint in Topic 606 does not apply to share-based consideration payable to customers. The new guidance requires entities to consistently account for share-based awards granted to customers by clarifying the treatment of vesting conditions and ensuring alignment with Topic 606 and Topic 718. ASU 2025-04 is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new accounting guidance on its financial statements and related disclosures. In September 2025, the FASB issued ASU 2025-06- Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06), which is intended to simplify the capitalization guidance for internal-use software by removing references to project stages and clarifying when the capitalizing of eligible costs is required. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and interim periods within those fiscal years. Early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its disclosures. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting. The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have had a material impact on the entity. ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-11. The Company does not believe any other new accounting pronouncements issued by the FASB that have not become effective will have a material impact on its consolidated financial statements. New Accounting Pronouncements Adopted In May 2025, the FASB issued Accounting Standards Update No. 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity (“ASU 2025-03”). ASU 2025-03 changes how companies determine the accounting acquirer in certain business combinations involving variable interest entities. The new guidance requires considering the factors used for other acquisition transactions to assess which party is the accounting acquirer. ASU 2025-03 is effective for the Company’s annual reporting periods beginning on January 1, 2027. The Company has early adopted ASU 2025-03. Accordingly, even if the acquired entity meets the definition of a VIE under ASC 810, the determination of the accounting acquirer is based on an evaluation in accordance with ASC 805-10 and ASC 805-50. The adoption of this guidance did not have a material impact on the Company’s financial statements. Further, the adoption did not change the Company’s overall accounting conclusions with respect to the identification of the accounting acquirer. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

Basis of Presentation and Principles of Consolidation The Company prepares its consolidated financial statements in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding financial reporting. The consolidated financial statements include the financial statements of Fusemachines Inc. and its subsidiaries. Investments in entities where we hold at least a 20% ownership interest and have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. All intercompany balances and transactions have been eliminated. These consolidated financial statements are presented in United States Dollars (“USD” or $), which is the functional currency of the Parent Company. The consolidated financial statements as of and for the year ended December 31, 2024, included herein was derived from the audited consolidated financial statements of Legacy Fusemachines (now known as Fusemachines USA, Inc.).

<p id="xdx_845_eus-gaap--PriorPeriodReclassificationAdjustmentDescription_zeM9MBZXI3T7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation.

Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to the valuation of operating lease right-of-use assets, convertible notes, cumulative mandatorily redeemable common and preferred stock liability, common stock warrants, common and convertible preferred stock, current expected credit losses (“CECL”), stock-based compensation, useful lives of property and equipment and intangible assets, impairment of long-lived assets, capitalization of software development costs, forward purchase derivative liability, equity method investments and income taxes. The Company bases its estimates and judgments on historical experience, knowledge of current conditions and its beliefs of what could occur in the future, given available information. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. Changes in facts and circumstances may cause the Company to revise its estimates.

Cash & cash equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. These investments are carried at cost, which approximates fair value. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

Accounts Receivable and Related Allowance for Expected Credit Losses The Company classifies its right to consideration in exchange for deliverables as an accounts receivable. A receivable is a right to consideration that is unconditional (i.e., only the passage of time is required before payment is due) regardless of whether the amounts have been billed. Accounts receivable represents amounts due from the Company’s customers for AI solutions (products and services). The Company receives payments from customers based upon agreed-upon contractual terms. The timing of revenue recognition may differ from the timing of invoicing to customers. Account receivables are stated net of allowance for expected credit losses. Outstanding receivables are reviewed periodically, and allowances are provided for the estimated amount of receivables that may not be collected. The allowance for expected credit loss is based on the probability of future collection determined by applying a loss-rate method using the Company’s historical loss experience. The Company also considers reasonable and supportable current and future conditions in determining its estimated loss rates, such as external forecasts, macroeconomic trends or other factors including customer specific credit risk characteristics. The adequacy of the allowance is evaluated on a regular basis. Account balances are written off after all means of collection are exhausted and the balance is deemed uncollectible, which occurs when balances reach 365 days past due. Subsequent recoveries are credited to the allowance. Changes in the allowance are recorded as adjustments to bad debt expense in the period incurred. Bad debt expense is included in general and administrative expenses in the consolidated statements of operations and comprehensive loss.

<p id="xdx_841_eus-gaap--PropertyPlantAndEquipmentPolicyTextBlock_z3GvIxFFfqPc" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Property and Equipment, net Property and equipment acquired in the ordinary course of the Company’s operations are stated at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease or the estimated useful life of the improvement. Maintenance and repairs are expensed as incurred Depreciation expense is included in general and administrative expenses in the consolidated statements of operations and comprehensive loss. <p id="xdx_896_ecustom--ScheduleOfPropertyPlantAndEquipmentTableTextBlock_zdSvQDoIAlpb" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Depreciable lives by major classification generally are as follows: Schedule of Property and Equipment, Net <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 60%"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">Useful life</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 75%; text-align: left">Computers and other hardware</td><td style="width: 2%"> </td> <td style="width: 22%; text-align: center"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MinimumMember_zNPGZ9MS3NI7" title="Property and equipment, estimated useful lives">5-<span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_z4jGEBykv859" title="Property and equipment, estimated useful lives">8 years </td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Vehicles and other fixed assets (excluding computers)</td><td> </td> <td style="text-align: center"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember__srt--RangeAxis__srt--MinimumMember_zTjuYNu1wErj" title="Property and equipment, estimated useful lives">2-<span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember__srt--RangeAxis__srt--MaximumMember_zOo9hHJjCOi9" title="Property and equipment, estimated useful lives">10 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Office, furniture, and equipment</td><td> </td> <td style="text-align: center"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MinimumMember_zCKwfgo0e4l" title="Property and equipment, estimated useful lives">2-<span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MaximumMember_zEKBS1YKP6rb" title="Property and equipment, estimated useful lives">10 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Leasehold improvements - shorter of lease term of estimated useful life</td><td> </td> <td style="text-align: center"><span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MinimumMember_zzrl8Y7M20Ch" title="Property and equipment, estimated useful lives">2-<span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MaximumMember_zJfZAV2AIuH" title="Property and equipment, estimated useful lives">10 years</td><td style="text-align: left"> </td></tr> </table>

<p id="xdx_896_ecustom--ScheduleOfPropertyPlantAndEquipmentTableTextBlock_zdSvQDoIAlpb" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Depreciable lives by major classification generally are as follows: Schedule of Property and Equipment, Net <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 60%"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">Useful life</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 75%; text-align: left">Computers and other hardware</td><td style="width: 2%"> </td> <td style="width: 22%; text-align: center"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MinimumMember_zNPGZ9MS3NI7" title="Property and equipment, estimated useful lives">5-<span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_z4jGEBykv859" title="Property and equipment, estimated useful lives">8 years </td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Vehicles and other fixed assets (excluding computers)</td><td> </td> <td style="text-align: center"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember__srt--RangeAxis__srt--MinimumMember_zTjuYNu1wErj" title="Property and equipment, estimated useful lives">2-<span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember__srt--RangeAxis__srt--MaximumMember_zOo9hHJjCOi9" title="Property and equipment, estimated useful lives">10 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Office, furniture, and equipment</td><td> </td> <td style="text-align: center"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MinimumMember_zCKwfgo0e4l" title="Property and equipment, estimated useful lives">2-<span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MaximumMember_zEKBS1YKP6rb" title="Property and equipment, estimated useful lives">10 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Leasehold improvements - shorter of lease term of estimated useful life</td><td> </td> <td style="text-align: center"><span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MinimumMember_zzrl8Y7M20Ch" title="Property and equipment, estimated useful lives">2-<span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MaximumMember_zJfZAV2AIuH" title="Property and equipment, estimated useful lives">10 years</td><td style="text-align: left"> </td></tr> </table>

P5Y

P8Y

P2Y

P10Y

P2Y

P10Y

P2Y

P10Y

<p id="xdx_846_eus-gaap--GoodwillAndIntangibleAssetsIntangibleAssetsPolicy_zNERm0gcpnac" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Intangible assets, net Intangible assets consists of internally developed capitalized software, which will help in the management of the AI solutions business and will be sold on a license basis. Internal use software The Company capitalizes certain costs related to internal use software acquired, modified, or developed related to the Company’s services in accordance with ASC 350, Internal use software. These capitalized costs are primarily related to salaries and other personnel costs. Costs incurred in the preliminary stages of development and the post implementation phase are expensed as incurred. The company adopts agile method of software development which is generally characterized as an iterative and more dynamic process where the planning, design and coding are less distinct and performed in short sprints. The Company analyses the nature of the development and implementation activities - i.e. whether Subtopic 350-40 characterizes them as capitalizable application development stage activities - when deciding whether the costs of those activities should be capitalized or expensed as incurred. Maintenance and training costs are expensed as incurred. The amortization expense is recorded in “General and administration” on the consolidated statements of operations and comprehensive loss. Software costs that are expensed are recorded in “Research and Development” on the consolidated statements of operations and comprehensive loss. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Software developed for sale The costs incurred for the development of computer software to be sold, leased or otherwise marketed are capitalized in accordance with ASC 985, Costs of Software to be sold, leased or marketed, when technological feasibility has been established. Technological feasibility generally occurs when all planning, designing, coding and testing activities are completed that are necessary to establish that the product can be produced to meet its design specifications, including functions, features, and technical performance requirements. These capitalized costs are primarily related to salaries and other personnel costs. Schedule of Intangible Assets, Net Useful Lives <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 60%"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Useful life</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 75%; text-align: left">Internally developed software</td><td style="width: 2%"> </td> <td style="width: 22%; text-align: center"><span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--InternallyDevelopedSoftwareMember_zQ9imydDZah" title="Intangible assets, net useful lives">3 years </td><td style="width: 1%; text-align: left"> </td></tr> </table>

Schedule of Intangible Assets, Net Useful Lives <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 60%"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Useful life</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 75%; text-align: left">Internally developed software</td><td style="width: 2%"> </td> <td style="width: 22%; text-align: center"><span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--InternallyDevelopedSoftwareMember_zQ9imydDZah" title="Intangible assets, net useful lives">3 years </td><td style="width: 1%; text-align: left"> </td></tr> </table>

P3Y

Segment reporting Under Topic 280, an operating segment is defined as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the CODM to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. The Company operates as one operating segment with a focus on data engineering, AI consulting, and technical services. The Company’s Chief Executive Officer (“CEO”), as the Company’s chief operating decision maker, manages and allocates resources to the operations of the Company on a consolidated basis. This enables the Company’s CEO to assess the overall level of available resources and determine how best to deploy these resources across service lines in line with the Company’s long-term company-wide strategic goals. The CODM considers the Company’s net income/(loss), expenses and the components of total assets to assess the segment’s performance and make resource allocation decisions for the Company’s single segment which is consistent with that presented within these financial statements. As the Company’s operations are comprised of a single reporting segment, the Company’s segment assets are reflected on the accompanying consolidated balance sheet as “total assets” and its significant segment expenses and net loss are listed on the accompanying Consolidated Statements of Operations and Comprehensive loss.

<p id="xdx_845_eus-gaap--ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock_zVt5V03m8uLa" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Impairment of Long-Lived Assets Long-lived assets, such as property and equipment and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company uses the straight-line method of depreciation and amortization. When the carrying value of an asset is more than the sum of the undiscounted expected future cash flows, an impairment is recognized. An impairment loss is measured as the excess of the asset’s carrying amount over its fair value. Intangible assets that have finite useful lives are amortized over their estimated useful lives on a straight-line basis. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset, or a significant decline in the observable market value of an asset, among others. <p id="xdx_897_eus-gaap--DetailsOfImpairmentOfLongLivedAssetsHeldAndUsedByAssetTextBlock_zDGmqzn8DVQf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">The Company holds long-lived assets in two countries worldwide. The table below presents the breakdown of the Company’s long-lived assets, based on geographic region (in thousands). Schedule of Long-lived Assets, Based on Geographic Region <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_493_20251231_ztMCAJuK0ukc" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2025</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20241231_zrKbOBG9GbI2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2024</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Long lived assets as of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">December 31,</td><td style="text-align: center; font-weight: bold"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">December 31,</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2025</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2024</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--NoncurrentAssets_iI_pn3n3_hsrt--StatementGeographicalAxis__country--NP_z9UsQZfvbel1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Nepal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">247</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">286</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--NoncurrentAssets_iI_pn3n3_hsrt--StatementGeographicalAxis__country--US_znAlCrwRKh8f" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">United States</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">264</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">249</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--NoncurrentAssets_iI_pn3n3_zuBijT1ioYIg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Total long-lived assets</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">511</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">535</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

<p id="xdx_897_eus-gaap--DetailsOfImpairmentOfLongLivedAssetsHeldAndUsedByAssetTextBlock_zDGmqzn8DVQf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">The Company holds long-lived assets in two countries worldwide. The table below presents the breakdown of the Company’s long-lived assets, based on geographic region (in thousands). Schedule of Long-lived Assets, Based on Geographic Region <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_493_20251231_ztMCAJuK0ukc" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2025</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20241231_zrKbOBG9GbI2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2024</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Long lived assets as of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">December 31,</td><td style="text-align: center; font-weight: bold"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="text-align: center; font-weight: bold">December 31,</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2025</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2024</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--NoncurrentAssets_iI_pn3n3_hsrt--StatementGeographicalAxis__country--NP_z9UsQZfvbel1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Nepal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">247</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">286</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--NoncurrentAssets_iI_pn3n3_hsrt--StatementGeographicalAxis__country--US_znAlCrwRKh8f" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">United States</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">264</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">249</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--NoncurrentAssets_iI_pn3n3_zuBijT1ioYIg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Total long-lived assets</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">511</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">535</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

247000

286000

264000

249000

511000

535000

Fair Value Option (“FVO”) Election The Company entered into related party convertible notes payable, at fair value in October 2019, September 2021, and Convertible Notes payable at fair value in January 2024, (the “Convertible Notes at Fair Value”). (Refer to “Note 10 – Long-Term Debt”). As permitted under ASC 825, Financial Instruments (“ASC 825”), the Company elected the FVO to account for the Convertible Notes at Fair Value and Related Party Convertible notes at Fair Value. In accordance with ASC 825, the Company recorded them at fair value. The FVO may be applied instrument by instrument, but it is irrevocable. Subsequent changes in fair value would be recorded as a separate line in the consolidated statements of operations and comprehensive loss. As a result of applying the FVO, direct costs and fees related to the Convertible Notes at Fair Value and Related Party Convertible notes at Fair Value were expensed as incurred. The Company concluded it was appropriate to apply the FVO to Convertible Notes at Fair Value and Related Party Convertible notes at Fair Value because they are liabilities that are not, in whole or in part, classified as a component of stockholders’ equity. In addition, the Convertible Notes at Fair Value and Related Party Convertible notes at Fair Value met other applicable criteria for electing the FVO under ASC 825.

<p id="xdx_84F_eus-gaap--ComprehensiveIncomePolicyPolicyTextBlock_z9NF9LM1SvWj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Accumulated Other Comprehensive Income Accumulated other comprehensive income consists of changes in the cumulative foreign currency translation adjustments.

<p id="xdx_84C_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zl5AhCZ95U9c" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Revenue Recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, the Company recognizes revenue when (or as) customers obtain control of promised goods or services, in an amount that reflects the consideration which is expected to be received in exchange for those goods or services. The Company recognizes revenue following the five-step model prescribed under ASC 606: (i) identify contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenues when (or as) the Company satisfies a performance obligation. The Company applies the provisions of ASC 606 to an arrangement when a substantive contract exists and collectability is probable. The Company derives the majority of its revenue from AI Solutions (Products and Services) that largely represents professional services the Company provides to its customers to help them achieve any AI-related goals within their organization. Standard contractual arrangements are governed by Master Services Agreements (“MSAs”), which set out general terms including payment, termination rights, and intellectual property ownership. Detailed scope, pricing, and performance obligations are defined in Statements of Work (“SOWs”), which are executed for each engagement or project phase. The Company’s contracts for AI Services have different terms based on the scope and complexity of engagements; pricing for the majority of contracts are invoiced monthly on a time-and-materials basis. The Company notes that its contracts meet the requirements for over-time revenue recognition, as the customer is simultaneously receiving the benefits and able to consume the benefits of the services being provided. For professional services that are distinct and billed on a time-and-materials basis, revenue is generally recognized as the services are provided, which is reflective of the transfer of the services to the customer. The Company elected the “right to invoice” practical expedient based on the Company’s right to invoice a customer at an amount that approximates the value to the customer and the performance completed to date. The Company also provides AI Education Services which represents a customized curriculum of educational services provided to train the customer’s C-suite on AI for Business. The Company provides AI Education Services over time as the course proceeds and the students retain knowledge over time. Thus, the customer receives and consumes benefits as the Company performs the AI Education Services, and revenue is recognized overtime. Company’s AI Solutions includes product revenues primarily comprising of software license fees from sales of term-based license contracts, under which we grant customers the license right to use the software for a specified period (i.e. when the customer can access, use, and benefit from the software license). Term software licenses are satisfied at a point in time and associated revenue is recognized upon the later of 1) delivery of the software, or 2) the beginning of the period in which the customer has received the license right to use the software. For customer contracts that include software license fees, implementation and/or other consulting services, the portion of the transaction price allocated to software licenses is generally recognized when delivered. Implementation, customization, or model tuning services if applicable, when included, are evaluated as separate performance obligations when they are distinct from the software and not highly interdependent. These services are generally satisfied over time as the work progresses. During the year ended December 31, 2025 and December 31, 2024, the product revenues were insignificant. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements For most contracts, the Company uses a Master Service Agreements (“MSA”) to govern the overall relevant terms and conditions of the business agreement, and a Statement of Work (“SOW”) to specify the services delivered and the associated prices. Performance obligations specific to each individual contract are defined within the terms of each SOW. Each performance obligation is identified based on the services that will be transferred to our customer that are both capable of being distinct and are distinct within the context of the contract. The transaction price is determined based on the consideration to which the Company will be entitled and expect to receive in exchange for transferring services to the customer. Consideration for some contracts may include variable consideration including volume discounts and rebates. If the consideration promised includes a variable amount, the Company only includes estimated amounts of consideration in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. These estimates require management judgments and estimates. The determination of whether to constrain consideration in the transaction is based on historical, current, and forecasted information that is reasonably available to the Company, taking into consideration the type of customer, the transaction, and specific facts and circumstances of each arrangement. The Company uses judgement to determine if collectability of consideration is uncertain, and accordingly, revenue recognition is deferred until the uncertainty is resolved and cash is collected. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days of the invoice date. In certain arrangements, the Company will receive payment from a customer either before or after the performance obligation to which the invoice relates has been satisfied. As a practical expedient, the Company does not account for significant financing components if the period between when it transfers the promised good or service to the customer and when the customer pays for the product or service will be one year or less. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on its relative standalone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. For items that are not sold separately, the Company estimates the stand-alone selling prices using other observable inputs. As Fusemachines Inc. is the sole reportable segment, all revenues are attributed to the sole segment. Contract Balances Differences in timing between revenue recognition and cash collection result in contract assets and contract liabilities. The Company classifies these assets as unbilled revenue; the liabilities are classified as deferred revenue. Deferred revenue represents the amounts billed or cash payments received in advance of revenue recognition at the end of the reporting period. These amounts are recorded in deferred revenue until revenue is recognized through delivery of service or upon meeting the performance obligation. The Company’s deferred revenue represents contract liabilities. Generally, when billing occurs subsequent to revenue recognition, the Company reports unbilled revenue on the consolidated balance sheets.

Cost of Revenue Consists principally of consulting and payroll expenses as well as stock-based compensation expense that are assigned to customer projects. <p id="xdx_84E_ecustom--SellingAndMarketingExpensePolicyTextBlock_z0n3HoiyNxp8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Selling and Marketing Expenses Selling and marketing expenses represent costs incurred to promote the Company’s services offered, including salaries, benefits and related costs of our sales and marketing personnel, and represent costs of advertising and other selling and marketing expenses. All sales and marketing costs are expensed as incurred.

<p id="xdx_84F_eus-gaap--SellingGeneralAndAdministrativeExpensesPolicyTextBlock_zlhilyGO3nr7" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">General and Administrative Expenses Consists of expenses associated with general and administrative functions of the business such as the costs of salaries, stock-based compensation expense, Information Technology (“IT”) infrastructure, allowance for expected credit losses, travel, legal and accounting services, insurance, rent, software and tools, meals, other professional services activities, and certain non-income taxes.

Defined Contribution Plan Contributions to defined contribution plans are expensed in the period in which services are rendered by the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

<p id="xdx_847_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zQbG6j0zSee5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Stock-Based Compensation Stock-based compensation expense attributable to equity awards granted to employees and non-employees is measured at the grant date based on the fair value of the award. For employee awards, the expense is recognized on a straight-line basis over the requisite service period for awards that actually vest, which is generally the period from the grant date to the end of the vesting period. For non-employee awards, the expense for awards that actually vest is recognized based on when the goods or services are provided. The Company records stock-based compensation in accordance with ASC Topic 718, Compensation – Stock Compensation (“ASC 718”). This standard requires all equity-based payments to employees and non-employees, including grants of employee stock options and restricted stock awards, to be recognized in the consolidated statements of operations and comprehensive loss based on the grant date fair value of the award. The stock-based compensation expense is recognized on a straight-line basis over the requisite service period of the award, which is generally the period from the accounting grant date to the end of the vesting period. The Company elected to account for forfeitures of awards as they occur. Since the adoption of ASU 2018-07, Improvements to Nonemployee Stock-Based Payment Accounting, the measurement date for non-employee awards is the date of grant, and stock-based compensation costs are recognized in the same period and in the same manner as if the entity had paid cash for the goods or services. Stock-based compensation expense is classified as general and administrative, cost of revenue, selling and marketing and research and development expenses in the consolidated statements of operations and comprehensive loss. The Company estimates the fair value of stock option awards granted using the Black Scholes Merton option pricing formula (the “Black-Scholes Model”). This model requires various significant judgmental assumptions in order to derive a final fair value determination for each type of award, including the expected term, expected volatility, expected dividend yield, risk-free interest rate and fair value of the Company’s stock on the date of grant. The expected option term for options granted is calculated using the “simplified method”. This election was made based on the lack of sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The simplified method defines the expected term as the average of the contractual term and the vesting period. Estimated volatility is based on similar entities whose stock prices are publicly traded. The Company uses the historical volatilities of similar entities due to the lack of sufficient historical data for the Company’s common stock price. The Company estimates volatility based upon the observed historical volatilities of comparable companies over a lookback period commensurate with the estimated holding period, adjusted for relative leverage using the Black-Scholes-Merton formula. Dividend yields are based on the Company’s history and expected future actions. The Company has not declared or paid dividends to date and does not anticipate declaring dividends. As such, the dividend yield has been estimated to be zero. The risk-free interest rate is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the stock option award was granted with a maturity equal to the expected term of the stock option award. All grants of stock options generally have an exercise price equal to or greater than the fair market value of the Company’s common stock on the date of grant. The fair value of the shares of common stock underlying the stock options has historically been determined by the Company’s Board of directors as there was no public market for the underlying common stock prior to October 22, 2025. In estimating the fair value of its stock, the Company uses a third-party valuation specialist and considers factors it believes are material to the valuation process, including but not limited to, the price at which recent equity was issued by the Company to independent third parties or transacted between third parties, any indications of value from offers to acquire the Company, actual and projected financial results, risks, prospects, economic and market conditions, and estimates of weighted average cost of capital. The Company believes the combination of these factors provides an appropriate estimate of the expected fair value of the Company and reflects the best estimate of the fair value of the Company’s common stock at each grant date.

Notes Receivable from Stockholders From time to time the Company has entered into promissory note agreements with certain employees for the purpose of financing the early exercise of the Company’s stock options. Although the shares of common stock purchased by the employees in exchange for the promissory notes are considered legally issued, the Company does not consider them outstanding for accounting purposes. Instead, the Company treats them as restricted until the options are fully vested and the outstanding principal and accrued interest on the notes are repaid in full. Unvested shares for which the promissory notes are fully satisfied are recorded as a share repurchase liability and as shares vest are recognized to additional paid-in capital in the Consolidated Balance Sheets.

Advertising Cost Advertising costs are expensed as incurred. Advertising costs were $61.8 thousand and $126.2 thousand for the years ended December 31, 2025, and 2024, respectively, which are included in selling and marketing costs on the consolidated statements of operations and comprehensive loss. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

61800

126200

Income Taxes The provision for income taxes includes federal, state, local and foreign taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the consolidated financial statements carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. Changes to enacted tax rates would result in either increases or decreases in the provision for income taxes in the period of changes The realizability of deferred tax assets is primarily dependent on future earnings. The Company evaluates the realizability of deferred tax assets and recognizes a valuation allowance when it is more likely than not that all, or a portion of, deferred tax assets will not be realized. A reduction in estimated forecasted results may require that we record valuation allowances against deferred tax assets. Once a valuation allowance has been established, it will be maintained until there is sufficient positive evidence to conclude that it is more likely than not that the deferred tax assets will be realized. A pattern of sustained profitability will generally be considered as sufficient positive evidence to reverse a valuation allowance. If the allowance is reversed in a future period, the income tax provision will be correspondingly reduced. Accordingly, the increase and decrease of valuation allowances could have a significant negative or positive impact on future earnings The United States subjects corporations to taxes on Global Intangible Low-Taxed Income (“GILTI”) earned by certain foreign subsidiaries. The Company elected to provide for the tax expense related to GILTI in the year the tax is incurred.

Deferred Transaction Costs The Company records deferred transaction costs, which consist of legal, accounting, and other fees related to the preparation of the Merger. (Refer to “Note 1 – Organization”). The deferred transaction costs will be offset against proceeds from the transaction upon the effectiveness of the Business Combination. Fusemachines Inc. incurred transaction cost of $1,873 thousands, consisting of deferred transaction cost, banking fees, legal fees, and other professional fees as at October 22, 2025, which has been recorded as a reduction to Additional paid-in capital as a direct and incremental cost of the reverse recapitalization.

1873000

Convertible Preferred Stock The Company applies the guidance enumerated in ASC Subtopic 480-10, Distinguishing Liabilities from Equity-Overall (“ASC 480-10”), when determining the classification and measurement of convertible preferred stock. Convertible preferred stock subject to mandatory redemption are classified as liability instruments and are initially measured at fair value in accordance with ASC 480-10 and accreted to their redemption value under the effective interest method. All other issuances of convertible preferred stock are subject to the classification and measurement principles of ASC 480-10. Accordingly, the Company classifies conditionally redeemable preferred stock (if any), which includes preferred stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control, as temporary equity. At all other times, the Company classifies its convertible preferred stock in stockholder’s deficit.

Research and Development Costs The Company accounts for research and development costs in accordance with the ASC 730, Research and Development. Under ASC 730, all research and development costs are expensed as incurred, with the exception of certain software development costs discussed above. Our research and development costs consist primarily of payroll costs associated with software product development, testing, quality assurance, documentation, enhancements and upgrades for existing customers under maintenance. Research and Development costs were $720 thousand and $732 thousand for the years ended December 31, 2025 and 2024 respectively, which are included in the consolidated statements of operations and comprehensive loss.

720000

732000

Net Loss per Share The Company applies the two-class method to compute basic and diluted net loss per share attributable to common shareholders, when shares meet the definition of participating securities. The two-class method determines net loss per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income (loss) available to common shareholders for the period to be allocated between common and participating securities based upon their respective rights to share in the earnings as if all income (loss) for the period had been distributed. The Company reported a net loss attributable to common shareholders for the year ended December 31, 2025 and 2024. Basic net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average number of shares of common stock outstanding during the year. Diluted net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted average number of shares outstanding, plus the impact of potential common shares, if dilutive, resulting from the potential exercise of warrants or options, and the potential conversion of preferred stock or convertible notes, into common stock, under the if-converted method. Due to the net losses for the year ended December 31, 2025 and 2024, basic and dilutive net loss per share were the same, as the effect of potentially dilutive securities would have been anti-dilutive Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the specific terms of the instruments in accordance with FASB ASC Topic 480, Distinguishing Liabilities from Equity (“ASC 480”) and FASB ASC Topic 815, Derivatives and Hedging (“ASC 815”). Shortfall warrants, public and private warrants, and warrants issued in connection with convertible notes were evaluated under ASC 480 and ASC 815-40 and determined not to meet the criteria for liability classification. These warrants are indexed to the Company’s own stock and meet the requirements for equity classification. Accordingly, such warrants are recorded within stockholders’ equity and are not subsequently remeasured. All other warrants that do not meet the criteria for equity classification are accounted for as liabilities and measured at fair value, with changes in fair value recognized in the consolidated statement of operations and comprehensive loss in each reporting period.

<p id="xdx_845_eus-gaap--CommitmentsAndContingenciesPolicyTextBlock_zhrLmj9GJWCa" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Commitments and Contingencies The Company may at times be involved in litigation in the ordinary course of business. The Company will, from time to time, when appropriate in management’s estimation, record adequate reserves in the Company’s consolidated financial statements for pending litigation. Currently there are no material pending or threatened litigation matters that management believes require accrual or disclosure in addition to those presented in the Note on Litigation (refer Note 17 – Commitments and Contingencies).

<p id="xdx_845_eus-gaap--ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock_zdyQDlrOnlzf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: justify">Foreign Currency Translation and Remeasurement Assets and liabilities of consolidated foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at period-end exchange rates and revenues and expenses are translated into U.S. dollars using average exchange rates during the year. Equity transactions are translated using historical exchange rates. The adjustment resulting from translating the consolidated financial statements of such foreign subsidiaries into U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of Accumulated other comprehensive loss.

Risks and Uncertainties As a result of its global operations, the Company may be subject to certain inherent risks. Concentration of Credit - Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents, and accounts receivable. The Company maintains cash and cash equivalents with financial institutions. The Company believes its credit policies reflect normal industry terms and business risk and there is no expectation of non-performance by the counterparties. Accounts receivables are generally dispersed across many customers operating in different industries; therefore, concentration of credit risk is limited. If any of the Company’s customers enter bankruptcy protection or otherwise take steps to alleviate their financial distress, the Company’s credit losses and write-offs of receivables could increase, which would negatively impact its results of operations. Significant Customers and Suppliers — The concentration of credit risk with respect to accounts receivable is primarily limited to certain customers to which the Company makes substantial sales. To minimize credit risk related to accounts receivable, the Company maintains allowances for potential credit losses based on historical loss patterns as well as future expectations. As of December 31, 2025 and December 31, 2024, the Company had three and four customers whose accounts receivable balance accounted for at least 10% of the Company’s consolidated accounts receivables, respectively. These customers accounted for approximately <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zQ0fUw800Fk7" title="Concentration risk, percentage"><span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zMxZ3wS6NNb7" title="Concentration risk, percentage">47.64% and <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--FourCustomersMember_zRPcrh3zhZ66" title="Concentration risk, percentage"><span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--FourCustomersMember_zSKVDs5SrPUi" title="Concentration risk, percentage">61.6% of the Company’s receivables at the end of the respective periods. For the year ended December 31, 2025 and 2024, the Company had three and two customers whose revenue accounted for at least 10% of the Company’s consolidated revenue, respectively. These customers accounted for approximately <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zQE8AAkOrJb9" title="Concentration risk, percentage"><span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zeFMyIenYHE7" title="Concentration risk, percentage">42.2 % and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--OneCustomersMember_zs5pfNgtWsIi" title="Concentration risk, percentage"><span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--OneCustomersMember_zPMDui2Vsmug" title="Concentration risk, percentage">23.9 % of the Company’s total revenue at the end of the respective periods. The Company pays its suppliers on normal commercial terms and does not believe that there is any significant supply risk from its suppliers. As of December 31, 2025, and December 31, 2024, the Company had three and three suppliers whose account payable accounted for at least 10% of the Company’s consolidated account payables, respectively. These suppliers accounted for approximately <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--ThreeSuppliersMember_z2Chp1JNxHbf" title="Concentration risk, percentage"><span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--ThreeSuppliersMember_zC7Xw39MrnQi" title="Concentration risk, percentage">57.0% and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--ThreeSupplierMember_zLGKyrbdqR37" title="Concentration risk, percentage"><span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--ThreeSupplierMember_z7btKpv2bJ16" title="Concentration risk, percentage">61.4% of the Company’s total payables at the end of the respective periods. Foreign currency risk - The Company’s global operations are conducted predominantly in U.S. dollars. While revenue is generated in U.S. dollars, the Company incurs expenses in other currencies, principally, Nepalese rupees and Canadian dollars. The Company’s international operations expose it to risk of adverse fluctuations in foreign currency exchange rates through the remeasurement of foreign currency denominated assets and liabilities (both third-party and intercompany) and translation of earnings and cash flows into U.S. dollars. Interest rate risk - The Company is exposed to market risk from changes in interest rates. Exposure to interest rate risk results primarily from variable rates related to cash, short-term investments, and the Company’s borrowings. The Company does not believe it is exposed to material direct risks associated with changes in interest rates related to these deposits, investments and borrowings. Geopolitical risks - As a result of its global operations, the Company is exposed to geopolitical risks, including ongoing and potential wars, terrorism, sanctions and trade disputes. These developments may disrupt supply chains and data flows, restrict access to critical technology and infrastructure (including AI-enabling hardware and cloud services), and increase cybersecurity and compliance risks. As a result of its global operations, the Company may be subject to certain inherent risks. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

0.4764

0.616

0.422

0.239

0.570

0.614

Leases The Company’s lease portfolio includes one real estate leases under operating lease agreements. At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company’s assessment is based on whether: (i) the contract involves the use of a distinct identified asset, (ii) the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term of the contract, and (iii) the Company has the right to direct the use of the asset. Upon the adoption of ASC 842, the Company elected the package of practical expedients to not (i) reassess whether any expired or existing contracts are or contain a lease, (ii) reassess historical lease classifications for existing leases, and (iii) reassess initial direct costs for existing leases. The Company also elected the practical expedient to account for lease and non-lease components as a single lease component. Accordingly, the Company shall include non-lease components with lease payments for the purpose of calculating lease assets and liabilities to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments The Company exempts leases with an initial term of 12 months or less from balance sheet recognition and, for all classes of assets, combines non-lease components with lease components. Lease assets are tested for impairment in the same manner as long-lived assets used in operations. The Company evaluates the classification of its leases as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: (i) the lease transfers ownership of the asset by the end of the lease term, (ii) the lease contains an option to purchase the asset that is reasonably certain to be exercised, (iii) the lease term is for a major part of the remaining useful life of the asset, (iv) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset, or (v) the leased asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. A lease is classified as an operating lease if it does not meet any of these criteria. The Company recognizes right-of-use assets and lease liabilities based on the present value of lease payments over the lease term at the commencement date of the lease (or January 1, 2022, for existing leases upon the adoption of Topic 842). The discount rate implicit within the Company’s leases is generally not determinable; therefore, the Company determines the discount rate using its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company records rent expense for short-term leases and operating leases, some of which have escalating rent payments, on a straight-line basis over the lease term For additional information regarding the Company’s lease arrangements, refer to “Note 18 - Leases”

Related Parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related party also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party control or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all significant related party transactions. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Going Concern The Company’s consolidated financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of December 31, 2025, the Company had cash of approximately $4,221 thousand. For the years ended December 31, 2025, the Company used approximately $5,529 thousand in cash for operating activities. Historically, the Company has incurred recurring net losses from operations and negative cash flows from operating activities. As of December 31, 2025, the Company had an accumulated deficit of approximately $35,145 thousand. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern within one year of the date these consolidated financial statements were issued. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders and debt holders. Specifically, continuation is contingent on the Company’s ability to obtain necessary equity to continue operations, and ultimately the Company’s ability to generate profit from sales and positive operating cash flows, which is not assured. On October 22, 2025, Merger Sub merged with and into Legacy Fusemachines, with Legacy Fusemachines continuing as the surviving company and becoming a wholly owned subsidiary of Fusemachines Inc. In connection with the closing, approximately $14.0 million in cash was received for the issuance of shares of Fusemachines Inc. common stock. All convertible notes were settled through the issuance of Fusemachines Inc. common stock, and certain promissory notes were repaid in cash upon closing. Following the business combination, the net balance of cash and cash equivalents was approximately $9.4 million. The Company’s trade payables, accrued expenses, and other current liabilities exceed the net cash and cash equivalents balance. Management is evaluating initiatives to streamline operations through reductions in headcount and consultant costs, and continued negotiations with vendors to achieve more favorable terms. In addition, the Company’s business plan anticipates a measured growth trajectory supported by new client acquisitions and expansion of existing customer relationships. While these actions are expected to enhance the Company’s financial position and extend its operational runway once implemented, they remain in the planning and negotiation stages. As of the date on which these consolidated financial statements were available to be issued, we believe that the cash on hand, and additional investments available through issuance of new common stock, will be inadequate to satisfy the Company’s working capital and capital expenditure requirements for at least the next twelve months. The ability of the Company to continue as a going concern is dependent upon management’s plan to raise additional capital from issuance of equity or receive additional borrowings to fund the Company’s operating and investing activities over the next year. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

4221000

-5529000

-35145000

14000000.0

9400000

Investment in Equity Securities The Company’s equity investment comprises of investments in equity securities of private Companies. These equity investments are accounted for under the equity method, and initially recorded at estimated fair value, less any impairment. The Company’s share of gains and losses if any from these equity method investments are included in the consolidated statements of operations and comprehensive loss, net of income tax provision. Equity investments are reviewed regularly to determine whether there is a decline in estimated fair value below the carrying amount. If there is a decline that is other-than-temporary, the investment is written down to estimated fair value. When evaluating the equity investment for impairment, the Company performs a qualitative and quantitative assessment to evaluate whether a decline in estimated fair value below the carrying amount is other-than- temporary. The qualitative assessment includes a review of macroeconomic conditions, industry and market considerations, the investee’s recent operating results and trends, recent acquisitions and sales of the investee securities, and other publicly available data, among other factors. If the Company determines that the decline is other-than-temporary, the Company records an impairment loss to write the equity investment to the estimated fair value.

Treasury Stock The Company records treasury stock activities under the cost method whereby the cost of the acquired stock is recorded as treasury stock. The Company’s accounting policy upon the formal retirement of treasury stock is to deduct the par value from the Company’s common stock and to reflect any excess cost over par value as a reduction to additional paid-in capital (to the extent created by previous issuances of the shares) and then retained earnings. In connection with the consummation of the Business Combination on October 22, 2025, treasury shares previously held by the Company totaling 438,903 shares, with an aggregate carrying value of approximately $2.9 million, were excluded from the share exchange and did not participate in the reverse recapitalization. As treasury shares are not considered outstanding, these shares were effectively retired in connection with the transaction and accordingly are not reflected as outstanding shares of common stock following the closing of the Business Combination. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

438903

2900000

Emerging Growth Company (EGC) The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Embedded Derivatives ASC 815 requires companies to bifurcate certain features from their host instruments and account for them as free-standing derivative financial instruments should certain criteria be met. We evaluate our financial instruments to determine whether such instruments are derivatives or contain features that qualify as embedded derivatives. Embedded derivatives must be separately measured from the host contract if all the requirements for bifurcation are met. The assessment of the conditions surrounding the bifurcation of embedded derivatives depends on the nature of the host contract and the features of the derivatives. Bifurcated embedded derivatives are recognized at fair value, with changes in fair value recognized in the consolidated statements of operations each period. Bifurcated embedded derivatives are classified with the related host contract in our consolidated balance sheets. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity is re-assessed at the end of each reporting period. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

<p id="xdx_840_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_z6cWZuKdsQx4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Recent Accounting Pronouncements New Accounting Pronouncements Not Yet Adopted The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board. Management periodically reviews newly issued accounting standards to determine their potential impact on the Company’s consolidated financial statements and related disclosures. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures- In December 2023, the FASB issued this ASU to update income tax disclosure requirements, primarily related to the income tax rate reconciliation and income taxes paid information. This update is effective on a prospective basis for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. In March 2024, the SEC issued its final climate disclosure rules (Rule 1), which require the disclosure of climate-related information in annual reports and registration statements, beginning with annual reports for the year ending December 31, 2025. The rules require disclosure in the audited financial statements of certain effects of severe weather events and other natural conditions above certain financial thresholds, as well as amounts related to carbon offsets and renewable energy credits or certificates, if material. We are currently evaluating the impact of the new rules and continue to monitor the status of the related legal challenges. ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures. In November 2024, the FASB issued this ASU that requires more detailed disclosure about certain costs and expenses presented in the income statement, including inventory purchases, employee compensation, selling expense and depreciation expense. The new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The guidance does not affect recognition or measurement in our consolidated financial statements. ASU 2024-04 Debt - Debt with Conversion and Other Options - Induced Conversions of Convertible Debt Instruments. In November 2024, the FASB issued this ASU which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as induced conversions or extinguishments. The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities that have adopted the amendments in Update 2020-06. We are currently evaluating the impact this guidance will have on our consolidated financial statements. In May 2025, the FASB issued Accounting Standards Update No. 2025-04, Compensation – Stock Compensation (Topic 718) and Revenue from Contracts With Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer (“ASU 2025-04”). ASU 2025-04 revises the definition of a performance condition, eliminates the forfeiture policy election for service conditions, and clarifies that the variable consideration constraint in Topic 606 does not apply to share-based consideration payable to customers. The new guidance requires entities to consistently account for share-based awards granted to customers by clarifying the treatment of vesting conditions and ensuring alignment with Topic 606 and Topic 718. ASU 2025-04 is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new accounting guidance on its financial statements and related disclosures. In September 2025, the FASB issued ASU 2025-06- Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06), which is intended to simplify the capitalization guidance for internal-use software by removing references to project stages and clarifying when the capitalizing of eligible costs is required. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and interim periods within those fiscal years. Early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its disclosures. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting. The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have had a material impact on the entity. ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-11. The Company does not believe any other new accounting pronouncements issued by the FASB that have not become effective will have a material impact on its consolidated financial statements. New Accounting Pronouncements Adopted In May 2025, the FASB issued Accounting Standards Update No. 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity (“ASU 2025-03”). ASU 2025-03 changes how companies determine the accounting acquirer in certain business combinations involving variable interest entities. The new guidance requires considering the factors used for other acquisition transactions to assess which party is the accounting acquirer. ASU 2025-03 is effective for the Company’s annual reporting periods beginning on January 1, 2027. The Company has early adopted ASU 2025-03. Accordingly, even if the acquired entity meets the definition of a VIE under ASC 810, the determination of the accounting acquirer is based on an evaluation in accordance with ASC 805-10 and ASC 805-50. The adoption of this guidance did not have a material impact on the Company’s financial statements. Further, the adoption did not change the Company’s overall accounting conclusions with respect to the identification of the accounting acquirer.

Note 3. Fair Value Measurements The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1 - Quoted prices for identical assets or liabilities in active markets. Level 2 - Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves. Level 3 - Unobservable inputs reflecting management’s view about the assumptions that market participants would use in pricing the asset or liability. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. The carrying values of the Company’s accounts receivable, unbilled revenue, prepaid expenses and other current assets, other assets, accounts payable, transaction costs, accrued expenses and other current liabilities and cumulative mandatorily redeemable common and preferred stock liability approximate their fair values based on the instrument’s relative short-term nature. As of December 31, 2025, the Company does not have any outstanding convertible notes payable or related party loan payable, as these instruments were either converted or settled during the year other than related party note payable related to Dolma Impact Fund I (“Dolma”) amounting $300 thousand, which were reclassified from a convertible note to a related party note payable on demand. Accordingly, no fair value estimation is required for such instruments as of the reporting date. As of December 31, 2024, the estimated fair values of these instruments approximated their carrying values due to their relatively short maturities. Financial Instruments Recorded at Fair Value <p id="xdx_894_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock_zBKFhzatDOaa" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following tables present the Company’s fair value hierarchy for its financial liabilities that are measured at fair value on a recurring basis and indicate the level within the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value (in thousands): Schedule of Financial Instruments Recorded at Fair Value on a Recurring Basis <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zXBfJ53qhW87" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zXDY739tjaCh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zoHGYj2zg943" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zwdIxjP3KtJf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Fair Value Measurements at December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--FinancialLiabilitiesFairValueDisclosureAbstract_iB_z4lFK3eRHz9a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Liabilities:</td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_401_ecustom--WarrantLiability_i01I_pn3n3_maFLFVDzHwA_zvWvPKe19C67" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; width: 36%">Warrant liability </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 12%">-</td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 12%">-</td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 12%">121</td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 12%">121</td><td style="text-align: left; width: 1%"> </td></tr> <tr id="xdx_40E_eus-gaap--DerivativeLiabilitiesCurrent_i01I_pn3n3_maFLFVDzHwA_z8socD4JVege" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Forward Purchase derivative liability (Refer Note 21. Forward Purchase agreement)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">9,692</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">9,692</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FinancialLiabilitiesFairValueDisclosure_i01TI_pn3n3_mtFLFVDzHwA_zBc3m0ljKrG" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">9,813</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">9,813</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zs5XwuafOPJ8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zgrmmLACF1vb" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zAIw7Vmds3Ud" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zezJaVSU8OQ2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Fair Value Measurements at December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--FinancialLiabilitiesFairValueDisclosureAbstract_iB_z9kLanHLHWVi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Liabilities:</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--DebtInstrumentFairValue_i01I_pn3n3_maFLFVDzHwA_zBazojiYVyFa" style="vertical-align: bottom; background-color: White"> <td style="width: 36%; text-align: left">Related Party convertible Notes Payable, at fair value (Refer Note 10. Long-Term Debt)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">6,524</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">6,524</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--ConvertibleDebtFairValueDisclosures_i01I_pn3n3_maFLFVDzHwA_zd1kuKT5nfQk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Convertible Notes at Fair Value (Refer Note 10. Long-Term Debt)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">8,986</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">8,986</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--WarrantLiability_i01I_pn3n3_maFLFVDzHwA_zCFjtuVrbBn5" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Warrant liability </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">945</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">945</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FinancialLiabilitiesFairValueDisclosure_i01TI_pn3n3_mtFLFVDzHwA_zMOZZdeGx4ok" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Liabilities</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">16,455</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">16,455</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Warrant Liabilities <p id="xdx_891_eus-gaap--FairValueLiabilitiesMeasuredOnRecurringBasisTextBlock_zVkFzTBY378k" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table shows the change in the fair value of the warrant liability (in thousands): Schedule of Change in Fair Value of Warrant Liability <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_4B1_us-gaap--FairValueByFairValueHierarchyLevelAxis_us-gaap--FairValueInputsLevel3Member_us-gaap--FairValueByMeasurementFrequencyAxis_us-gaap--FairValueMeasurementsRecurringMember_z9Nq2fkQDNu5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_43D_c20240101__20241231_eus-gaap--DerivativeLiabilities_iS_pn3n3_zgia9LHZYREl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; font-weight: bold">Balance as of December 31, 2023</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">430</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_434_c20240101__20241231_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zTzr7XjUjzr2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value of warrant liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">515</td><td style="text-align: left"> </td></tr> <tr id="xdx_438_c20240101__20241231_eus-gaap--DerivativeLiabilities_iE_pn3n3_z7a03RpxbKUj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Balance as of December 31, 2024</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">945</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_433_c20250101__20251231_eus-gaap--DerivativeLiabilities_iS_pn3n3_zhXnZjbk3xte" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; font-weight: bold">Balance as of December 31, 2024</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">945</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_43C_c20250101__20251231_eus-gaap--DerivativeLiabilities_iS_pn3n3_zHW9xTwFdNJ8" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Warrant liability, beginning balance</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">945</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_435_c20250101__20251231_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zDjAdICTlVr6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value of warrant liabilities</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(824</td><td style="text-align: left">)</td></tr> <tr id="xdx_435_c20250101__20251231_eus-gaap--DerivativeLiabilities_iE_pn3n3_zNDvrHzzVsWj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Balance as of December 31, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">121</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_437_c20250101__20251231_eus-gaap--DerivativeLiabilities_iE_pn3n3_zG3Hwib5QoC2" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Warrant liability, ending Balance</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">121</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> Forward Purchase Derivative Liability The forward purchase derivative liability was recognized at Closing on October 22, 2025. The fair value as of December 31, 2025, was $9,692 thousand. The following table presents a reconciliation of the Forward Purchase Derivative Liability (in thousands): Schedule of Reconciliation of the Forward Purchase Derivative Liability <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Balance as of December 31, 2024</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98A_eus-gaap--DerivativeLiabilitiesCurrent_iS_dxL_c20250101__20251231_zDVzBnbPOSVj" style="font-weight: bold; text-align: right" title="Forward purchase derivative liability beginning balance::XDX::-">Nil</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 80%; text-align: left">Forward purchase derivative recognized in connection with the merger on October 22, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_ecustom--ForwardPurchaseDerivativeRecognized_c20250101__20251231_z9cUc9B0yoHe" style="width: 16%; text-align: right" title="Forward purchase derivative recognized in connection with the merger">8,616</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Change in fair value of forward purchase derivative liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--UnrealizedGainLossOnDerivatives_c20250101__20251231_zcmfxkzndAA5" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of forward purchase derivative liabilities">1,076</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 1pt">Balance as of December 31, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_98B_eus-gaap--DerivativeLiabilitiesCurrent_iE_c20250101__20251231_z4Iuo1FnTCL2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right" title="Forward purchase derivative liability ending balance">9,692</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> The fair value of the forward purchase derivative liability was estimated using a Monte Carlo simulation approach. The key assumptions used in valuation as of December 31, 2025: a risk-free rate of 3.53%, a valuation term of 2.81 years, and annualized volatility of 65.0%. The Company’s common share price was simulated with daily time steps for a range of various possible scenarios. The breadth of all possible scenarios was captured in an estimate of volatility, based on comparable companies’ historical equity volatilities, considering differences in their capital structure. The simulated prices were compared against the settlement adjustment features of the Forward Purchase Agreements. Under each simulated scenario of future stock price, the Company calculated the value of the forward purchase derivative liability arrangement. The average value across this range of possible scenarios, discounted to present using the risk-free rate, was used as the fair value of the forward purchase derivative liability. <p id="xdx_891_eus-gaap--FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputReconciliationTableTextBlock_zHdd4FXgmQ4b" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following unobservable assumptions were used in determining the fair value of the forward purchase derivative liability at Closing Schedule of Unobservable Assumptions Were Used in Determining the Fair Value of the Forward Purchase Derivative Liability <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">Equity volatility</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_908_eus-gaap--DerivativeAssetLiabilityNetMeasurementInput_iI_pid_uPure_c20251231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zLu0iAOWZf5h" title="Equity volatility">65</td><td style="width: 1%; text-align: left">%</td></tr> </table> Convertible notes payable and forward purchase derivative liability <p id="xdx_89E_ecustom--ScheduleOfChangeInFairValueOfTheConvertibleNotesAtFairValueTableTextBlock_zuzzxsayKnoj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0">The following table shows the change in the fair value of the Convertible Notes measured at Fair Value and forward purchase derivative liability (in thousands): Schedule of Change in Fair Value of the Convertible Notes at Fair Value <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_4B2_us-gaap--FinancialInstrumentAxis_custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_zz5f2hnEGcj9" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Related party Convertible Note payable at fair value</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B9_us-gaap--FinancialInstrumentAxis_custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember_zXOBw0pPEmK2" style="border-bottom: Black 1pt solid; text-align: center">January 2024 Convertible Notes</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_4B1_us-gaap--FinancialInstrumentAxis_custom--ForwardPurchaseDerivativeLiabilityMember_zgELYlWOe089" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Forward Purchase Derivative Liability</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> </tr> <tr id="xdx_43C_c20240101__20241231_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_zOtscwuGMNLh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 49%; font-weight: bold">Balance as of December 31, 2023</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 13%; font-weight: bold; text-align: right">3,764</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 13%; font-weight: bold; text-align: right">-</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 13%; font-weight: bold; text-align: right">-</td><td style="width: 1%; font-weight: bold; text-align: left"> </td> </tr> <tr id="xdx_43A_c20240101__20241231_eus-gaap--ProceedsFromRepaymentsOfNotesPayable_pn3n3_zMAgTCiJzsy1" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Issuance of convertible notes at fair value</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td> </tr> <tr id="xdx_43E_c20240101__20241231_ecustom--AdjustmentsToAdditionalPaidInCapitalGainOnExtinguishmentRecordedAsCapitalTransaction_iN_pn3n3_di_zWjUf8chJAGl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Gain on extinguishment of debt recorded as a capital transaction</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(343</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td> </tr> <tr id="xdx_435_c20240101__20241231_ecustom--ChangesInFairValueOfConvertibleNotesAtFairValue_iN_pn3n3_di_zYchyGSwwTS6" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Change in fair value of related party note and convertible notes at fair value</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,103</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,486</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td> </tr> <tr id="xdx_43E_c20240101__20241231_eus-gaap--DebtInstrumentFairValue_iE_pn3n3_zhAedJ4ySFck" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Balance as of December 31, 2024</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">6,524</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">8,986</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td> </tr> <tr id="xdx_43D_c20250101__20251231_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_z9U3dLaf1x9g" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Balance as of December 31, 2024</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">6,524</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">8,986</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td> </tr> <tr id="xdx_434_c20250101__20251231_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_zKo4rJZprikg" style="display: none; vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify">Convertible notes at fair value, beginning balance</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">6,524</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">8,986</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td> </tr> <tr id="xdx_430_c20250101__20251231_ecustom--ForwardPurchaseDerivativeRecognized_pn3n3_zaBz5NpMUKq3" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Forward purchase derivative recognized in connection with the merger on October 22, 2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,616</td><td style="text-align: left"> </td> </tr> <tr id="xdx_43E_c20250101__20251231_ecustom--ChangesInFairValueOfConvertibleNotesAtFairValue_iN_pn3n3_di_zhpet1YWVFga" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Change in fair value of Related Party Convertible note, Convertible Notes at Fair Value and Forward Purchase derivative liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,056</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3,664</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,076</td><td style="text-align: left"> </td> </tr> <tr id="xdx_436_c20250101__20251231_ecustom--ConversionOfCoomonStockToReverseCapitalization_iN_pn3n3_di_z32j4iySCaHe" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: justify">Conversion into Fusemachines Inc. common stock to give effect of reverse capitalization of the merger (Refer Note 20)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,168</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,322</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td> </tr> <tr id="xdx_432_c20250101__20251231_ecustom--ReclassificationFromConvertibleNotePayable_pn3n3_di_zWtCRHqo3al7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: justify">Reclassification from convertible note payable*</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right">(300</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_43F_c20250101__20251231_eus-gaap--DebtInstrumentFairValue_iE_pn3n3_zy9OlK9TcMxh" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 1pt">Balance as of December 31, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">9,692</td><td style="padding-bottom: 1pt; text-align: left"> </td> </tr> <tr id="xdx_43B_c20250101__20251231_eus-gaap--DebtInstrumentFairValue_iE_pn3n3_zNkAi5nZKDpc" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Convertible notes at fair value, ending balance</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">9,692</td><td style="padding-bottom: 1pt; text-align: left"> </td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F0F_zJTjWMUkQ1R6" style="width: 15pt; text-align: right">*</td><td id="xdx_F1F_zdKgan9mOBv9" style="text-align: justify">In connection with the Business Combination on October 22, 2025, all outstanding convertible notes, including both related party and third-party balances, were converted into equity in accordance with their respective terms. Accordingly, no convertible notes remained outstanding as of December 31, 2025, except for the note related to Dolma Impact Fund I (“Dolma”) amounting to $300 thousand, which was reclassified from a convertible note to a related party note payable on demand.</td> </tr></table> Common Stock Warrant Liability The Company estimates the fair value of the common stock warrant liability (refer to “Note 10 – Long-term Debt”) using an option pricing model and assumptions that are based on the individual characteristics of the warrants on the valuation date, as well as assumptions for fair value of the underlying common stock expected volatility, expected life, dividends, and risk-free interest rate. The warrant liability is classified as Level 3 as there were no quotable prices for identical assets or quoted prices for similar. The warrant liabilities are measured using a Black-Scholes Model. The fair value of the warrant liability as of December 31, 2025 was determined using the following assumptions: a dividend yield of <span id="xdx_900_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20251231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zeCUS0ep0r31" title="Warrant liability, measurement input">0.0%, a risk-free rate of <span id="xdx_902_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20251231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zPZnfLrgM9D5" title="Warrant liability, measurement input">3.99%, a stock price of $<span id="xdx_904_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20251231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_zuvro03algM2" title="Warrant liability, measurement input">1.65, a term of <span id="xdx_902_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20251231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zRYlQ6AxdpG6" title="Warrant liability, measurement input">7.65 years, and annualized volatility of <span id="xdx_90C_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20251231__us-gaap--MeasurementInputTypeAxis__custom--MeasurementInputAnnualizedVolatilityMember_zLFa4wbjyjta" title="Warrant liability, measurement input">62.0%. The fair value of the warrant liability as of December 31, 2024 was determined using the following assumptions: a dividend yield of <span id="xdx_902_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20241231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zg71ObMemRW8" title="Warrant liability, measurement input">0.0%, a risk-free rate of <span id="xdx_909_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20241231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zLNBYt1lYELe" title="Warrant liability, measurement input">4.5%, a stock price of $<span id="xdx_907_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20241231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_zewkZQqhP8Nk" title="Warrant liability, measurement input">7.48, a term of <span id="xdx_90D_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20241231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_znW3ByYeikhg" title="Warrant liability, measurement input">8.65 years, and annualized volatility of <span id="xdx_90D_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20241231__us-gaap--MeasurementInputTypeAxis__custom--MeasurementInputAnnualizedVolatilityMember_z1kKqQgeSwz3" title="Warrant liability, measurement input">65.0%. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Related Party Note payable at Fair Value and Convertible Notes at Fair Value The Company accounts for certain long-term debt (also refer to “Note 10 - Long-term Debt”) under the fair value option. At the issuance date of the Convertible Notes at Fair Value, the Company determined that the fair value approximated the principal amount. The measurement of fair value of the Convertible Notes at Fair Value as of December 31,2024 was estimated based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company used a scenario-based analysis to incorporate estimates and assumptions concerning the Company’s prospects and market indications into a model to estimate the value of the Convertible Notes at Fair Value. The most significant estimates and assumptions used as inputs are those concerning timing, probability of possible scenarios for conversion or settlement of the Convertible Notes at Fair Value. The Convertible Notes at Fair Value are classified as Level 3 as there were no quotable prices for identical assets or quoted prices for similar In connection with the consummation of the business combination on October 22, 2025, which was accounted for as a reverse recapitalization, each convertible note of Legacy Fusemachines, including both related party and other convertible notes, that was issued and outstanding immediately prior to the closing was converted into an aggregate of 8,048,770 shares of Legacy Fusemachines common stock in accordance with the respective convertible note agreements. Immediately following such conversion, all such shares of Legacy Fusemachines common stock were exchanged for shares of Fusemachines Inc. common stock based on the Exchange Ratio specified in the Merger Agreement. As a result of the foregoing, no convertible notes or related party notes payable remained outstanding as of December 31, 2025 other than related party note payable related to Dolma Impact Fund I (“Dolma”) amounting $300 thousand. The Company has certain non-financial assets that are measured at fair value on a non-recurring basis when there is an indicator of impairment, and they are recorded at fair value only when an impairment is recognized. These assets include property and equipment and amortizable intangible assets. <p id="xdx_895_eus-gaap--FairValueAssetsMeasuredOnNonrecurringBasisValuationTechniquesTextBlock_zEFK3m5vJk77" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table sets forth the significant inputs to the probability-weighted valuation model used to value the Convertible Notes at Fair Value as of December 31, 2024: Schedule of Probability-Weighted Valuation Model Used to Value the Convertible Notes at Fair Value 2019 and 2021 Convertible Notes <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left; font-weight: bold">Type of Events</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Expected Date</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Probability of Event</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Discount rate</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-weight: bold; text-align: left; padding-left: 10pt">SPAC transaction</td><td style="width: 2%; font-weight: bold"> </td> <td style="text-align: right; width: 14%; font-weight: bold; padding-left: 0pt"><span id="xdx_907_eus-gaap--DebtInstrumentIssuanceDate1_dd_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--SPACTransactionMember_zoycYTAzhJe7" title="Expected Date">4/3/2025</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 14%; font-weight: bold; text-align: right"><span id="xdx_903_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--SPACTransactionMember_ze3IKWtD2co4" title="Probability of Event">75</td><td style="width: 1%; font-weight: bold; text-align: left">%</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 14%; font-weight: bold; text-align: right"><span id="xdx_909_ecustom--DebtInstrumentDiscountRate_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--SPACTransactionMember_zs2oGUB66bh4" title="Discount Rate">54</td><td style="width: 1%; font-weight: bold; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 0pt">Maturity</td><td> </td> <td style="text-align: right; padding-left: 0pt"><span id="xdx_90B_eus-gaap--DebtInstrumentIssuanceDate1_dd_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--MaturityMember_zclNspVZ4Iu" title="Expected Date">2/28/2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--MaturityMember_zkm6vfJ1hrH4" title="Probability of Event">10</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_ecustom--DebtInstrumentDiscountRate_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--MaturityMember_zVPvX3InrHF3" title="Discount Rate">54</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-left: 10pt">Default feature</td><td style="font-weight: bold"> </td> <td style="text-align: right; font-weight: bold; padding-left: 0pt">NA</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"><span id="xdx_908_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--DefaultFeatureMember_zz8jGwbcl8zb" title="Probability of Event">15</td><td style="font-weight: bold; text-align: left">%</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"><span id="xdx_909_ecustom--DebtInstrumentDiscountRate_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--DefaultFeatureMember_zraZaPyvv5pb" title="Discount Rate">54</td><td style="font-weight: bold; text-align: left">%</td></tr> </table> January 2024 Convertible Notes <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Type of Events</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Expected Date</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Probability of Event</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Discount rate</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-weight: bold; text-align: left; padding-left: 10pt">SPAC transaction</td><td style="width: 2%; font-weight: bold"> </td> <td style="text-align: right; width: 14%; font-weight: bold; padding-left: 0pt"><span id="xdx_908_eus-gaap--DebtInstrumentIssuanceDate1_dd_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--SPACTransactionMember_zWdREutXl8X7" title="Expected Date">4/3/2025</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 14%; font-weight: bold; text-align: right"><span id="xdx_903_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--SPACTransactionMember_zNqirgD36NHc" title="Probability of Event">75</td><td style="width: 1%; font-weight: bold; text-align: left">%</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 14%; font-weight: bold; text-align: right"><span id="xdx_905_ecustom--DebtInstrumentDiscountRate_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--SPACTransactionMember_zvaXe1uCp8sb" title="Discount Rate">45</td><td style="width: 1%; font-weight: bold; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 0pt">Maturity</td><td> </td> <td style="text-align: right; padding-left: 0pt"><span id="xdx_90C_eus-gaap--DebtInstrumentIssuanceDate1_dd_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--MaturityMember_zHX9eY60Uun6" title="Expected Date">7/12/2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--MaturityMember_zsLLxXW7ee4k" title="Probability of Event">10</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_ecustom--DebtInstrumentDiscountRate_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--MaturityMember_zT5dorAVuMv3" title="Discount Rate">45</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-left: 10pt">Default feature</td><td style="font-weight: bold"> </td> <td style="text-align: right; font-weight: bold; padding-left: 0pt"><span id="xdx_907_eus-gaap--DebtInstrumentIssuanceDate1_dd_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--DefaultFeatureMember_zCMpagRZ1jU3" title="Expected Date">7/12/2025</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"><span id="xdx_908_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--DefaultFeatureMember_zAOK36J59EW7" title="Probability of Event">15</td><td style="font-weight: bold; text-align: left">%</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"><span id="xdx_90B_ecustom--DebtInstrumentDiscountRate_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--DefaultFeatureMember_zY5OCFi2J4Gj" title="Discount Rate">45</td><td style="font-weight: bold; text-align: left">%</td></tr> </table> Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

300000

<p id="xdx_894_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock_zBKFhzatDOaa" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following tables present the Company’s fair value hierarchy for its financial liabilities that are measured at fair value on a recurring basis and indicate the level within the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value (in thousands): Schedule of Financial Instruments Recorded at Fair Value on a Recurring Basis <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zXBfJ53qhW87" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zXDY739tjaCh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zoHGYj2zg943" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zwdIxjP3KtJf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Fair Value Measurements at December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--FinancialLiabilitiesFairValueDisclosureAbstract_iB_z4lFK3eRHz9a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Liabilities:</td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_401_ecustom--WarrantLiability_i01I_pn3n3_maFLFVDzHwA_zvWvPKe19C67" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; width: 36%">Warrant liability </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 12%">-</td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 12%">-</td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 12%">121</td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 12%">121</td><td style="text-align: left; width: 1%"> </td></tr> <tr id="xdx_40E_eus-gaap--DerivativeLiabilitiesCurrent_i01I_pn3n3_maFLFVDzHwA_z8socD4JVege" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Forward Purchase derivative liability (Refer Note 21. Forward Purchase agreement)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">9,692</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">9,692</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FinancialLiabilitiesFairValueDisclosure_i01TI_pn3n3_mtFLFVDzHwA_zBc3m0ljKrG" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">9,813</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">9,813</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zs5XwuafOPJ8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zgrmmLACF1vb" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zAIw7Vmds3Ud" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zezJaVSU8OQ2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Fair Value Measurements at December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--FinancialLiabilitiesFairValueDisclosureAbstract_iB_z9kLanHLHWVi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Liabilities:</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--DebtInstrumentFairValue_i01I_pn3n3_maFLFVDzHwA_zBazojiYVyFa" style="vertical-align: bottom; background-color: White"> <td style="width: 36%; text-align: left">Related Party convertible Notes Payable, at fair value (Refer Note 10. Long-Term Debt)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">6,524</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">6,524</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--ConvertibleDebtFairValueDisclosures_i01I_pn3n3_maFLFVDzHwA_zd1kuKT5nfQk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Convertible Notes at Fair Value (Refer Note 10. Long-Term Debt)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">8,986</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">8,986</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--WarrantLiability_i01I_pn3n3_maFLFVDzHwA_zCFjtuVrbBn5" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Warrant liability </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">945</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">945</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FinancialLiabilitiesFairValueDisclosure_i01TI_pn3n3_mtFLFVDzHwA_zMOZZdeGx4ok" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Liabilities</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">16,455</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">16,455</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

121000 121000

9692000

9813000

6524000

8986000

945000 945000

16455000

<p id="xdx_891_eus-gaap--FairValueLiabilitiesMeasuredOnRecurringBasisTextBlock_zVkFzTBY378k" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table shows the change in the fair value of the warrant liability (in thousands): Schedule of Change in Fair Value of Warrant Liability <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_4B1_us-gaap--FairValueByFairValueHierarchyLevelAxis_us-gaap--FairValueInputsLevel3Member_us-gaap--FairValueByMeasurementFrequencyAxis_us-gaap--FairValueMeasurementsRecurringMember_z9Nq2fkQDNu5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_43D_c20240101__20241231_eus-gaap--DerivativeLiabilities_iS_pn3n3_zgia9LHZYREl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; font-weight: bold">Balance as of December 31, 2023</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">430</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_434_c20240101__20241231_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zTzr7XjUjzr2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value of warrant liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">515</td><td style="text-align: left"> </td></tr> <tr id="xdx_438_c20240101__20241231_eus-gaap--DerivativeLiabilities_iE_pn3n3_z7a03RpxbKUj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Balance as of December 31, 2024</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">945</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_433_c20250101__20251231_eus-gaap--DerivativeLiabilities_iS_pn3n3_zhXnZjbk3xte" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; font-weight: bold">Balance as of December 31, 2024</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">945</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_43C_c20250101__20251231_eus-gaap--DerivativeLiabilities_iS_pn3n3_zHW9xTwFdNJ8" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Warrant liability, beginning balance</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">945</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_435_c20250101__20251231_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zDjAdICTlVr6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value of warrant liabilities</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(824</td><td style="text-align: left">)</td></tr> <tr id="xdx_435_c20250101__20251231_eus-gaap--DerivativeLiabilities_iE_pn3n3_zNDvrHzzVsWj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Balance as of December 31, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">121</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_437_c20250101__20251231_eus-gaap--DerivativeLiabilities_iE_pn3n3_zG3Hwib5QoC2" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Warrant liability, ending Balance</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">121</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

430000

515000

945000

-824000

121000

9692000

Schedule of Reconciliation of the Forward Purchase Derivative Liability <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Balance as of December 31, 2024</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98A_eus-gaap--DerivativeLiabilitiesCurrent_iS_dxL_c20250101__20251231_zDVzBnbPOSVj" style="font-weight: bold; text-align: right" title="Forward purchase derivative liability beginning balance::XDX::-">Nil</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 80%; text-align: left">Forward purchase derivative recognized in connection with the merger on October 22, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_ecustom--ForwardPurchaseDerivativeRecognized_c20250101__20251231_z9cUc9B0yoHe" style="width: 16%; text-align: right" title="Forward purchase derivative recognized in connection with the merger">8,616</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Change in fair value of forward purchase derivative liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--UnrealizedGainLossOnDerivatives_c20250101__20251231_zcmfxkzndAA5" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of forward purchase derivative liabilities">1,076</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 1pt">Balance as of December 31, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_98B_eus-gaap--DerivativeLiabilitiesCurrent_iE_c20250101__20251231_z4Iuo1FnTCL2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right" title="Forward purchase derivative liability ending balance">9,692</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

8616000

1076000

9692000

3.53

2.81

65.0

<p id="xdx_891_eus-gaap--FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputReconciliationTableTextBlock_zHdd4FXgmQ4b" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following unobservable assumptions were used in determining the fair value of the forward purchase derivative liability at Closing Schedule of Unobservable Assumptions Were Used in Determining the Fair Value of the Forward Purchase Derivative Liability <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">Equity volatility</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_908_eus-gaap--DerivativeAssetLiabilityNetMeasurementInput_iI_pid_uPure_c20251231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zLu0iAOWZf5h" title="Equity volatility">65</td><td style="width: 1%; text-align: left">%</td></tr> </table>

<p id="xdx_89E_ecustom--ScheduleOfChangeInFairValueOfTheConvertibleNotesAtFairValueTableTextBlock_zuzzxsayKnoj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0">The following table shows the change in the fair value of the Convertible Notes measured at Fair Value and forward purchase derivative liability (in thousands): Schedule of Change in Fair Value of the Convertible Notes at Fair Value <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_4B2_us-gaap--FinancialInstrumentAxis_custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_zz5f2hnEGcj9" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Related party Convertible Note payable at fair value</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B9_us-gaap--FinancialInstrumentAxis_custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember_zXOBw0pPEmK2" style="border-bottom: Black 1pt solid; text-align: center">January 2024 Convertible Notes</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_4B1_us-gaap--FinancialInstrumentAxis_custom--ForwardPurchaseDerivativeLiabilityMember_zgELYlWOe089" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Forward Purchase Derivative Liability</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> </tr> <tr id="xdx_43C_c20240101__20241231_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_zOtscwuGMNLh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 49%; font-weight: bold">Balance as of December 31, 2023</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 13%; font-weight: bold; text-align: right">3,764</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 13%; font-weight: bold; text-align: right">-</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 13%; font-weight: bold; text-align: right">-</td><td style="width: 1%; font-weight: bold; text-align: left"> </td> </tr> <tr id="xdx_43A_c20240101__20241231_eus-gaap--ProceedsFromRepaymentsOfNotesPayable_pn3n3_zMAgTCiJzsy1" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Issuance of convertible notes at fair value</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">6,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td> </tr> <tr id="xdx_43E_c20240101__20241231_ecustom--AdjustmentsToAdditionalPaidInCapitalGainOnExtinguishmentRecordedAsCapitalTransaction_iN_pn3n3_di_zWjUf8chJAGl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Gain on extinguishment of debt recorded as a capital transaction</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(343</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td> </tr> <tr id="xdx_435_c20240101__20241231_ecustom--ChangesInFairValueOfConvertibleNotesAtFairValue_iN_pn3n3_di_zYchyGSwwTS6" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Change in fair value of related party note and convertible notes at fair value</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,103</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,486</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td> </tr> <tr id="xdx_43E_c20240101__20241231_eus-gaap--DebtInstrumentFairValue_iE_pn3n3_zhAedJ4ySFck" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Balance as of December 31, 2024</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">6,524</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">8,986</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td> </tr> <tr id="xdx_43D_c20250101__20251231_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_z9U3dLaf1x9g" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Balance as of December 31, 2024</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">6,524</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">8,986</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td> </tr> <tr id="xdx_434_c20250101__20251231_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_zKo4rJZprikg" style="display: none; vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify">Convertible notes at fair value, beginning balance</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">6,524</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">8,986</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td> </tr> <tr id="xdx_430_c20250101__20251231_ecustom--ForwardPurchaseDerivativeRecognized_pn3n3_zaBz5NpMUKq3" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Forward purchase derivative recognized in connection with the merger on October 22, 2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,616</td><td style="text-align: left"> </td> </tr> <tr id="xdx_43E_c20250101__20251231_ecustom--ChangesInFairValueOfConvertibleNotesAtFairValue_iN_pn3n3_di_zhpet1YWVFga" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Change in fair value of Related Party Convertible note, Convertible Notes at Fair Value and Forward Purchase derivative liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,056</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3,664</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,076</td><td style="text-align: left"> </td> </tr> <tr id="xdx_436_c20250101__20251231_ecustom--ConversionOfCoomonStockToReverseCapitalization_iN_pn3n3_di_z32j4iySCaHe" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: justify">Conversion into Fusemachines Inc. common stock to give effect of reverse capitalization of the merger (Refer Note 20)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,168</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,322</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td> </tr> <tr id="xdx_432_c20250101__20251231_ecustom--ReclassificationFromConvertibleNotePayable_pn3n3_di_zWtCRHqo3al7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: justify">Reclassification from convertible note payable*</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right">(300</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_43F_c20250101__20251231_eus-gaap--DebtInstrumentFairValue_iE_pn3n3_zy9OlK9TcMxh" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 1pt">Balance as of December 31, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">9,692</td><td style="padding-bottom: 1pt; text-align: left"> </td> </tr> <tr id="xdx_43B_c20250101__20251231_eus-gaap--DebtInstrumentFairValue_iE_pn3n3_zNkAi5nZKDpc" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Convertible notes at fair value, ending balance</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">9,692</td><td style="padding-bottom: 1pt; text-align: left"> </td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F0F_zJTjWMUkQ1R6" style="width: 15pt; text-align: right">*</td><td id="xdx_F1F_zdKgan9mOBv9" style="text-align: justify">In connection with the Business Combination on October 22, 2025, all outstanding convertible notes, including both related party and third-party balances, were converted into equity in accordance with their respective terms. Accordingly, no convertible notes remained outstanding as of December 31, 2025, except for the note related to Dolma Impact Fund I (“Dolma”) amounting to $300 thousand, which was reclassified from a convertible note to a related party note payable on demand.</td> </tr></table>

3764000

6500000

343000 -3103000 -2486000

6524000

8986000

6524000

8986000

6524000

8986000

8616000 2056000 3664000 -1076000 4168000 5322000 300000

9692000

300000

0.0

3.99

1.65

7.65

62.0

0.0

4.5

7.48

8.65

65.0

8048770

300000

<p id="xdx_895_eus-gaap--FairValueAssetsMeasuredOnNonrecurringBasisValuationTechniquesTextBlock_zEFK3m5vJk77" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table sets forth the significant inputs to the probability-weighted valuation model used to value the Convertible Notes at Fair Value as of December 31, 2024: Schedule of Probability-Weighted Valuation Model Used to Value the Convertible Notes at Fair Value 2019 and 2021 Convertible Notes <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left; font-weight: bold">Type of Events</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Expected Date</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Probability of Event</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Discount rate</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-weight: bold; text-align: left; padding-left: 10pt">SPAC transaction</td><td style="width: 2%; font-weight: bold"> </td> <td style="text-align: right; width: 14%; font-weight: bold; padding-left: 0pt"><span id="xdx_907_eus-gaap--DebtInstrumentIssuanceDate1_dd_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--SPACTransactionMember_zoycYTAzhJe7" title="Expected Date">4/3/2025</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 14%; font-weight: bold; text-align: right"><span id="xdx_903_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--SPACTransactionMember_ze3IKWtD2co4" title="Probability of Event">75</td><td style="width: 1%; font-weight: bold; text-align: left">%</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 14%; font-weight: bold; text-align: right"><span id="xdx_909_ecustom--DebtInstrumentDiscountRate_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--SPACTransactionMember_zs2oGUB66bh4" title="Discount Rate">54</td><td style="width: 1%; font-weight: bold; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 0pt">Maturity</td><td> </td> <td style="text-align: right; padding-left: 0pt"><span id="xdx_90B_eus-gaap--DebtInstrumentIssuanceDate1_dd_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--MaturityMember_zclNspVZ4Iu" title="Expected Date">2/28/2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--MaturityMember_zkm6vfJ1hrH4" title="Probability of Event">10</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_ecustom--DebtInstrumentDiscountRate_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--MaturityMember_zVPvX3InrHF3" title="Discount Rate">54</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-left: 10pt">Default feature</td><td style="font-weight: bold"> </td> <td style="text-align: right; font-weight: bold; padding-left: 0pt">NA</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"><span id="xdx_908_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--DefaultFeatureMember_zz8jGwbcl8zb" title="Probability of Event">15</td><td style="font-weight: bold; text-align: left">%</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"><span id="xdx_909_ecustom--DebtInstrumentDiscountRate_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--DefaultFeatureMember_zraZaPyvv5pb" title="Discount Rate">54</td><td style="font-weight: bold; text-align: left">%</td></tr> </table> January 2024 Convertible Notes <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Type of Events</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Expected Date</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Probability of Event</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Discount rate</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-weight: bold; text-align: left; padding-left: 10pt">SPAC transaction</td><td style="width: 2%; font-weight: bold"> </td> <td style="text-align: right; width: 14%; font-weight: bold; padding-left: 0pt"><span id="xdx_908_eus-gaap--DebtInstrumentIssuanceDate1_dd_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--SPACTransactionMember_zWdREutXl8X7" title="Expected Date">4/3/2025</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 14%; font-weight: bold; text-align: right"><span id="xdx_903_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--SPACTransactionMember_zNqirgD36NHc" title="Probability of Event">75</td><td style="width: 1%; font-weight: bold; text-align: left">%</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 14%; font-weight: bold; text-align: right"><span id="xdx_905_ecustom--DebtInstrumentDiscountRate_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--SPACTransactionMember_zvaXe1uCp8sb" title="Discount Rate">45</td><td style="width: 1%; font-weight: bold; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 0pt">Maturity</td><td> </td> <td style="text-align: right; padding-left: 0pt"><span id="xdx_90C_eus-gaap--DebtInstrumentIssuanceDate1_dd_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--MaturityMember_zHX9eY60Uun6" title="Expected Date">7/12/2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--MaturityMember_zsLLxXW7ee4k" title="Probability of Event">10</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_ecustom--DebtInstrumentDiscountRate_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--MaturityMember_zT5dorAVuMv3" title="Discount Rate">45</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-left: 10pt">Default feature</td><td style="font-weight: bold"> </td> <td style="text-align: right; font-weight: bold; padding-left: 0pt"><span id="xdx_907_eus-gaap--DebtInstrumentIssuanceDate1_dd_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--DefaultFeatureMember_zCMpagRZ1jU3" title="Expected Date">7/12/2025</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"><span id="xdx_908_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--DefaultFeatureMember_zAOK36J59EW7" title="Probability of Event">15</td><td style="font-weight: bold; text-align: left">%</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"><span id="xdx_90B_ecustom--DebtInstrumentDiscountRate_pid_dp_uPure_c20250101__20251231__us-gaap--FinancialInstrumentAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember__us-gaap--DebtInstrumentAxis__custom--DefaultFeatureMember_zY5OCFi2J4Gj" title="Discount Rate">45</td><td style="font-weight: bold; text-align: left">%</td></tr> </table>

2025-04-03

0.75

0.54

2026-02-28

0.10

0.54

0.15

0.54

2025-04-03

0.75

0.45

2025-07-12

0.10

0.45

2025-07-12

0.15

0.45

Note 4 Accounts receivable, net <p id="xdx_896_eus-gaap--ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock_zdtqifibJi2j" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Accounts receivable, net consisted of the following (in thousands): Schedule of Accounts Receivable, Net <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_495_20251231_z7XCSDVv9fQg" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_496_20241231_zw5r0joAwKr8" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--AccountsReceivableGrossCurrent_iI_pn3n3_maARGzf2m_zmTTasRLbMqb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Accounts receivable, current</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,386</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,015</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AccountsReceivableGrossNoncurrent_iI_pn3n3_maARGzf2m_zXe0whbZ49li" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Accounts receivable</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AccountsReceivableGross_iTI_pn3n3_mtARGzf2m_maARNzIBC_zgu15CEJ5dN6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Total accounts receivable</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">1,386</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">2,019</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iNI_pn3n3_di_msARNzIBC_zyySvFr8Eoqj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Less: Allowance for credit losses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(122</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(588</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--AccountsReceivableNet_iTI_pn3n3_mtARNzIBC_zSwFYaNTRnMd" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total accounts receivable, net</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,264</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,431</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> In some contracts with customers, the Company agreed to instalment payments exceeding 12 months. The present value of these contracts is recorded as a receivable as the revenue is recognized in accordance with GAAP, and profit is recognized to the extent the present value is in excess of cost. The present value of long-term receivables is Nil, and the face value is Nil as of December 31, 2025. The present value of long-term receivables is $4 thousand, and the face value is $5.0 thousand as of December 31, 2024. <p id="xdx_891_eus-gaap--AccountsReceivableAllowanceForCreditLossTableTextBlock_zTFh7akCmUb" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table sets forth the activity in the Company’s allowance for credit losses (in thousands): Schedule of Allowance for Credit Losses <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20250101__20251231_zH75iPAcuU5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_497_20240101__20241231_zZyPbB5AK6T1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iS_pn3n3_zWSXOAyYRxlk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; font-weight: bold; text-align: left">Beginning balance</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">588</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">368</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--ProvisionForDoubtfulAccounts_pn3n3_ziQz9Cv7tTa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Provision for credit losses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">55</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">540</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AllowanceForDoubtfulAccountsReceivableWriteOffs_iN_pn3n3_di_zZFgMusCGxq7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Write-offs</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(521</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(320</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iE_pn3n3_z1SiVWRayta4" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 1pt">Ending balance</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">122</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">588</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> Unbilled revenue for the year ended December 31, 2025 was $15.0 thousand and $113.0 thousand for the year ended December 31, 2024.

<p id="xdx_896_eus-gaap--ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock_zdtqifibJi2j" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Accounts receivable, net consisted of the following (in thousands): Schedule of Accounts Receivable, Net <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_495_20251231_z7XCSDVv9fQg" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_496_20241231_zw5r0joAwKr8" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--AccountsReceivableGrossCurrent_iI_pn3n3_maARGzf2m_zmTTasRLbMqb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Accounts receivable, current</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,386</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,015</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AccountsReceivableGrossNoncurrent_iI_pn3n3_maARGzf2m_zXe0whbZ49li" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Accounts receivable</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AccountsReceivableGross_iTI_pn3n3_mtARGzf2m_maARNzIBC_zgu15CEJ5dN6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Total accounts receivable</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">1,386</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">2,019</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iNI_pn3n3_di_msARNzIBC_zyySvFr8Eoqj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Less: Allowance for credit losses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(122</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(588</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--AccountsReceivableNet_iTI_pn3n3_mtARNzIBC_zSwFYaNTRnMd" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total accounts receivable, net</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,264</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,431</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

1386000

2015000

4000

1386000

2019000

122000

588000

1264000

1431000

4000

5000.0

<p id="xdx_891_eus-gaap--AccountsReceivableAllowanceForCreditLossTableTextBlock_zTFh7akCmUb" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The following table sets forth the activity in the Company’s allowance for credit losses (in thousands): Schedule of Allowance for Credit Losses <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20250101__20251231_zH75iPAcuU5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_497_20240101__20241231_zZyPbB5AK6T1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iS_pn3n3_zWSXOAyYRxlk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; font-weight: bold; text-align: left">Beginning balance</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">588</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">368</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--ProvisionForDoubtfulAccounts_pn3n3_ziQz9Cv7tTa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Provision for credit losses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">55</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">540</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AllowanceForDoubtfulAccountsReceivableWriteOffs_iN_pn3n3_di_zZFgMusCGxq7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Write-offs</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(521</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(320</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iE_pn3n3_z1SiVWRayta4" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 1pt">Ending balance</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">122</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">588</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

588000

368000

55000

540000

521000

320000

122000

588000

15000.0 113000.0 <p id="xdx_80E_ecustom--PrepaidExpensesAndOtherCurrentAssetsDisclosureTextBlock_zkGcyTjhTvob" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Note 5 Prepaid Expenses and Other Current Assets <p id="xdx_89C_eus-gaap--DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock_zaOfokaN3Cj1" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Prepaid expenses and other current assets consisted of the following (in thousands): Schedule of Prepaid Expenses and Other Current Assets <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20251231_zy2TvdD8eBii" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_496_20241231_zM3rDGwDQ0k6" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_405_eus-gaap--ValueAddedTaxReceivable_iI_pn3n3_maPEAOAzdNB_zBACiwzXyrwa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Value added tax receivable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">98</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">96</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PrepaidExpenseCurrentAndNoncurrent_iI_pn3n3_maPEAOAzdNB_z3kSilkF3WQ7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepaid expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">571</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">88</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--PrepaidExpensesAdvanceToVendors_iI_pn3n3_maPEAOAzdNB_zy9m87lLFdKh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> Advance to vendors</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--PrepaidExpenseContractAssetCurrent_iI_pn3n3_maPEAOAzdNB_zr4zeCa4lUT1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> Contract asset, current</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">19</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--OtherAssetsCurrent_iI_pn3n3_maPEAOAzdNB_zabB7S0dBZNb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Other current assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">62</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_pn3n3_mtPEAOAzdNB_zB4jMxL1y57i" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total prepaid expenses and other current assets</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">753</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">219</td><td style="text-align: left"> </td></tr> </table> Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

<p id="xdx_89C_eus-gaap--DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock_zaOfokaN3Cj1" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Prepaid expenses and other current assets consisted of the following (in thousands): Schedule of Prepaid Expenses and Other Current Assets <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20251231_zy2TvdD8eBii" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_496_20241231_zM3rDGwDQ0k6" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_405_eus-gaap--ValueAddedTaxReceivable_iI_pn3n3_maPEAOAzdNB_zBACiwzXyrwa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Value added tax receivable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">98</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">96</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PrepaidExpenseCurrentAndNoncurrent_iI_pn3n3_maPEAOAzdNB_z3kSilkF3WQ7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepaid expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">571</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">88</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--PrepaidExpensesAdvanceToVendors_iI_pn3n3_maPEAOAzdNB_zy9m87lLFdKh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> Advance to vendors</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--PrepaidExpenseContractAssetCurrent_iI_pn3n3_maPEAOAzdNB_zr4zeCa4lUT1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> Contract asset, current</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">19</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--OtherAssetsCurrent_iI_pn3n3_maPEAOAzdNB_zabB7S0dBZNb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Other current assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">62</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_pn3n3_mtPEAOAzdNB_zB4jMxL1y57i" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total prepaid expenses and other current assets</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">753</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">219</td><td style="text-align: left"> </td></tr> </table>

98000

96000

571000

88000

3000 13000 19000 22000

62000

753000

219000

<p id="xdx_804_eus-gaap--PropertyPlantAndEquipmentDisclosureTextBlock_zXdMeyqktRDi" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Note 6(A). Property and Equipment, net Property and equipment, net consisted of the following (in thousands): Schedule of Property and Equipment <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_490_20251231_zdcDSpUPHYWi" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_493_20241231_zbBTN70lE899" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_maPPAENzfw5_zeSMGBhB7fH" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Computers and other hardware</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">504</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">504</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember_maPPAENzfw5_zFNsGt7URFA5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Office, furniture, and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">160</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">167</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_maPPAENzfw5_znZR14nrMtG1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">94</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember_maPPAENzfw5_zyTtYAzp71W2" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Vehicles and other fixed assets (excluding computers)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">80</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">35</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_maPPAENzfw5_zW48AAQ2tBB8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Property and equipment, Gross</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">834</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">800</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pn3n3_di_msPPAENzfw5_zqj7aiLFOxy" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Less: accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(529</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(452</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentNet_iTI_pn3n3_mtPPAENzfw5_zmqAS0eAA3L6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total property and equipment, net</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">305</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">348</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> The Company recognized depreciation expense related to property and equipment in the consolidated statements of operations and comprehensive loss of $96.8 thousand and $108.6 thousand during the year ended December 31, 2025 and 2024 respectively.

Property and equipment, net consisted of the following (in thousands): Schedule of Property and Equipment <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_490_20251231_zdcDSpUPHYWi" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_493_20241231_zbBTN70lE899" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_maPPAENzfw5_zeSMGBhB7fH" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Computers and other hardware</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">504</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">504</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember_maPPAENzfw5_zFNsGt7URFA5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Office, furniture, and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">160</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">167</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_maPPAENzfw5_znZR14nrMtG1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">94</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember_maPPAENzfw5_zyTtYAzp71W2" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Vehicles and other fixed assets (excluding computers)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">80</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">35</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_maPPAENzfw5_zW48AAQ2tBB8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Property and equipment, Gross</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">834</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">800</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pn3n3_di_msPPAENzfw5_zqj7aiLFOxy" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Less: accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(529</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(452</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--PropertyPlantAndEquipmentNet_iTI_pn3n3_mtPPAENzfw5_zmqAS0eAA3L6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total property and equipment, net</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">305</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">348</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

504000

160000

167000

90000

94000

80000

35000

834000

800000

529000

452000

305000

348000

96800

108600

Note 6(B). Intangible Assets, net <p id="xdx_898_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zHuplzX9uGDi" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Intangible assets subject to amortization consisted of the following (in thousands): Schedule of Intangible Assets Subject to Amortization <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_496_20251231_zDaMZfHyPwWc" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_495_20241231_zOq3TYv9jds2" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--CapitalizedComputerSoftwareGross_iI_pn3n3_maIANEGzEvp_zlOBWtR08aVa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Internally developed capitalized software</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">386</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">274</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iNI_pn3n3_di_msIANEGzEvp_zIxpMlhtkOck" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(180</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(87</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_pn3n3_mtIANEGzEvp_zt64rVGQkbYb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total intangible assets, net</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">206</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">187</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> The Company recognized amortization expense related to capitalized software in the consolidated statements of operations and comprehensive loss of $93.4 thousand and $70.0 thousand during the year ended December 31, 2025 and December 31, 2024, respectively. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

<p id="xdx_898_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zHuplzX9uGDi" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Intangible assets subject to amortization consisted of the following (in thousands): Schedule of Intangible Assets Subject to Amortization <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_496_20251231_zDaMZfHyPwWc" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_495_20241231_zOq3TYv9jds2" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--CapitalizedComputerSoftwareGross_iI_pn3n3_maIANEGzEvp_zlOBWtR08aVa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Internally developed capitalized software</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">386</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">274</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iNI_pn3n3_di_msIANEGzEvp_zIxpMlhtkOck" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(180</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(87</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_pn3n3_mtIANEGzEvp_zt64rVGQkbYb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total intangible assets, net</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">206</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">187</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

386000

274000

180000

87000

206000

187000

93400

70000.0

Note 7. Investment in Equity Securities In January 2024, the Company reached an agreement with one of its customers, Campaign Brain, Inc. (“Campaign Brain”), to provide AI Solutions. The total amount owed to the Company is to be satisfied through the issuance of <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20240101__20240131__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CampaignBrainIncMember_z2szERdGMmH7" title="Restricted stock issued, shares">1,000,000 shares of Campaign Brain’s restricted stock to the Company with a determinable estimated fair value of $0.122 per share as of the issuance date. Of the <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20240101__20240131__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CampaignBrainIncMember_zPyajVTMF4L4" title="Restricted stock issued, shares">1,000,000 shares issuable, <span id="xdx_908_ecustom--StockIssuedDuringPeriodSharesRestrictedStockAwardVestedInPeriod_c20240117__20240117__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CampaignBrainIncMember_zKMui9aQ0ugl" title="Restricted stockvested, shares">450,000 shares of Campaign Brain’s restricted stock were vested on January 17, 2024, and <span id="xdx_90E_ecustom--StockIssuedDuringPeriodSharesRestrictedStockAwardVestedInPeriod_c20240215__20241215__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CampaignBrainIncMember_zZZnJuNfqNg4" title="Restricted stockvested, shares">50,000 shares of Campaign Brain’s restricted stock are to be vested each month from February 15,2024 to December 15, 2024. The Company had approximately <span id="xdx_90C_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_c20240117__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CampaignBrainIncMember_z5FvFawJhdy" title="Ownership percentage">10% and <span id="xdx_902_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_c20241231__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CampaignBrainIncMember_z0YbY73sKEu8" title="Ownership percentage">20% ownership in Campaign Brain, respectively, on January 17, 2024 and December 31, 2024. The Company recognized revenue when Campaign Brain obtained control of promised services over the service period. At the time of the issuance, the estimated fair value of the shares was determined to be representative of the standalone selling price of the services rendered in exchange for the non-cash consideration in the form of restricted stock of Campaign Brain, or $<span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardGross_pn2n3_c20240101__20240131__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CampaignBrainIncMember_zgMdQOVsTCyd" title="Restricted stock issued">122.0 thousand. The acquisition of Campaign Brain’s restricted stock did not have a major impact on the Company’s operations as the asset test, investment test and income test under the significance tests of the Securities Exchange Commission Regulation S-X Rule 1-02 (w) does not exceed 20%. The transaction represents an equity investment in a private company for which the Company has the ability to exercise significant influence. Since the equity investment is accounted for under the equity method and does not qualify for the net asset value practical expedient, the Company measured the estimated fair value of the equity instrument received at contract inception, minus impairment, if any, with equity method investment gains and losses included in other (expense) income, net on the consolidated statements of operations and comprehensive loss. For the year ended December 31, 2024, the financial figures related to Campaign Brain including revenue, operating expenses and income tax provision were insignificant. The Company’s equity method investment losses derived from the vested portion of the investment were $<span id="xdx_902_eus-gaap--IncomeLossFromEquityMethodInvestments_iN_pn2n3_di_c20240101__20241231__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CampaignBrainIncMember_zeL0FNtPobJe" title="Loss from equity method investments">1.9 thousand, recorded in equity in earnings of investee, net of income tax provision in the consolidated statement of comprehensive loss during the year ended December 31, 2024. As the equity investment is subject to vesting criteria, the Company records the vested portion of the investment at the estimated fair value received at contract inception on each reporting date In the previous year ended December 31, 2024, the Company recognized an impairment loss of $<span id="xdx_901_ecustom--ImpairmentOfInvestment_pn1n3_c20240101__20241231__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CampaignBrainIncMember_zU9jkJ7UdaEc" title="Impairment of investments">120.13 thousand on its investment in Campaign Brain Inc., which is an equity security classified under “Investments in Equity Securities.” The impairment was triggered due to the inability of Campaign Brain Inc. to generate earnings with expected future losses and deteriorating financial performance. As of December 31, 2024, the fair value of the investment in Campaign Brain Inc. has been assessed to be nil. This assessment is based on the deteriorating financial performance of the entity, including minimal revenue during the year, negative net worth, low bank balance as of December 31, 2024, negative cashflows and lack of future projections. Additionally, the entity has no current or foreseeable plans to generate future revenue, which further supports the conclusion that the fair value is nil. Consequently, no value has been assigned to this investment in the financial statements. Since the investment had already been fully written down to nil as of December 31, 2024, there was no financial impact recognized in the consolidated financial statements for the year ended December 31, 2025 related to this investment.

1000000

0.122

1000000

450000 50000

0.10

0.20

122000.0

-1900

120130 <p id="xdx_805_ecustom--CumulativeMandatorilyRedeemableFinancialInstrumentsDisclosureTextBlock_zqF5wlCD0hl4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Note 8. Cumulative Mandatorily Redeemable Financial Instruments In July 2021, Fusemachines Nepal Private Ltd entered into a Share Purchase Agreement between Fusemachines Nepal Inc., and BO2 (the “BO2 Purchase Agreement”) in which BO2 agreed to invest $964.2 thousand in Fusemachines Nepal Private Ltd. Fusemachines Nepal Private Ltd issued <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20210701__20210731__us-gaap--TypeOfArrangementAxis__custom--SharePurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z0bKMdhdO7i5" title="Number of shares issued">39,750 Ordinary Shares with a par value of <span id="xdx_908_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_uNPRPShares_c20210731__us-gaap--TypeOfArrangementAxis__custom--SharePurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zZ58HAzBRcej" title="Common stock, par or stated value per share">100 Nepalese rupees and also issued <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20210701__20210731__us-gaap--TypeOfArrangementAxis__custom--SharePurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--RedeemablePreferredStockMember_zfpPD4Otsj1a" title="Number of shares issued">1,110,250 cumulative and compulsory redeemable Preference Shares with a par value of <span id="xdx_90B_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_pid_uNPRPShares_c20210731__us-gaap--TypeOfArrangementAxis__custom--SharePurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--RedeemablePreferredStockMember_zZ9QdLnNmdok" title="Preference stock, par or stated value per share">100 Nepalese rupees. The Preference Shares contain an annual coupon rate of 10% with the option to convert the Preference Shares into Ordinary Shares. The Preference Shares and Ordinary Shares are mandatorily redeemable five years from the date of issuance at a redemption price equal to <span id="xdx_906_eus-gaap--DebtInstrumentRedemptionPricePercentage_pid_dp_uPure_c20210701__20210731__us-gaap--TypeOfArrangementAxis__custom--SharePurchaseAgreementMember_zmwuvUXeQVMe" title="Redemption price percentage">200% of the purchase price. Any dividends paid on these shares will reduce the ultimate redemption price. Management determined that these shares represent mandatorily redeemable financial instruments under ASC 480 and thus are liability-classified. These liabilities are recorded in cumulative mandatorily redeemable common and preferred stock liability within the consolidated balance sheets, and accretions to the redemption value are recorded within interest expense in the consolidated statements of operations and comprehensive loss. The effective interest rate is <span id="xdx_90D_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20210731__us-gaap--TypeOfArrangementAxis__custom--SharePurchaseAgreementMember_ztnBD4Uacr36" title="Effective interest rate">13.7%, the accrued interest was $304.4 thousand and $238.3 thousand at December 31, 2025 and December 31, 2024 respectively, and is recorded in accrued expenses and other current liabilities in the consolidated balance sheets, and the issuance cost incurred was $13.7 thousand. The outstanding balance of the Cumulative Mandatorily Redeemable Financial instruments were $1,048 thousand and $1,000 thousand for the year ended December 31, 2025 and December 31, 2024 respectively The following summarizes the key terms and provisions of the Preference Shares and Ordinary Shares: Preference Shares Rights and privileges - Preference Shares will be paid dividends before the Ordinary Shares. Preference shareholders will receive a 10% percent annual dividend on Preference Shares. Apart from this, Preference Shares will not receive any kind of dividend or profit. If the Company fails to make a profit in any year or if the Company decides not to distribute dividends, then the dividends to be received by the Preference Shares will be cumulated and those amounts must be returned to the preference shareholders in a lump sum in the year when the dividends are distributed or when the Company withdraws the Preference Shares. Preference Shares will be given priority when the amount of shares is returned in case of liquidation of the Company. Preference Shares will not have voting rights in the general meeting of the Company. The preference share amount is redeemable after a certain period. Redemption - In terms of return, no Preference Share can be redeemed until the price of the issued Preference Share is fully paid. The amount of Preference Shares cannot be returned from any amount other than the amount of profit that can be distributed as dividends or the amount received from the new shares issued by the Company for the purpose of returning the shares. The rate per share for redeeming Preference Shares shall be as per share purchase and sale agreement or shareholder agreement and shall be redeemed at the same rate. In case any Preference Shares issued for return are to be returned along with the premium, a separate fund of appropriate amount shall be arranged from the Company’s profit or the Company’s share premium account for that purpose. In this way, except in the case where the amount of the Preference Shares is returned from the amount received by issuing new shares, in accordance with the law, when the amount of the Preference Shares is returned, an amount equal to the face value of the returned shares from the amount that can be received to distribute dividends from the Company’s profits shall be deposited in a separate account. Any preference share returned in accordance with this regulation shall be deemed to have been automatically forfeited after the completion of the return process. If the Company redeems or proposes to redeem any Preference Shares, it may issue new shares equal to the face value of the shares so redeemed or to be redeemed. Ordinary Shares Rights and privileges - The shareholders of this category will have voting rights and other rights according to the prevailing law. Redemption - The Ordinary Shares will be redeemed if the Company fails to withdraw the Preference Shares issued by the Company to be redeemed. If the Preference Shares have to be converted into ordinary shares, it shall be done according to the decision of the general meeting of the Company. Additional provisions related to Preference Shares shall be in accordance with the shareholders’ agreement between them. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

964200

39750

100

1110250

100

0.10

0.137

304400

238300

13700

1048000

1000000

Preference Shares will be paid dividends before the Ordinary Shares. Preference shareholders will receive a 10% percent annual dividend on Preference Shares.

<p id="xdx_803_eus-gaap--AccountsPayableAccruedLiabilitiesAndOtherLiabilitiesDisclosureCurrentTextBlock_zSrFpXHaCYGg" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Note 9. Accrued Expenses and Other Current Liabilities <p id="xdx_89F_eus-gaap--ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock_z2AFa6AZqyOh" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Accrued expenses and other current liabilities consisted of the following (in thousands): Schedule of Accrued Expenses and Other Current Liabilities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_491_20251231_zc3TRnrxizj9" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_492_20241231_zzUKqiqepOgf" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_pn3n3_maAPAALzFIG_zjWxFlju6eb6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Wages payable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,858</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,525</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--AccruedProfessionalFeesCurrent_iI_pn3n3_maAPAALzFIG_z9jV9b6j50s5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Covenant fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">435</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DividendsPayableCurrent_iI_pn3n3_maAPAALzFIG_z2sIkBGS6hc2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interest payable (Note 8)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">304</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">238</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_pn3n3_maAPAALzFIG_z096mkd8RGF1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Legal expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">141</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AccountsPayableOtherCurrent_iI_pn3n3_maAPAALzFIG_zIK3FwRICRpf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deposit liability for early exercised options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--AccruedLiabilities_iI_pn3n3_maAPAALzFIG_zK22AW5u5ftk" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Accrued expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">456</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">358</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AccountsPayableAndAccruedLiabilitiesCurrent_iTI_pn3n3_mtAPAALzFIG_zIiCt60Sne41" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total accrued expenses and other current liabilities</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">4,618</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">3,700</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

<p id="xdx_89F_eus-gaap--ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock_z2AFa6AZqyOh" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Accrued expenses and other current liabilities consisted of the following (in thousands): Schedule of Accrued Expenses and Other Current Liabilities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_491_20251231_zc3TRnrxizj9" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_492_20241231_zzUKqiqepOgf" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_pn3n3_maAPAALzFIG_zjWxFlju6eb6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Wages payable</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,858</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,525</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--AccruedProfessionalFeesCurrent_iI_pn3n3_maAPAALzFIG_z9jV9b6j50s5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Covenant fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">435</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DividendsPayableCurrent_iI_pn3n3_maAPAALzFIG_z2sIkBGS6hc2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interest payable (Note 8)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">304</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">238</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_pn3n3_maAPAALzFIG_z096mkd8RGF1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Legal expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">141</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AccountsPayableOtherCurrent_iI_pn3n3_maAPAALzFIG_zIK3FwRICRpf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deposit liability for early exercised options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--AccruedLiabilities_iI_pn3n3_maAPAALzFIG_zK22AW5u5ftk" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Accrued expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">456</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">358</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AccountsPayableAndAccruedLiabilitiesCurrent_iTI_pn3n3_mtAPAALzFIG_zIiCt60Sne41" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total accrued expenses and other current liabilities</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">4,618</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">3,700</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

3858000

2525000

435000

304000

238000

141000

3000

456000 358000

4618000

3700000

Note 10. Long-Term Debt Long-term debt consists of the following (in thousands): Schedule of Long-Term Debt <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Current</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Noncurrent</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Current</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Noncurrent</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%; text-align: left">2024 Convertible Notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesMember_z6uaN8Rpcd5i" style="width: 9%; text-align: right" title="Long term debt, current">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesMember_zBlmiRskVjE5" style="width: 9%; text-align: right" title="Long term debt, noncurrent">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--LongTermDebt_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesMember_zXteBH05GFN7" style="width: 9%; text-align: right" title="Long term debt">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesMember_zawvXeRSrsJh" style="width: 9%; text-align: right" title="Long term debt, current">255</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesMember_zWUo0dF4WAri" style="width: 9%; text-align: right" title="Long term debt, noncurrent">200</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--LongTermDebt_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesMember_zDPzxxIYFUe1" style="width: 9%; text-align: right" title="Long term debt">455</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2024 Convertible Notes at fair value</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesFairValueMember_zzk8hmOBvu54" style="text-align: right" title="Long term debt, current">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesFairValueMember_zUDgNApfYBZ4" style="text-align: right" title="Long term debt, noncurrent">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--LongTermDebt_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesFairValueMember_zLQFoVxvV8N4" style="text-align: right" title="Long term debt">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesFairValueMember_zMd9zbgsUDx3" style="text-align: right" title="Long term debt, current">8,986</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesFairValueMember_zqpWyMBzwhrb" style="text-align: right" title="Long term debt, noncurrent">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--LongTermDebt_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesFairValueMember_zxEM1CwPPrIf" style="text-align: right" title="Long term debt">8,986</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Related party convertible notes payable at fair value</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_z0Q6k6s7Frjk" style="text-align: right" title="Long term debt, current">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_zLKaS3kyjpg5" style="text-align: right" title="Long term debt, noncurrent">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--LongTermDebt_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_zfCQzofQazK3" style="text-align: right" title="Long term debt">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_zcF0YPfIzhm2" style="text-align: right" title="Long term debt, current">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_zguB6NP9sMy7" style="text-align: right" title="Long term debt, noncurrent">6,524</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--LongTermDebt_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_zhwBhfgN4zk7" style="text-align: right" title="Long term debt">6,524</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Related party loan payable</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_ztzi7EbdZX9g" style="text-align: right" title="Long term debt, current">300</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zejRaYd0atol" style="text-align: right" title="Long term debt, noncurrent">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--LongTermDebt_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zVvHIp7MdW6c" style="text-align: right" title="Long term debt">300</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_z8g7SoKEAVu" style="text-align: right" title="Long term debt, current">700</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zAK0YJmaHtRb" style="text-align: right" title="Long term debt, noncurrent">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--LongTermDebt_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zDOI7P2RGco" style="text-align: right" title="Long term debt">700</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Total</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231_zeiryLklowC8" style="font-weight: bold; text-align: right" title="Long term debt, current">300</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_987_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20251231_zpNCEUKDmkA" style="font-weight: bold; text-align: right" title="Long term debt, noncurrent">-</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--LongTermDebt_iI_pn3n3_c20251231_zi7jlFc81152" style="font-weight: bold; text-align: right" title="Long term debt">300</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20241231_zGtBbrfpT6Nf" style="font-weight: bold; text-align: right" title="Long term debt, current">9,941</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98C_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20241231_zxhEN5Oq55je" style="font-weight: bold; text-align: right" title="Long term debt, noncurrent">6,724</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_982_eus-gaap--LongTermDebt_iI_pn3n3_c20241231_zIDiLdUjVdO5" style="font-weight: bold; text-align: right" title="Long term debt">16,665</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Convertible Notes at Fair Value Related party convertible notes payable at fair value In October 2019, the Company entered into a convertible promissory note agreement (the “2019 Convertible Note Agreement”) with a lender and issued a convertible promissory note for the principal amount of $<span id="xdx_90E_eus-gaap--DebtInstrumentFaceAmount_iI_pn2n3_c20191031__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenConvertibleNoteAgreementMember_zttpDE23vk72" title="Debt instrument, face amount">2,000.0 thousand (the “2019 Convertible Note”). The 2019 Convertible Note bears interest at a rate of <span id="xdx_907_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20191031__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenConvertibleNoteAgreementMember_zrPp2lejVaH9" title="Debt instrument, interest rate">10% per annum, compounded quarterly. The 2019 Convertible Note matured in September 2022 In September 2021, the Company entered into a second convertible promissory note agreement (the “2021 Convertible Note Agreement”) (the 2019 Convertible Note Agreement and the 2021 Convertible Note Agreement collectively referred to as the “2019 and 2021 Convertible Notes Agreements”) with the same lender and issued a convertible promissory note for the principal amount of $<span id="xdx_907_eus-gaap--DebtInstrumentFaceAmount_iI_pn2n3_c20210930__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenAndTwoThousandTwentyOneConvertibleNoteAgreementsMember_zOn1ny27vi55" title="Debt instrument, face amount">450.0 thousand (the “2021 Convertible Note”) (the 2019 Convertible Note and the 2021 Convertible Note collectively, the “2019 and 2021 Convertible Notes”). The 2021 Convertible Note was issued with the same terms as the 2019 Convertible Note, except with a maturity date of October 2022. Effective December 2022, the 2019 and 2021 Convertible Notes Agreements were amended (the “2022 Amended Convertible Notes Agreements”) to extend the maturity date for the 2019 and 2021 Convertible Notes to December 2023, increase the interest rate to <span id="xdx_90A_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20221231__us-gaap--TypeOfArrangementAxis__custom--TwentyTwentyTwoAmendedConvertibleNotesAgreementsMember_z90ZjwWo91l5" title="Debt instrument, interest rate">15% for the period from December 2022 through December 2023, adding a prepayment option, amending one of the conversion scenarios, and amending the definition of a next equity financing to require a sale of equity securities to result in gross proceeds of $<span id="xdx_90F_eus-gaap--ProceedsFromSaleOfEquitySecuritiesFvNi_pn2n3_c20221201__20221231__us-gaap--TypeOfArrangementAxis__custom--TwentyTwentyTwoAmendedConvertibleNotesAgreementsMember_zbvLzzSe4h8g" title="Proceeds from sale of equity securities">7,500.0 thousand (the “Next Equity Financing”). The 2022 Amended Convertible Notes Agreements also added a partial payment of the interest accrued and outstanding on the note of $386.4 thousand due no later than March 2023. Failure to pay by the payment deadline obligated the Company to pay interest at a rate of twenty percent (<span id="xdx_90F_eus-gaap--DebtInstrumentInterestRateIncreaseDecrease_pid_dp_uPure_c20230301__20230331__us-gaap--TypeOfArrangementAxis__custom--TwentyTwentyTwoAmendedConvertibleNotesAgreementsMember_zAWTkhN0UBZg" title="Debt instrument, interest rate">20%) per annum, compounded quarterly, on the outstanding $<span id="xdx_90B_eus-gaap--DebtInstrumentCarryingAmount_iI_pn2n3_c20230331__us-gaap--TypeOfArrangementAxis__custom--TwentyTwentyTwoAmendedConvertibleNotesAgreementsMember_zD4fAOcjLv2g" title="Debt instrument, carrying amount">386.4 thousand. In December 2023, the 2022 Amended Convertible Notes Agreements were amended again (the “2023 Amended Convertible Notes Agreements”), extending the maturity date of the 2019 and 2021 Convertible Notes to January 2024. In January 2024, the 2023 Amended Convertible Notes Agreements were amended again (the “2024 Amended Convertible Notes Agreements”), extending the maturity date to January 2025. The amendment also added a provision surrounding conversion in the case the Company completes the merger (see “SPAC PIPE financing” below) (also see “Note 1 –Organization”), an additional table depicting principal and interest on the 2019 and 2021 Convertible Notes to be redeemed in connection with the merger, and additional definitions related to the merger The 2021, 2022 and 2023 amendments were accounted for as debt modifications, prospectively, with any change in fair value from the new terms incorporated into future valuations. The 2024 amendment was deemed as capital transaction as per ASC 470-50-40-2 and is accounted for as an extinguishment of debt, with a gain on extinguishment of debt of $<span id="xdx_90E_eus-gaap--GainsLossesOnExtinguishmentOfDebt_pn2n3_c20240101__20241231__us-gaap--TypeOfArrangementAxis__custom--TwentyTwentyFourAmendedConvertibleNotesAgreementsMember_zlAbHsf7EUak" title="Gain on extinguishment of debt">343.0 thousand recorded in additional paid in capital in the consolidated balance sheet for the year ended December 31, 2024, with any change in subsequent fair value incorporated into future valuations and any amendment fees or third-party costs to be expensed at the time of the amendment, and the amended terms to be incorporated into the valuations at each subsequent balance sheet date. On January 31, 2025, the Company entered into an amendment agreement of the convertible note payable to Dolma. Pursuant to the amendment agreement, the maturity date was revised to February 28, 2026. Further, it was agreed that if the Company enters into a SPAC Business Combination Agreement at any time while the Notes are outstanding, any portion of the Aggregate Notes Amount that is not redeemed or repaid in connection or prior to the closing of the SPAC Transaction will convert, without any required action by the Holder, into shares of Common Stock immediately prior to the consummation of the SPAC Transaction contemplated by the SPAC Business Combination Agreement at a conversion rate that is derived from a Company valuation of $85,000.0 thousands on a fully-diluted basis (provided that the Notes will be deemed have converted simultaneously with all other convertible notes being converted in connection the SPAC Transaction). The Company evaluated the above amendment agreement entered on January 31, 2025, under the guidance in ASC 470-50 Debt - Modifications and Extinguishments, and it was determined terms of the amendment were not substantially different than the terms of the convertible notes prior to the Amendment. Accordingly, the aforesaid amendment was accounted for as a debt modification. The 2019 and 2021 Convertible Notes, contain the following conversion features: Conversion upon next equity financing – The conversion balance will be automatically converted into shares of the Company’s Convertible Preferred Stock upon the closing of the Next Equity Financing. The number of Convertible Preferred Stock to be issued upon the conversion will be equal to the quotient of the outstanding principal and, if so elected by the Company, any accrued and unpaid interest on the date of the conversion, divided by the conversion price calculated as the product of (a) 100% minus the discount rate, times (b) the price paid per share for equity securities by the investor in the Next Equity Financing. The aggregate liquidation preference of the Convertible Preferred Stock issued upon conversion shall be equal to the aggregate conversion balance Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Maturity – If the Next Equity Financing or a corporate transaction (as defined below) has not occurred on or before the Maturity Date, and if the outstanding balance is not repaid by the Company in full on the Maturity Date, then the conversion balance shall automatically be converted into (i) the conversion balance on the Maturity Date, divided by (ii) $2.235 price per share. Corporate transaction – In the event of a (i) closing of the sale, transfer or other disposition of all or substantially all of the Company’s assets, (ii) the consummation of the merger or consolidation of the Company with or into another entity, (iii) the closing of the transfer (whether by merger, consolidation or otherwise), in one transaction or a series of related transactions, to a person or group of affiliated persons (other than an underwriter of the Company’s securities), of the Company’s securities if, after such closing, such person or group of affiliated persons would hold at least a majority of the outstanding voting stock of the Company (or the surviving or acquiring entity) (the “Corporate Transaction”), or (iv) a liquidation, dissolution or winding up of the Company prior to full payment of either of the Convertible Notes or prior to the time when either of the Convertible Notes are converted as provided in a Next Equity Financing or a Maturity Conversion, then the conversion balance shall automatically be converted into that number of conversion shares immediately prior to the closing of such Corporate Transaction obtained by dividing the conversion balance by 75% of the price per share of the corporate transaction. SPAC PIPE Financing – Aggregate redemption amount of the 2019 and 2021 Convertible Notes will be redeemed in connection with the consummation of a SPAC transaction to be issued by the SPAC (a “SPAC PIPE Financing”). The aggregate redemption amount ranges from $<span id="xdx_908_eus-gaap--InterestExpenseBorrowings_pn3n3_c20250131__20250131__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenConvertibleNotesAgreementMember__srt--RangeAxis__srt--MinimumMember_zJEk4dxS6i1i" title="Aggregate redemption amount">300.0 thousand to $<span id="xdx_904_eus-gaap--InterestExpenseBorrowings_pn3n3_c20250131__20250131__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenConvertibleNotesAgreementMember__srt--RangeAxis__srt--MaximumMember_zidC2JArTVAe" title="Aggregate redemption amount">4,000.0 thousand and the corresponding SPAC PIPE Financing amount ranges from $<span id="xdx_90F_eus-gaap--InterestExpenseBorrowings_pn2n3_c20250131__20250131__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyTwoConvertibleNotesAgreementMember__srt--RangeAxis__srt--MinimumMember_z3IqglxZTqla" title="Aggregate redemption amount">15,000.0 thousand to $<span id="xdx_90E_eus-gaap--InterestExpenseBorrowings_pn2n3_c20250131__20250131__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyTwoConvertibleNotesAgreementMember__srt--RangeAxis__srt--MaximumMember_ztMnGe8WfEgj" title="Aggregate redemption amount">40,000.0 thousand. If the Company enters into a SPAC business combination agreement at any time while the 2019 and 2021 Convertible Notes are outstanding, then any portion of the aggregate outstanding amounts that are not redeemed or repaid in connection with the closing of a SPAC transaction will convert into shares of the Company’s common stock at a conversion valuation of $115,000.0 thousand, on a fully-diluted basis. Further as per the amendment dated January 31, 2025, the Company valuation to be used for calculating the conversion rate, which shall be changed from $115,000.0 thousand to $85,000.0 thousand, The Company qualified for and elected to account for the 2019 and 2021 Convertible Notes under the fair value option and, in doing so, bypassed the analysis of potential embedded derivative features. The Company believes that the fair value option better reflects the underlying economics of the 2019 and 2021 Convertible Notes. As a result, the 2019 and 2021 Convertible Notes were recorded at fair value upon issuance The Company recorded a gain/charge of $<span id="xdx_90A_eus-gaap--DebtSecuritiesAvailableForSaleGainLoss_pn3n3_c20250101__20251231__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenConvertibleNoteMember_z9JhsmUjhRy4" title="Debt changes in fair value">4,468.0 thousand $<span id="xdx_902_eus-gaap--DebtSecuritiesAvailableForSaleGainLoss_pn2n3_c20240101__20241231__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyOneConvertibleNotesMember_zNh0Ynq3EIbh" title="Debt changes in fair value">3,103.3 thousand related to changes in fair value for both the 2019 Convertible Note and 2021 Convertible Note, which is recorded as Gain/(loss) on change in fair value in the consolidated statements of operations and comprehensive loss, for the year ended December 31, 2025 and 2024, respectively. As of December 31, 2024, the lender of the 2019 and 2021 Convertible Notes was considered a principal owner of the Company, because it held greater than 10% of voting common stock of the Company (also see “Note 19 - Related Parties). 2024 Convertible Notes at fair value In January 2024, the Company entered into two convertible promissory note agreements (the “January 2024 Convertible Notes Agreements”) with a lender for the principal amounts of $<span id="xdx_909_eus-gaap--DebtInstrumentIssuedPrincipal_pn2n3_c20240101__20240131__us-gaap--TypeOfArrangementAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNoteAMember_zFTLRT1gKTqa" title="Debt instrumental prinicipal amount">2,000.0 thousand (“January 2024 Convertible Note A”) and $<span id="xdx_906_eus-gaap--DebtInstrumentIssuedPrincipal_pn2n3_c20240101__20240131__us-gaap--TypeOfArrangementAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNoteBMember_z0jEguAHigzg" title="Debt instrumental prinicipal amount">4,500.0 thousand (“January 2024 Convertible Note B”), respectively, that each bear interest at a rate of <span id="xdx_902_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_c20250131__us-gaap--TypeOfArrangementAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNoteMember_zyQ9U6tAaMbb" title="Debt instrumental interest rate stated percentage">4.863% per annum, payable at maturity (the “January 2024 Convertible Notes”). The January 2024 Convertible Notes mature in January 2025. On February 4, 2025, the maturity date of January 2024 convertible note was extended to July 12, 2025 pursuant to the second amendment The January 2024 Convertible Notes contain the following conversion features: Optional conversion upon a qualifying financing – Before the maturity date in January 2025, if the company plans to go through a significant funding round of the issuance of preferred stock resulting in gross proceeds of at least $<span id="xdx_906_eus-gaap--ExtinguishmentOfDebtAmount_pn2n3_c20250101__20250131__us-gaap--TypeOfArrangementAxis__custom--JanuaryTwoThousandTwentyFourNotesQualifyingFinancingMember_zXmHvz6Rh4R6" title="Extinguishment of debt amount">5,000.0 thousand (the “January 2024 Notes Qualifying Financing”), it will let the holder know at least 10 days before this funding round is set to happen. The holder then has the option to turn any outstanding obligations from the January 2024 Convertible Notes into shares of preferred stock when the funding round closes, based on all of the outstanding obligations under the January 2024 Convertible Notes (the “Conversion Amount”), divided by a specific price calculated as the lower of two figures: (i) either the maximum share price (the share price cap as discussed below) or (ii) 80% of the price at which other investors are buying the preferred stock in the funding round (the “Conversion Price”). However, if this funding round also counts as a company sell-off or shutdown the holder can choose the optional conversion upon a liquidation event (as described in the “optional conversion upon a liquidation event” section below). Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Automatic conversion into common stock - If the company completes the plan of merger as per the Merger Agreement (as defined in “Note 1 - Organization) before the January 2024 Convertible Notes maturity date in January 2025, the Company must notify the lender at least 5 days before the merger is finalized. Immediately preceding the merger, any outstanding amounts the Company owes under the January 2024 Convertible Notes will automatically turn into shares of the Company’s common stock. The number of shares converted is based on the Conversion Amount, divided by the Conversion Price, which will be capped at a maximum value (the share price cap as discussed below). Optional conversion into preferred stock or common stock – After the maturity date of this note in January 2025, the holder can choose to turn the Conversion Amount into shares. There are two scenarios: (i) if converted in conjunction with the January 2024 Convertible Notes Qualifying Financing after the maturity date of January 2025, the conversion will be to preferred stock. The number of shares will be the Conversion Amount divided by the Conversion Price, or (ii) if converted at any other time that is not tied to a Qualifying Financing after the maturity date of January 2025, the conversion will be to common stock. The number of shares will be based on the Conversion Amount, divided by the maximum share price (the share price cap as discussed below). Optional conversion upon a liquidation event – Before the maturity date in January 2025, or before the January 2024 Convertible Notes convert into shares according to the optional conversion upon a qualifying financing, automatic conversion into common stock, or optional conversion into preferred or common stock as discussed above, if the Company plans to sell off its assets or dissolve (when not part of a merger, a “Liquidation Event”), the holder can: (i) choose to convert any Conversion Amount into common stock immediately prior to the Liquidation Event. The number of shares to be calculated as the Conversion Amount, divided by a set price per share (the share price cap as discussed below), or (ii) alternatively, choose to be paid in cash, which would be the Conversion Amount, payable prior to the Liquidation Event. The Company must notify the holder at least 10 days before the Liquidation Event is expected to occur. Liquidation Preference Upon Conversion – If the January 2024 Convertible Notes convert in the January 2024 Notes Qualifying Financing, they will be converted into preferred stock such that the liquidation preference shall equal the Conversion Price. January 2024 Convertible Note A specific terms – Upon the occurrence of a default (as defined in the January 2024 Notes Agreement and discussed below), the holder can declare all amounts due and outstanding to be paid immediately. The proceeds received under the January 2024 Convertible Note A are to be used to repurchase <span id="xdx_904_eus-gaap--CommonStockSharesIssued_iI_pid_c20240131__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNoteAMember_zxOr8saNhRW8" title="Common stock shares, repurchases">667,000 shares of common stock held by Sameer Maskey, CEO of the Company. The share price cap is $<span id="xdx_901_eus-gaap--SharePrice_iI_pid_c20240131__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNoteBMember_zQcVrKJMhb7l" title="Share price">3.00 per share. January 2024 Convertible Note B specific terms – Upon the occurrence of a default (as defined in the January 2024 Notes Agreement and discussed below), the holder can declare all amounts due and outstanding be paid immediately, including a termination fee of $1,000.0 thousand as defined in the January 2024 Notes Agreement). The proceeds received under the January 2024 Convertible Note B are to be used to repay third-party debt of the Company and for working capital purposes. The share price cap is $5.798. The January 2024 Convertible Notes will default if the Merger Agreement (as defined in “Note 1 – Organization”) is terminated and also has other customary events of default. The January 2024 Convertible Notes are fully secured by 3,600,000 shares of common stock held by Sameer Maskey, the CEO of the Company (refer to “Note 19 – Related Parties”). The Company qualified for and elected to account for the January 2024 Convertible Notes under the fair value option and, in doing so, bypassed the analysis of potential embedded derivative features. The Company believes that the fair value option better reflects the underlying economics of the January 2024 Convertible Notes. As a result, the January 2024 Convertible Notes were recorded at fair value upon issuance The Company evaluated the amendment agreement entered on February 4, 2025, under the guidance in ASC 470-50 Debt - Modifications and Extinguishments, and it was determined terms of the amendment were not substantially different than the terms of the convertible notes prior to the Amendment. Accordingly, the aforesaid amendment was accounted for as a debt modification. The Company recorded a gain and charge of $<span id="xdx_90A_eus-gaap--DebtSecuritiesAvailableForSaleGainLoss_pn2n3_c20250101__20251231__us-gaap--TypeOfArrangementAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember_zr3If7jEekMa" title="Debt changes in fair value">3,664.0 thousand and $<span id="xdx_90A_eus-gaap--DebtSecuritiesAvailableForSaleGainLoss_pn3n3_c20240101__20241231__us-gaap--TypeOfArrangementAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember_z6KKoQ5UWPMf" title="Debt changes in fair value">2,486 related to changes in fair value for the January 2024 Convertible Notes, which is recorded as Gain/(loss) on change in fair value in the consolidated statements of operations and comprehensive loss, for the year ended December 31, 2025, and December 31, 2024 respectively. The January 2024 Convertible Notes were once again amended in July 2025 and basis the amendment the maturity date was revised from July 12, 2025, to October 18, 2025, pursuant to the third amendment. The Company applied the 10% cash flow test pursuant to ASC 470 to calculate the difference between the present value of the amended note’s cash flows and the present value of the original remaining cash flow and concluded that the results didn’t exceed the 10% factor, the debt modification is not considered substantially different and therefore did not apply extinguishment accounting, rather it accounted for the modification on a prospective basis pursuant to ASC 470. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements 2023 Notes Payable In August 2023, the Company entered into a loan and security agreement with a lender (the “2023 Notes Agreement”) that will make available to the Company loans in an aggregate principal amount of up to $<span id="xdx_903_eus-gaap--DebtInstrumentIssuedPrincipal_pn2n3_c20230801__20230831__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyThreeNotesAgreementMember_zUenoSvh94o6" title="Debt instrumental principal amount">4,000.0 thousand in three separate tranches. In that month, the Company withdrew $<span id="xdx_900_eus-gaap--DemandDepositAccounts_iI_pn2n3_c20230831__us-gaap--AwardTypeAxis__custom--FirstTrancheMember__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyThreeNotesAgreementMember_zpxBYl6v5Wr6" title="Demand deposits">3,000.0 thousand (the “First Tranche”). The Company additionally had the opportunity to request, subject to the terms of the 2023 Notes Agreement, an additional tranche of $<span id="xdx_906_eus-gaap--DemandDepositAccounts_iI_pn2n3_c20230831__us-gaap--AwardTypeAxis__custom--SecondTrancheMember__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyThreeNotesAgreementMember_zu3z3uILXBnh" title="Demand deposits">500.0 thousand in or before March 2024 (the “Second Tranche”) and a third tranche of $<span id="xdx_908_eus-gaap--DemandDepositAccounts_iI_pn2n3_c20230831__us-gaap--AwardTypeAxis__custom--ThirdTrancheMember__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyThreeNotesAgreementMember_zS2dEcXmzQOd" title="Demand deposits">500.0 thousand in or before June 2024 (the “Third Tranche”) (the First Tranche, Second Tranche and Third Tranche are collectively referred to as the “2023 Notes”). The 2023 Notes bear interest at a rate of <span id="xdx_907_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_c20230831__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyThreeNotesAgreementMember_zZ4Leu8Aq6bi" title="Debt instrumental interest rate">13.25% per annum, compounded annually, payable at maturity. The effective interest rate was <span id="xdx_90C_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_dp_uPure_c20230831__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyThreeNotesAgreementMember_z9jAWIRY9bQj" title="Debt instrumental interest rate effective percentage">23%. The 2023 Notes were secured by substantially all of the Company’s assets. In January 2024, the Company repaid the entire aggregate outstanding principal on the 2023 Notes Payable in the amount of $3,000.0 thousand along with an additional payment of $78.5 thousand for interest, prepayment fees, and lender fees. The Company recorded a loss of $601.1 thousand on extinguishment of debt, in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2024 Common Stock warrant In connection with the 2023 Notes Agreement, the Company issued to the lender common stock warrants (the “Common Stock Warrants”) to purchase up to 92,211 shares of the Company’s common stock, exercisable immediately, with an exercise price of $0.70 per share with a contractual term of 10 years. The Company determined that the Common Stock Warrants are freestanding financial instruments and were determined to be within the scope of ASC 480-10, and accordingly, are liability classified. As of December 31, 2025 and December 31, 2024, the fair value and carrying amount of the Common Stock Warrant Liability was $121.0 thousand and $945.0 thousand, respectively (refer to “Note 3 - Fair Value Measurements”). The Company recorded a gain of $824.0 thousand and a charge of $515.0 thousand related to changes in fair value, which is recorded as loss on change in fair value in the consolidated statements of operations and comprehensive loss, for the year ended December 31, 2025 and 2024, respectively. April 2024 Convertible Note In April 2024, the Company entered into a convertible note agreement (the “April 2024 Convertible Note Agreement”) with a lender for the aggregate principal amount of $<span id="xdx_903_eus-gaap--DebtInstrumentIssuedPrincipal_pn2n3_c20240401__20240430__us-gaap--TypeOfArrangementAxis__custom--AprilTwoThousandTwentyFourConvertibleNotesAgreementMember_zV2NVEQa9vG1" title="Debt instrumental principal amount">125.0 thousand, that bears interest at a rate of <span id="xdx_90C_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_c20240430__us-gaap--TypeOfArrangementAxis__custom--AprilTwoThousandTwentyFourConvertibleNotesAgreementMember_zawxGXgblQEg" title="Debt instrumental interest rate">4.71% per annum and is convertible to common stock (the “April 2024 Convertible Note”). The April 2024 Convertible Promissory Note matures in April 2025. Automatic conversion into common stock – If on or before the maturity date in April 2025, the Company closes the plan of merger as described in the Merger Agreement (as defined in “Note 1 – Organization”), the Company will notify the holder of the April 2024 Convertible Note five days prior to the merger. Immediately prior to the closing of the merger, all of the then outstanding obligations of the April 2024 Convertible Note will automatically convert into the number of common shares equal to the outstanding amount divided by $4.94. Warrant issuance – Upon the conversion of the April 2024 Convertible Note to common stock, the Company shall issue the holder a warrant to purchase <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20240401__20240430__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zKUzrZcBlem" title="Stock issued during the period, new issues">7,500 shares of common stock of CSLM with a per share exercise price of $<span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20240430__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zJAjJ5DrOrTf" title="Warrant execise price">11.50. With respect to classification and initial recognition of warrants as of the date of closing of the merger, refer note on accounting of warrants issuance pursuant to conversion of convertible note. Subordination – Upon the occurrence of any event of default (as described in the April 2024 Convertible Note Agreement and discussed below), the April 2024 Convertible Note shall become junior and subordinate to the January 2024 Convertible Notes. The April 2024 Convertible Note has customary events of default, are fully secured by the assets of the Company and because the conversion feature does not meet the definition of a derivative are being accounted for at amortized cost. The proceeds of the April 2024 Convertible Note will be used for working capital purposes. On February 5, 2025, the conversion price of the April 2024 Convertible Promissory Notes with principal amount of $<span id="xdx_900_eus-gaap--DebtInstrumentIssuedPrincipal_pn3n3_c20250205__20250205__us-gaap--DebtInstrumentAxis__custom--AprilTwoThousandTwentyFourConvertiblePromissoryNotesMember_zOAzQViRfbId" title="Debt instrumental prinicipal amount">125 thousand was amended to $<span id="xdx_908_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_pid_c20250205__us-gaap--DebtInstrumentAxis__custom--AprilTwoThousandTwentyFourConvertiblePromissoryNotesMember_z6hELiJ2wHF3" title="Debt instrumental conversion price">3.15 from the original conversion price of $<span id="xdx_901_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_pid_c20240430__us-gaap--DebtInstrumentAxis__custom--AprilTwoThousandTwentyFourConvertiblePromissoryNotesMember_zYd2PUaca1Q7" title="Debt instrumental conversion price">4.94. The Company evaluated the conversion feature of April 2024 Convertible Note offering for embedded derivatives in accordance with ASC 815, Derivatives and Hedging, and the substantial premium model in accordance with ASC 470, Debt. Based on this assessment, separate accounting for the conversion feature was not required and the instrument was accounted for under the substantial premium model. Accordingly, the excess of the consideration over the fair value amounting to $113.0 thousand was recorded as loss on extinguishment of debt, with a corresponding adjustment recorded in additional paid-in-capital debit, in the consolidated statement of profit and loss for the year ended December 31, 2025. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements The April 2024 Convertible Notes were once again amended in April 2025 and basis the amendment the maturity date was revised from April 5, 2025 to April 5, 2026 pursuant to the second amendment. The Company applied the 10% cash flow test pursuant to ASC 470 to calculate the difference between the present value of the amended note’s cash flows and the present value of the original remaining cash flow and concluded that the results didn’t exceed the 10% factor, the debt modification is not considered substantially different and therefore did not apply extinguishment accounting, rather it accounted for the modification on a prospective basis pursuant to ASC 470. June 2024 Convertible Note In June 2024, the Company entered into a convertible note agreement (the “June 2024 Convertible Note Agreement”) with a lender for the principal amount of $<span id="xdx_90F_eus-gaap--DebtInstrumentIssuedPrincipal_pn2n3_c20240601__20240630__us-gaap--TypeOfArrangementAxis__custom--JuneTwoThousandTwentyFourConvertibleNotesAgreementMember_zXnFLdJJyJCc" title="Debt instrumental principal amount">130.0 thousand, that bears interest at a rate of <span id="xdx_909_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_c20240630__us-gaap--TypeOfArrangementAxis__custom--JuneTwoThousandTwentyFourConvertibleNotesAgreementMember_z6BwlwcF05Oj" title="Debt instrumental interest rate">4.71% per annum and is convertible to common stock (the “June 2024 Convertible Note”). The June 2024 Convertible Promissory Note matures in June 2025. Automatic conversion into common stock – If on or before the maturity date in June 2025, the Company closes the plan of merger as described in the Merger Agreement (as defined in “Note 1 – Organization”), the Company will notify the holder of the June 2024 Convertible Note five days prior to the merger. Immediately prior to the closing of the merger, all of the then outstanding obligations of the June 2024 Convertible Note will automatically convert into the number of common shares equal to the outstanding amount divided by $4.94. Warrant issuance – Upon the conversion of the June 2024 Convertible Note to common stock, the Company shall issue the holder a warrant to purchase <span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20240601__20240630__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z8KJWEVGMxL" title="Stock issued during the period, new issues">7,500 shares of common stock of CSLM with a per share exercise price of $<span id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20240630__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zbiQxYXcrTz6" title="Warrant execise price">11.50. With respect to classification and initial recognition of warrants as of the date of closing of the merger, refer note on accounting of warrants issuance pursuant to conversion of convertible note. Subordination – Upon the occurrence of any event of default (as described in the June 2024 Convertible Note Agreement and discussed below), the June 2024 Convertible Note shall become junior and subordinate to the January 2024 Convertible Notes. The June 2024 Convertible Note has customary events of default, are fully secured by the assets of the Company and because the conversion feature does not meet the definition of a derivative are being accounted for at amortized cost. The proceeds of the June 2024 Convertible Note will be used for working capital purposes. On February 5, 2025, the conversion price of the June 2024 Convertible Promissory Note with principal amount of $<span id="xdx_906_eus-gaap--DebtInstrumentIssuedPrincipal_pn3n3_c20250205__20250205__us-gaap--DebtInstrumentAxis__custom--JuneTwoThousandTwentyFourConvertiblePromissoryNotesMember_zG8UR8AJkv47" title="Debt instrumental prinicipal amount">130 thousand was amended to $<span id="xdx_900_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_pid_c20250205__us-gaap--DebtInstrumentAxis__custom--JuneTwoThousandTwentyFourConvertiblePromissoryNotesMember_zhXa9mxfgTk3" title="Debt instrumental conversion price">3.15 from the original conversion price of $4.94. The Company evaluated the conversion feature of June 2024 Convertible Note offering for embedded derivatives in accordance with ASC 815, Derivatives and Hedging, and the substantial premium model in accordance with ASC 470, Debt. Based on the assessment, separate accounting for the conversion feature was not required, and the instrument was accounted for under the substantial premium model. Accordingly, the excess of the consideration over the fair value amounting to $114.0 thousand was recorded as loss on extinguishment of debt, with a corresponding adjustment in additional paid-in-capital, in the consolidated statement of profit and loss for the year ended December 31, 2025. The June 2024 Convertible Note were once again amended in July 2025 and basis the amendment, the maturity date was revised from June 17, 2025, to <span id="xdx_909_eus-gaap--DebtInstrumentMaturityDate_dd_c20250701__20250731__us-gaap--TypeOfArrangementAxis__custom--JuneTwoThousandTwentyFourConvertibleNotesAgreementMember_zP1lXuz55X5d" title="Maturity date">June 17, 2026, pursuant to the amendment. The Company applied the 10% cash flow test pursuant to ASC 470 to calculate the difference between the present value of the amended note’s cash flows and the present value of the original remaining cash flow and concluded that the results didn’t exceed the 10% factor, the debt modification is not considered substantially different and therefore did not apply extinguishment accounting, rather it accounted for the modification on a prospective basis pursuant to ASC 470. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements September 2024 Convertible Notes In September 2024, the Company entered into two convertible note agreements (the “September 2024 Convertible Notes Agreements”) with two lenders, each for the principal amount of $<span id="xdx_907_eus-gaap--DebtInstrumentIssuedPrincipal_pn2n3_c20240901__20240930__us-gaap--TypeOfArrangementAxis__custom--SeptemberTwoThousandTwentyFourConvertibleNotesAgreementMember_zTl3OYi6TZ38" title="Debt instrumental principal amount">100.0 thousand (the “September 2024 Convertible Notes”). The September 2024 Convertible Notes bear interest at a rate of <span id="xdx_900_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_c20240630__us-gaap--TypeOfArrangementAxis__custom--SeptemberTwoThousandTwentyFourConvertibleNotesAgreementMember_zsQRmdR9Va7g" title="Debt instrumental interest rate">4.71% per annum. The 2024 September Convertible Notes mature in September 2026. Automatic conversion into common stock – If on or before the maturity date in September 2026, the Company closes the plan of merger as described in the Business Combination Agreement (as defined in “Note 1 – Organization”), the Company will notify the holders of the September 2024 Convertible Notes five days prior to the merger. Immediately prior to the closing of the merger, all of the then outstanding obligations of the September 2024 Convertible Notes will automatically convert into the number of common shares equal to the outstanding amount divided by $4.94. Warrant issuance – Upon the conversion of the September 2024 Convertible Note to common stock, the Company shall issue the holder a warrant to purchase <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20240901__20240930__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zKg2WXhHmQoc" title="Stock issued during the period, new issues">7,500 shares of common stock of CSLM with a per share exercise price of $<span id="xdx_909_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20240930__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zuT9fiASRk8k" title="Warrant execise price">11.50. With respect to classification and initial recognition of warrants as of the date of closing of the merger, refer note on accounting of warrants issuance pursuant to conversion of convertible note. Subordination – Upon the occurrence of any event of default (as described in the September 2024 Convertible Notes Agreements and discussed below), the September 2024 Convertible Notes shall become junior and subordinate to the January 2024 Convertible Notes. The September 2024 Convertible Notes have customary events of default, are fully secured by the assets of the Company and because the conversion feature does not meet the definition of a derivative are being accounted for at amortized cost. The proceeds of the September 2024 Convertible Notes will be used for working capital purposes. On February 5, 2025, the conversion price of the two September 2024 Convertible Promissory Notes with principal amount of $<span id="xdx_906_eus-gaap--DebtInstrumentIssuedPrincipal_pn3n3_c20250205__20250205__us-gaap--DebtInstrumentAxis__custom--SeptemberTwoThousandTwentyFourConvertiblePromissoryNotesMember_zB1RDptgbIgf" title="Debt instrumental prinicipal amount">100 thousand each was amended to $<span id="xdx_908_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_pid_c20250205__us-gaap--DebtInstrumentAxis__custom--SeptemberTwoThousandTwentyFourConvertiblePromissoryNotesMember_zZjgk6WIFlGd" title="Debt instrumental conversion price">3.15 from the original conversion price of $4.94. The Company evaluated the conversion feature of September 2024 Convertible Notes offering for embedded derivatives in accordance with ASC 815, Derivatives and Hedging, and the substantial premium model in accordance with ASC 470, Debt. Based on the assessment, separate accounting for the conversion feature was not required, and the instrument was accounted for under the substantial premium model. Accordingly, the excess of the consideration over fair value amounting to $164.0 thousand was recorded as loss on extinguishment of debt, with a corresponding adjustment in additional paid-in-capital in the consolidated statement of Operations and Comprehensive Loss for the year ended December 31, 2025. February 2025 Convertible Notes On February 24, 2025, the Company entered into a convertible promissory note amounting to $<span id="xdx_903_eus-gaap--DebtInstrumentIssuedPrincipal_c20250224__20250224__us-gaap--TypeOfArrangementAxis__custom--FebruaryTwoThousandTwentyFourConvertibleNotesAgreementMember_znA0BJTo86je" title="Debt instrumental principal amount">180,000 with an interest rate of <span id="xdx_90E_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_c20250224__us-gaap--TypeOfArrangementAxis__custom--FebruaryTwoThousandTwentyFourConvertibleNotesAgreementMember_zzSpApx7i59b" title="Debt instrumental interest rate">4.71% and maturity date of February 19, 2028. Upon closing of the Merger, the Note shall automatically convert into the number of shares of Common Stock equal to the then outstanding Obligations under the note divided by the applicable Conversion Price i.e., $<span id="xdx_906_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_pid_c20250224__us-gaap--TypeOfArrangementAxis__custom--FebruaryTwoThousandTwentyFourConvertibleNotesAgreementMember_zKqkMfkJ6jJj" title="Conversion price">3.15. Automatic conversion into common stock – If on or before the maturity date in February 2028, the Company closes the plan of merger as described in the Business Combination Agreement (as defined in “Note 1 – Organization”), the Company will notify the holders of the February 2025 Convertible Notes five days prior to the merger. Immediately prior to the closing of the merger, all of the then outstanding obligations of the September 2024 Convertible Notes will automatically convert into the number of common shares equal to the outstanding amount divided by $3.15. Subordination – Upon the occurrence of any event of default (as described in the February 2025 Convertible Notes Agreements and discussed below), the February 2025 Convertible Notes shall become junior and subordinate to the January 2024 Convertible Notes. The February 2025 Convertible Note has customary events of default, are fully secured by the assets of the Company and because the conversion feature does not meet the definition of a derivative are being accounted for at amortized cost. The proceeds of the February 2025 Convertible Note will be used for working capital purposes. Related Party loan payable During the previous year ended December 31, 2024, the Company entered into seven separate promissory notes with Mr. Maskey for an aggregate principal amount of $<span id="xdx_904_eus-gaap--DebtInstrumentIssuedPrincipal_pn2n3_c20240101__20241231__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyFourRelatedPartyPromissoryNotesMember_z6AJ0BqeFQT2" title="Debt instrumental principal amount">700.0 thousand (the “2024 Related Party Promissory Notes”). The 2024 Related Party Promissory Notes bear interest at a rate of <span id="xdx_90D_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_c20241231__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyFourRelatedPartyPromissoryNotesMember_zEX5VypSEsBg" title="Debt instrumental interest rate">4.71% per annum and mature in December 2025. Upon an event of default, the 2024 Related Party Promissory Notes shall become junior and subordinate to the January 2024 Convertible Notes (also see “Note 19 - Related Parties”), and any amounts owed will bear interest at <span id="xdx_90D_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_c20241231__us-gaap--TypeOfArrangementAxis__custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember_zEB4BPAu50ea" title="Debt instrumental interest rate">10% per annum until the obligations are satisfied in full. The 2024 Related Party Promissory Notes have customary events of default. As of December 31, 2025, <span id="xdx_908_eus-gaap--LoansPayableCurrent_iI_pn3d_dxL_c20251231__us-gaap--TypeOfArrangementAxis__custom--TwoThousandTwentyFourRelatedPartyPromissoryNotesMember_zab5ykWXTTog" title="Loans payable::XDX::-">no balance is outstanding of the 2024 Related Party Promissory notes, as in connection with the consummation of the Business Combination on October 22, 2025, the Company settled the outstanding principal and accrued interest under the 2024 Related Party Promissory Notes in cash. On February 12, 2025, an amendment to the seven promissory notes was entered into between the company and the CEO, Mr. Sameer Maskey. As per the original agreement, the maturity date was earlier of (1) the occurrence of an Event of Default and (2) December 31, 2024. Pursuant to the amendment agreement, the maturity date was extended to earlier of (1) the occurrence of an Event of Default and (2) December 31, 2025. The Company evaluated the amendment in maturity date under the guidance in ASC 470-50 Debt - Modifications and Extinguishments, and it was determined that there was no gain/loss to be recorded in the consolidated statements of operations and comprehensive loss, for the year ended December 31, 2025. The Company incurred interest expense on promissory notes held at amortized cost and subsequently the promissory notes principal and accrued and unpaid interest were repaid in cash upon the Closing of merger. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Others- February 2025 Convertible Notes In connection with the second amendment to the Business Combination Agreement, Consilium Frontier Equity Fund, LP provided financing to Fusemachines Inc. in the amount of $2,160,000, in exchange for a convertible note which note shall convert into shares of Fusemachines Inc. common stock of at a price of $0.44 per share (a) automatically at the time of the Business Combination, or (b) on July 12, 2025 at the option of the holder, if not, then payable in cash. Pursuant to the terms of the Note and related Escrow Agreement, the proceeds are required to be deposited into an escrow account and will be released to the Company only upon the consummation of the Business Combination. Further, per Section 4.2 of the Escrow Agreement “Upon the Closing, the Company, Investor and Fusemachines shall jointly deliver a Joint Release Notice to the Escrow Agent directing the Escrow Agent to disburse all Funds held in the Escrow Account to the Fusemachines Inc.” Accordingly, the escrowed funds are not freely available to the Company prior to joint instruction by the Investor, Fusemachines and the Company. On May 22, 2025, the proceeds from Consilium Frontier Equity Fund, LP have been received into an escrow account. Upon closing of the merger, these funds were subsequently released and received in the bank account of Fusemachines Inc. Impact of reverse capitalization on convertible note In connection with the consummation of the Business Combination on October 22, 2025, each Legacy Fusemachines convertible note, including both related-party and non-related-party convertible notes, that was issued and outstanding immediately prior to the Closing was converted into an aggregate of 8,048,770 shares of Legacy Fusemachines common stock in accordance with the respective convertible note agreements. Convertible notes that are exchanged for equity pursuant to their original contractual terms are accounted for in accordance with ASC 470-20, Debt with Conversion and Other Options. Upon conversion, the carrying amount of the convertible debt is reclassified to equity, and no gain or loss is recognized in earnings, as the conversion is executed in accordance with the original terms of the instruments. Immediately following such conversions, all shares of Legacy Fusemachines common stock issued upon conversion were exchanged for shares of Fusemachines Inc. common stock based on the exchange ratio specified in the Business Combination Agreement. As a result of the conversions and exchanges, no convertible notes or related-party notes payable remained outstanding as of December 31, 2025, other than related party note payable related to Dolma amounting $300 thousand. Accounting of warrants issuance pursuant to conversion of convertible note. The warrants issuable upon conversion of the April 2024, June 2024, September 2024 Convertible Note are classified as equity warrants, based on an assessment of the instruments’ specific terms and applicable authoritative guidance in FASB ASC Topic 480, “Distinguishing Liabilities from Equity” (“ASC 480”) and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). These warrants are measured at fair value on the issuance date (Day 1), which is the merger closing date of October 22, 2025, and should not be subsequently remeasured, with no recurring fair value adjustments recognized in earnings. The Company recorded a loss of $<span id="xdx_909_ecustom--GainlossOnChangeInFairValueOfConvertibleNotesWarrantyLiability_iN_pn2n3_di_c20251022__20251022__us-gaap--ClassOfWarrantOrRightAxis__custom--EquityqWarrantsMember_zBb2sEVH5lO3" title="Gain/(Loss) on change in fair value of convertible notes, warranty liability">4.2 thousand due to initial recognition of warrants, which is recorded as Other (expense) income in the consolidated statements of operations and comprehensive loss, for the year ended December 31, 2025. These warrants have same terms and provisions as public warrant. Refer note 24-‘Public and private warrants’ for details with respect to terms of public warrants. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

Long-term debt consists of the following (in thousands): Schedule of Long-Term Debt <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Current</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Noncurrent</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Current</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Noncurrent</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%; text-align: left">2024 Convertible Notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesMember_z6uaN8Rpcd5i" style="width: 9%; text-align: right" title="Long term debt, current">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesMember_zBlmiRskVjE5" style="width: 9%; text-align: right" title="Long term debt, noncurrent">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--LongTermDebt_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesMember_zXteBH05GFN7" style="width: 9%; text-align: right" title="Long term debt">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesMember_zawvXeRSrsJh" style="width: 9%; text-align: right" title="Long term debt, current">255</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesMember_zWUo0dF4WAri" style="width: 9%; text-align: right" title="Long term debt, noncurrent">200</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--LongTermDebt_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesMember_zDPzxxIYFUe1" style="width: 9%; text-align: right" title="Long term debt">455</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2024 Convertible Notes at fair value</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesFairValueMember_zzk8hmOBvu54" style="text-align: right" title="Long term debt, current">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesFairValueMember_zUDgNApfYBZ4" style="text-align: right" title="Long term debt, noncurrent">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--LongTermDebt_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesFairValueMember_zLQFoVxvV8N4" style="text-align: right" title="Long term debt">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesFairValueMember_zMd9zbgsUDx3" style="text-align: right" title="Long term debt, current">8,986</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesFairValueMember_zqpWyMBzwhrb" style="text-align: right" title="Long term debt, noncurrent">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--LongTermDebt_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--TwentyTwentyFourConvertibleNotesFairValueMember_zxEM1CwPPrIf" style="text-align: right" title="Long term debt">8,986</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Related party convertible notes payable at fair value</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_z0Q6k6s7Frjk" style="text-align: right" title="Long term debt, current">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_zLKaS3kyjpg5" style="text-align: right" title="Long term debt, noncurrent">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--LongTermDebt_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_zfCQzofQazK3" style="text-align: right" title="Long term debt">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_zcF0YPfIzhm2" style="text-align: right" title="Long term debt, current">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_zguB6NP9sMy7" style="text-align: right" title="Long term debt, noncurrent">6,524</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--LongTermDebt_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_zhwBhfgN4zk7" style="text-align: right" title="Long term debt">6,524</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Related party loan payable</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_ztzi7EbdZX9g" style="text-align: right" title="Long term debt, current">300</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zejRaYd0atol" style="text-align: right" title="Long term debt, noncurrent">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--LongTermDebt_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zVvHIp7MdW6c" style="text-align: right" title="Long term debt">300</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_z8g7SoKEAVu" style="text-align: right" title="Long term debt, current">700</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zAK0YJmaHtRb" style="text-align: right" title="Long term debt, noncurrent">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--LongTermDebt_iI_pn3n3_c20241231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zDOI7P2RGco" style="text-align: right" title="Long term debt">700</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Total</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231_zeiryLklowC8" style="font-weight: bold; text-align: right" title="Long term debt, current">300</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_987_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20251231_zpNCEUKDmkA" style="font-weight: bold; text-align: right" title="Long term debt, noncurrent">-</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--LongTermDebt_iI_pn3n3_c20251231_zi7jlFc81152" style="font-weight: bold; text-align: right" title="Long term debt">300</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20241231_zGtBbrfpT6Nf" style="font-weight: bold; text-align: right" title="Long term debt, current">9,941</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98C_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20241231_zxhEN5Oq55je" style="font-weight: bold; text-align: right" title="Long term debt, noncurrent">6,724</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_982_eus-gaap--LongTermDebt_iI_pn3n3_c20241231_zIDiLdUjVdO5" style="font-weight: bold; text-align: right" title="Long term debt">16,665</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

255000

200000

455000

8986000

6524000

300000

700000

300000

9941000

6724000

16665000

2000000.0

0.10

450000.0

0.15

7500000.0

386400

0.20

386400

343000.0

2026-02-28

85000000.0

2.235

300000.0

4000000.0

15000000.0

40000000.0

115000000.0

85000000.0

4468000.0

3103300

2000000.0

4500000.0

0.04863

5000000.0

667000

3.00

1000000.0

5.798

3600000

3664000.0

2486000

4000000.0

3000000.0

500000.0

0.1325

0.23

3000000.0

78500

601100

92211

0.70

P10Y

121000.0

945000.0

824000.0

515000.0

125000.0

0.0471

4.94

7500

11.50

125000

3.15

4.94

113000.0

130000.0

0.0471

4.94

7500

11.50

130000

3.15

4.94

114000.0

2026-06-17

100000.0

0.0471

4.94

7500

11.50

100000

3.15

4.94

164000.0

180000

0.0471

3.15

700000.0

0.0471

0.10

2160000

0.44

8048770

300000

-4200

<p id="xdx_801_eus-gaap--PreferredStockTextBlock_znsoKSb9p6Dg" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -1.45pt">Note 11. Convertible Preferred Stock Effective February 2023, the Company amended the Third Amended and Restated Certificate of Incorporation of Fusemachines Inc. (the “Restated Certificate”) to increase the number of shares of series seed preferred stock (“Convertible Preferred Stock”) that the Company is authorized to issue from <span id="xdx_908_eus-gaap--PreferredStockSharesAuthorized_iI_c20230227__us-gaap--StatementClassOfStockAxis__us-gaap--ConvertiblePreferredStockMember__us-gaap--AwardTypeAxis__custom--SeriesSeedPreferredstockMember_zCAHccJCyvje" title="Preferred stock, shares authorized">5,947,706 to <span id="xdx_909_eus-gaap--PreferredStockSharesAuthorized_iI_c20230228__us-gaap--StatementClassOfStockAxis__us-gaap--ConvertiblePreferredStockMember__us-gaap--AwardTypeAxis__custom--SeriesSeedPreferredstockMember_zkvCBjGnTbZf" title="Preferred stock, shares authorized">5,972,716 (including 3,580 authorized shares of preferred stock not assigned to a particular series) and increase the authorized shares of series seed-2 preferred stock (“Series Seed-2 Convertible Preferred Stock”). On October 22, 2025, upon the consummation of the business combination, which was accounted for as a reverse recapitalization, 9,043,234 shares of Legacy Fusemachines convertible preferred stock were converted into Legacy Fusemachines common stock in accordance with the applicable conversion terms. Subsequently, in connection with the Business Combination, all such Legacy Fusemachines common shares were exchanged for shares of common stock of Fusemachines Inc. (the “Company” or “PubCo”) based on the exchange ratio specified in the Business Combination Agreement. After giving effect to the exchange ratio, an aggregate of 5,950,673 shares of the Company’s common stock were issued. As a result of these transactions, no shares of Convertible Preferred Stock remained outstanding as of December 31, 2025. The authorized, issued and outstanding shares of Convertible Preferred Stock, along with the related liquidation preferences and carrying values, after giving effect to the conversion ratio applied in connection with the merger (reverse capitalization), as of December 31, 2024, were as follows (in thousands, except share numbers) <p id="xdx_89C_eus-gaap--ScheduleOfPreferredUnitsTextBlock_zuWGmB0CIJpb" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0">Schedule of Convertible Preferred Stock <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Series</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Authorized Shares</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Issued and Outstanding Shares</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Liquidation Preferences</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Carrying Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 19%">Seed-1</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right"><span id="xdx_901_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed1ConvertiblePreferredStockMember_zpxHjXyBFsZi" title="Preferred stock, shares authorized">1,328,371</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_903_eus-gaap--PreferredStockSharesIssued_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed1ConvertiblePreferredStockMember_zooBJCqdIETf" title="Preferred stock, shares issued"><span id="xdx_90B_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed1ConvertiblePreferredStockMember_zIsbpMswfud5" title="Preferred stock, shares outstanding">1,325,081</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"><span id="xdx_909_eus-gaap--PreferredStockLiquidationPreferenceValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed1ConvertiblePreferredStockMember_zFSo8kNaw3cb" title="Preferred stock liquidation preference, value">1,350</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"><span id="xdx_905_eus-gaap--PreferredStockValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed1ConvertiblePreferredStockMember_z3ZaBlqjzMkl" title="Preferred stock, carrying value">1,323</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Seed-2</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed2ConvertiblePreferredStockMember_zO0IRY6v9c8h" title="Preferred stock, shares authorized">922,925</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--PreferredStockSharesIssued_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed2ConvertiblePreferredStockMember_zmxqVI8DSa01" title="Preferred stock, shares issued"><span id="xdx_90C_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed2ConvertiblePreferredStockMember_zWBTdG0Q06kj" title="Preferred stock, shares outstanding">922,950</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_901_eus-gaap--PreferredStockLiquidationPreferenceValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed2ConvertiblePreferredStockMember_z5GAcBHrTNWa" title="Preferred stock liquidation preference, value">940</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--PreferredStockValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed2ConvertiblePreferredStockMember_zKedR6B24vib" title="Preferred stock, carrying value">940</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Seed-3</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed3ConvertiblePreferredStockMember_zY3yPkRutIl2" title="Preferred stock, shares authorized">1,776,667</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--PreferredStockSharesIssued_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed3ConvertiblePreferredStockMember_zfBJgMeVzGvb" title="Preferred stock, shares issued"><span id="xdx_90C_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed3ConvertiblePreferredStockMember_zsEqyUG6xlUc" title="Preferred stock, shares outstanding">1,764,724</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_90F_eus-gaap--PreferredStockLiquidationPreferenceValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed3ConvertiblePreferredStockMember_zxiWGZG7EAm2" title="Preferred stock liquidation preference, value">2,515</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--PreferredStockValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed3ConvertiblePreferredStockMember_zZFwKZR1Gj2g" title="Preferred stock, carrying value">2,515</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Seed-4</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed4ConvertiblePreferredStockMember_zwCpFyVkjRN5" title="Preferred stock, shares authorized">1,941,173</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--PreferredStockSharesIssued_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed4ConvertiblePreferredStockMember_zVv9HwROa28f" title="Preferred stock, shares issued"><span id="xdx_90F_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed4ConvertiblePreferredStockMember_z5cSeRlpMTW4" title="Preferred stock, shares outstanding">1,937,918</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_902_eus-gaap--PreferredStockLiquidationPreferenceValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed4ConvertiblePreferredStockMember_zhm1PdPTYcuc" title="Preferred stock liquidation preference, value">3,100</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--PreferredStockValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed4ConvertiblePreferredStockMember_zzfRQmaWGpge" title="Preferred stock, carrying value">3,087</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Total</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">5,969,136</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">5,950,673</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">7,865</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> Rights, preferences and privileges of the Convertible Preferred Stock (Historical) The following summarizes the rights, preferences, and privileges of the Convertible Preferred Stock prior to its conversion at Closing Dividends. The Company may not pay dividends on other classes or series of stock (excluding dividends in common stock) before unless the holders of the Company’s Convertible Preferred Stock receive, at the same time or before, a dividend on each of their shares. Upon the declaration of a dividend for another class or series of stock (excluding common stock), the holders of the Convertible Preferred Stock are entitled to receive dividends based on the equivalent amount if the other stocks were converted into common stock, times the number of common stock shares that each Convertible Preferred Stock share could be converted into (as adjusted for stock splits, combinations and reorganizations). No dividends have been declared to date. Conversion. The series seed preferred stock is convertible, at the option of the holder, at any time and from time to time, into such number of fully paid and nonassessable shares of common stock as is determined by dividing the series seed original issue price by the series seed conversion price in effect at the time of conversion. Voting rights. The holders of Convertible Preferred Stock are entitled to that number of votes on all matters presented to stockholders equal to the number of shares of common stock then issuable upon conversion of such preferred stock. The holders of Convertible Preferred Stock are entitled to elect one director of the Company. Liquidation. In the event of any sale of substantially all of the assets, a merger, or liquidation, dissolution or winding up of the Company, the holders of series seed-4 Convertible Preferred Stock then outstanding will be entitled to receive, in preference to the holders of all other series of Convertible Preferred Stock and common stock, an amount equal to or greater than (a) $<span id="xdx_90E_eus-gaap--PreferredStockLiquidationPreference_iI_pid_c20251231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed4ConvertiblePreferredStockMember_zqzROzCyr1ie" title="Preferred stock liquidation preference, per share">1.0553 per share (as adjusted for stock splits, combinations, and reorganizations) plus declared and unpaid dividends, if any, or (b) such amount per share as would have been payable had all shares of series seed-4 Convertible Preferred Stock had been converted to common stock immediately prior to such liquidation, dissolution or winding up or deemed liquidation event. Given that deemed liquidation event is within the control of the common stockholders, the Convertible Preferred Stock is recognized as permanent equity within the consolidated statements of stockholders’ deficit. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements After the payment of all preferential amounts required to the paid to the holders of shares of series seed-4 Convertible Preferred Stock, the holders of series seed 3, 2, and 1 Convertible Preferred Stock will be entitled to receive, on a pari passu basis and in preference to the holders of common stock, $<span id="xdx_909_eus-gaap--PreferredStockLiquidationPreference_iI_pid_c20251231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed3ConvertiblePreferredStockMember_zNFHuRMTaMCl" title="Preferred stock liquidation preference, per share">0.9379, $<span id="xdx_90C_eus-gaap--PreferredStockLiquidationPreference_iI_pid_c20251231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed2ConvertiblePreferredStockMember_z5nkO4RyMku6" title="Preferred stock liquidation preference, per share">0.6704, and $<span id="xdx_908_eus-gaap--PreferredStockLiquidationPreference_iI_pid_c20251231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed1ConvertiblePreferredStockMember_z6zHimqpzXWd" title="Preferred stock liquidation preference, per share">0.6704, respectively, per share plus declared and unpaid dividends, if any. After the payment of all preferential amounts required to be paid to the holders of series seed-4 Convertible Preferred Stock, then the holders of series seed 3, 2 and 1 Convertible Preferred Stock, shall be entitled to be paid out of the assets of the Company. After distributing to all preferred stockholders, the remaining assets of the Company will be distributed ratably to the holders of the common stock on a pro rata basis.

5947706

5972716

3580

9043234

5950673

<p id="xdx_89C_eus-gaap--ScheduleOfPreferredUnitsTextBlock_zuWGmB0CIJpb" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0">Schedule of Convertible Preferred Stock <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Series</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Authorized Shares</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Issued and Outstanding Shares</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Liquidation Preferences</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Carrying Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 19%">Seed-1</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right"><span id="xdx_901_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed1ConvertiblePreferredStockMember_zpxHjXyBFsZi" title="Preferred stock, shares authorized">1,328,371</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_903_eus-gaap--PreferredStockSharesIssued_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed1ConvertiblePreferredStockMember_zooBJCqdIETf" title="Preferred stock, shares issued"><span id="xdx_90B_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed1ConvertiblePreferredStockMember_zIsbpMswfud5" title="Preferred stock, shares outstanding">1,325,081</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"><span id="xdx_909_eus-gaap--PreferredStockLiquidationPreferenceValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed1ConvertiblePreferredStockMember_zFSo8kNaw3cb" title="Preferred stock liquidation preference, value">1,350</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"><span id="xdx_905_eus-gaap--PreferredStockValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed1ConvertiblePreferredStockMember_z3ZaBlqjzMkl" title="Preferred stock, carrying value">1,323</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Seed-2</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed2ConvertiblePreferredStockMember_zO0IRY6v9c8h" title="Preferred stock, shares authorized">922,925</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--PreferredStockSharesIssued_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed2ConvertiblePreferredStockMember_zmxqVI8DSa01" title="Preferred stock, shares issued"><span id="xdx_90C_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed2ConvertiblePreferredStockMember_zWBTdG0Q06kj" title="Preferred stock, shares outstanding">922,950</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_901_eus-gaap--PreferredStockLiquidationPreferenceValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed2ConvertiblePreferredStockMember_z5GAcBHrTNWa" title="Preferred stock liquidation preference, value">940</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--PreferredStockValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed2ConvertiblePreferredStockMember_zKedR6B24vib" title="Preferred stock, carrying value">940</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Seed-3</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed3ConvertiblePreferredStockMember_zY3yPkRutIl2" title="Preferred stock, shares authorized">1,776,667</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--PreferredStockSharesIssued_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed3ConvertiblePreferredStockMember_zfBJgMeVzGvb" title="Preferred stock, shares issued"><span id="xdx_90C_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed3ConvertiblePreferredStockMember_zsEqyUG6xlUc" title="Preferred stock, shares outstanding">1,764,724</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_90F_eus-gaap--PreferredStockLiquidationPreferenceValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed3ConvertiblePreferredStockMember_zxiWGZG7EAm2" title="Preferred stock liquidation preference, value">2,515</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--PreferredStockValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed3ConvertiblePreferredStockMember_zZFwKZR1Gj2g" title="Preferred stock, carrying value">2,515</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Seed-4</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed4ConvertiblePreferredStockMember_zwCpFyVkjRN5" title="Preferred stock, shares authorized">1,941,173</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--PreferredStockSharesIssued_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed4ConvertiblePreferredStockMember_zVv9HwROa28f" title="Preferred stock, shares issued"><span id="xdx_90F_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed4ConvertiblePreferredStockMember_z5cSeRlpMTW4" title="Preferred stock, shares outstanding">1,937,918</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_902_eus-gaap--PreferredStockLiquidationPreferenceValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed4ConvertiblePreferredStockMember_zhm1PdPTYcuc" title="Preferred stock liquidation preference, value">3,100</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--PreferredStockValue_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesSeed4ConvertiblePreferredStockMember_zzfRQmaWGpge" title="Preferred stock, carrying value">3,087</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Total</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">5,969,136</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">5,950,673</td><td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">7,865</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

1328371

1325081

1350000

1323000

922925

922950

940000

1776667

1764724

2515000

1941173

1937918

3100000

3087000

5969136

5950673

7865000

1.0553

0.9379

0.6704

Note 12. Stockholder’s Deficit Common Stock In connection with the Restated Certificate, the number of shares of Fusemachine Inc. common stock that the Company is authorized to issue is 500,000,000 shares and 15,924,202 shares as of December 31, 2025 and December 31, 2024 respectively. <p id="xdx_894_ecustom--ScheduleOfReservedSharesOfCommonStockForFutureIssuanceTableTextBlock_z7zoDKEkE1yc" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The Company’s reserved shares of common stock for future issuance related to potential conversion of the Convertible Preferred Stock, exercise of Common Stock Warrants and exercise of stock options are as follows: Schedule of Reserved Shares of Common Stock for Future Issuance <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_490_20251231_zCeIk7DDpYk1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_490_20241231_zcOkzj9TPbBf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--StatementClassOfStockAxis__us-gaap--ConvertiblePreferredStockMember_zSECXTVgZmn" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Convertible preferred stock (as converted to common stock)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5,950,673</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--StatementClassOfStockAxis__custom--CommonStockWarrantsMember_zLBmU4MI1E13" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Common stock warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92,211</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92,211</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--StatementClassOfStockAxis__custom--CommonStockContingentObligationMember_zariQc5mO2K2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Common stock contingent obligation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">29,611</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zsZifAazxfb6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Stock options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">686,880</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,700,058</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__custom--EquitySharesWarrantMember_zYdURjdEZ5oe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Equity shares warrant (refer note 22)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,108,070</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">- </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__custom--SPACPublicAndPrivatePlacementWarrantsMember_zuDMOFSydFFe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">SPAC public and private placement warrants (refer note 24)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,458,750</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">- </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--IssuanceOfWarrantsPursuantToConversionOfConvertibleNote_iI_pid_hus-gaap--AwardTypeAxis__us-gaap--WarrantMember_zihVBIyibU8j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Issuance of warrants pursuant to conversion of convertible note.(refer note 10)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_zHcNj1mCZfPl" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Reserved shares of common stock for future issuance</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">16,375,911</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,772,553</td><td style="text-align: left"> (1)</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">(1)</td><td style="width: 5pt"></td><td style="text-align: justify">Includes <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFJlc2VydmVkIFNoYXJlcyBvZiBDb21tb24gU3RvY2sgZm9yIEZ1dHVyZSBJc3N1YW5jZSAoRGV0YWlscykgU3RhdGVtZW50IC0gQ29uZGVuc2VkIENvbnNvbGlkYXRlZCBJbnRlcmltIEJhbGFuY2UgU2hlZXRzIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zca7YWfTIrU" title="Stock option exercised">6,772 stock options as of December 31, 2024 that were legally exercised prior to meeting the service base vesting requirements in exchange for nonrecourse promissory notes (Refer to “The Promissory Notes Transactions” in “Note 14 - Stock-based Compensation “).</td> </tr></table> Convertible Preferred Stock In connection with the Restated Certificate, the number of shares of Convertible Preferred Stock that the Company is authorized to issue is <span id="xdx_901_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20251231__us-gaap--StatementClassOfStockAxis__us-gaap--ConvertiblePreferredStockMember_zTa5uCKfVXo5" title="Preferred stock, shares authorized">5,000,000 as at December 31, 2025 (Refer to “Note 11 - Convertible Preferred Stock “). Warrants As of December 31, 2025 and December 31, 2024 the Company had Common Stock Warrants outstanding to purchase up to <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20240101__20241231__us-gaap--SubsidiarySaleOfStockAxis__custom--CommonStockWarrantsMember__us-gaap--TypeOfArrangementAxis__custom--TwentyTwentyThreeNotesAgreementMember_zoqR3TPHVCm1">92,211 shares of the Company’s common stock at an exercise price of $<span id="xdx_901_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20241231__us-gaap--SubsidiarySaleOfStockAxis__custom--CommonStockWarrantsMember__us-gaap--TypeOfArrangementAxis__custom--TwentyTwentyThreeNotesAgreementMember_zcpyXjboULfa">0.46 per share and have a contractual term of <span id="xdx_900_ecustom--ContractualTerm_dtY_c20240101__20241231__us-gaap--SubsidiarySaleOfStockAxis__custom--CommonStockWarrantsMember__us-gaap--TypeOfArrangementAxis__custom--TwentyTwentyThreeNotesAgreementMember_z4GuAiS4ycT1">10 years. The Common Stock Warrants were issued in August 2023. (Refer to “Note 3 - Fair Value Measurements”). Common Stock Contingent Obligation As of December 31, 2025, the Company had a Nil contingent obligation upon closing of the Merger Shares issued to Legacy Fusemachines vendor for settlement of outstanding vendor invoices. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

500000000

15924202

<p id="xdx_894_ecustom--ScheduleOfReservedSharesOfCommonStockForFutureIssuanceTableTextBlock_z7zoDKEkE1yc" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The Company’s reserved shares of common stock for future issuance related to potential conversion of the Convertible Preferred Stock, exercise of Common Stock Warrants and exercise of stock options are as follows: Schedule of Reserved Shares of Common Stock for Future Issuance <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_490_20251231_zCeIk7DDpYk1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_490_20241231_zcOkzj9TPbBf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--StatementClassOfStockAxis__us-gaap--ConvertiblePreferredStockMember_zSECXTVgZmn" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Convertible preferred stock (as converted to common stock)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5,950,673</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--StatementClassOfStockAxis__custom--CommonStockWarrantsMember_zLBmU4MI1E13" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Common stock warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92,211</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92,211</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--StatementClassOfStockAxis__custom--CommonStockContingentObligationMember_zariQc5mO2K2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Common stock contingent obligation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">29,611</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zsZifAazxfb6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Stock options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">686,880</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,700,058</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__custom--EquitySharesWarrantMember_zYdURjdEZ5oe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Equity shares warrant (refer note 22)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,108,070</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">- </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__custom--SPACPublicAndPrivatePlacementWarrantsMember_zuDMOFSydFFe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">SPAC public and private placement warrants (refer note 24)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,458,750</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">- </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--IssuanceOfWarrantsPursuantToConversionOfConvertibleNote_iI_pid_hus-gaap--AwardTypeAxis__us-gaap--WarrantMember_zihVBIyibU8j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Issuance of warrants pursuant to conversion of convertible note.(refer note 10)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_zHcNj1mCZfPl" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Reserved shares of common stock for future issuance</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">16,375,911</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,772,553</td><td style="text-align: left"> (1)</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">(1)</td><td style="width: 5pt"></td><td style="text-align: justify">Includes <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFJlc2VydmVkIFNoYXJlcyBvZiBDb21tb24gU3RvY2sgZm9yIEZ1dHVyZSBJc3N1YW5jZSAoRGV0YWlscykgU3RhdGVtZW50IC0gQ29uZGVuc2VkIENvbnNvbGlkYXRlZCBJbnRlcmltIEJhbGFuY2UgU2hlZXRzIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zca7YWfTIrU" title="Stock option exercised">6,772 stock options as of December 31, 2024 that were legally exercised prior to meeting the service base vesting requirements in exchange for nonrecourse promissory notes (Refer to “The Promissory Notes Transactions” in “Note 14 - Stock-based Compensation “).</td> </tr></table>

5950673

92211

29611

686880

1700058

2108070

13458750

30000

16375911

7772553

6772

5000000

92211

0.46

P10Y

<p id="xdx_80B_eus-gaap--RevenueFromContractWithCustomerTextBlock_zvKuCyVEGvkd" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">Note 13. Revenue Under ASC 606, revenue is recognized throughout the life of the executed agreement. The Company measures revenue based on consideration specified in a contract with a customer. Furthermore, the majority of the Company’s revenues are recognized over time as services are performed. The Company recognizes revenue when a performance obligation is satisfied by transferring control of the product or service to the customer <p id="xdx_89C_eus-gaap--RevenueFromExternalCustomersByGeographicAreasTableTextBlock_ztFDSoyZgD97" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The Company provides services to customers worldwide, with the majority of revenues being derived from contracts with customers located within the United States. The table below presents the breakdown of the Company’s revenues, based on the customer’s location (in thousands). Schedule of Revenues, Based on the Customer’s Location <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_490_20250101__20251231_zVe4Y7yP1jb5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="text-align: center; font-weight: bold"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_49D_20240101__20241231_zUlhy5twSci1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Year Ended December 31,</td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="text-align: center; font-weight: bold"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Customer locations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--Revenues_pn3n3_hsrt--StatementGeographicalAxis__country--US_zue6V6V5zDch" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">7,342</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">8,544</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--Revenues_pn3n3_hsrt--StatementGeographicalAxis__us-gaap--NonUsMember_zmfikadnKDel" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Rest of the world</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">372</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">267</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--Revenues_pn3n3_zwTlcpcWYBd" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total revenue</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,714</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">8,811</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_891_eus-gaap--ScheduleOfEntityWideInformationRevenueFromExternalCustomersByProductsAndServicesTextBlock_zrHRapU99msf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The table below presents the breakdown of the Company’s revenues, based on the customer’s service type (in thousands). Schedule of Revenues, Based on the Customer’s Service Type <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_494_20250101__20251231_zXtVNBo6TMF1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_49D_20240101__20241231_zvwp7aIROk3g" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Year Ended December 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Service type</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--Revenues_pn3n3_hsrt--ProductOrServiceAxis__custom--AISolutionsMember_z0Cz4OZl22S4" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">AI Solutions (Products and Services)*</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">7,581</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">8,811</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--Revenues_pn3n3_hsrt--ProductOrServiceAxis__custom--AIEducationServicesMember_zYhEfByjyPf9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">AI Education Services</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">133</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--Revenues_pn3n3_z1novFmANkZ1" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total revenue</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,714</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">8,811</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F01_zq1UnlczEnxd" style="width: 15pt; text-align: right">*</td><td id="xdx_F18_z7NESTQQXWLb" style="text-align: justify">AI Solutions (Products and Services) includes both software product revenues and related services. Product revenue represents an insignificant portion of total revenue for the periods presented and, accordingly, has not been separately disclosed.</td> </tr></table> Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Service Type During the year ended December 31, 2025 and 2024, the Company had one significant service type, AI Solutions (products and services). For the year ended December 31, 2025 and 2024, there were $7,581 thousand and $8,811 thousand of AI Solutions (products and services) revenue. The company had insignificant revenue from AI Solutions – Products for the year ended December 31, 2025, and 2024, respectively. The revenue recognized for AI education services were $133 thousand and Nil during the year ended December 31, 2025, and 2024. Deferred Revenue During the year ended December 31, 2025, the Company recognized revenue of $53.7 thousand from the deferred revenue balance as of December 31, 2024. During the year ended December 31, 2024, the Company recognized revenue of $20.6 thousand from the deferred revenue balance as of December 31, 2023. Contract Costs The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. Management expects that commission fees paid to sales representatives as a result of obtaining service contracts and contract renewals, are recoverable and therefore the Company’s consolidated balance sheets included capitalized balances in the amount of $18.9 thousand and $21.9 thousand as of December 31, 2025 and December 31, 2024 which represents the current portion and is included within prepaid expenses and other current assets, respectively and $3.2 thousand and $5 thousand, as of December 31, 2025 and December 31, 2024, respectively, which are included within other assets. Capitalized commission fees are amortized on a straight-line basis over the average period of service contracts of approximately two years and are included in selling and marketing in the accompanying consolidated statements of operations and comprehensive loss. Amortization recognized during the year ended December 31, 2025 and 2024 was $31.1 thousand and $36.2 thousand, respectively. Transaction price allocated to remaining performance obligations The Company elected to apply the practical expedient for the right to invoice and does not disclose performance obligations that have original expected durations of one year or less. <p id="xdx_895_eus-gaap--ContractWithCustomerAssetAndLiabilityTableTextBlock_zTvLjBe3dZ6f" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The opening and closing balances of contract assets, deferred revenue and unbilled revenue are as follows (in thousands): Schedule of Contract Assets, Deferred Revenue and Unbilled Revenue <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Contract Assets</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Deferred revenue</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Unbilled Revenue</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 50%; font-weight: bold">Ending balance as of December 31, 2023</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_982_eus-gaap--ContractWithCustomerAssetNetCurrent_iS_pn3n3_c20240101__20241231_z2nATvFdp7h7" style="width: 12%; font-weight: bold; text-align: right" title="Contract asset, beginning balance">22</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--ContractWithCustomerLiabilityCurrent_iS_pn3n3_c20240101__20241231_z4kvQE0ebyO7" style="width: 12%; font-weight: bold; text-align: right" title="Deferred revenue, beginning balance">21</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_98E_eus-gaap--UnbilledReceivablesCurrent_iS_pn3n3_c20240101__20241231_ziwDvXBbAzQe" style="width: 14%; font-weight: bold; text-align: right" title="Unbilled Revenue, beginning balance">80</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Increase/(decrease), net</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--IncreaseDecreaseInContractWithCustomerAsset_pn3n3_c20240101__20241231_zlc3uYKvkQP2" style="text-align: right" title="Contract assets, Increase/(decrease), net">5</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--IncreaseDecreaseInContractWithCustomerLiability_pn3n3_c20240101__20241231_zHMl5Q40eGp1" style="text-align: right" title="Contract assets, Increase/(decrease), net">33</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--IncreaseDecreaseInUnbilledReceivable_pn3n3_c20240101__20241231_zOdWUJLQNEVj" style="text-align: right" title="Contract assets, Increase/(decrease), net">33</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Ending balance as of December 31, 2024</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98B_eus-gaap--ContractWithCustomerAssetNetCurrent_iS_pn3n3_c20250101__20251231_zjdUjmqne1Q7" style="font-weight: bold; text-align: right" title="Contract asset, beginning balance">27</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_981_eus-gaap--ContractWithCustomerLiabilityCurrent_iS_pn3n3_c20250101__20251231_zxpMxOApu8k4" style="font-weight: bold; text-align: right" title="Deferred revenue, beginning balance">54</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98B_eus-gaap--UnbilledReceivablesCurrent_iS_pn3n3_c20250101__20251231_zpijMP3j6bs6" style="font-weight: bold; text-align: right" title="Unbilled Revenue, beginning balance">113</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Increase/(decrease), net</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--IncreaseDecreaseInContractWithCustomerAsset_pn3n3_c20250101__20251231_z0VGXwlolrR9" style="text-align: right" title="Contract assets, Increase/(decrease), net">(5</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--IncreaseDecreaseInContractWithCustomerLiability_pn3n3_c20250101__20251231_zaWcG146URdb" style="text-align: right" title="Contract assets, Increase/(decrease), net">(54</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--IncreaseDecreaseInUnbilledReceivable_pn3n3_c20250101__20251231_zyfkB3AkroQc" style="text-align: right" title="Contract assets, Increase/(decrease), net">(97</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Ending balance as of December 31, 2025</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98C_eus-gaap--ContractWithCustomerAssetNetCurrent_iE_pn3n3_c20250101__20251231_zuireRsafrQk" style="font-weight: bold; text-align: right" title="Contract asset, ending balance">22</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_986_eus-gaap--ContractWithCustomerLiabilityCurrent_iE_pn3n3_c20250101__20251231_zuZQrfP0LAAk" style="font-weight: bold; text-align: right" title="Deferred revenue, ending balance">-</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_985_eus-gaap--UnbilledReceivablesCurrent_iE_pn3n3_c20250101__20251231_z6LfYmBR2nOa" style="font-weight: bold; text-align: right" title="Unbilled Revenue, ending balance">16</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

<p id="xdx_89C_eus-gaap--RevenueFromExternalCustomersByGeographicAreasTableTextBlock_ztFDSoyZgD97" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The Company provides services to customers worldwide, with the majority of revenues being derived from contracts with customers located within the United States. The table below presents the breakdown of the Company’s revenues, based on the customer’s location (in thousands). Schedule of Revenues, Based on the Customer’s Location <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_490_20250101__20251231_zVe4Y7yP1jb5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="text-align: center; font-weight: bold"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_49D_20240101__20241231_zUlhy5twSci1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Year Ended December 31,</td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="text-align: center; font-weight: bold"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Customer locations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--Revenues_pn3n3_hsrt--StatementGeographicalAxis__country--US_zue6V6V5zDch" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">7,342</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">8,544</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--Revenues_pn3n3_hsrt--StatementGeographicalAxis__us-gaap--NonUsMember_zmfikadnKDel" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Rest of the world</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">372</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">267</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--Revenues_pn3n3_zwTlcpcWYBd" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total revenue</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,714</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">8,811</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

7342000

8544000

372000

267000

7714000

8811000

<p id="xdx_891_eus-gaap--ScheduleOfEntityWideInformationRevenueFromExternalCustomersByProductsAndServicesTextBlock_zrHRapU99msf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The table below presents the breakdown of the Company’s revenues, based on the customer’s service type (in thousands). Schedule of Revenues, Based on the Customer’s Service Type <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_494_20250101__20251231_zXtVNBo6TMF1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_49D_20240101__20241231_zvwp7aIROk3g" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Year Ended December 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Service type</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--Revenues_pn3n3_hsrt--ProductOrServiceAxis__custom--AISolutionsMember_z0Cz4OZl22S4" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">AI Solutions (Products and Services)*</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">7,581</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">8,811</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--Revenues_pn3n3_hsrt--ProductOrServiceAxis__custom--AIEducationServicesMember_zYhEfByjyPf9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">AI Education Services</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">133</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--Revenues_pn3n3_z1novFmANkZ1" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total revenue</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,714</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">8,811</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F01_zq1UnlczEnxd" style="width: 15pt; text-align: right">*</td><td id="xdx_F18_z7NESTQQXWLb" style="text-align: justify">AI Solutions (Products and Services) includes both software product revenues and related services. Product revenue represents an insignificant portion of total revenue for the periods presented and, accordingly, has not been separately disclosed.</td> </tr></table>

7581000

8811000

133000

7714000

8811000

7581000

8811000

133000

53700

20600

18900

21900

3200

5000

31100

36200

<p id="xdx_895_eus-gaap--ContractWithCustomerAssetAndLiabilityTableTextBlock_zTvLjBe3dZ6f" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The opening and closing balances of contract assets, deferred revenue and unbilled revenue are as follows (in thousands): Schedule of Contract Assets, Deferred Revenue and Unbilled Revenue <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Contract Assets</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Deferred revenue</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Unbilled Revenue</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 50%; font-weight: bold">Ending balance as of December 31, 2023</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_982_eus-gaap--ContractWithCustomerAssetNetCurrent_iS_pn3n3_c20240101__20241231_z2nATvFdp7h7" style="width: 12%; font-weight: bold; text-align: right" title="Contract asset, beginning balance">22</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_989_eus-gaap--ContractWithCustomerLiabilityCurrent_iS_pn3n3_c20240101__20241231_z4kvQE0ebyO7" style="width: 12%; font-weight: bold; text-align: right" title="Deferred revenue, beginning balance">21</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_98E_eus-gaap--UnbilledReceivablesCurrent_iS_pn3n3_c20240101__20241231_ziwDvXBbAzQe" style="width: 14%; font-weight: bold; text-align: right" title="Unbilled Revenue, beginning balance">80</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Increase/(decrease), net</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--IncreaseDecreaseInContractWithCustomerAsset_pn3n3_c20240101__20241231_zlc3uYKvkQP2" style="text-align: right" title="Contract assets, Increase/(decrease), net">5</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--IncreaseDecreaseInContractWithCustomerLiability_pn3n3_c20240101__20241231_zHMl5Q40eGp1" style="text-align: right" title="Contract assets, Increase/(decrease), net">33</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--IncreaseDecreaseInUnbilledReceivable_pn3n3_c20240101__20241231_zOdWUJLQNEVj" style="text-align: right" title="Contract assets, Increase/(decrease), net">33</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Ending balance as of December 31, 2024</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98B_eus-gaap--ContractWithCustomerAssetNetCurrent_iS_pn3n3_c20250101__20251231_zjdUjmqne1Q7" style="font-weight: bold; text-align: right" title="Contract asset, beginning balance">27</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_981_eus-gaap--ContractWithCustomerLiabilityCurrent_iS_pn3n3_c20250101__20251231_zxpMxOApu8k4" style="font-weight: bold; text-align: right" title="Deferred revenue, beginning balance">54</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98B_eus-gaap--UnbilledReceivablesCurrent_iS_pn3n3_c20250101__20251231_zpijMP3j6bs6" style="font-weight: bold; text-align: right" title="Unbilled Revenue, beginning balance">113</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Increase/(decrease), net</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--IncreaseDecreaseInContractWithCustomerAsset_pn3n3_c20250101__20251231_z0VGXwlolrR9" style="text-align: right" title="Contract assets, Increase/(decrease), net">(5</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--IncreaseDecreaseInContractWithCustomerLiability_pn3n3_c20250101__20251231_zaWcG146URdb" style="text-align: right" title="Contract assets, Increase/(decrease), net">(54</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--IncreaseDecreaseInUnbilledReceivable_pn3n3_c20250101__20251231_zyfkB3AkroQc" style="text-align: right" title="Contract assets, Increase/(decrease), net">(97</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Ending balance as of December 31, 2025</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98C_eus-gaap--ContractWithCustomerAssetNetCurrent_iE_pn3n3_c20250101__20251231_zuireRsafrQk" style="font-weight: bold; text-align: right" title="Contract asset, ending balance">22</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_986_eus-gaap--ContractWithCustomerLiabilityCurrent_iE_pn3n3_c20250101__20251231_zuZQrfP0LAAk" style="font-weight: bold; text-align: right" title="Deferred revenue, ending balance">-</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_985_eus-gaap--UnbilledReceivablesCurrent_iE_pn3n3_c20250101__20251231_z6LfYmBR2nOa" style="font-weight: bold; text-align: right" title="Unbilled Revenue, ending balance">16</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

22000

21000

80000

5000

33000

27000

54000

113000

-5000

-54000

-97000

22000

16000

<p id="xdx_800_eus-gaap--DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock_zgiX1FL5g3V8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Note 14. Stock-based Compensation Effective June 2014, the Company adopted an equity-based compensation plan, the 2014 Equity Incentive Plan (the “2014 Plan”), which allows for the grant of stock options, stock issuances and other equity interests in the Company to the Company’s officers, directors, employees and consultants. The 2014 Plan is administrated by the Company’s Board of Directors, or a committee appointed by the Board. In February 2023, the Company’s board of directors and stockholders adopted the 2023 Equity Incentive Plan (the “2023 Plan”), which provides for the grant of incentive stock options, restricted stock awards and restricted stock units (“RSUs”) to eligible employees, directors and consultants of the Company. With the introduction of the 2023 Plan, shares are no longer available for future grants under the 2014 Plan. Awards outstanding under the 2014 Plan will be governed by the 2023 Plan.<span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_pid_c20230228__us-gaap--PlanNameAxis__custom--TwentyTwentyThreePlanMember_zlLEeElM685j" title="Common stock were authorized for issuance">3,258,230 shares of Common Stock were authorized for issuance under the 2023 Plan to officers, directors, employees and consultants of the Company. The 2023 Plan was amended and approved by the stockholders of the Company in December 2023 to increase the number of shares of the Company’s Common Stock reserved for issuance under the Fusemachines Inc. 2023 Amended and Restated Equity Plan (the “2023 Equity Incentive Plan”) by <span id="xdx_90E_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_c20230228__us-gaap--PlanNameAxis__custom--TwentyTwentyThreeEquityIncentivePlanMember_zU3nXFSR2f7" title="Common stock reserved for issuance">391,525 to <span id="xdx_901_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_c20231231__us-gaap--PlanNameAxis__custom--TwentyTwentyThreeEquityIncentivePlanMember_zodbYSRXiX5" title="Common stock reserved for issuance">3,649,755 shares of common stock. In connection with the Business Combination, which was accounted for as a reverse recapitalization, the number of shares under the 2023 Equity Incentive Plan was adjusted to reflect the exchange ratio established in the business combination agreement. Accordingly, all share and per share amounts under the plan have been retrospectively adjusted to reflect the conversion of Legacy Fusemachines equity into the Company’s common stock As of December 31, 2025, <span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_pid_do_c20251231__us-gaap--PlanNameAxis__custom--TwentyTwentyThreePlanMember_zCY9n4Sbs0P5" title="Common stock were available for future grant">no shares of Common Stock were available for future grant under the 2023 Plan, as the 2023 Plan was replaced in its entirety by the 2025 Plan which was adopted in connection with the Business Combination. <p id="xdx_89E_eus-gaap--ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock_ziq1PETIAipl" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The stock-based compensation expense during the year ended December 31, 2025, and 2024 are reported in the following consolidated financial statement line items (in thousands): Schedule of Stock-based Compensation Expense <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_491_20250101__20251231_zBjZn8SMTly8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_497_20240101__20241231_zGafp5ePTSs3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Year ended December 31,</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr id="xdx_40B_eus-gaap--ShareBasedCompensation_hcustom--StatementOfIncomeLocationBalanceAxis__custom--GeneralAndAdministrativeExpensesMember_z21vRLi0Snb5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">General and administrative</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">154</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">723</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--ShareBasedCompensation_hcustom--StatementOfIncomeLocationBalanceAxis__custom--CostOfRevenueMember_zqJmtJyk7kc" style="vertical-align: bottom; background-color: White"> <td>Cost of revenue</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">44</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--ShareBasedCompensation_hcustom--StatementOfIncomeLocationBalanceAxis__custom--SellingAndMarketingExpensesMember_zppiGDPAOwic" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Selling and marketing</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">170</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--ShareBasedCompensation_hcustom--StatementOfIncomeLocationBalanceAxis__custom--ResearchAndDevelopmentExpensesMember_zpnQSClEflO6" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Research and development</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">18</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">130</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--ShareBasedCompensation_zEdXx3Y9sgd4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">Total stock-based compensation expense</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">231</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,067</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> Stock Options The Company’s stock options outstanding consist primarily of time-based options to purchase common stock, the majority of which vest over a <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_dtY_c20250101__20251231__srt--RangeAxis__srt--MinimumMember_zC3cM5GKxiv5" style="display: none" title="Vesting period">2 two-to-four- year <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_dtY_c20250101__20251231__srt--RangeAxis__srt--MaximumMember_zCqYzcWGVPkd" style="display: none" title="Vesting period">4 period and have a 10 ten-year contractual term. These awards are subject to the risk of forfeiture until vested by virtue of continued employment or service to the Company. <p id="xdx_89F_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zMIdLvixPwT5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The following table summarizes the stock option activity for options with service-based vesting conditions during the year ended December 31, 2025: Schedule of Stock Option Activity for Options with Service-based Vesting <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number of Options</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average Exercise Price</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Remaining Contractual Term (Years)</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Aggregate Intrinsic Value (In thousands)</td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; font-weight: bold">Outstanding balance as of December 31, 2024</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20250101__20251231_zkub45jie845" style="width: 10%; font-weight: bold; text-align: right" title="Number of Options, Outstanding beginning balance">1,700,058</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20250101__20251231_zwbbmEl7I1aa" style="width: 10%; font-weight: bold; text-align: right" title="Weighted Average Exercise Price, Outstanding beginning balance">1.88</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td id="xdx_98E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20240101__20241231_zQxpt9JxeYr7" style="width: 10%; font-weight: bold; text-align: right" title="Weighted Average Remaining Contractual Term (Years), Outstanding balance">6.50</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_pn3n3_c20250101__20251231_zXCACHDiHyY7" style="width: 10%; font-weight: bold; text-align: right" title="Aggregate Intrinsic Value, Outstanding beginning balance">11,885</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20250101__20251231_zR2lQLW7Rau1" style="text-align: right" title="Number of Options, Granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20250101__20251231_zGSlI11pEi0b" style="text-align: right" title="Weighted Average Exercise Price, Granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20250101__20251231_z75G2nHtPGna" style="text-align: right" title="Number of Options, Exercised">(6,772</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20250101__20251231_z3qCBY010kB8" style="text-align: right" title="Weighted Average Exercise Price, Exercised">0.70</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pid_di_c20250101__20251231_z86p23PUD0Bi" style="text-align: right" title="Number of Options, Forfeited">(14,892</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_c20250101__20251231_zEZstciyFDa" style="text-align: right" title="Weighted Average Exercise Price, Forfeited">5.34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Cashless exercise (1)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--StockIssuedDuringPeriodSharesStockOptionsCashlessExercise_iN_pid_di_c20250101__20251231_fKDEp_z9EUixJArWB8" style="text-align: right" title="Number of Options, Exercised">(745,896</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageCashlessExercisePrice_pid_c20250101__20251231_ztFcvcfqzbL5" style="text-align: right" title="Weighted Average Exercise Price, Exercised">0.95</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Expired</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod_iN_pid_di_c20250101__20251231_zPDRERw3Xor3" style="border-bottom: Black 1pt solid; text-align: right" title="Number of Options, Expired">(245,618</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_pid_c20250101__20251231_zjOoXUnM5hfk" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Exercise Price, Expired">0.72</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Outstanding balance as of December 31, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20250101__20251231_zPmdufFuooaj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right" title="Number of Options, Outstanding ending balance">686,880</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20250101__20251231_zdWN3M1MjpWd" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right" title="Weighted Average Exercise Price, Outstanding ending balance">3.25</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_98D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20251231_zegIqdojLXLj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right" title="Weighted Average Remaining Contractual Term (Years), Outstanding balance">6.88</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_pn3n3_c20250101__20251231_z60tw7i4Rofi" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right" title="Aggregate Intrinsic Value, Outstanding ending balance">234</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Options vested and exercisable as of December 31, 2025</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber_iE_pid_c20250101__20251231_zpIqMaxXrNG8" style="text-align: right" title="Number of Options, Options vested and exercisable ending balance">523,632</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iE_pid_c20250101__20251231_ziQ8USj5IWj4" style="text-align: right" title="Weighted Average Exercise Price, Options vested and exercisable ending balance">2.93</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageRemainingContractualTerm1_dtY_c20250101__20251231_zvKXquTFwMz3" style="text-align: right" title="Weighted Average Remaining Contractual Term (Years), Options vested and exercisable balance">6.52</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue_iE_pn3n3_c20250101__20251231_zxO7nnZ9jGEg" style="text-align: right" title="Aggregate Intrinsic Value, Options vested and exercisable ending balance">230</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">(1)</td><td style="width: 5pt"></td><td style="text-align: justify">During the year ended 31st December 2025, employees have performed cashless exercise of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFN0b2NrIE9wdGlvbiBBY3Rpdml0eSBmb3IgT3B0aW9ucyB3aXRoIFNlcnZpY2UtYmFzZWQgVmVzdGluZyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_908_ecustom--StockIssuedDuringPeriodSharesStockOptionsCaslessExercise_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zcNLC9pFHaCk" title="Stock option exercised">745,896 options</td> </tr></table> Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements During the year ended December 31, 2025 and 2024, the Company recorded stock-based compensation expense of $231 thousand and $1,067 thousand, respectively. As of December 31, 2025, total stock-based compensation expense not yet recognized related to unvested stock options was $<span id="xdx_904_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions_iI_pn2n3_c20251231_zVhtDfRFrcFc" title="Stock-based compensation expense not yet recognized">438.1 thousand, which is expected to be recognized over a weighted-average period of <span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtY_c20250101__20251231_zTqoIEXPYIa7" title="Weighted-average period">1.91 years. The total intrinsic value of options exercised was $<span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_pn2n3_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zhE0tUT2at9d" title="Total intrinsic value of options exercised">6,036.4 thousand and $<span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_pn2n3_c20240101__20241231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zVmDQ7nsu4I2" title="Total intrinsic value of options exercised">10,647.5 thousand during the year ended December 31, 2025 and year ended December 31, 2024, respectively. The weighted average grant-date fair value per share of stock options granted during the year ended December 31, 2025 and year ended December 31, 2024 was <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_dxL_c20250101__20251231_zoDKtF2skKfe" title="Weighted average grant-date fair value per share of stock options granted::XDX::-">Nil and $<span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20240101__20241231_zw9Fs1JLZDT9" title="Weighted average grant-date fair value per share of stock options granted">4.26, respectively The Company estimated the fair value of stock options using the Black-Scholes Model on the date of grant. The assumptions used in the Black-Scholes Model were as follows: <p id="xdx_89A_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_ztuTywwSLwXh" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify"> Schedule of Assumptions Used in the Black-Scholes Model <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025 (1)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Weighted average expected term (years)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20251231_fKDEp_zrPjwdAn6DM4" title="Weighted average expected term (years)">0</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5.79</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average expected volatility</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20251231_fKDEp_zOycVmCJg0o6" style="text-align: right" title="Weighted average expected volatility">0.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20240101__20241231_z9qdjU20sLxh" style="text-align: right" title="Weighted average expected volatility">66.90</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Risk-free interest rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20251231_fKDEp_zA4nOrdJ8yhg" title="Risk-free interest rate">0.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_pid_dp_uPure_c20240101__20241231_zebkrlsHE7X8" title="Risk-free interest rate, minimum">4.08%-<span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum_pid_dp_uPure_c20240101__20241231_zR2Uhf6PN5D9" title="Risk-free interest rate, maximum">4.10</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Dividend yield</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20250101__20251231_fKDEp_zf4FfvRAaqNg" style="text-align: right" title="Dividend yield">0</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20240101__20241231_zKvQaj2TdvE5" style="text-align: right" title="Dividend yield">0</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">(1)</td><td style="width: 5pt"></td><td style="text-align: justify">There were no stock options granted during the year ended December 31, 2025.</td> </tr></table> Cashless Exercise of Stock Options In August 2025, certain Fusemachines employees exercised <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_c20250801__20250831__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z7JCfrki1gK2" title="Stock options exercised, shares">745,896 options to purchase Fusemachines Inc. Common Stock. The exercise prices for the 745,896 options were paid on a cashless basis via net share settlement resulting in the net share issuance of 666,662 shares of Fusemachines Inc. Common Stock. The transaction has been accounted under the guidance of ASC 718 - Stock Compensation. The cashless exercise mechanism does not change the substantive terms or fair-value-based measure of the awards and therefore does not constitute a modification under ASC 718. The Promissory Notes Transaction Early Exercise of Stock Options The Company permits certain employees and directors to exercise stock options granted under the 2023 Plan prior to vesting. In February 2023, the Company’s Chief Executive Officer, Mr. Maskey and other three executives early exercised a total of <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230228__us-gaap--AwardTypeAxis__custom--FebruaryOptionsAwardsMember_zU9ybsTN3Fp7" title="Stock option outstanding">1,625,321 stock options prior to vesting (The February Options Awards); however, in lieu of the cash consideration required to exercise the stock options, these individuals each provided a <span id="xdx_906_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_uPure_c20230228__20230228__us-gaap--DebtInstrumentAxis__custom--TwoThousandTwentyThreePromissoryNotesMember_z1DJ5ZRPH7H2" title="Bearing interest percentage">3.82% interest bearing non-recourse note (the “2023 Promissory Notes”), for an aggregate principle of $1,136.2 thousand. The notes are scheduled to mature in February 2030. The nonrecourse nature of the loan secured by the shares pledged as collateral essentially provides the employee with rights like that of an option and thus no receivable for amounts due under the 2023 Promissory Notes was recorded on the Company consolidated balance sheets. While the shares of common stock purchased by the employees in exchange for the 2023 Promissory Notes are considered legally issued, the shares are not deemed, for accounting purposes, outstanding and are considered restricted until all of the options are fully vested and the outstanding principal and accrued interest due on the note is repaid in full. The issuance of the 2023 Promissory Notes resulted in an additional stock-based compensation expense of <span id="xdx_905_eus-gaap--AllocatedShareBasedCompensationExpense_pn2n3_dxL_c20250101__20251231__us-gaap--DebtInstrumentAxis__custom--TwoThousandTwentyThreePromissoryNotesMember_zjtp4oAjEMQi" title="Stock-based compensation expense::XDX::-">Nil and $<span id="xdx_904_eus-gaap--AllocatedShareBasedCompensationExpense_pn2n3_c20240101__20241231__us-gaap--DebtInstrumentAxis__custom--TwoThousandTwentyThreePromissoryNotesMember_zB4hFLdDa2t1" title="Stock-based compensation expense">11.7 thousand for the year ended December 31, 2025 and 2024, respectively, based on the grant-date fair value of the Promissory Notes, which was determined using the Black-Scholes Model. The assumptions used in deriving the grant-date fair value of the 2023 Promissory Notes via the Black-Scholes Model were as follows: (i) a stock price of $0.88 per share, (ii) an exercise price of $<span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_c20251231__us-gaap--DebtInstrumentAxis__custom--TwoThousandTwentyThreePromissoryNotesMember_zFmTjy6yULO4" title="Exercise price">0.70 per share, (iii) an estimated risk-free interest rate of <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20251231__us-gaap--DebtInstrumentAxis__custom--TwoThousandTwentyThreePromissoryNotesMember_zKRgF5Ejgyvg" title="Risk-free interest rate">4.02%, (iv) an expected term of <span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20251231__us-gaap--DebtInstrumentAxis__custom--TwoThousandTwentyThreePromissoryNotesMember_zTHdkHpBHCT2" title="Expected term">3.50 years, (v) volatility of <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20251231__us-gaap--DebtInstrumentAxis__custom--TwoThousandTwentyThreePromissoryNotesMember_z4DHkOiJMaag" title="Volatility">75%, and (vi) a dividend yield of <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20250101__20251231__us-gaap--DebtInstrumentAxis__custom--TwoThousandTwentyThreePromissoryNotesMember_zy7wr73c7XOa" title="Dividend yield">0%. These assumptions resulted in a grant-date fair value of approximately $<span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20250101__20251231__us-gaap--DebtInstrumentAxis__custom--TwoThousandTwentyThreePromissoryNotesMember_zVPFn4XhfR0f" title="Grant-date fair value per option">0.53 per option. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements The Company continues to recognize expenses for the original option award of <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230228__us-gaap--AwardTypeAxis__custom--FebruaryOptionsAwardsMember_zq5piQiNiRFh" title="Stock option outstanding">1,625,321 shares granted in February 2023 (the “February Option Awards”), which were early exercised in exchange for Promissory Notes. The early exercise is not considered substantive for accounting purposes until the vesting requirements are met through continued employment and service to the Company. As of December 31, 2025 and 2024, the Company recognized <span id="xdx_908_eus-gaap--DeferredCompensationArrangementWithIndividualAllocatedShareBasedCompensationExpense_pn3n3_dxL_c20250101__20251231__us-gaap--AwardTypeAxis__custom--FebruaryOptionsAwardsMember_z6q3TzfORuf2" title="Stock-based compensation expense recognized::XDX::-">Nil and $<span id="xdx_909_eus-gaap--DeferredCompensationArrangementWithIndividualAllocatedShareBasedCompensationExpense_pn2n3_c20240101__20241231__us-gaap--AwardTypeAxis__custom--FebruaryOptionsAwardsMember_zdgmewTP2ZGh" title="Stock-based compensation expense recognized">41.4 thousand, respectively, in stock-based compensation expense related to the February Option Awards. The unrecognized stock-based compensation expense related to the February Option Awards was <span id="xdx_905_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_pn3n3_dxL_c20241231__us-gaap--AwardTypeAxis__custom--FebruaryOptionsAwardsMember_zc0pFSwe7JEg" title="Unrecognized stock-based compensation expense::XDX::-">Nil. The weighted-average grant-date fair value per share of the February Option Awards was $<span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20250101__20251231__us-gaap--AwardTypeAxis__custom--FebruaryOptionsAwardsMember_zyGO7mRvkDg4" title="Grant-date fair value per option">0.50. Repayment of the Promissory Notes In January 2024, the Company repurchased 438,903 shares of common stock from Sameer Maskey, the CEO, at a price of $6.61 per share, totalling $2,902.7 thousand (the “Repurchase Consideration”). Mr. Maskey applied $<span id="xdx_90C_eus-gaap--RepaymentsOfNotesPayable_pn2n3_c20240101__20240131__us-gaap--DebtInstrumentAxis__custom--TwentyTwentyThreePromissoryNotesMember_zQ3MqBtyAiU3" title="Repayments of promissory note">902.7 thousand of the Repurchase Consideration toward repayment of his 2023 Promissory Note to the Company. Upon repayment, the 2023 Promissory Note, along with any accrued interest, was settled, and the vested shares pledged under the 2023 Promissory Notes are now considered exercised. As of the December 31, 2025, there were no shares which were subject to vesting. Forgiveness of Promissory Notes In August 2024, the Company’s board of directors approved the forgiveness of the 2023 Promissory Notes totaling $262.2 thousand (excluding interest) for three of its executives. The forgiveness of these 2023 Promissory Notes effectively modified the strike price to zero, allowing the executives to retain shares at no cost. In accordance with ASC 718, the incremental value of the modification was calculated as the difference between the fair value of the modified award and the fair value of the original award immediately before the modification. As of December 31, 2024, the Company recognized $<span id="xdx_90B_eus-gaap--DeferredCompensationArrangementWithIndividualAllocatedShareBasedCompensationExpense_pn2n3_c20240101__20241231__us-gaap--DebtInstrumentAxis__custom--TwentyTwentyThreePromissoryNotesMember_zkqFiRjCPUMi" title="Stock-based compensation expense recognized">227.2 thousand in stock based compensation expense related to this modification. Adoption of 2025 Omnibus Equity Incentive Plan On October 22, 2025, the Board of Directors of the Company approved the 2025 Omnibus Equity Incentive Plan (the “2025 Plan”). The 2025 Plan provides for the grant of equity-based awards to employees, directors, officers, and other eligible service providers of the Company and its subsidiaries. In connection with the adoption of the 2025 Plan, an aggregate of <span id="xdx_902_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_c20251022__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveOmnibusEquityIncentivePlanMember_zr79sE3OeKli" title="Common stock were reserved for issuance">1,500,000 shares of the Company’s Common Stock were reserved for issuance pursuant to awards granted under the 2025 Plan. The types of awards that may be granted under the 2025 Plan include, but are not limited to, stock options, restricted stock, restricted stock units, stock appreciation rights, performance-based awards, and other stock-based awards, as determined by the Board of Directors or a designated committee thereof. No awards had been granted under the 2025 Plan as of period ended December 31, 2025. Accordingly, the adoption of the 2025 Plan did not have any impact on the Company’s consolidated financial statements as of that date. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

3258230

391525

3649755

<p id="xdx_89E_eus-gaap--ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock_ziq1PETIAipl" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The stock-based compensation expense during the year ended December 31, 2025, and 2024 are reported in the following consolidated financial statement line items (in thousands): Schedule of Stock-based Compensation Expense <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_491_20250101__20251231_zBjZn8SMTly8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_497_20240101__20241231_zGafp5ePTSs3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Year ended December 31,</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr id="xdx_40B_eus-gaap--ShareBasedCompensation_hcustom--StatementOfIncomeLocationBalanceAxis__custom--GeneralAndAdministrativeExpensesMember_z21vRLi0Snb5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">General and administrative</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">154</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">723</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--ShareBasedCompensation_hcustom--StatementOfIncomeLocationBalanceAxis__custom--CostOfRevenueMember_zqJmtJyk7kc" style="vertical-align: bottom; background-color: White"> <td>Cost of revenue</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">44</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--ShareBasedCompensation_hcustom--StatementOfIncomeLocationBalanceAxis__custom--SellingAndMarketingExpensesMember_zppiGDPAOwic" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Selling and marketing</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">170</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--ShareBasedCompensation_hcustom--StatementOfIncomeLocationBalanceAxis__custom--ResearchAndDevelopmentExpensesMember_zpnQSClEflO6" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Research and development</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">18</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">130</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--ShareBasedCompensation_zEdXx3Y9sgd4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">Total stock-based compensation expense</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">231</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,067</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

154000

723000

21000

44000

38000

170000

18000

130000

231000

1067000

P2Y

P4Y

P10Y

<p id="xdx_89F_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zMIdLvixPwT5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The following table summarizes the stock option activity for options with service-based vesting conditions during the year ended December 31, 2025: Schedule of Stock Option Activity for Options with Service-based Vesting <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number of Options</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average Exercise Price</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Remaining Contractual Term (Years)</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Aggregate Intrinsic Value (In thousands)</td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; font-weight: bold">Outstanding balance as of December 31, 2024</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20250101__20251231_zkub45jie845" style="width: 10%; font-weight: bold; text-align: right" title="Number of Options, Outstanding beginning balance">1,700,058</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20250101__20251231_zwbbmEl7I1aa" style="width: 10%; font-weight: bold; text-align: right" title="Weighted Average Exercise Price, Outstanding beginning balance">1.88</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td id="xdx_98E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20240101__20241231_zQxpt9JxeYr7" style="width: 10%; font-weight: bold; text-align: right" title="Weighted Average Remaining Contractual Term (Years), Outstanding balance">6.50</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_pn3n3_c20250101__20251231_zXCACHDiHyY7" style="width: 10%; font-weight: bold; text-align: right" title="Aggregate Intrinsic Value, Outstanding beginning balance">11,885</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20250101__20251231_zR2lQLW7Rau1" style="text-align: right" title="Number of Options, Granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20250101__20251231_zGSlI11pEi0b" style="text-align: right" title="Weighted Average Exercise Price, Granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20250101__20251231_z75G2nHtPGna" style="text-align: right" title="Number of Options, Exercised">(6,772</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20250101__20251231_z3qCBY010kB8" style="text-align: right" title="Weighted Average Exercise Price, Exercised">0.70</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pid_di_c20250101__20251231_z86p23PUD0Bi" style="text-align: right" title="Number of Options, Forfeited">(14,892</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_c20250101__20251231_zEZstciyFDa" style="text-align: right" title="Weighted Average Exercise Price, Forfeited">5.34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Cashless exercise (1)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--StockIssuedDuringPeriodSharesStockOptionsCashlessExercise_iN_pid_di_c20250101__20251231_fKDEp_z9EUixJArWB8" style="text-align: right" title="Number of Options, Exercised">(745,896</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageCashlessExercisePrice_pid_c20250101__20251231_ztFcvcfqzbL5" style="text-align: right" title="Weighted Average Exercise Price, Exercised">0.95</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Expired</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod_iN_pid_di_c20250101__20251231_zPDRERw3Xor3" style="border-bottom: Black 1pt solid; text-align: right" title="Number of Options, Expired">(245,618</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_pid_c20250101__20251231_zjOoXUnM5hfk" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Exercise Price, Expired">0.72</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Outstanding balance as of December 31, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20250101__20251231_zPmdufFuooaj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right" title="Number of Options, Outstanding ending balance">686,880</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20250101__20251231_zdWN3M1MjpWd" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right" title="Weighted Average Exercise Price, Outstanding ending balance">3.25</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_98D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20251231_zegIqdojLXLj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right" title="Weighted Average Remaining Contractual Term (Years), Outstanding balance">6.88</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_pn3n3_c20250101__20251231_z60tw7i4Rofi" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right" title="Aggregate Intrinsic Value, Outstanding ending balance">234</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Options vested and exercisable as of December 31, 2025</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber_iE_pid_c20250101__20251231_zpIqMaxXrNG8" style="text-align: right" title="Number of Options, Options vested and exercisable ending balance">523,632</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iE_pid_c20250101__20251231_ziQ8USj5IWj4" style="text-align: right" title="Weighted Average Exercise Price, Options vested and exercisable ending balance">2.93</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageRemainingContractualTerm1_dtY_c20250101__20251231_zvKXquTFwMz3" style="text-align: right" title="Weighted Average Remaining Contractual Term (Years), Options vested and exercisable balance">6.52</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue_iE_pn3n3_c20250101__20251231_zxO7nnZ9jGEg" style="text-align: right" title="Aggregate Intrinsic Value, Options vested and exercisable ending balance">230</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">(1)</td><td style="width: 5pt"></td><td style="text-align: justify">During the year ended 31st December 2025, employees have performed cashless exercise of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFN0b2NrIE9wdGlvbiBBY3Rpdml0eSBmb3IgT3B0aW9ucyB3aXRoIFNlcnZpY2UtYmFzZWQgVmVzdGluZyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_908_ecustom--StockIssuedDuringPeriodSharesStockOptionsCaslessExercise_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zcNLC9pFHaCk" title="Stock option exercised">745,896 options</td> </tr></table>

1700058

1.88

P6Y6M

11885000

6772

0.70

14892

5.34

745896 0.95

245618

0.72

686880

3.25

P6Y10M17D

234000

523632

2.93

P6Y6M7D

230000

745896000

231000

1067000

438100

P1Y10M28D

6036400

10647500

4.26

<p id="xdx_89A_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_ztuTywwSLwXh" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify"> Schedule of Assumptions Used in the Black-Scholes Model <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025 (1)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Weighted average expected term (years)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20251231_fKDEp_zrPjwdAn6DM4" title="Weighted average expected term (years)">0</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5.79</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average expected volatility</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20251231_fKDEp_zOycVmCJg0o6" style="text-align: right" title="Weighted average expected volatility">0.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20240101__20241231_z9qdjU20sLxh" style="text-align: right" title="Weighted average expected volatility">66.90</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Risk-free interest rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20251231_fKDEp_zA4nOrdJ8yhg" title="Risk-free interest rate">0.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_pid_dp_uPure_c20240101__20241231_zebkrlsHE7X8" title="Risk-free interest rate, minimum">4.08%-<span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum_pid_dp_uPure_c20240101__20241231_zR2Uhf6PN5D9" title="Risk-free interest rate, maximum">4.10</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Dividend yield</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20250101__20251231_fKDEp_zf4FfvRAaqNg" style="text-align: right" title="Dividend yield">0</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20240101__20241231_zKvQaj2TdvE5" style="text-align: right" title="Dividend yield">0</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">(1)</td><td style="width: 5pt"></td><td style="text-align: justify">There were no stock options granted during the year ended December 31, 2025.</td> </tr></table>

P0Y

P5Y9M14D

0.0000

0.6690

0.0000

0.0408

0.0410

745896

666662

1625321

0.0382

1136200

February 2030

11700

0.88

0.70

0.0402

P3Y6M

0.75

0.53

1625321

41400

0.50

438903

6.61

2902700

902700

262200

227200

1500000

Note 15. Net loss per share <p id="xdx_895_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zd2fFkxDEmi5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">Basic and diluted net loss per share attributable to common stockholders was calculated as follows (in thousands except for share and per share amounts- Schedule of Basic and Diluted Net Loss Per Share <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250101__20251231_zyWtK9e58FL1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20240101__20241231_zwwTv5XwLGQc" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Year Ended December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Numerator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--NetIncomeLoss_zQdiGzaypJab" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">Net loss</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(928</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(15,383</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Weighted-average common shares outstanding - basic and diluted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,525,384</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,958,570</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Net loss per share attributable to Fusemachines Inc. common stockholders - basic and diluted</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(0.08</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(2.21</td><td style="font-weight: bold; text-align: left">)</td></tr> </table> <p id="xdx_891_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zFyuVYY8bTXk" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: Schedule of Outstanding Shares of Potentially Dilutive Securities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_492_20250101__20251231_zoAFdEKJM7p2" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49C_20240101__20241231_zZyUopac6pdc" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertiblePreferredStockMember_ztjD6xsQnOTe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Convertible Preferred Stock (as converted to common stock)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5,950,673</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockWarrantsMember_z6zeiXXU552c" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Common Stock Warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92,211</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92,211</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zrTPnyecT9fj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Stock options (1)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">686,880</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,700,058</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--SPACPublicAndPrivatePlacementWarrantsMember_zEV0GFwC6oi5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> SPAC public and private placement warrants (2) (refer note 24)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,458,750</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--EquityShareWarrantMember_zcuVrufY46Q3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Equity Share warrant (refer note 22)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,108,070</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertibleDebtSecuritiesMember_ztZze4OjNQol" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Issuance of warrants pursuant to conversion of convertible note (refer note 10)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_zOllkJoCvDUj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Antidilutive securities excluded from computation of earnings per share, amount</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">16,375,911</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,742,942</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">(1)</td><td style="width: 5pt"></td><td style="text-align: justify">Includes <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIE91dHN0YW5kaW5nIFNoYXJlcyBvZiBQb3RlbnRpYWxseSBEaWx1dGl2ZSBTZWN1cml0aWVzIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_c20250101__20251231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zUQ03FrF8RAh" title="Stock options exercised">6,772 stock options as of December 31, 2024, that were early exercised in exchange for non-recourse promissory notes. (Refer to “Note 14 - Stock-based Compensation “).</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">(2)</td><td style="width: 5pt"></td><td style="text-align: justify">The SPAC public and private placement warrants were outstanding at CSLM Acquisition Corp. prior to the business combination and were classified as equity and included in APIC in CSLM’s historical financial statements. The warrants became exercisable for shares of Fusemachines, Inc. common stock 30 days after the consummation of the business combination and were excluded from diluted net loss per share as their inclusion would have been antidilutive</td> </tr></table> The Convertible Notes were also outstanding as of December 31, 2024, which could obligate the Company to issue preferred shares upon the occurrence of various future events at prices and in amounts that are not determinable until the occurrence of those future events. Because the necessary conditions for the conversion of the Convertible Notes have not been satisfied as of December 31, 2024, the Company has excluded the Convertible Notes from the table above and the calculation of diluted net loss per share. (Refer to “Note 10 - Long-Term Debt “) The Company has also entered into a contingent obligation to issue 45,000 shares of its common stock to a certain vendor in connection with an outstanding accounts payable balance as part of a settlement agreement (refer to “Note 17 - Commitment and Contingencies”). The issuance of common stock is contingent upon the completion the Merger (refer to “Note 1 - Organization”). As the Merger had not taken place as of December 31, 2024, the conditions for the issuance of common stock have not been satisfied. Accordingly, the Company has excluded the common stock shares arising from this contingent obligation from the table above and the calculation of diluted net loss per share. Upon the closing of the business combination, the Company settled its obligation under the Second Agreement through the issuance of <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20250101__20251231__us-gaap--BusinessAcquisitionAxis__custom--FusemachinesIncMember_zmqINug9zR4" title="Stock issued for acquisition, shares">29,610 shares of Fusemachines, Inc. common stock, reflecting the application of the 0.6580 conversion ratio to the <span id="xdx_901_eus-gaap--ConvertiblePreferredStockSharesIssuedUponConversion_iI_c20251231__us-gaap--BusinessAcquisitionAxis__custom--FusemachinesIncMember_zKyIav5GFs6a" title="Stock issued upon conversion, shares">45,000 shares of the Company’s common stock, and a partial cash payment of approximately $<span id="xdx_907_eus-gaap--PaymentsToAcquireBusinessesGross_pn3n3_c20250101__20251231__us-gaap--BusinessAcquisitionAxis__custom--FusemachinesIncMember_zREozLjN4Gd6" title="Payments to acquire businesses gross">110 thousand. The remaining $98 thousand obligation is still outstanding and is reflected in accounts payable as of December 31, 2025. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

<p id="xdx_895_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zd2fFkxDEmi5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">Basic and diluted net loss per share attributable to common stockholders was calculated as follows (in thousands except for share and per share amounts- Schedule of Basic and Diluted Net Loss Per Share <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250101__20251231_zyWtK9e58FL1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20240101__20241231_zwwTv5XwLGQc" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Year Ended December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Numerator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--NetIncomeLoss_zQdiGzaypJab" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">Net loss</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(928</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(15,383</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Weighted-average common shares outstanding - basic and diluted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,525,384</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,958,570</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Net loss per share attributable to Fusemachines Inc. common stockholders - basic and diluted</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(0.08</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(2.21</td><td style="font-weight: bold; text-align: left">)</td></tr> </table>

-928000

-15383000

11525384

6958570

-0.08

-2.21

<p id="xdx_891_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zFyuVYY8bTXk" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: Schedule of Outstanding Shares of Potentially Dilutive Securities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_492_20250101__20251231_zoAFdEKJM7p2" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49C_20240101__20241231_zZyUopac6pdc" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertiblePreferredStockMember_ztjD6xsQnOTe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Convertible Preferred Stock (as converted to common stock)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5,950,673</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockWarrantsMember_z6zeiXXU552c" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Common Stock Warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92,211</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92,211</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zrTPnyecT9fj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Stock options (1)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">686,880</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,700,058</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--SPACPublicAndPrivatePlacementWarrantsMember_zEV0GFwC6oi5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> SPAC public and private placement warrants (2) (refer note 24)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,458,750</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--EquityShareWarrantMember_zcuVrufY46Q3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Equity Share warrant (refer note 22)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,108,070</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertibleDebtSecuritiesMember_ztZze4OjNQol" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Issuance of warrants pursuant to conversion of convertible note (refer note 10)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_zOllkJoCvDUj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Antidilutive securities excluded from computation of earnings per share, amount</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">16,375,911</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,742,942</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">(1)</td><td style="width: 5pt"></td><td style="text-align: justify">Includes <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIE91dHN0YW5kaW5nIFNoYXJlcyBvZiBQb3RlbnRpYWxseSBEaWx1dGl2ZSBTZWN1cml0aWVzIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_c20250101__20251231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zUQ03FrF8RAh" title="Stock options exercised">6,772 stock options as of December 31, 2024, that were early exercised in exchange for non-recourse promissory notes. (Refer to “Note 14 - Stock-based Compensation “).</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">(2)</td><td style="width: 5pt"></td><td style="text-align: justify">The SPAC public and private placement warrants were outstanding at CSLM Acquisition Corp. prior to the business combination and were classified as equity and included in APIC in CSLM’s historical financial statements. The warrants became exercisable for shares of Fusemachines, Inc. common stock 30 days after the consummation of the business combination and were excluded from diluted net loss per share as their inclusion would have been antidilutive</td> </tr></table>

5950673000

92211000

686880000

1700058000

13458750000

2108070000

30000000

16375911000

7742942000

6772

45000

29610

0.6580

45000

110000

98000

Note 16. Income Taxes <p id="xdx_899_eus-gaap--ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock_ztm7flCpvKbe" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify; text-indent: 0pt">The provision for income taxes consists of the following (in thousand): Schedule of Provision for Income Taxes <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%; margin-left: 0.75in"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_490_20250101__20251231_zzAaUFlMygD9" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20240101__20241231_zaA1VubRiMpk" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_409_eus-gaap--CurrentIncomeTaxExpenseBenefitContinuingOperationsAbstract_iB_zuljYbpTUCj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Current provision:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--CurrentFederalTaxExpenseBenefit_i01_pn3n3_maCITEBz3Iw_zeH9M3xuxs7b" style="vertical-align: bottom; background-color: White"> <td>Federal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_i01_pn3n3_maCITEBz3Iw_zDvn75YrFZYk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--CurrentForeignTaxExpenseBenefit_i01_pn3n3_maCITEBz3Iw_zyrrxT3Tm3S5" style="vertical-align: bottom; background-color: White"> <td style="width: 60%">Foreign</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">(21</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">(42</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--CurrentIncomeTaxExpenseBenefit_i01T_pn3n3_mtCITEBz3Iw_maITEBzEOs_zgCGwig7jQCl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Total current provision</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(4</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">42</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredIncomeTaxExpenseBenefitContinuingOperationsAbstract_iB_zn0KmjrEneUh" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Deferred:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_i01_pn3n3_maDITEBz7Bw_zBkhhaR8DCSh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Federal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_i01_pn3n3_maDITEBz7Bw_zztIPybJqeoh" style="vertical-align: bottom; background-color: White"> <td>State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredForeignIncomeTaxExpenseBenefit_i01_pn3n3_maDITEBz7Bw_zAGPsfex2gWd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Foreign</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredIncomeTaxExpenseBenefit_i01T_pn3n3_mtDITEBz7Bw_maITEBzEOs_ztY7xlUTUyR6" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total deferred provision</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">1</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">11</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IncomeTaxExpenseBenefit_i01NT_pn3n3_di_mtITEBzEOs_zB9RCJ0lOjV1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Total provision for income taxes</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> (3</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">(31</td><td style="font-weight: bold; text-align: left">)</td></tr> </table> <p id="xdx_895_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zMepLDQaSfeb" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below (in thousands): Schedule of Deferred Income Taxes <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%; margin-left: 0.75in"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20251231_zHvG4rJ0Svva" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20241231_zTwkv9k8FQU4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsNetAbstract_iB_zDrs8TmHbcKf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Deferred tax assets:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_i01I_pn3n3_maDTANz6B4_zdE1F8q88qMk" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">U.S. federal and state net operating loss carry forwards</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">4,961</td><td style="width: 1%; text-align: left"></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">3,608</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DeferredTaxAssetsTaxCreditCarryforwardsResearch_i01I_pn3n3_maDTANz6B4_zeuXNbxDnQX3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Research and development Tax Credits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">60</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAllowanceForDoubtfulAccounts_i01I_pn3n3_maDTANz6B4_zuvw5cS4Xt16" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Allowance for credit losses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">232</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsInProcessResearchAndDevelopment_i01I_pn3n3_maDTANz6B4_zKkbNsg2yAK" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Research and development</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,148</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,305</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--DeferredTaxAssetsAmortization_i01I_pn3n3_maDTANz6B4_zgZX8Du2MF95" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAccruedLiabilities_i01I_pn3n3_maDTANz6B4_zixYUz1UG3Qg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrued expenses and other current liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,132</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">740</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost_i01I_pn3n3_maDTANz6B4_z1QZVlOrzw96" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Stock-based compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">74</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">273</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--DeferredTaxAssetsOperatingLeaseLiability_i01I_pn3n3_maDTANz6B4_z57nQKpNaCP1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">105</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">119</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxAssetsGross_i01TI_pn3n3_mtDTANz6B4_maDTALNzgPh_maDTALNz0bw_zx1dsMtbB0j9" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total deferred tax assets</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,514</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">6,277</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxLiabilitiesNetAbstract_iB_pn3n3_zvl8qiKPCdl8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Deferred tax liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--DeferredTaxLiabilitiesAmortization_i01NI_pn3n3_di_maDITLziVx_zmgXRrvjYAIj" style="vertical-align: bottom; background-color: White"> <td>Amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(60</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(54</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxLiabilitiesPropertyPlantAndEquipment_i01NI_pn3n3_di_maDITLziVx_zaaYxTu637s2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Property and equipment, net </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(14</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(13</td><td style="text-align: left">)</td></tr> <tr id="xdx_40F_ecustom--DeferredTaxLiabilitiesUncertainTaxPositions_i01NI_pn3n3_di_maDITLziVx_zZUaX9TLoW18" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Uncertain Tax Positions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"></td><td style="text-align: left"></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--DeferredTaxLiabilitiesOperatingLeaseRightofuseAssets_i01NI_pn3n3_di_maDITLziVx_zM5rAIU4gWof" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease right-of-use assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(93</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(109</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--DeferredIncomeTaxLiabilities_i01NTI_pn3n3_di_mtDITLziVx_msDTALNz0bw_zo7lxa9oPiGc" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total deferred tax liabilities</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(167</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(176</td><td style="font-weight: bold; text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--DeferredTaxAssetsValuationAllowance_i01NI_pn3n3_di_msDTALNz0bw_zoJm18x4Zl7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Valuation allowance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(7,336</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(6,091</td><td style="text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--DeferredTaxAssetsLiabilitiesNet_i01TI_pn3n3_mtDTALNz0bw_zLle8r4qf0Y3" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Net deferred tax assets after valuation allowance</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">11</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">10</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures the reconciliation of taxes at the federal statutory rate to our provision for (benefit from) income taxes for the year ended December 31, 2025 was as follows (in thousands, except for percentages): <p id="xdx_89C_eus-gaap--ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock_z7Sie6zAcd88" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.6pt; display: none; text-align: justify">Schedule of Income Tax Rate Reconciliation<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; padding-bottom: 1pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; padding-bottom: 1pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Amount</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Percentage</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; width: 60%; text-align: left; text-indent: 0pt">U.S. federal statutory tax rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_pn3n3_c20250101__20251231_z4v7jBMtwJGg" style="width: 16%; text-align: right" title="U.S. federal statutory tax rate">(195</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_matETR_c20250101__20251231_zCq6OA137o77" style="width: 16%; text-align: right" title="U.S. federal statutory tax rate, percentage">21.00</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 0pt; text-align: left; text-indent: 0pt">Foreign tax effects</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-indent: 0pt">Nepal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; text-indent: 0pt">Statutory tax rate difference between Nepal and United states</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_c20250101__20251231__srt--StatementGeographicalAxis__country--NP_zv00DpEuhjD5" style="text-align: right" title="Statutory tax rate difference between Nepal and United states">(4</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pid_dp_matETR_c20250101__20251231__srt--StatementGeographicalAxis__country--NP_zcjQOij7xhZj" style="text-align: right" title="Statutory tax rate difference between Nepal and United states, percentage">0.38</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-indent: 0pt">Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--IncomeTaxReconciliationOtherAdjustments_pn3n3_c20250101__20251231_zlnUnvY7GAzi" style="text-align: right" title="Other">14</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_pid_dp_matETR_c20250101__20251231_zL24eeNX1RM8" style="text-align: right" title="Other, percentage">(1.51</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-indent: 0pt">Canada</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-align: left; text-indent: 0pt">Statutory tax rate difference between Canada and United States</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_c20250101__20251231__srt--StatementGeographicalAxis__country--CA_zbppEnRWhF0d" style="text-align: right" title="Statutory tax rate difference between Canada and United States">44</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pid_dp_matETR_c20250101__20251231__srt--StatementGeographicalAxis__country--CA_zUpE5V2pBQjk" style="text-align: right" title="Statutory tax rate difference between Canada and United States, percentage">(4.73</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; text-indent: 0pt">Changes in valuation allowances</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_pn3n3_c20250101__20251231_zk7VyAJAEHNj" style="text-align: right" title="Changes in valuation allowances">110</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_matETR_c20250101__20251231_z8wsVdpaNvC5" style="text-align: right" title="Changes in valuation allowances">(11.83</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left; text-indent: 0pt">Tax credits</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--IncomeTaxReconciliationTaxCredits_pn3n3_di_c20250101__20251231_zJ2ScuKKURU1" style="text-align: right" title="Tax credits">(19</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxCredits_pid_dp_matETR_c20250101__20251231_zGWOHj1hGoG7" style="text-align: right" title="Tax credits, percentage">2.01</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 0pt; text-align: left; text-indent: 0pt">Changes in valuation allowances</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowanceIncludingTaxCredits_pn3n3_c20250101__20251231_zCePeVlr4Eok" style="text-align: right" title="Changes in valuation allowances">824</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_ecustom--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowanceIncludingTaxCredits_pid_dp_matETR_c20250101__20251231_zW4SVcbrvoB9" style="text-align: right" title="Changes in valuation allowances, percentage">(88.96</td><td style="text-align: left">%)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left; text-indent: 0pt">Nontaxable or nondeductible items</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; text-indent: 0pt">Change in fair value</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--IncomeTaxReconciliationNondeductibleExpenseChangeInFairValue_pn3n3_c20250101__20251231_zP5usUcpjTfc" style="text-align: right" title="Change in fair value">(1,147</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--IncomeTaxReconciliationNondeductibleExpenseChangeInFairValuePercentage_iI_pid_dp_matETR_c20251231_zok3biyBYeqc" style="text-align: right" title="Change in fair value, percentage">123.83</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-align: left; text-indent: 0pt">Stock-based compensation</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseShareBasedCompensationCost_pn3n3_c20250101__20251231_zldH1GGbi0mf" style="text-align: right" title="Stock-based compensation">(26</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--EffectiveIncomeTaxRateReconciliationNondeductibleExpenseShareBasedCompensationCost_pid_dp_matETR_c20250101__20251231_zJVLQn3pg0Lc" style="text-align: right" title="Stock-based compensation, percentage">2.81</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; text-indent: 0pt">Loss on extinguishment of debt</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--IncomeTaxReconciliationNondeductibleExpenseLossOnExtinguishmentOfDebt_pn3n3_c20250101__20251231_zkZWbTU9LWC7" style="text-align: right" title="Loss on extinguishment of debt">82</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--IncomeTaxReconciliationNondeductibleExpenseLossOnExtinguishmentOfDebtPercentage_pid_dp_matETR_c20250101__20251231_zeaur1Yi3FP8" style="text-align: right" title="Loss on extinguishment of debt, percentage">(8.86</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-indent: 0pt">162(m) Limitation</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_ecustom--IncomeTaxReconciliationNondeductibleExpenseLimitations_pn3n3_c20250101__20251231_zYeeucFyHVm3" style="text-align: right" title="162(m) Limitation">88</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--IncomeTaxReconciliationNondeductibleExpenseLimitationsPercentage_pid_dp_matETR_c20250101__20251231_z8ghlRInpqo8" style="text-align: right" title="162 m Limitation, percentage">(9.48</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-indent: 0pt">Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseOther_pn3n3_c20250101__20251231_zcBkkLBtn9xd" style="text-align: right" title="Other">58</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--EffectiveIncomeTaxRateReconciliationNondeductibleExpenseOther_pid_dp_matETR_c20250101__20251231_z3dQJ92ZNbDc" style="text-align: right" title="Other, percentage">(6.23</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left; text-indent: 0pt">Changes in unrecognized tax benefits</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--IncomeTaxReconciliationTaxContingencies_pn3n3_c20250101__20251231_zbE1f6wHnpKc" style="text-align: right" title="Changes in unrecognized tax benefits">4</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxContingencies_pid_dp_matETR_c20250101__20251231_z3XOQEnb5pi7" style="text-align: right" title="Changes in unrecognized tax benefits, percentage">(0.41</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 0pt; text-align: left; text-indent: 0pt">Other adjustments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; text-indent: 0pt">Stock-based compensation–related deferred tax asset adjustments</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--EffectiveIncomeTaxRateReconciliationShareBasedCompensationExcessTaxBenefitAmount_pn3n3_c20250101__20251231_zKP0D4iBxWZj" style="text-align: right" title="Stock based compensation related deferred tax asset adjustments">139</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--EffectiveIncomeTaxRateReconciliationShareBasedCompensationExcessTaxBenefitPercent_pid_dp_matETR_c20250101__20251231_zYPNKRudmieh" style="text-align: right" title="Stock-based compensation related deferred tax asset adjustmentst, percentage">(15.04</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 0pt; text-align: left; padding-left: 10pt">Prior year true ups</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--IncomeTaxReconciliationPriorYearIncomeTaxes_pn3n3_c20250101__20251231_zrlPPlmkse77" style="text-align: right" title="Prior year true ups">31</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--EffectiveIncomeTaxRateReconciliationPriorYearIncomeTaxes_pid_dp_matETR_c20250101__20251231_zjjzEEJ5uoC" style="text-align: right" title="Prior year true ups, percentage">(3.31</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left; text-indent: 0pt">Provision for Income tax</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--IncomeTaxExpenseBenefit_iT_pn3n3_c20250101__20251231_zWaTr8MpP7wl" style="text-align: right" title="Provision for Income tax">3</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_iT_pid_dp_matETR_c20250101__20251231_zv7MTXQTaOnc" style="text-align: right" title="Provision for Income tax, percentage">(0.35</td><td style="text-align: left">)%</td></tr> </table> The reconciliation of taxes at the federal statutory rate to the provision for (benefit from) income taxes for the year ended December 31, 2024 in accordance with the guidance prior to the adoption of ASU 2023-09 was as follows (in thousands): <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in; border-collapse: collapse; width: 89%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Percentage</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; font-weight: bold; text-align: left">Loss before income taxes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_pn3n3_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zBssgylFDtUb" style="width: 16%; text-align: right" title="Loss before income taxes">(15,352</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Federal tax at statutory rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_pn3n3_maabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zXJBCjipLu82" style="text-align: right" title="Loss before income taxes">(3,224</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zmQRBtlN4Onb" style="text-align: right">21.00</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Foreign rate differential</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_maabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_z6BA6T6WLmba" style="text-align: right" title="Loss before income taxes">20</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_ziKWWsmfUe8i" style="text-align: right">(0.13</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State taxes, net of federal benefit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_pn3n3_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_ztGMsioNexw1" style="text-align: right" title="Loss before income taxes">(357</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zBjdSJn4ycPf" style="text-align: right">2.33</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Permanent differences</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtPermanentDifferences_pn3n3_maabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zuFPH04Vpa79" style="text-align: right" title="Loss before income taxes">132</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--EffectiveIncomeTaxRateReconciliationPermanentDifferenceslPercentage_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zRIKtrhgvMnk" style="text-align: right">(0.86</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_pn3n3_maabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_z2WwzNucknsh" style="text-align: right" title="Loss before income taxes">1,282</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_z7vOwsYt1sHd" style="text-align: right">(8.35</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Stock based compensation</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--EffectiveIncomeTaxRateReconciliationShareBasedCompensationExcessTaxBenefitAmount_pn3n3_maabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zSEWtyLHtojj" style="text-align: right" title="Loss before income taxes">450</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--EffectiveIncomeTaxRateReconciliationShareBasedCompensationExcessTaxBenefitPercent_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zNVaNWCU5uG6" style="text-align: right">(2,93</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Tax Credits</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--IncomeTaxReconciliationTaxCredits_pn3n3_di_msabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zHUED0HhsRx6" style="text-align: right" title="Loss before income taxes">(62</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxCredits_iN_pid_dpi_uPure_msefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zRjqElwIXJB7" style="text-align: right">0.40</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Others</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--IncomeTaxReconciliationOtherReconcilingItems_pn3n3_maabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zy4khayI2b3h" style="text-align: right" title="Loss before income taxes">(43</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherReconcilingItemsPercent_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_z1UfRxrcITL7" style="text-align: right">0.28</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in valuation allowance</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_pn3n3_maabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_z7iTk6O7tIog" style="text-align: right" title="Loss before income taxes">1,834</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_z9N543NRwWWa" style="text-align: right">(11.94</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Provision for Income Tax</td><td> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98B_eus-gaap--IncomeTaxExpenseBenefit_iT_pn3n3_mtabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zp1mR21xuhye" style="font-weight: bold; text-align: right" title="Loss before income taxes">31</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98F_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_iT_pid_dp_uPure_mtefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zd5iCfdL75rd" style="font-weight: bold; text-align: right">(0.20</td><td style="font-weight: bold; text-align: left">)</td></tr> </table> The utilization of the Company’s net operating loss carryforwards and research tax credit carryovers could be subject to annual limitations under Section 382 and 383 of the Internal Revenue Code of 1986, as amended (the “Code”), due to ownership change limitations that may have occurred previously or that could occur in the future. These ownership changes limit the amount of net operating loss carryforwards and other deferred tax assets that can be utilized to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Section 382 and 383 of the Code, results from transactions increasing ownership of certain stockholders or public groups in the stock of the corporation by more than 50 percent points over a three-year period. The Company has not completed an analysis of an ownership change under Section 382 of the Code. To the extent that a study is completed and an ownership change is deemed to occur, the Company’s net operating losses and tax credits could be limited. The ultimate realization of deferred tax assets is dependent upon the generation of sufficient future taxable income during the periods in which those temporary differences become deductible. Management has considered all positive and negative evidence in connection with the realization of the deferred tax assets based on projected future taxable income and tax planning strategies. Based upon the level of projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not the Company will not realize the benefits of these deductible differences. Therefore, the Company continues to record a 100% valuation allowance against all deferred tax assets as of December 31, 2025 and 2024. The valuation allowance for the year ending December 31, 2025 increased by $1,000.0 thousand. As of December 31, 2025, the Company had federal net operating loss carryforward of approximately $15,680 thousand of which approximately $1,163 thousand will begin to expire in 2037 for federal tax purposes, and approximately $14,517 thousand in federal net operating loss carryforward can be carried forward indefinitely. While these federal NOLs do not expire, the Tax Cuts & Jobs Act of 2017 limits the amount of federal net operating loss utilized each year after December 31, 2017 to 80% of taxable income. As at December 31, 2025, the Company has state net operating loss carryforward of approximately $24,630 thousand that start expiring in 2026. In addition, the Company has foreign net operating loss carryforward of $2,104 thousand that start expiring in 2042. ASC 740-10 prescribes a comprehensive model for the recognition, measurement, presentation and disclosure in financial statements of any uncertain tax positions that have been taken or expected to be taken on a tax return. As of December 31, 2025 and 2024, the Company had unrecognized tax benefits (“UTBs”) of approximately $21 thousand and $22 thousand, respectively. The amount of unrecognized tax benefits is not expected to significantly change over the next twelve months. No amounts, outside of valuation allowance, would impact the effective tax rate on the continuing operations. The beginning and ending unrecognized tax benefits amounts is as follows: Schedule of Unrecognized Tax Benefits <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 85%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_492_20250101__20251231_zYfX4bHszPih" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20240101__20241231_z1x4A1NwAXM2" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--UnrecognizedTaxBenefits_iS_pn3n3_zpRUWO0wJ6xc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; font-weight: bold; text-align: justify; text-indent: 0pt; padding-left: 0pt">Beginning Balance</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"> 22</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"> 22</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions_iN_pn3n3_di_zDHg7H8kSrmb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Change related to prior year provisions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(6</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions_pn3n3_zX8SiYUq0cB" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Change related to current year provisions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--UnrecognizedTaxBenefits_iE_pn3n3_z7g9pja9O0b7" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-indent: 0pt; padding-left: 0pt">Ending balance</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">21</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">22</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Income tax returns are filed in the United States and various state jurisdictions. The Company is not currently under examination by income tax authorities in US federal or state jurisdictions. Fusemachines Nepal Private Limited is currently under examination by local Nepal tax authorities for FY 2023-24. Due to net operating loss carryforward, the Company’s returns remain open for all prior years.

<p id="xdx_899_eus-gaap--ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock_ztm7flCpvKbe" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify; text-indent: 0pt">The provision for income taxes consists of the following (in thousand): Schedule of Provision for Income Taxes <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%; margin-left: 0.75in"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_490_20250101__20251231_zzAaUFlMygD9" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20240101__20241231_zaA1VubRiMpk" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_409_eus-gaap--CurrentIncomeTaxExpenseBenefitContinuingOperationsAbstract_iB_zuljYbpTUCj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Current provision:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--CurrentFederalTaxExpenseBenefit_i01_pn3n3_maCITEBz3Iw_zeH9M3xuxs7b" style="vertical-align: bottom; background-color: White"> <td>Federal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_i01_pn3n3_maCITEBz3Iw_zDvn75YrFZYk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--CurrentForeignTaxExpenseBenefit_i01_pn3n3_maCITEBz3Iw_zyrrxT3Tm3S5" style="vertical-align: bottom; background-color: White"> <td style="width: 60%">Foreign</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">(21</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">(42</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--CurrentIncomeTaxExpenseBenefit_i01T_pn3n3_mtCITEBz3Iw_maITEBzEOs_zgCGwig7jQCl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Total current provision</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(4</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">42</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredIncomeTaxExpenseBenefitContinuingOperationsAbstract_iB_zn0KmjrEneUh" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Deferred:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_i01_pn3n3_maDITEBz7Bw_zBkhhaR8DCSh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Federal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_i01_pn3n3_maDITEBz7Bw_zztIPybJqeoh" style="vertical-align: bottom; background-color: White"> <td>State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredForeignIncomeTaxExpenseBenefit_i01_pn3n3_maDITEBz7Bw_zAGPsfex2gWd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Foreign</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredIncomeTaxExpenseBenefit_i01T_pn3n3_mtDITEBz7Bw_maITEBzEOs_ztY7xlUTUyR6" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total deferred provision</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">1</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">11</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IncomeTaxExpenseBenefit_i01NT_pn3n3_di_mtITEBzEOs_zB9RCJ0lOjV1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Total provision for income taxes</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> (3</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">(31</td><td style="font-weight: bold; text-align: left">)</td></tr> </table>

16000

-21000

-42000

-4000

42000

1000

11000

1000

11000

3000

31000

<p id="xdx_895_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zMepLDQaSfeb" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below (in thousands): Schedule of Deferred Income Taxes <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%; margin-left: 0.75in"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20251231_zHvG4rJ0Svva" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20241231_zTwkv9k8FQU4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsNetAbstract_iB_zDrs8TmHbcKf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Deferred tax assets:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_i01I_pn3n3_maDTANz6B4_zdE1F8q88qMk" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">U.S. federal and state net operating loss carry forwards</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">4,961</td><td style="width: 1%; text-align: left"></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">3,608</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DeferredTaxAssetsTaxCreditCarryforwardsResearch_i01I_pn3n3_maDTANz6B4_zeuXNbxDnQX3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Research and development Tax Credits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">60</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAllowanceForDoubtfulAccounts_i01I_pn3n3_maDTANz6B4_zuvw5cS4Xt16" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Allowance for credit losses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">232</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsInProcessResearchAndDevelopment_i01I_pn3n3_maDTANz6B4_zKkbNsg2yAK" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Research and development</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,148</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,305</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--DeferredTaxAssetsAmortization_i01I_pn3n3_maDTANz6B4_zgZX8Du2MF95" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAccruedLiabilities_i01I_pn3n3_maDTANz6B4_zixYUz1UG3Qg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrued expenses and other current liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,132</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">740</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost_i01I_pn3n3_maDTANz6B4_z1QZVlOrzw96" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Stock-based compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">74</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">273</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--DeferredTaxAssetsOperatingLeaseLiability_i01I_pn3n3_maDTANz6B4_z57nQKpNaCP1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">105</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">119</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxAssetsGross_i01TI_pn3n3_mtDTANz6B4_maDTALNzgPh_maDTALNz0bw_zx1dsMtbB0j9" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total deferred tax assets</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,514</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">6,277</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxLiabilitiesNetAbstract_iB_pn3n3_zvl8qiKPCdl8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Deferred tax liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--DeferredTaxLiabilitiesAmortization_i01NI_pn3n3_di_maDITLziVx_zmgXRrvjYAIj" style="vertical-align: bottom; background-color: White"> <td>Amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(60</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(54</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxLiabilitiesPropertyPlantAndEquipment_i01NI_pn3n3_di_maDITLziVx_zaaYxTu637s2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Property and equipment, net </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(14</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(13</td><td style="text-align: left">)</td></tr> <tr id="xdx_40F_ecustom--DeferredTaxLiabilitiesUncertainTaxPositions_i01NI_pn3n3_di_maDITLziVx_zZUaX9TLoW18" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Uncertain Tax Positions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"></td><td style="text-align: left"></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--DeferredTaxLiabilitiesOperatingLeaseRightofuseAssets_i01NI_pn3n3_di_maDITLziVx_zM5rAIU4gWof" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease right-of-use assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(93</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(109</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--DeferredIncomeTaxLiabilities_i01NTI_pn3n3_di_mtDITLziVx_msDTALNz0bw_zo7lxa9oPiGc" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total deferred tax liabilities</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(167</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(176</td><td style="font-weight: bold; text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--DeferredTaxAssetsValuationAllowance_i01NI_pn3n3_di_msDTALNz0bw_zoJm18x4Zl7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Valuation allowance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(7,336</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(6,091</td><td style="text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--DeferredTaxAssetsLiabilitiesNet_i01TI_pn3n3_mtDTALNz0bw_zLle8r4qf0Y3" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Net deferred tax assets after valuation allowance</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">11</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">10</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

4961000

3608000

60000

34000

232000

1148000

1305000

1132000

740000

74000

273000

105000 119000

7514000

6277000

60000 54000

14000

13000

93000 109000

167000

176000

7336000

6091000

11000

10000

<p id="xdx_89C_eus-gaap--ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock_z7Sie6zAcd88" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.6pt; display: none; text-align: justify">Schedule of Income Tax Rate Reconciliation<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; padding-bottom: 1pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0pt; padding-bottom: 1pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Amount</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Percentage</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; width: 60%; text-align: left; text-indent: 0pt">U.S. federal statutory tax rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_pn3n3_c20250101__20251231_z4v7jBMtwJGg" style="width: 16%; text-align: right" title="U.S. federal statutory tax rate">(195</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_matETR_c20250101__20251231_zCq6OA137o77" style="width: 16%; text-align: right" title="U.S. federal statutory tax rate, percentage">21.00</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 0pt; text-align: left; text-indent: 0pt">Foreign tax effects</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-indent: 0pt">Nepal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; text-indent: 0pt">Statutory tax rate difference between Nepal and United states</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_c20250101__20251231__srt--StatementGeographicalAxis__country--NP_zv00DpEuhjD5" style="text-align: right" title="Statutory tax rate difference between Nepal and United states">(4</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pid_dp_matETR_c20250101__20251231__srt--StatementGeographicalAxis__country--NP_zcjQOij7xhZj" style="text-align: right" title="Statutory tax rate difference between Nepal and United states, percentage">0.38</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-indent: 0pt">Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--IncomeTaxReconciliationOtherAdjustments_pn3n3_c20250101__20251231_zlnUnvY7GAzi" style="text-align: right" title="Other">14</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_pid_dp_matETR_c20250101__20251231_zL24eeNX1RM8" style="text-align: right" title="Other, percentage">(1.51</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-indent: 0pt">Canada</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-align: left; text-indent: 0pt">Statutory tax rate difference between Canada and United States</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_c20250101__20251231__srt--StatementGeographicalAxis__country--CA_zbppEnRWhF0d" style="text-align: right" title="Statutory tax rate difference between Canada and United States">44</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pid_dp_matETR_c20250101__20251231__srt--StatementGeographicalAxis__country--CA_zUpE5V2pBQjk" style="text-align: right" title="Statutory tax rate difference between Canada and United States, percentage">(4.73</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; text-indent: 0pt">Changes in valuation allowances</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_pn3n3_c20250101__20251231_zk7VyAJAEHNj" style="text-align: right" title="Changes in valuation allowances">110</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_matETR_c20250101__20251231_z8wsVdpaNvC5" style="text-align: right" title="Changes in valuation allowances">(11.83</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left; text-indent: 0pt">Tax credits</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--IncomeTaxReconciliationTaxCredits_pn3n3_di_c20250101__20251231_zJ2ScuKKURU1" style="text-align: right" title="Tax credits">(19</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxCredits_pid_dp_matETR_c20250101__20251231_zGWOHj1hGoG7" style="text-align: right" title="Tax credits, percentage">2.01</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 0pt; text-align: left; text-indent: 0pt">Changes in valuation allowances</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowanceIncludingTaxCredits_pn3n3_c20250101__20251231_zCePeVlr4Eok" style="text-align: right" title="Changes in valuation allowances">824</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_ecustom--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowanceIncludingTaxCredits_pid_dp_matETR_c20250101__20251231_zW4SVcbrvoB9" style="text-align: right" title="Changes in valuation allowances, percentage">(88.96</td><td style="text-align: left">%)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left; text-indent: 0pt">Nontaxable or nondeductible items</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; text-indent: 0pt">Change in fair value</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--IncomeTaxReconciliationNondeductibleExpenseChangeInFairValue_pn3n3_c20250101__20251231_zP5usUcpjTfc" style="text-align: right" title="Change in fair value">(1,147</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--IncomeTaxReconciliationNondeductibleExpenseChangeInFairValuePercentage_iI_pid_dp_matETR_c20251231_zok3biyBYeqc" style="text-align: right" title="Change in fair value, percentage">123.83</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-align: left; text-indent: 0pt">Stock-based compensation</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseShareBasedCompensationCost_pn3n3_c20250101__20251231_zldH1GGbi0mf" style="text-align: right" title="Stock-based compensation">(26</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--EffectiveIncomeTaxRateReconciliationNondeductibleExpenseShareBasedCompensationCost_pid_dp_matETR_c20250101__20251231_zJVLQn3pg0Lc" style="text-align: right" title="Stock-based compensation, percentage">2.81</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; text-indent: 0pt">Loss on extinguishment of debt</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--IncomeTaxReconciliationNondeductibleExpenseLossOnExtinguishmentOfDebt_pn3n3_c20250101__20251231_zkZWbTU9LWC7" style="text-align: right" title="Loss on extinguishment of debt">82</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--IncomeTaxReconciliationNondeductibleExpenseLossOnExtinguishmentOfDebtPercentage_pid_dp_matETR_c20250101__20251231_zeaur1Yi3FP8" style="text-align: right" title="Loss on extinguishment of debt, percentage">(8.86</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-indent: 0pt">162(m) Limitation</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_ecustom--IncomeTaxReconciliationNondeductibleExpenseLimitations_pn3n3_c20250101__20251231_zYeeucFyHVm3" style="text-align: right" title="162(m) Limitation">88</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--IncomeTaxReconciliationNondeductibleExpenseLimitationsPercentage_pid_dp_matETR_c20250101__20251231_z8ghlRInpqo8" style="text-align: right" title="162 m Limitation, percentage">(9.48</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-indent: 0pt">Other</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseOther_pn3n3_c20250101__20251231_zcBkkLBtn9xd" style="text-align: right" title="Other">58</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--EffectiveIncomeTaxRateReconciliationNondeductibleExpenseOther_pid_dp_matETR_c20250101__20251231_z3dQJ92ZNbDc" style="text-align: right" title="Other, percentage">(6.23</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left; text-indent: 0pt">Changes in unrecognized tax benefits</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--IncomeTaxReconciliationTaxContingencies_pn3n3_c20250101__20251231_zbE1f6wHnpKc" style="text-align: right" title="Changes in unrecognized tax benefits">4</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxContingencies_pid_dp_matETR_c20250101__20251231_z3XOQEnb5pi7" style="text-align: right" title="Changes in unrecognized tax benefits, percentage">(0.41</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 0pt; text-align: left; text-indent: 0pt">Other adjustments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; text-indent: 0pt">Stock-based compensation–related deferred tax asset adjustments</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--EffectiveIncomeTaxRateReconciliationShareBasedCompensationExcessTaxBenefitAmount_pn3n3_c20250101__20251231_zKP0D4iBxWZj" style="text-align: right" title="Stock based compensation related deferred tax asset adjustments">139</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--EffectiveIncomeTaxRateReconciliationShareBasedCompensationExcessTaxBenefitPercent_pid_dp_matETR_c20250101__20251231_zYPNKRudmieh" style="text-align: right" title="Stock-based compensation related deferred tax asset adjustmentst, percentage">(15.04</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 0pt; text-align: left; padding-left: 10pt">Prior year true ups</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--IncomeTaxReconciliationPriorYearIncomeTaxes_pn3n3_c20250101__20251231_zrlPPlmkse77" style="text-align: right" title="Prior year true ups">31</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--EffectiveIncomeTaxRateReconciliationPriorYearIncomeTaxes_pid_dp_matETR_c20250101__20251231_zjjzEEJ5uoC" style="text-align: right" title="Prior year true ups, percentage">(3.31</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 0pt; text-align: left; text-indent: 0pt">Provision for Income tax</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--IncomeTaxExpenseBenefit_iT_pn3n3_c20250101__20251231_zWaTr8MpP7wl" style="text-align: right" title="Provision for Income tax">3</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_iT_pid_dp_matETR_c20250101__20251231_zv7MTXQTaOnc" style="text-align: right" title="Provision for Income tax, percentage">(0.35</td><td style="text-align: left">)%</td></tr> </table> The reconciliation of taxes at the federal statutory rate to the provision for (benefit from) income taxes for the year ended December 31, 2024 in accordance with the guidance prior to the adoption of ASU 2023-09 was as follows (in thousands): <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in; border-collapse: collapse; width: 89%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Percentage</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; font-weight: bold; text-align: left">Loss before income taxes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_pn3n3_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zBssgylFDtUb" style="width: 16%; text-align: right" title="Loss before income taxes">(15,352</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Federal tax at statutory rate</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_pn3n3_maabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zXJBCjipLu82" style="text-align: right" title="Loss before income taxes">(3,224</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zmQRBtlN4Onb" style="text-align: right">21.00</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Foreign rate differential</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_maabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_z6BA6T6WLmba" style="text-align: right" title="Loss before income taxes">20</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_ziKWWsmfUe8i" style="text-align: right">(0.13</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State taxes, net of federal benefit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_pn3n3_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_ztGMsioNexw1" style="text-align: right" title="Loss before income taxes">(357</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zBjdSJn4ycPf" style="text-align: right">2.33</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Permanent differences</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtPermanentDifferences_pn3n3_maabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zuFPH04Vpa79" style="text-align: right" title="Loss before income taxes">132</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--EffectiveIncomeTaxRateReconciliationPermanentDifferenceslPercentage_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zRIKtrhgvMnk" style="text-align: right">(0.86</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_pn3n3_maabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_z2WwzNucknsh" style="text-align: right" title="Loss before income taxes">1,282</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_z7vOwsYt1sHd" style="text-align: right">(8.35</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Stock based compensation</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--EffectiveIncomeTaxRateReconciliationShareBasedCompensationExcessTaxBenefitAmount_pn3n3_maabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zSEWtyLHtojj" style="text-align: right" title="Loss before income taxes">450</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--EffectiveIncomeTaxRateReconciliationShareBasedCompensationExcessTaxBenefitPercent_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zNVaNWCU5uG6" style="text-align: right">(2,93</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Tax Credits</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--IncomeTaxReconciliationTaxCredits_pn3n3_di_msabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zHUED0HhsRx6" style="text-align: right" title="Loss before income taxes">(62</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxCredits_iN_pid_dpi_uPure_msefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zRjqElwIXJB7" style="text-align: right">0.40</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Others</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--IncomeTaxReconciliationOtherReconcilingItems_pn3n3_maabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zy4khayI2b3h" style="text-align: right" title="Loss before income taxes">(43</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherReconcilingItemsPercent_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_z1UfRxrcITL7" style="text-align: right">0.28</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in valuation allowance</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_pn3n3_maabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_z7iTk6O7tIog" style="text-align: right" title="Loss before income taxes">1,834</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_uPure_maefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_z9N543NRwWWa" style="text-align: right">(11.94</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Provision for Income Tax</td><td> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98B_eus-gaap--IncomeTaxExpenseBenefit_iT_pn3n3_mtabcd_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zp1mR21xuhye" style="font-weight: bold; text-align: right" title="Loss before income taxes">31</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98F_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_iT_pid_dp_uPure_mtefgh_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__custom--PriorAdoptionOfASUTwoThousandTwentyThreeAndNineMember_zd5iCfdL75rd" style="font-weight: bold; text-align: right">(0.20</td><td style="font-weight: bold; text-align: left">)</td></tr> </table>

-195000

0.2100

-4000

0.0038

14000

-0.0151

44000

-0.0473

110000

-0.1183

19000

0.0201

824000 -0.8896 -1147000 1.2383

-26000

0.0281

82000 -0.0886 88000 -0.0948

58000

-0.0623

4000

-0.0041

139000

-0.1504

31000

-0.0331

3000

-0.0035

-15352000

-3224000

0.2100

20000

-0.0013

-357000

0.0233

132000 -0.0086

1282000

-0.0835

450000

-0.0293

62000

-0.0040

-43000

0.0028

1834000

-0.1194

31000

-0.0020

1 1

1000000.0

the Company had federal net operating loss carryforward of approximately $15,680 thousand of which approximately $1,163 thousand will begin to expire in 2037 for federal tax purposes, and approximately $14,517 thousand in federal net operating loss carryforward can be carried forward indefinitely. While these federal NOLs do not expire, the Tax Cuts & Jobs Act of 2017 limits the amount of federal net operating loss utilized each year after December 31, 2017 to 80% of taxable income. As at December 31, 2025, the Company has state net operating loss carryforward of approximately $24,630 thousand that start expiring in 2026. In addition, the Company has foreign net operating loss carryforward of $2,104 thousand that start expiring in 2042.

15680000

24630000

21000

22000

Schedule of Unrecognized Tax Benefits <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 85%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_492_20250101__20251231_zYfX4bHszPih" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20240101__20241231_z1x4A1NwAXM2" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--UnrecognizedTaxBenefits_iS_pn3n3_zpRUWO0wJ6xc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; font-weight: bold; text-align: justify; text-indent: 0pt; padding-left: 0pt">Beginning Balance</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"> 22</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"> 22</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions_iN_pn3n3_di_zDHg7H8kSrmb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Change related to prior year provisions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(6</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions_pn3n3_zX8SiYUq0cB" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Change related to current year provisions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--UnrecognizedTaxBenefits_iE_pn3n3_z7g9pja9O0b7" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-indent: 0pt; padding-left: 0pt">Ending balance</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">21</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">22</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

22000

6000

5000

21000

22000

<p id="xdx_809_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zZh1av8KaGme" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">Note 17. Commitment and Contingencies Consulting Agreement In December 2020, the Company entered into a consulting agreement with a certain vendor, whereby they agreed to help develop and implement sales strategies for the Company for $10.0 thousand per month as well as a commission fee as defined in the agreement. In August 2024, the Company entered into a second agreement (the “Second Agreement”) with the same vendor mentioned above whereby the Company and vendor acknowledged an outstanding accounts payable balance of $408.9 thousand owed to the vendor for services provided. The Second Agreement stipulates that in full and final satisfaction of this balance, the Company will: (i) issue <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20240831__20240831__us-gaap--TypeOfArrangementAxis__custom--SecondAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z25AIPoS0ZDe" title="Issuance shares of common stock">45,000 shares of its common stock to the vendor immediately prior to and contingent upon the consummation of the Merger (see “Note 1 – Organization”), and (ii) pay $208.9 thousand in cash to the vendor within ten days after the closing of the Merger. If the Merger does not close the $408.9 thousand will be payable to the vendor in cash. The Company evaluated the feature in the Second Agreement whereby the closing of the Merger triggers the obligation to issue <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesConversionOfUnits_pid_c20240831__20240831__us-gaap--TypeOfArrangementAxis__custom--SecondAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zPg6DymbIFnf" title="Issuance shares of common stock conversion feature">45,000 shares of the Company’s common stock (the “Conversion Feature”) to determine whether the feature should be considered a freestanding financial instrument (as defined in ASC 480-10-20) or whether it should be considered embedded. The Company determined that the Conversion Feature should be considered embedded because it did not meet the definition of a freestanding financial instrument because it was neither i) entered into separately and apart from any of the entity’s other financial instruments, nor was it ii) separately exercisable. After determining that the Conversion Feature should be considered embedded, the Company determined that it did not require bifurcation as an embedded derivative under ASC 815-15 because it did not meet the net settlement criterion to be considered a derivative. Subsequent to determining that derivative bifurcation for the Conversion Feature was not required, the Company evaluated its obligations to the vendor under the Second Agreement to determine whether the Second Agreement should be accounted for as an extinguishment (in accordance with ASC 470-50) of the Company’s initial obligations (those obligations prior to the Second Agreement under the initial consulting agreement) and an immediate recognition of the new obligations specified in the Second Agreement. The Company determined that the Second Agreement should be accounted for as an extinguishment because the Conversion Feature represented the addition of a substantive conversion option, as that term is used in ASC 470-50-50-10 (and as it is defined in ASC 470-20-40-7). As the Company determined that the Second Agreement should be accounted for as an extinguishment, it calculated a loss on extinguishment (in accordance with ASC 470-50-40-4) equal to the reacquisition price of the new obligations under the Second Agreement less the net carrying amount of the initial obligation under the initial consulting agreement. The reacquisition price was equal to the fair value of the new obligations on the effective date of the Second Agreement, which was determined to be $478.6 thousand, and the net carrying amount of the initial obligation was $408.9 thousand, which resulted in a loss on extinguishment of $69.7 thousand, which is recorded in loss on extinguishment of payable in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2024. In accordance with ASC 470-20-25-13, the offset to the loss on extinguishment of $69.7 thousand was recorded as an increase to additional paid-in capital as the premium associated with the new obligations issued under the Second Agreement was determined to be substantial. The $408.9 thousand obligation incurred under the initial consulting agreement, which is described in the Second Agreement, is recorded in accounts payable in the consolidated balance sheet as of December 31, 2024. The fair value of the new obligations used to determine the loss on extinguishment was determined using a probability-weighted expected return method/scenario-based method. The significant inputs to the valuation method were an estimate of the probability of the Merger closing, an estimate of the date the Merger will close, an estimate of the fair value of the Fusemachines shares (estimate based on an income approach and market approach in accordance with Internal Revenue Service Ruling 59-60 for compliance with Internal Revenue Code Section 409A) to be issued upon the closing of the Merger, and an estimated discount rate. As the method for estimating the fair value of the new obligations used significant unobservable inputs, it was determined to represent a Level 3 fair value measurement. Upon the closing of the business combination, the Company settled its obligation under the Second Agreement through the issuance of 29,610 shares of Fusemachines, Inc. common stock, reflecting the application of the 0.6580 conversion ratio to the 45,000 shares of the Company’s common stock, and a partial cash payment of approximately $110 thousand. The remaining $98 thousand obligation is still outstanding and is reflected in accounts payable as of December 31, 2025. Legal counsel fee arrangement In connection with the Business Combination, the Company incurred legal fees payable to its external legal counsel, totaling $1,307,653. Pursuant to an agreement entered into in December 2025, Counsel agreed to reduce the outstanding deal-related fees to $600,000, which was fully paid in October 2025. Under the same agreement, the Company committed to pay for ongoing legal services, including ordinary course SEC filings, an S-1 registration statement, review of non-disclosure agreements and letters of intent, and attendance at board and committee meetings, covering the period from November 1, 2025 through December 31, 2026, in monthly instalments of $<span id="xdx_907_eus-gaap--DebtInstrumentPeriodicPayment_c20260101__20260531__dei--LegalEntityAxis__custom--DentonsUSLLPMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zjffIM3yao94" title="Monthly instalments">25,000 from January through May 2026 and $<span id="xdx_90A_eus-gaap--DebtInstrumentPeriodicPayment_c20260601__20261231__dei--LegalEntityAxis__custom--DentonsUSLLPMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zeFdfYiBoFDf" title="Monthly instalments">75,000 from June through December 2026, totaling $700,000. The Company’s remaining obligation under this arrangement as of December 31, 2025 is $650,000. The Company is also obligated to reimburse such counsel for all out-of-pocket expenses. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Consulting arrangements In December 2025, the Company entered into a Payment Plan Agreement with a service provider to settle outstanding obligations of $<span id="xdx_90A_eus-gaap--ContractualObligation_iI_pn3n3_c20251231__us-gaap--TypeOfArrangementAxis__custom--PaymentPlanAgreementMember__dei--LegalEntityAxis__custom--DonnelleyFinancialLLCMember_zx98dn35nGF5" title="Outstanding obligations">1,032 thousand related to services rendered in connection with the Company’s S-4 registration statements. Under the agreement, the service provider agreed to discount the past-due balance by $<span id="xdx_903_ecustom--DiscountOfDueBalance_iI_pn3n3_c20251231__us-gaap--TypeOfArrangementAxis__custom--PaymentPlanAgreementMember__dei--LegalEntityAxis__custom--DonnelleyFinancialLLCMember_zn0IhtHph0Va" title="Discount of due balance">555 thousand, resulting in a negotiated settlement amount of $476 thousand. The Company made an initial payment of $<span id="xdx_90D_eus-gaap--DebtInstrumentFaceAmount_iI_pn3n3_c20251231__us-gaap--TypeOfArrangementAxis__custom--PaymentPlanAgreementMember__dei--LegalEntityAxis__custom--DonnelleyFinancialLLCMember_zyLiBsrxoN3i" title="Initial payment">125 thousand in December 2025, which included $<span id="xdx_90B_eus-gaap--ProfessionalFees_pn3n3_c20250101__20251231__us-gaap--TypeOfArrangementAxis__custom--PaymentPlanAgreementMember__dei--LegalEntityAxis__custom--DonnelleyFinancialLLCMember_zbmUl9nmb0n" title="Subscription costs">45 thousand relating to a one-year subscription for Active disclosure, a software service. The remaining balance is payable in equal monthly installments of $<span id="xdx_90A_eus-gaap--DebtInstrumentPeriodicPayment_pn3n3_c20260401__20270630__us-gaap--TypeOfArrangementAxis__custom--PaymentPlanAgreementMember__dei--LegalEntityAxis__custom--DonnelleyFinancialLLCMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zO2VoF3BABhb" title="Monthly instalments">26 thousand, commencing in April 2026 through June 2027. As of December 31, 2025, the current portion of the settlement obligation (amounts due within twelve months) is classified within accounts payable under current liabilities, with the remaining balance classified as non-current within accounts payable in the balance sheet Guarantees and Indemnifications In the normal course of business, the Company enters into agreements that contain a variety of representations and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future. To date, the Company has not paid any claims or has been required to defend any action related to its indemnification obligations. As of December 31, 2025 and December 31, 2024, the Company does not have any material indemnification claims that were probable or reasonably possible and consequently has not recorded related liabilities. Litigation Legacy Fusemachines received a legal notice dated March 27, 2025, requiring payment of $<span id="xdx_90D_eus-gaap--PaymentsToSuppliersAndEmployees_pn2n3_c20250327__20250327__us-gaap--TypeOfArrangementAxis__custom--WorkLaborAndServicesAgreementMember_zRnRiXuzzYGa" title="Payments to suppliers and employees">76.3 thousand to a vendor under a Work Labor & Services agreement due to alleged non-fulfilment of payment obligations. Based on its assessment of the services received and contractual terms, management believes that the amount payable is $41.3 thousand, which has been recognized in its consolidated balance sheet as of December 31, 2025, and intends to contest the remaining portion of the claim. Although there can be no assurance of the outcome of such legal actions, in the opinion of management, the Company does not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial condition, or cash flows. Lease obligations Refer to “Note 18 – Leases” for a description of the Company’s lease obligations as of December 31, 2025 and December 31, 2024. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

10000.0

408900

45000

208900

408900

45000

478600

408900

69700

408900

29610

0.6580

45000

110000

98000

1307653

600000

25000

75000

700000

650000

1032000

555000

125000

45000

26000

76300

41300

Note 18. Leases The Company has operating leases for office space. These leases have expected remaining lease terms ranging from less than one year to 7 years. The Company currently has two leases with an initial term of 12 months or less that are accounted for as short-term leases. The Company does not separate lease and fixed non-lease components of lease contracts. The Company’s lease terms may include options to extend or terminate the lease. These options are included in the lease term only when it is reasonably certain that the Company will elect the option. There are no material residual guarantees associated with any of the Company’s leases, and there are no significant restrictions or covenants included in the Company’s lease agreements. Certain leases include variable payments related to common area maintenance and property taxes, which are billed by the landlord, as is customary with these types of charges for office space. There was no sublease rental income for the year ended December 31, 2025 and 2024, and the Company is not the lessor in any lease arrangement. There were no related party lease arrangements during the year ended December 31, 2025, and 2024. The table below presents certain information related to the Company’s lease costs for the period ended (in thousands): Schedule of Lease Costs <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_499_20250101__20251231_zFD4uU1oBnt6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20240101__20241231_zX8phMO5Dt61" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">For the Year Ended December 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseCost_pn3n3_maLCzXdU_zNuWMSfHxZwj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Operating lease expense</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">171</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">204</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--ShortTermLeaseCost_pn3n3_maLCzXdU_zQUW9RigklJ7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Short-term lease cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">98</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">122</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--VariableLeaseCost_pn3n3_maLCzXdU_zervI9CEH71j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Variable lease cost</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">18</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">17</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LeaseCost_iT_pn3n3_mtLCzXdU_zO1R3ksvxiUb" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">Total lease cost</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">287</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">343</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table> Lease Position Operating lease right-of-use assets and operating lease liabilities were recorded in the consolidated balance sheets as follows (in thousands): Schedule of Operating Lease Right-of-Use Assets and Liabilities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_496_20251231_zXZkeXwnbjba" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49B_20241231_z7ywnJf0DPF" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pn3n3_zxkYy9wQkbLf" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; font-weight: bold; text-align: left">Operating lease right-of-use assets</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right"> 744</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right"> 870</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Current liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pn3n3_maOLLzEpT_zOjbaurrAkM2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease liability, current</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">85</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">74</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Noncurrent liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_pn3n3_maOLLzEpT_zPNLTgAUnG8l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">751</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">878</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiability_iTI_pn3n3_mtOLLzEpT_zlE0vfX7mmae" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total operating lease liability</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">836</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">952</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_896_ecustom--ScheduleOfOperatingLeasesWeightedAverageRemainingLeaseTermAndDisccountRateTableTextBlock_zqf03KTNM7Dd" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The table below presents certain information related to the weighted-average remaining lease term and the weighted-average discount rate for the Company’s operating leases: Schedule of Operating Leases Weighted Average Remaining Lease Term and Discount Rate <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,</td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,</td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Weighted average remaining lease term (in years) - operating leases</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 16%; text-align: right">6.17</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 16%; text-align: right">7.17</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Weighted average discount rate - operating leases</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">9.25</td> <td style="text-align: left">%</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">9.25</td> <td style="text-align: left">%</td></tr> </table> Cash Flows <p id="xdx_899_ecustom--ScheduleOfCashFlowsForTheCompanyOperatingLeasesTableTextBlock_znElnLveWKXj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The table below presents certain information related to the cash flows for the Company’s operating leases for the period ended (in thousands): Schedule of Cash flows for the Operating Leases <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_496_20250101__20251231_zz9EDfWSbgld" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20240101__20241231_zlohVAnhSZa1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">For the Year Ended December 31,</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr id="xdx_40D_eus-gaap--OperatingLeaseRightOfUseAssetAmortizationExpense_pn3n3_zaj6yz9Imvt5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Amortization of right-of-use assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">88</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">111</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--IncreaseDecreaseInOperatingLeaseLiability_pn3n3_z6qBCVWefgk9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in operating lease liability</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(73</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(87</td><td style="text-align: left">)</td></tr> </table> <p id="xdx_890_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zslXFPw2ei9g" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">Future minimum lease payments required under operating leases are as follows (in thousands): Schedule of Future Minimum Lease Payments <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left; font-weight: bold">Period Ended December 31,</td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20251231_zzfIU4womZmh" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Future Minimum Rents</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_maLOLLPz6cw_zoKqvWCMCFv3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">159</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_maLOLLPz6cw_zZgpPQz1Tjy1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">167</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_maLOLLPz6cw_zptnD0uze6i2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">175</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_maLOLLPz6cw_zJdrgvVv8sAi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">185</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFour_iI_pn3n3_maLOLLPz6cw_zITS4ODgarF8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">2030 and thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">430</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pn3n3_mtLOLLPz6cw_zLqUqbBJh6i8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Total minimum lease payments</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,116</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_zzoB9ItRVQLa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Less: effects of discounting</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(280</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseLiability_iTI_pn3n3_zT4ZoZxThlE4" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Present value of future minimum lease payments</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">836</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table> Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

These leases have expected remaining lease terms ranging from less than one year to 7 years.

The table below presents certain information related to the Company’s lease costs for the period ended (in thousands): Schedule of Lease Costs <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_499_20250101__20251231_zFD4uU1oBnt6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20240101__20241231_zX8phMO5Dt61" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">For the Year Ended December 31,</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseCost_pn3n3_maLCzXdU_zNuWMSfHxZwj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Operating lease expense</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">171</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">204</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--ShortTermLeaseCost_pn3n3_maLCzXdU_zQUW9RigklJ7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Short-term lease cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">98</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">122</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--VariableLeaseCost_pn3n3_maLCzXdU_zervI9CEH71j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Variable lease cost</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">18</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">17</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LeaseCost_iT_pn3n3_mtLCzXdU_zO1R3ksvxiUb" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">Total lease cost</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">287</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">343</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table>

171000

204000

98000

122000

18000

17000

287000

343000

Operating lease right-of-use assets and operating lease liabilities were recorded in the consolidated balance sheets as follows (in thousands): Schedule of Operating Lease Right-of-Use Assets and Liabilities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_496_20251231_zXZkeXwnbjba" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49B_20241231_z7ywnJf0DPF" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pn3n3_zxkYy9wQkbLf" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; font-weight: bold; text-align: left">Operating lease right-of-use assets</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right"> 744</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right"> 870</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Current liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pn3n3_maOLLzEpT_zOjbaurrAkM2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease liability, current</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">85</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">74</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Noncurrent liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_pn3n3_maOLLzEpT_zPNLTgAUnG8l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">751</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">878</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiability_iTI_pn3n3_mtOLLzEpT_zlE0vfX7mmae" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total operating lease liability</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">836</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">952</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

744000

870000

85000

74000

751000

878000

836000

952000

<p id="xdx_896_ecustom--ScheduleOfOperatingLeasesWeightedAverageRemainingLeaseTermAndDisccountRateTableTextBlock_zqf03KTNM7Dd" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The table below presents certain information related to the weighted-average remaining lease term and the weighted-average discount rate for the Company’s operating leases: Schedule of Operating Leases Weighted Average Remaining Lease Term and Discount Rate <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,</td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,</td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td> <td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Weighted average remaining lease term (in years) - operating leases</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 16%; text-align: right">6.17</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 16%; text-align: right">7.17</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Weighted average discount rate - operating leases</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">9.25</td> <td style="text-align: left">%</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">9.25</td> <td style="text-align: left">%</td></tr> </table>

P6Y2M1D

P7Y2M1D

0.0925

<p id="xdx_899_ecustom--ScheduleOfCashFlowsForTheCompanyOperatingLeasesTableTextBlock_znElnLveWKXj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">The table below presents certain information related to the cash flows for the Company’s operating leases for the period ended (in thousands): Schedule of Cash flows for the Operating Leases <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_496_20250101__20251231_zz9EDfWSbgld" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20240101__20241231_zlohVAnhSZa1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">For the Year Ended December 31,</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr id="xdx_40D_eus-gaap--OperatingLeaseRightOfUseAssetAmortizationExpense_pn3n3_zaj6yz9Imvt5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Amortization of right-of-use assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">88</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">111</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--IncreaseDecreaseInOperatingLeaseLiability_pn3n3_z6qBCVWefgk9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in operating lease liability</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(73</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(87</td><td style="text-align: left">)</td></tr> </table>

88000

111000

-73000

-87000

<p id="xdx_890_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zslXFPw2ei9g" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">Future minimum lease payments required under operating leases are as follows (in thousands): Schedule of Future Minimum Lease Payments <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left; font-weight: bold">Period Ended December 31,</td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20251231_zzfIU4womZmh" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Future Minimum Rents</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_maLOLLPz6cw_zoKqvWCMCFv3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">159</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_maLOLLPz6cw_zZgpPQz1Tjy1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">167</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_maLOLLPz6cw_zptnD0uze6i2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">175</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_maLOLLPz6cw_zJdrgvVv8sAi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">185</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFour_iI_pn3n3_maLOLLPz6cw_zITS4ODgarF8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">2030 and thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">430</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pn3n3_mtLOLLPz6cw_zLqUqbBJh6i8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Total minimum lease payments</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,116</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_zzoB9ItRVQLa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Less: effects of discounting</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(280</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseLiability_iTI_pn3n3_zT4ZoZxThlE4" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Present value of future minimum lease payments</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">836</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table>

159000

167000

175000

185000

430000

1116000

280000

836000

<p id="xdx_80B_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zawLRpNYZ7K9" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify">Note 19. Related Parties Related Party Convertible Notes In October 2019 and September 2021, the Company entered into two convertible promissory note agreements with a lender (the “Convertible Notes Payable”). As of December 31, 2024, the lender was considered a principal owner of the Company because it held greater than 10% of the voting common stock. The convertible notes payable, recorded in “Convertible Notes Payable, at Fair Value” in the consolidated balance sheet, amounted to $6,524.0 thousand as of December 31, 2024. As of December 31, 2025, the obligation under these notes was classified as a related party payable, with a balance of $300 thousands, and is recorded in “Related Party Payable” in the consolidated balance sheet. Refer to “Note 10 – Long-Term Debt,” “Convertible Notes at Fair Value” section for further details. BO2 Purchase Agreement In July 2021, Fusemachines Nepal Private Limited entered into the BO2 Purchase Agreement with a related party, BO2, and Mr. Maskey. According to the terms of the BO2 Purchase Agreement, BO2 agreed to invest up to $964.2 thousand in Fusemachines Nepal Private Limited to support the development and growth of the business. (Refer to “Note 8 – Cumulative Mandatorily Redeemable Financial Instruments”). In addition, the BO2 Purchase Agreement also included terms and conditions of regulating the management and operation of Fusemachines Nepal Private Limited, their relationship with each other, certain aspects of the business and affairs of, and their dealings with, Fusemachines Nepal Private Limited and BO2’s exit from Fusemachines Nepal Private Limited. The BO2 Agreement required Fusemachines Nepal Private Limited to pay BO2 a one-time arrangement fee of 1.5% exclusive of value added tax (“VAT”) of the BO2’s total investment, and an annual monitoring fee. Fusemachines Nepal Private Limited incurred an initial arrangement fee of $13.7 thousand which was recorded as a reduction to cumulative mandatorily redeemable common and preferred stock liability in the consolidated balance sheet for the periods ended December 31, 2025, and December 31, 2024. Additionally, Fusemachines Nepal Private Limited incurred $5.0 thousand as an annual monitoring fee for the year ended December 31, 2025 and 2024. Repurchase and Repayment of 2023 Promissory Notes In January 2024, the Company repurchased <span id="xdx_907_eus-gaap--StockRepurchasedDuringPeriodShares_pid_c20240101__20240131__us-gaap--DebtInstrumentAxis__custom--TwoThousandTwentyThreePromissoryNotesMember_zMcnvHtbBwW2" title="Company repurchased shares">667,000 shares of its common stock from Mr. Maskey, at a price of $4.352 per share for a total of $<span id="xdx_900_eus-gaap--StockRepurchasedDuringPeriodValue_pn2n3_c20240101__20240131__us-gaap--DebtInstrumentAxis__custom--TwoThousandTwentyThreePromissoryNotesMember_z3I92eYsH1sb" title="Company repurchased value">2,902.7 thousand. Out of this amount, $902.7 thousand was applied towards repayment of Mr. Maskey’s 2023 Promissory Note including accrued interest and balance of the Repurchase Consideration amounting to $2,000.0 thousand that was paid in cash to Mr. Maskey (see “Note 14 – Stock-based Compensation “). January 2024 Related Party Pledge Agreement In January 2024, Mr. Maskey entered into a pledge agreement (the “January 2024 Related Party Pledge Agreement”) with Consilium Extended Opportunities Fund, LP (“Consilium”). As per the terms of the January 2024 Related Party Pledge Agreement, Mr. Maskey agreed to assign a security interest to Consilium of <span id="xdx_909_eus-gaap--StockIssuedDuringPeriodValueNewIssues_pid_c20240101__20240131__us-gaap--TypeOfArrangementAxis__custom--January2024RelatedPartyPledgeAgreementMember_zEYE4jJ4PRGh" title="Shares of common stock">3,600,000 shares of common stock held by Mr. Maskey to fully secure the Company’s obligations under the January 2024 Convertible Notes (also see “Note 10 – Long-Term Debt “). 2024 Related Party Promissory Notes During 2024, the Company entered into seven separate promissory notes with Sameer Maskey, the CEO of the Company for aggregate principal amount of $<span id="xdx_909_eus-gaap--DebtInstrumentCarryingAmount_iI_pn3n3_c20241231__us-gaap--DebtInstrumentAxis__custom--TwoThousandTwentyFourRelatedPartyPromissoryNotesMember_zwvnlSsQ1ixf" title="Aggregate principal amount">700.0 thousand (refer to “Note 10 – Long-Term Debt “). Dolma Impact Fund I In January 2025, the Company amended the convertible note payable to Dolma Impact Fund I (“Dolma”). Pursuant to the amended terms, the maturity date was extended to February 28, 2026. As of December 31, 2025, the related party note payable to Dolma remained outstanding in the amount of $300 thousand and is presented in “Related party notes payable, at fair value, current” in the consolidated balance sheets. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements Private Investment in Public Equity (“PIPE”) Financing On December 23, 2025, Fusemachines Inc. (the “Company”) entered into a Securities Purchase Agreement with Consilium Frontier Equity Fund LP, a related party, pursuant to which the Company issued and sold <span id="xdx_90F_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20251223__20251223__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zCYKSowb07K3" title="Sale of stock">588,235 shares of its common stock, par value $0.0001 per share, at a purchase price of $1.70 per share in a private placement transaction (the “PIPE Financing”), resulting in aggregate gross proceeds of $<span id="xdx_90A_eus-gaap--ProceedsFromIssuanceOfPrivatePlacement_pn3n3_c20251223__20251223__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zPARCwyPM33l" title="Proceeds from private placement">1,000 thousand. The proceeds were received in cash at closing and the issuance was recorded within stockholders’ equity as permanent equity (refer Note 23 Private Investment in Public Equity (“PIPE”) Financing).

6524000.0

300000

964200

0.015 13700 5000.0

667000

4.352

2902700

902700

2000000.0

3600000

700000.0

300000

588235

0.0001

1.70

1000000

Note 20. Reverse Recapitalization Upon consummation of the transaction on October 22, 2025, Fusemachines Inc. (the “Company”) was determined to be the accounting acquirer, and the transaction was accounted for as a reverse recapitalization in accordance with U.S. GAAP. Accordingly, the historical financial statements of Legacy Fusemachines became the historical financial statements of the registrant. Accordingly, the following disclosure on “Reverse Recapitalization” is presented to summarize the common stock issued at Closing, the application of the exchange ratio, and the resulting additional paid-in-capital recognized in connection with the recapitalization. <p id="xdx_89F_ecustom--ScheduleOfOverallVotingInterestTableTextBlock_zUBXqlhLKGba" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The overall voting interest on closing date is summarized below: Schedule of Overall Voting Interest on Closing Date <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: justify">Particulars</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Shares</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">%Ownership</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Shares held by Fusemachines Inc. Stockholders</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--FusemachinesIncMember_zHeWfhhd1JMk" style="width: 16%; text-align: right" title="Number of shares issued">14,864,110</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_987_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--FusemachinesIncMember_zSNfo9ts3P6i" style="width: 16%; text-align: right" title="Ownership percentage">52</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Shares held by CSLM public stockholders, Sponsor, and related parties of Sponsor</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CSLMPublicStockholdersSponsorAndRelatedPartiesOfSponsorMember_zVEmtDg8SdF4" style="text-align: right" title="Number of shares issued">12,654,921</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CSLMPublicStockholdersSponsorAndRelatedPartiesOfSponsorMember_zM3Ahg08AiV9" style="text-align: right" title="Ownership percentage">45</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Shares held by unrelated third parties</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--UnrelatedThirdPartiesMember_z74zaVUotMOh" style="text-align: right" title="Number of shares issued">831,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--UnrelatedThirdPartiesMember_zORoaw2I0Xda" style="text-align: right" title="Ownership percentage">3</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify">Total</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98D_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__us-gaap--OtherInvesteesMember_z0KchCNXQEsa" style="font-weight: bold; text-align: right" title="Number of shares issued">28,350,031</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_982_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__us-gaap--OtherInvesteesMember_z8HvDzKrPD19" style="font-weight: bold; text-align: right" title="Ownership percentage">100</td><td style="font-weight: bold; text-align: left">%</td></tr> </table> On October 22, 2025, all holders of 29,199,809 issued and outstanding Legacy Fusemachines common stock received shares of Fusemachines Inc common stock at a par value $0.0001 per share after giving effect to the exchange ratio of 0.6580 (the “Conversion Ratio”) resulting in 19,214,201 shares of Fusemachines Inc. common stock issued and outstanding as of the Closing. The issuance reflects the following events contemplated by the Business Combination Agreement: (a) 9,043,234 shares of Legacy Fusemachines convertible preferred stock were converted into shares of Legacy Fusemachines common stock in accordance with the applicable conversion terms. Subsequently, in connection with the Business Combination, all such shares of Legacy Fusemachines common stock were exchanged for shares of common stock of Fusemachines Inc. (the “Company” or “PubCo”) based on the exchange ratio specified in the Business Combination Agreement. After giving effect to the exchange ratio, an aggregate of 5,950,673 shares of the Company’s common stock were issued. (b) The surrender and exchange of all 29,199,809 issued and outstanding shares of Legacy Fusemachines common stock (including shares issued upon conversion of preferred stock) into 19,214,201 shares of Fusemachines Inc. common stock as adjusted by the Exchange Ratio; (c) The other related events that occurred in connection with the Closing are summarized below: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Upon the closing date, there is settlement of sponsor convertible note amounting to $3,978 thousand which was effected through a combination of $2,343 thousand in cash and balance through issuance of 408,639 common stock of Fusemachines Inc.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Public shareholders of CSLM received an aggregate of <span id="xdx_90D_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20251022__20251022__dei--LegalEntityAxis__custom--CSLMAcquisitionCorpMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zmgYhwh4r127" title="Aggregate shares received">901,955 shares of Fusemachines Inc. common stock.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">All public rights were converted into 1,897,486 shares of Fusemachines Inc. common stock.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_902_ecustom--StockIssuedDuringPeriodSharesIssuedWithPipeFinancing_pid_c20251022__20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z7P1eOD5Aj4g" title="Stock issued in connection with PIPE financing">1,184,000 shares of Fusemachines Inc. common stock issued in connection with the PIPE Financing.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Issuance of <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_pid_c20251022__20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember__us-gaap--StatementEquityComponentsAxis__custom--ClassAAndClassBOrdinarySharesMember_zABlGwuP74Pb" title="Common stock conversion of non-redeemable">4,743,750 shares of Fusemachines Inc common stock upon conversion of non-redeemable CSLM Class A & Class B Ordinary Shares.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Fusemachines Inc. received funds from a convertible note with an affiliate of the Sponsor in the principal amount of $<span id="xdx_905_eus-gaap--DebtInstrumentFaceAmount_iI_pn3n3_c20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_ztNNh88Enyif" title="Principal amount">2,193 thousand. On the Closing Date, the note was converted into a share of Fusemachines Inc. common stock pursuant to the conversion terms of the convertible note agreement. </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Approximately $<span id="xdx_908_ecustom--StockIssuedDuringPeriodValuePrepaidForwardPurchaseAgreement_pn3n3_c20251022__20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z5kV8NiQakqa" title="Prepayment under forward purchase agreement">11,005 thousand prepayment made by CSLM to the Meteora Parties pursuant to the Forward Purchase Agreement funded from the Trust Account. </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Repayment of approximately $<span id="xdx_900_eus-gaap--RepaymentsOfNotesPayable_pn3n3_c20251022__20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zxWivW31DI02" title="Repayment of promissory notes">745 thousand (principal and accrued interest) on promissory notes issued to the Chief Executive Officer.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Each Convertible note of Legacy Fusemachines (including both related party and other convertible notes) outstanding immediately prior to the Closing was converted into shares of Legacy Fusemachines common stock of <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_pid_c20251022__20251022__dei--LegalEntityAxis__custom--LegacyFusemachinesMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--ConvertibleNoteAgreementMember_zbWfJCKMEBGa" title="Common stock conversion of non-redeemable">8,048,770 shares in accordance with the applicable convertible note agreement and immediately thereafter exchanged into <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_pid_c20251022__20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--ConvertibleNoteAgreementMember_zFOdTDGqH0Xe" title="Common stock conversion of non-redeemable">5,296,271 shares of Fusemachines Inc. common stock in accordance with the Conversion Ratio specified in the Business Combination Agreement accordingly as a result of the conversions and exchanges, no convertible notes or related-party notes payable remained outstanding as of December 31, 2025, other than related party note payable related to Dolma amounting $300 thousand.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> Upon the closing of the business combination, the Company settled its obligation under the Second Agreement through the issuance of <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20251022__20251022__us-gaap--BusinessAcquisitionAxis__custom--FusemachinesIncMember_zH90TqNf0moa" title="Stock issued for acquisition, shares">29,610 shares of Fusemachines, Inc. common stock, reflecting the application of the 0.6580 conversion ratio to the <span id="xdx_908_eus-gaap--ConvertiblePreferredStockSharesIssuedUponConversion_iI_c20251022__us-gaap--BusinessAcquisitionAxis__custom--FusemachinesIncMember_zd9abSbyNXK9" title="Stock issued upon conversion, shares">45,000 shares of the Company’s common stock, and a partial cash payment of approximately $<span id="xdx_907_eus-gaap--PaymentsToAcquireBusinessesGross_pn3n3_c20250101__20251231__us-gaap--BusinessAcquisitionAxis__custom--FusemachinesIncMember_z6nVTynxiHT5" title="Payments to acquire businesses gross">110 thousand. The remaining $98 thousand obligation is still outstanding and is reflected in accounts payable as of December 31, 2025. (refer Note 17 - Commitments and Contingencies). </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Upon the conversion of the April 2024, June 2024 and September 2024 Convertible Note to common stock, the Company shall issue the holder a warrant to purchase <span id="xdx_90C_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_pid_c20251022__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--DebtInstrumentAxis__custom--AprilTwoThousandTwentyFourConvertibleNoteMember_zQR2Paodvpr9" title="Warrant to purchase"><span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_pid_c20251022__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--DebtInstrumentAxis__custom--JuneTwoThousandTwentyFourConvertibleNoteMember_z46DdwwFoszl" title="Warrant to purchase"><span id="xdx_909_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_pid_c20251022__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--DebtInstrumentAxis__custom--SeptemberTwoThousandTwentyFourConvertibleNoteMember_zKxV6f6A5NM4" title="Warrant to purchase">7,500 shares of common stock of CSLM with a per share exercise price of $<span id="xdx_903_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20251022__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--DebtInstrumentAxis__custom--AprilTwoThousandTwentyFourConvertibleNoteMember_zzUeoJLBtfQe" title="Common stock exercise price"><span id="xdx_901_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20251022__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--DebtInstrumentAxis__custom--JuneTwoThousandTwentyFourConvertibleNoteMember_zKuNqBfvFM56" title="Common stock exercise price"><span id="xdx_909_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20251022__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--DebtInstrumentAxis__custom--SeptemberTwoThousandTwentyFourConvertibleNoteMember_z0wM2yumS80c" title="Common stock exercise price">11.50. The warrants issuable upon conversion of the April 2024, June 2024 and September 2024 Convertible Notes are classified as equity instruments.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">●</td><td style="text-align: justify">The assumption of the public and private warrants, as described in Note 24 “Public and private warrants”.</td></tr> <tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">●</td><td style="text-align: justify">The Company’s amended and restated certificate of incorporation and amended and restated bylaws were adopted.</td></tr> <tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">●</td><td style="text-align: justify">The Company adopted the 2025 equity incentive plan.</td></tr></table> Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements <p id="xdx_897_ecustom--ScheduleOfReverseRecapitalizationTableTextBlock_zWFoCLvUEk6g" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> Schedule of Reverse Recapitalization <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Particulars</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Shares</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: justify">Partial conversion of the 3rd Amended and Restated Promissory Note into Fusemachines Inc. common stock on the Closing Date</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_pid_c20251022__20251022__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--SubsidiarySaleOfStockAxis__custom--ThirdAmendedAndRestatedPromissoryNoteMember_z3VD7OICRLaa" style="width: 16%; text-align: right" title="Conversion of stock">408,639</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">CSLM Class A ordinary Shares not redeemed for cash and converted into Fusemachines Inc. common stock</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ConversionOfStockSharesConverted1_pid_c20251022__20251022__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__dei--LegalEntityAxis__custom--CSLMAcquisitionCorpMember_zXEesrYim7pl" style="text-align: right" title="Converted into common stock">901,955</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Automatic exercise of the rights related to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFJldmVyc2UgUmVjYXBpdGFsaXphdGlvbiAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20251022__20251022__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_z5lbO5lmmUVi" title="Number of shares units">18,975,000 units issued in CSLM’s Initial Public Offering</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_c20251022__20251022__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember__dei--LegalEntityAxis__custom--CSLMAcquisitionCorpMember_zmzUtFoTHlyh" style="text-align: right" title="Exercise of shares">1,897,486</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Shares issued in connection with the PIPE Financing</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20251022__20251022__us-gaap--SubsidiarySaleOfStockAxis__custom--PipeFinancingMember_zKCai77Te491" style="text-align: right" title="Shares issued">1,184,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Conversion of non-redeemable CSLM Class A & Class B Ordinary Shares into Fusemachines Inc. common stock</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ConversionOfStockSharesConverted1_pid_c20251022__20251022__us-gaap--StatementClassOfStockAxis__custom--ClassAAndClassBCommonStockMember__dei--LegalEntityAxis__custom--CSLMAcquisitionCorpMember_zNPzDVSisXjj" style="text-align: right" title="Conversion of stock">4,743,749</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Share issued to Consilium Frontier Equity Fund in connection with conversion of convertible note on the closing date</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20251022__20251022__dei--LegalEntityAxis__custom--ConsiliumFrontierEquityFundLPMember_z72AS2bANyi8" style="text-align: right" title="Shares issued">3,320,241</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Total shares of Fusemachines Inc. common stock issued to CSLM security holders</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_985_ecustom--StockIssuedDuringPeriodSharesIssuanceOfCommonStockUponReverseRecapitalizationNetOfIssuanceCosts_pid_c20251022__20251022__dei--LegalEntityAxis__custom--ConsiliumFrontierEquityFundLPMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zU3lAA9iKHzd" style="font-weight: bold; text-align: right" title="Total shares of Fusemachines Inc. common stock issued to CSLM security holders">12,456,071</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Conversion of Legacy Fusemachines convertible notes (as adjusted by the Exchange Ratio)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_pid_c20251022__20251022__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__dei--LegalEntityAxis__custom--CSLMAcquisitionCorpMember_zp7lG24W7jTj" style="text-align: right" title="Conversion of stock">1,976,050</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Conversion of Legacy Fusemachines convertible preferred stock into common stock in connection with the reverse Recapitalization (as adjusted by the Exchange Ratio)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ConversionOfStockSharesConverted1_pid_c20251022__20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember_zLxEkE9h51r6" style="text-align: right" title="Converted into common stock">5,950,673</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Shares issued to Legacy Fusemachines stockholders (as adjusted by the Exchange Ratio)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20251022__20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember_zUKhuJ9xFeAe" style="text-align: right" title="Shares issued">7,967,237</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Total shares of Fusemachines Inc. common stock outstanding immediately after the Merger</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98E_eus-gaap--SharesOutstanding_iI_pid_c20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zkmltBjJjSE8" style="font-weight: bold; text-align: right" title="Total shares of Fusemachines Inc. common stock outstanding immediately after the Merger">28,350,031</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> Below table presents the Fund flow reconciliation (in thousands): <p id="xdx_893_ecustom--ScheduleOfFundFlowReconciliationTableTextBlock_zNvRu7YP8H31" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 14.2pt; text-align: justify"> Schedule of Fund Flow Reconciliation <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: justify">Particulars </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20251022__20251022_zWHq0MOpZfk7" style="border-bottom: Black 1pt solid">(Amount In Thousands) </td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_401_eus-gaap--ProceedsFromIssuanceOfTrustPreferredSecurities_pn3n3_maCAzo2P_zadMs7ctExwk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">Trust balance as of Closing date</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">11,118</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--ProceedsFromLoans_pn3n3_maCAzo2P_zEvTIy5Uqq4h" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Proceeds from CSLM loan</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,193</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--ProceedsFromSaleOfOtherInvestments_pn3n3_maCAzo2P_zBiJ1SEz6Qm1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">PIPE Proceeds</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,840</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_ecustom--TransferOfCashCashEquivalent_pn3n3_maCAzo2P_z0kmd7EKYpJi" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Transfer of cash & cash equivalent of CSLM</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--CashAvailable_iT_pn3n3_mtCAzo2P_maPFRCzMzd_z4PuKzxCk8G1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">Total Available Cash (A)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">25,160</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_404_ecustom--TransactionCosts_iN_pn3n3_di_maPAOCDzcl5_zK2hpYVCvX9e" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">CSLM transaction costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,249</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--PaymentsForReinsurance_iN_pn3n3_di_maPAOCDzcl5_ze49xn0fzjbl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Payment of Director & Officer insurance premium</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(131</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_ecustom--PrepaymentUnderForwardPurchaseAgreement_iN_pn3n3_di_maPAOCDzcl5_zk86oR0yQwh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepayment under Forward Purchase Agreement</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(11,005</td><td style="text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--GainLossRelatedToLitigationSettlement_iN_pn3n3_di_maPAOCDzcl5_zuGLPOYjiyE1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Settlement of sponsor convertible note of CSLM</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,343</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40C_ecustom--PaymentsAsOfClosingDate_iNT_pn3n3_di_mtPAOCDzcl5_msPFRCzMzd_zxwlFoEOAff7" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">Total Payments as of the closing date (B)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(15,728</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td></tr> <tr id="xdx_402_ecustom--ProceedsFromReverseCapitalisation_iT_mtPFRCzMzd_maNEIORzXdC_z3vC814xUEok" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Funds going to Fusemachines Inc. (classified under financing activities under Consolidated Statements of Cash Flows) (A+B)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">9,432</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--OperatingAssetsAssumed_pn3n3_msNEIORzXdC_zGP3KzmqPpp4" style="font-style: normal; vertical-align: bottom; background-color: White; font-weight: normal"> <td style="font-style: normal; font-weight: normal; text-align: left">Operating assets assumed</td><td style="font-style: normal; font-weight: normal"> </td> <td style="font-style: normal; font-weight: normal; text-align: left"> </td><td style="font-style: normal; font-weight: normal; text-align: right">531 </td><td style="font-style: normal; font-weight: normal; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LiabilitiesAssumed1_iN_pn3n3_di_msNEIORzXdC_zv2oaZk5i5De" style="font-style: normal; vertical-align: bottom; background-color: rgb(204,238,255); font-weight: normal"> <td style="font-style: normal; font-weight: normal; text-align: left">Operating liabilities assumed</td><td style="font-style: normal; font-weight: normal"> </td> <td style="font-style: normal; font-weight: normal; text-align: left"> </td><td style="font-style: normal; font-weight: normal; text-align: right">(1,100</td><td style="font-style: normal; font-weight: normal; text-align: left">)</td></tr> <tr style="font-style: normal; vertical-align: bottom; background-color: White; font-weight: normal"> <td style="font-style: normal; font-weight: normal; text-align: left">Initial fair value of forward purchase derivative liability</td><td style="font-style: normal; font-weight: normal"> </td> <td style="font-style: normal; font-weight: normal; text-align: left"> </td><td style="font-style: normal; font-weight: normal; text-align: right">(8,616</td><td style="font-style: normal; font-weight: normal; text-align: left">)</td></tr> <tr id="xdx_40D_ecustom--IssuanceOfSubscriptionReceivable_pn3n3_msNEIORzXdC_z3A4uJwA3FJb" style="font-style: normal; vertical-align: bottom; background-color: rgb(204,238,255); font-weight: normal"> <td style="font-style: normal; font-weight: normal; text-align: left">Issuance of share subscription receivable</td><td style="font-style: normal; font-weight: normal"> </td> <td style="font-style: normal; font-weight: normal; text-align: left"> </td><td style="font-style: normal; font-weight: normal; text-align: right">11,005</td><td style="font-style: normal; font-weight: normal; text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--FairValueAdjustmentOfWarrant_pn3n3_di_maNEIORzXdC_zX7QfD5mT0r7" style="font-style: normal; vertical-align: bottom; background-color: White; font-weight: normal"> <td style="font-style: normal; font-weight: normal; text-align: left">Initial fair value of equity classified warrant</td><td style="font-style: normal; font-weight: normal"> </td> <td style="font-style: normal; font-weight: normal; text-align: left"> </td><td style="font-style: normal; font-weight: normal; text-align: right">(1,009</td><td style="font-style: normal; font-weight: normal; text-align: left">) </td></tr> <tr id="xdx_401_eus-gaap--AssetAcquisitionConsiderationTransferredTransactionCost_pn3n3_di_msNEIORzXdC_zdR10mmTA85c" style="font-style: normal; vertical-align: bottom; background-color: rgb(204,238,255); font-weight: normal"> <td style="font-style: normal; font-weight: normal; text-align: left">Legacy Fusemachines transaction cost</td><td style="font-style: normal; font-weight: normal"> </td> <td style="font-style: normal; font-weight: normal; text-align: left"> </td><td style="font-style: normal; font-weight: normal; text-align: right">(1,873</td><td style="font-style: normal; font-weight: normal; text-align: left">) </td></tr> <tr id="xdx_40A_ecustom--OthersAdjustmentsReverseRecapitalization_pn3n3_msNEIORzXdC_zS2FFHz0EPul" style="font-style: normal; vertical-align: bottom; background-color: White; font-weight: normal"> <td style="padding-bottom: 1pt; font-style: normal; font-weight: normal; text-align: left">Others</td><td style="padding-bottom: 1pt; font-style: normal; font-weight: normal"> </td> <td style="border-bottom: Black 1pt solid; font-style: normal; font-weight: normal; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-style: normal; font-weight: normal; text-align: right">137</td><td style="padding-bottom: 1pt; font-style: normal; font-weight: normal; text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--NetEquityImpactOfReverseRecapitalization_pn3n3_mtNEIORzXdC_z0TpUnJzlk4b" style="font-style: normal; vertical-align: bottom; background-color: rgb(204,238,255); font-weight: normal"> <td style="padding-bottom: 1pt; font-style: normal; font-weight: normal; text-align: left">Net equity impact of reverse recapitalization</td><td style="padding-bottom: 1pt; font-style: normal; font-weight: normal"> </td> <td style="border-bottom: Black 1pt solid; font-style: normal; font-weight: normal; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-style: normal; font-weight: normal; text-align: right">8,507</td><td style="padding-bottom: 1pt; font-style: normal; font-weight: normal; text-align: left"> </td></tr> </table> The reverse recapitalization accounting treatment was primarily determined based on the fact that the stockholders of Legacy Fusemachines held a relative majority of the voting power of Fusemachines and had the ability to nominate a majority of the members of the Board of Directors. In addition, the senior management of Legacy Fusemachines becomes the senior management of Fusemachines, and the strategy and operations of Legacy Fusemachines prior to the merger represent the ongoing operations of the combined Company. Accordingly, for accounting purposes, the financial statements of Fusemachines represent a continuation of the financial statements of Legacy Fusemachines, with the Merger being treated as the equivalent of Legacy Fusemachines issuing shares for the net assets of CSLM, accompanied by a recapitalization. The net assets of CSLM were recognized at their historical carrying amounts as of the Closing date, and no goodwill or other intangible assets were recorded. Operations prior to the Merger are presented as those of Legacy Fusemachines and the accumulated deficit of Legacy Fusemachines has been carried forward after Closing. Fusemachines Inc. incurred transaction costs of $1,873 thousands, consisting of deferred transaction cost, banking fees, legal fees, and other professional fees, which has been recorded as a reduction to additional paid-in capital as a direct and incremental cost of the reverse recapitalization. All periods presented prior to the Merger have been retrospectively adjusted to reflect the Exchange Ratio for the equivalent number of shares of Fusemachines Inc. common stock outstanding immediately after the Closing in order to effect the reverse recapitalization. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements <p id="xdx_89F_ecustom--ScheduleOfOverallVotingInterestTableTextBlock_zUBXqlhLKGba" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">The overall voting interest on closing date is summarized below: Schedule of Overall Voting Interest on Closing Date <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: justify">Particulars</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Shares</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">%Ownership</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Shares held by Fusemachines Inc. Stockholders</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--FusemachinesIncMember_zHeWfhhd1JMk" style="width: 16%; text-align: right" title="Number of shares issued">14,864,110</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_987_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--FusemachinesIncMember_zSNfo9ts3P6i" style="width: 16%; text-align: right" title="Ownership percentage">52</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Shares held by CSLM public stockholders, Sponsor, and related parties of Sponsor</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CSLMPublicStockholdersSponsorAndRelatedPartiesOfSponsorMember_zVEmtDg8SdF4" style="text-align: right" title="Number of shares issued">12,654,921</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CSLMPublicStockholdersSponsorAndRelatedPartiesOfSponsorMember_zM3Ahg08AiV9" style="text-align: right" title="Ownership percentage">45</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Shares held by unrelated third parties</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--UnrelatedThirdPartiesMember_z74zaVUotMOh" style="text-align: right" title="Number of shares issued">831,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--UnrelatedThirdPartiesMember_zORoaw2I0Xda" style="text-align: right" title="Ownership percentage">3</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify">Total</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98D_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__us-gaap--OtherInvesteesMember_z0KchCNXQEsa" style="font-weight: bold; text-align: right" title="Number of shares issued">28,350,031</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_982_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__us-gaap--OtherInvesteesMember_z8HvDzKrPD19" style="font-weight: bold; text-align: right" title="Ownership percentage">100</td><td style="font-weight: bold; text-align: left">%</td></tr> </table>

14864110000

0.52

12654921000

0.45

831000000

0.03

28350031000

29199809

0.0001

0.6580

19214201

9043234

5950673

29199809

19214201

408639

901955000

1897486

1184000

4743750

2193000

11005000

745000

8048770

5296271

300000

29610000

0.6580

45000000

110000

98000

7500

11.50

<p id="xdx_897_ecustom--ScheduleOfReverseRecapitalizationTableTextBlock_zWFoCLvUEk6g" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"> Schedule of Reverse Recapitalization <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Particulars</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Shares</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: justify">Partial conversion of the 3rd Amended and Restated Promissory Note into Fusemachines Inc. common stock on the Closing Date</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_pid_c20251022__20251022__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--SubsidiarySaleOfStockAxis__custom--ThirdAmendedAndRestatedPromissoryNoteMember_z3VD7OICRLaa" style="width: 16%; text-align: right" title="Conversion of stock">408,639</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">CSLM Class A ordinary Shares not redeemed for cash and converted into Fusemachines Inc. common stock</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ConversionOfStockSharesConverted1_pid_c20251022__20251022__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__dei--LegalEntityAxis__custom--CSLMAcquisitionCorpMember_zXEesrYim7pl" style="text-align: right" title="Converted into common stock">901,955</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Automatic exercise of the rights related to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFJldmVyc2UgUmVjYXBpdGFsaXphdGlvbiAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20251022__20251022__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_z5lbO5lmmUVi" title="Number of shares units">18,975,000 units issued in CSLM’s Initial Public Offering</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_c20251022__20251022__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember__dei--LegalEntityAxis__custom--CSLMAcquisitionCorpMember_zmzUtFoTHlyh" style="text-align: right" title="Exercise of shares">1,897,486</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Shares issued in connection with the PIPE Financing</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20251022__20251022__us-gaap--SubsidiarySaleOfStockAxis__custom--PipeFinancingMember_zKCai77Te491" style="text-align: right" title="Shares issued">1,184,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Conversion of non-redeemable CSLM Class A & Class B Ordinary Shares into Fusemachines Inc. common stock</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ConversionOfStockSharesConverted1_pid_c20251022__20251022__us-gaap--StatementClassOfStockAxis__custom--ClassAAndClassBCommonStockMember__dei--LegalEntityAxis__custom--CSLMAcquisitionCorpMember_zNPzDVSisXjj" style="text-align: right" title="Conversion of stock">4,743,749</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Share issued to Consilium Frontier Equity Fund in connection with conversion of convertible note on the closing date</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20251022__20251022__dei--LegalEntityAxis__custom--ConsiliumFrontierEquityFundLPMember_z72AS2bANyi8" style="text-align: right" title="Shares issued">3,320,241</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Total shares of Fusemachines Inc. common stock issued to CSLM security holders</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_985_ecustom--StockIssuedDuringPeriodSharesIssuanceOfCommonStockUponReverseRecapitalizationNetOfIssuanceCosts_pid_c20251022__20251022__dei--LegalEntityAxis__custom--ConsiliumFrontierEquityFundLPMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zU3lAA9iKHzd" style="font-weight: bold; text-align: right" title="Total shares of Fusemachines Inc. common stock issued to CSLM security holders">12,456,071</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Conversion of Legacy Fusemachines convertible notes (as adjusted by the Exchange Ratio)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_pid_c20251022__20251022__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__dei--LegalEntityAxis__custom--CSLMAcquisitionCorpMember_zp7lG24W7jTj" style="text-align: right" title="Conversion of stock">1,976,050</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Conversion of Legacy Fusemachines convertible preferred stock into common stock in connection with the reverse Recapitalization (as adjusted by the Exchange Ratio)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ConversionOfStockSharesConverted1_pid_c20251022__20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember_zLxEkE9h51r6" style="text-align: right" title="Converted into common stock">5,950,673</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Shares issued to Legacy Fusemachines stockholders (as adjusted by the Exchange Ratio)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20251022__20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember_zUKhuJ9xFeAe" style="text-align: right" title="Shares issued">7,967,237</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Total shares of Fusemachines Inc. common stock outstanding immediately after the Merger</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98E_eus-gaap--SharesOutstanding_iI_pid_c20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zkmltBjJjSE8" style="font-weight: bold; text-align: right" title="Total shares of Fusemachines Inc. common stock outstanding immediately after the Merger">28,350,031</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

408639

901955

18975000

1897486

1184000

4743749

3320241

12456071

1976050

5950673

7967237

28350031

<p id="xdx_893_ecustom--ScheduleOfFundFlowReconciliationTableTextBlock_zNvRu7YP8H31" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 14.2pt; text-align: justify"> Schedule of Fund Flow Reconciliation <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: justify">Particulars </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20251022__20251022_zWHq0MOpZfk7" style="border-bottom: Black 1pt solid">(Amount In Thousands) </td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_401_eus-gaap--ProceedsFromIssuanceOfTrustPreferredSecurities_pn3n3_maCAzo2P_zadMs7ctExwk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">Trust balance as of Closing date</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">11,118</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--ProceedsFromLoans_pn3n3_maCAzo2P_zEvTIy5Uqq4h" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Proceeds from CSLM loan</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,193</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--ProceedsFromSaleOfOtherInvestments_pn3n3_maCAzo2P_zBiJ1SEz6Qm1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">PIPE Proceeds</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,840</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_ecustom--TransferOfCashCashEquivalent_pn3n3_maCAzo2P_z0kmd7EKYpJi" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Transfer of cash & cash equivalent of CSLM</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--CashAvailable_iT_pn3n3_mtCAzo2P_maPFRCzMzd_z4PuKzxCk8G1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">Total Available Cash (A)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">25,160</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_404_ecustom--TransactionCosts_iN_pn3n3_di_maPAOCDzcl5_zK2hpYVCvX9e" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">CSLM transaction costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,249</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--PaymentsForReinsurance_iN_pn3n3_di_maPAOCDzcl5_ze49xn0fzjbl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Payment of Director & Officer insurance premium</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(131</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_ecustom--PrepaymentUnderForwardPurchaseAgreement_iN_pn3n3_di_maPAOCDzcl5_zk86oR0yQwh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prepayment under Forward Purchase Agreement</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(11,005</td><td style="text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--GainLossRelatedToLitigationSettlement_iN_pn3n3_di_maPAOCDzcl5_zuGLPOYjiyE1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Settlement of sponsor convertible note of CSLM</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,343</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40C_ecustom--PaymentsAsOfClosingDate_iNT_pn3n3_di_mtPAOCDzcl5_msPFRCzMzd_zxwlFoEOAff7" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">Total Payments as of the closing date (B)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(15,728</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td></tr> <tr id="xdx_402_ecustom--ProceedsFromReverseCapitalisation_iT_mtPFRCzMzd_maNEIORzXdC_z3vC814xUEok" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Funds going to Fusemachines Inc. (classified under financing activities under Consolidated Statements of Cash Flows) (A+B)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">9,432</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--OperatingAssetsAssumed_pn3n3_msNEIORzXdC_zGP3KzmqPpp4" style="font-style: normal; vertical-align: bottom; background-color: White; font-weight: normal"> <td style="font-style: normal; font-weight: normal; text-align: left">Operating assets assumed</td><td style="font-style: normal; font-weight: normal"> </td> <td style="font-style: normal; font-weight: normal; text-align: left"> </td><td style="font-style: normal; font-weight: normal; text-align: right">531 </td><td style="font-style: normal; font-weight: normal; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LiabilitiesAssumed1_iN_pn3n3_di_msNEIORzXdC_zv2oaZk5i5De" style="font-style: normal; vertical-align: bottom; background-color: rgb(204,238,255); font-weight: normal"> <td style="font-style: normal; font-weight: normal; text-align: left">Operating liabilities assumed</td><td style="font-style: normal; font-weight: normal"> </td> <td style="font-style: normal; font-weight: normal; text-align: left"> </td><td style="font-style: normal; font-weight: normal; text-align: right">(1,100</td><td style="font-style: normal; font-weight: normal; text-align: left">)</td></tr> <tr style="font-style: normal; vertical-align: bottom; background-color: White; font-weight: normal"> <td style="font-style: normal; font-weight: normal; text-align: left">Initial fair value of forward purchase derivative liability</td><td style="font-style: normal; font-weight: normal"> </td> <td style="font-style: normal; font-weight: normal; text-align: left"> </td><td style="font-style: normal; font-weight: normal; text-align: right">(8,616</td><td style="font-style: normal; font-weight: normal; text-align: left">)</td></tr> <tr id="xdx_40D_ecustom--IssuanceOfSubscriptionReceivable_pn3n3_msNEIORzXdC_z3A4uJwA3FJb" style="font-style: normal; vertical-align: bottom; background-color: rgb(204,238,255); font-weight: normal"> <td style="font-style: normal; font-weight: normal; text-align: left">Issuance of share subscription receivable</td><td style="font-style: normal; font-weight: normal"> </td> <td style="font-style: normal; font-weight: normal; text-align: left"> </td><td style="font-style: normal; font-weight: normal; text-align: right">11,005</td><td style="font-style: normal; font-weight: normal; text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--FairValueAdjustmentOfWarrant_pn3n3_di_maNEIORzXdC_zX7QfD5mT0r7" style="font-style: normal; vertical-align: bottom; background-color: White; font-weight: normal"> <td style="font-style: normal; font-weight: normal; text-align: left">Initial fair value of equity classified warrant</td><td style="font-style: normal; font-weight: normal"> </td> <td style="font-style: normal; font-weight: normal; text-align: left"> </td><td style="font-style: normal; font-weight: normal; text-align: right">(1,009</td><td style="font-style: normal; font-weight: normal; text-align: left">) </td></tr> <tr id="xdx_401_eus-gaap--AssetAcquisitionConsiderationTransferredTransactionCost_pn3n3_di_msNEIORzXdC_zdR10mmTA85c" style="font-style: normal; vertical-align: bottom; background-color: rgb(204,238,255); font-weight: normal"> <td style="font-style: normal; font-weight: normal; text-align: left">Legacy Fusemachines transaction cost</td><td style="font-style: normal; font-weight: normal"> </td> <td style="font-style: normal; font-weight: normal; text-align: left"> </td><td style="font-style: normal; font-weight: normal; text-align: right">(1,873</td><td style="font-style: normal; font-weight: normal; text-align: left">) </td></tr> <tr id="xdx_40A_ecustom--OthersAdjustmentsReverseRecapitalization_pn3n3_msNEIORzXdC_zS2FFHz0EPul" style="font-style: normal; vertical-align: bottom; background-color: White; font-weight: normal"> <td style="padding-bottom: 1pt; font-style: normal; font-weight: normal; text-align: left">Others</td><td style="padding-bottom: 1pt; font-style: normal; font-weight: normal"> </td> <td style="border-bottom: Black 1pt solid; font-style: normal; font-weight: normal; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-style: normal; font-weight: normal; text-align: right">137</td><td style="padding-bottom: 1pt; font-style: normal; font-weight: normal; text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--NetEquityImpactOfReverseRecapitalization_pn3n3_mtNEIORzXdC_z0TpUnJzlk4b" style="font-style: normal; vertical-align: bottom; background-color: rgb(204,238,255); font-weight: normal"> <td style="padding-bottom: 1pt; font-style: normal; font-weight: normal; text-align: left">Net equity impact of reverse recapitalization</td><td style="padding-bottom: 1pt; font-style: normal; font-weight: normal"> </td> <td style="border-bottom: Black 1pt solid; font-style: normal; font-weight: normal; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-style: normal; font-weight: normal; text-align: right">8,507</td><td style="padding-bottom: 1pt; font-style: normal; font-weight: normal; text-align: left"> </td></tr> </table>

11118000

2193000

11840000

9000 25160000 2249000

131000

11005000

2343000

15728000 9432000 531000

1100000

11005000 1009000

1873000

137000 8507000

1873000

<p id="xdx_805_ecustom--ForwardPurchaseAgreementDisclosureTextBlock_zPNbTnSPbvYj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Note 21. Forward Purchase agreement On July 31, 2025, CSLM and Legacy Fusemachines (CSLM prior to the Merger and the Company after the Merger, (the “Counterparty”), entered into an over-the-counter (OTC) equity prepaid forward confirmation (the “Forward Purchase Agreement” or “FPA”) with Meteora Capital Partners, LP, Meteora Select Trading Opportunities Master, LP and Meteora Strategic Capital, LLC (collectively, the “Sellers”) Upon the consummation of the Merger on October 22, 2025, the Sellers (Meteora) delivered a Pricing Date Notice (as defined in the Forward Purchase Agreement). Based on this notice, the applicable Prepayment Amount (as defined in the Forward Purchase Agreement) became determinable and was subsequently funded by the Counterparty from the Trust Account (as defined in the Forward Purchase Agreement) in accordance with the Forward Purchase Agreement. Under the material terms of the FPA: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The Sellers committed (in one or more Pricing Date Notices) to provide up to a maximum of <span id="xdx_90C_eus-gaap--SharesIssued_iI_c20250731__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--BusinessAcquisitionAxis__custom--CSLMAcquisitionCorpMember_zq6fCegCAhbk" title="Shares issued">3,000,000 shares of Class A common stock for the Transaction.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The Counterparty agreed to pay the Sellers a Prepayment Amount equal to the Number of Shares (as defined in the Forward Purchase Agreement) specified in each Pricing Date Notice multiplied by the per-share redemption price (the “Initial Price” as defined in the Counterparty’s organizational documents). The Prepayment Amount is payable from the Counterparty’s Trust Account and subject to receipt of a Pricing Date Notice, will be wired no later than the earlier of (a) one Local Business Day after the Closing Date and (b) the date any Trust Account assets are disbursed in connection with the Business Combination.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The Sellers waived any rights to the Trust Account funds in respect of the FPA and agreed not to seek recourse against the Trust Account except as expressly provided in the FPA.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Settlement is by cash settlement at the end of the agreement: on the Valuation Date (generally three years after the Closing Date unless earlier determined under specified events as set forth in the SPA) the Seller will pay the Counterparty a cash amount equal to the Number of Shares as of the Valuation Date multiplied by the VWAP over the Valuation Period; the cash settlement payment date is the tenth local business day following the end of the Valuation Period.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The FPA includes an early termination mechanism: where Sellers sell (terminate) specified shares after closing, Sellers must pay an Early Termination Obligation (as defined in the Forward Purchase Agreement) to Counterparty equal to the number of Terminated Shares (as defined in the Forward Purchase Agreement) multiplied by the Termination Price of $12.00 per share (payable on the first local business day following settlement of the sale).</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The Sellers may, at their election, request “Shortfall Warrants” (refer note 22) exercisable for a number of shares of common stock equal to the difference between the Maximum Number of Shares (as defined in the Forward Purchase Agreement) and the number of shares of common stock specified in a Pricing Date Notice; such warrants have exercise terms and an exercise price as set forth in the FPA.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Payment dates for periodic reporting / accounting purposes are the last day of each calendar quarter (or next local business day), until the Valuation Date; the FPA also contains customary provisions addressing indemnities, representations, Calculation Agent rights, and compliance with tender-offer and SEC rules.</td></tr> </table> The Forward Purchase Agreement includes escrow arrangements pursuant to which the Prepayment Amount funded from the CSLM trust account is held in escrow for the benefit of the Meteora Parties until settlement or release in accordance with the terms of the Forward Purchase Agreement. The Company does not have unconditional access to the funds held in escrow, and such funds are not available to satisfy the claims of the Company’s creditors. Accordingly, the Company recorded the prepayment amount $11,005 thousand as a contra-equity share subscription receivable, presented as a reduction of stockholders’ equity (APIC), as the escrowed funds represent conditional consideration receivable from shareholders that is subject to future settlement under the Forward Purchase Agreement. The Prepayment Amount was determined based on <span id="xdx_90B_eus-gaap--CommonStockSharesSubscribedButUnissued_iI_pid_c20250731__us-gaap--TypeOfArrangementAxis__custom--ForwardPurchaseAgreementMember_zu8pN842lT12" title="Common stock subscribed shares">891,930 shares of common stock at a per share price equal to the SPAC per-share redemption price (the “Initial Price”), as defined in the Forward Purchase Agreement Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements The Forward Purchase Agreement contains features that meet the definition of a derivative under ASC 815, including an underlying based on the Company’s Class A common stock, a notional amount, payment provisions, and provisions that require or permit net cash settlement. Accordingly, at the Closing, the Company recognized a derivative liability measured at fair value, representing the portion of the escrowed Prepayment Amount that may be payable to the Forward Counterparty based on conditions existing as of the Closing Date. The share subscription receivable and the derivative liability, when considered together, represent management’s estimate of the portion of the escrowed funds that the Company expects to ultimately retain. Subsequent changes in the fair value of the derivative liability associated with the Forward Purchase Agreement are recognized in earnings at each reporting date. Upon receipt of consideration related to the sale of any shares sold by Meteora, the Company will record the receipt of funds as an increase to cash and a decrease to the share subscription receivable previously recorded as contra-equity. The Company incurred no transaction costs that were directly related to issuance of the Forward Purchase Agreement. Further subsequent to year ended December 31, 2025, the Company entered into an amendment on February 3, 2026 to the Prepaid Forward Purchase Agreement (the “Amendment”) originally entered into on July 31, 2025 with Meteora Capital Partners and affiliates, for detail refer to Note 25 - Subsequent events. As of December 31, 2025, the value of the Forward purchase derivative liability is $9,692 thousand disclosed as Current Liability in the Consolidated Balance Sheets. Further the derivative liability is measured at fair value on a recurring basis using Level 3 inputs, refer to Note 3 – Fair Value Measurements for further information on the valuation techniques and significant unobservable inputs used in determining the fair value of this instrument. Further, the derivative liability has been classified as current as the Company does not have an unconditional right to defer settlement beyond twelve months. The Forward Purchase Agreement includes provisions for early termination upon sale of shares by the Sellers, which can result in cash settlement within the next twelve months, as well as periodic settlement features, thereby requiring current classification

3000000000

12000.00

11005000

891930

9692 Note 22. Shortfall warrants In connection with the execution of the Forward Purchase Agreement the Company agreed to issue “Shortfall Warrants” to the Sellers (Meteora) for shares not elected under the Forward Purchase Agreement, representing the difference between the maximum number of shares subject to the FPA and the number of shares ultimately elected by the Forward Counterparty. Seller in its sole discretion may request (in one or more requests) warrants of the Counterparty exercisable for Shares in an amount equal to (i) the Maximum Number of Shares less (ii) the Number of Shares specified in the Pricing Date Notice (the “Shortfall Warrants,” and the Shares underlying the Shortfall Warrants, the “Shortfall Warrant Shares”). The Shortfall Warrants shall have an exercise price equal to the termination price which is defined $12 in the forward purchase agreement and is subject to reset in accordance with the pricing provisions of that agreement, and this termination price has subsequently been amended; for further details, refer to Note 25 – Subsequent Events. The warrants grant the holders the right to purchase a fixed number of shares (2,108,070) at a fixed exercise price/termination price. The Shortfall Warrants are exercisable for shares of common stock and were issued concurrently with the consummation of the Business Combination on October 22, 2025 (the “Initial Exercise Date”) and are exercisable at any time from the Initial Exercise Date until 5:00 p.m. (New York City time) on October 22, 2028 (the “Termination Date”). No shortfall warrants have been exercised as at December 31, 2025. The Shortfall Warrants contain a beneficial ownership limitation that, subject to certain limited exceptions, restricts a holder from exercising the Shortfall Warrants to the extent that, following such exercise, the holder, together with its affiliates and certain related parties, would beneficially own more than 9.9% of the Company’s outstanding common stock. A holder may increase or decrease this beneficial ownership limitation upon notice to the Company, provided that any increase will not be effective until the 61st day after such notice and in no event may the beneficial ownership limitation exceed 9.9%. The exercise price and the number of Shortfall Warrant Shares are subject to customary anti-dilution adjustments for stock dividends and other distributions on the Company’s common stock, stock splits, reverse stock splits, reclassifications and certain rights offerings. In addition, subject to any required shareholder approvals and applicable stock exchange rules, the Company may, in its discretion, reduce the exercise price of the Shortfall Warrants for any period of time. The Shortfall Warrants and the rights thereunder are transferable, in whole or in part, with the prior written consent of the Company and subject to compliance with applicable securities laws and payment of any applicable transfer taxes. The warrants may be divided or combined into new warrants, and, if properly assigned, may be exercised by a permitted transferee without the issuance of a new warrant certificate. The Company evaluated the Shortfall Warrants in accordance with ASC 480, Distinguishing Liabilities from Equity, and ASC 815, Derivatives and Hedging, including the guidance in ASC 815-40 related to contracts indexed to, and potentially settled in, an entity’s own equity. In making this assessment, the Company considered, among other factors: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">whether the Shortfall Warrants are freestanding financial instruments,</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">whether the warrants are indexed to the Company’s own stock,</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">whether settlement is required to be in shares rather than cash, and</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">whether any provisions could require net cash settlement under circumstances outside the Company’s control.</td></tr> </table> Accordingly, in connection with the reverse recapitalization, the Company recognized the Shortfall Warrants at their initial fair value of $1,009 thousands, which is included within additional paid-in capital in the stockholders’ equity section of the consolidated balance sheet. Based on this assessment, the Company concluded that the Shortfall Warrants meet all of the criteria for equity classification under ASC 815-40. Accordingly, the Shortfall Warrants are classified as equity and are not subject to subsequent remeasurement. 12000

2108070

0.099 0.099 1009000 <p id="xdx_80B_ecustom--PrivateInvestmentInPublicEquityFinancingDisclosureTextBlock_zZh4Nb0NIa4g" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Note 23. Private Investment in Public Equity (“PIPE”) Financing On December 23, 2025, Fusemachines Inc. (the “Company”) entered into and consummated a Securities Purchase Agreement with an accredited investor pursuant to which the Company issued and sold shares of its common stock, par value $0.0001 per share, in a private placement transaction (the “PIPE Financing”). In connection with the PIPE Financing, the Company issued 588,235 shares of its common stock at a purchase price of $1.70 per share, resulting in aggregate gross proceeds of $1,000 thousand. The shares were issued in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and/or Regulation D promulgated thereunder. The proceeds from the PIPE Financing were received in cash at closing. For accounting purposes, the issuance of common stock was recorded within stockholders’ equity as permanent equity. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements

0.0001

588235

1.70

1000000

Note 24. Public and private warrants As of December 31, 2025, there were 3,971,250 Private Warrants and 9,487,500 Public Warrants outstanding. There are no warrants exercised as at December 31, 2025. Public warrants Each Public Warrant entitles the holder to purchase one whole share of the Company’s common stock. Public Warrants are exercisable only for whole warrants; no fractional warrants will be issued upon separation of the units, and only whole warrants will trade. The Public Warrants became 30 days after the completion of the Business Combination. The Company will not be obligated to deliver Class A common shares upon exercise of a Public Warrant (and will have no obligation to settle a Public Warrant exercise) unless a registration statement under the Securities Act, covering the shares issuable upon exercise, is then effective and a prospectus relating thereto is current, or a valid exemption from registration is available. If the conditions for registered issuance are not satisfied, holders will not be able to exercise those Public Warrants for registered shares until such time as an effective registration statement is available; in such circumstances the Company may permit (or require, as described below) cashless exercise pursuant to Section 3(a)(9) or other available exemption Each whole Public Warrant is exercisable for one share of the Company’s Class A common stock at an exercise price of $<span id="xdx_904_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20251231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zbUxn9Sb4Mp1" title="Exercise price of warrants">11.50 per share, subject to the customary anti-dilution and other adjustment provisions set forth in the warrant agreement. The Public Warrants became exercisable 30 days after the completion of the initial Business Combination and expire five years after the completion of an initial Business Combination or earlier upon redemption or liquidation, in each case in accordance with the warrant agreement. The Public Warrants contain customary terms and features for contracts in the Company’s own equity, including (i) anti-dilution adjustments to the exercise price and the number of shares issuable upon exercise for share capitalizations, sub-divisions, combinations, reclassifications, certain rights offerings and Extraordinary Dividends, as described in Section 4 of the warrant agreement; (ii) the Alternative Issuance provisions in Section 4.5 of the warrant agreement, pursuant to which, upon specified reclassifications, reorganizations, mergers, consolidations, tender offers or similar change-of-control transactions, each Public Warrant becomes exercisable for the same form and amount of cash, securities or other property that a holder would receive as a common shareholder on an as-if-exercised basis immediately prior to the transaction; and (iii) an optional beneficial ownership limitation in Section 3.3.5 of the warrant agreement that permits a holder, at its election, to limit the number of Class A common shares issuable upon exercise of its warrants such that, immediately after giving effect to such exercise, the holder’s beneficial ownership of the Company’s outstanding Class A common shares does not exceed a specified “Maximum Percentage” (initially 9.8% or such other percentage specified by the holder). Public Warrants are issued in registered form, may be held in book-entry form through The Depository Trust Company and are transferable in accordance with the procedures set forth in Section 5 of the warrant agreement, subject to applicable securities law restrictions. The warrant agreement also provides that the Company is not required to net cash settle the Public Warrants and that, other than the fixed cash redemption price described above, settlement of the Public Warrants occurs through the issuance of equity or the delivery of the Alternative Issuance consideration specified in the contract. The Company may call the Public Warrants for redemption <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">in whole and not in part;</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">at a price of $0.01 per warrant;</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">upon not less than 30 days’ prior written notice of redemption to each warrant holder; and</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">if, and only if, the closing price of the Class A ordinary shares equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending three trading days before the Company sends the notice of redemption to the warrant holders</td></tr> </table> If and when the Public Warrants become redeemable by the Company, it may exercise its redemption right even if the Company is unable to register or qualify the underlying securities for sale under all applicable state securities laws. In addition, if (x) the Company issues additional Class A ordinary shares or equity-linked securities for capital raising purposes in connection with the closing of a Business Combination at an issue price or effective issue price of less than $<span id="xdx_904_eus-gaap--SharePrice_iI_pid_c20251231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z4LaPzpKJaFh" title="Share price">9.20 per share of Class A ordinary shares (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Founder Shares held by the Sponsor or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of a Business Combination on the date of the consummation of a Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Class A ordinary shares during the 20 trading day period starting on the trading day prior to the day on which the Company consummates a Business Combination (such price, the “Market Value”) is below $<span id="xdx_904_eus-gaap--SharePrice_iI_pid_c20251231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zPrk9rNUJSml" title="Share price">9.20 per share, then the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price and the $18.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price. As of December 31, 2025, if holders elect to exercise Public Warrants for cash, the Company would deliver one Class A common share for each Public Warrant exercised and would receive cash equal to the fixed exercise price per share. The aggregate fair value of the shares issued upon such cash exercise would vary directly with the then-current market price of the Company’s Class A common stock, whereas the per-warrant exercise price and resulting cash proceeds to the Company remain fixed in accordance with the warrant agreement. When Public Warrants are exercised on a cashless basis in accordance with the warrant agreement, each warrant is settled through the issuance of a reduced number of Class A common shares determined by reference to the then-current “Fair Market Value” of the Class A common stock and the fixed exercise price. As the market price of the Company’s Class A common stock increases above the exercise price, the number of shares issued per Public Warrant and the aggregate fair value of the shares delivered on cashless exercise increase; conversely, as the market price approaches or falls below the exercise price, the number of shares issued per Public Warrant and the aggregate fair value of the shares delivered decrease, and no shares would be delivered if the Public Warrants are out-of-the-money. If and when the Public Warrants become redeemable and the Company elects to redeem them for cash in accordance with the warrant agreement, the Company would be obligated to pay the fixed contractual redemption price per Public Warrant and the Public Warrants would be cancelled without the issuance of any Class A common shares. Although the fixed redemption price per warrant does not change with the market price of the Company’s Class A common stock, the Company may only exercise this redemption alternative if the Reference Value of the Class A common stock equals or exceeds the specified redemption trigger, which is based on the trading price of the Company’s shares. Fusemachines Inc. and Subsidiaries Notes to the Consolidated Financial Statements In the event of certain reclassifications, reorganizations, mergers, consolidations, tender offers or similar transactions that result in a change of control, the Public Warrants provide for an “Alternative Issuance” under which each Public Warrant becomes exercisable for the cash, securities or other property that the holder would have been entitled to receive if the holder had exercised the Public Warrant and participated in the transaction as a common shareholder immediately prior to its consummation, as described in the warrant agreement. Accordingly, the amount and form of consideration delivered upon settlement under this alternative will generally change in direct proportion to the per-share consideration (whether in cash, stock or other property) payable to the Company’s common shareholders in the underlying transaction, which reflects the then-current fair value of the Company’s equity shares. Private warrants The Private Placement Warrants are substantially identical to the Public Warrants, except that (i) the Private Placement Warrants may be exercised for cash or on a cashless basis, at the holder’s option; (ii) the Private Placement Warrants and the Class A common shares issuable upon their exercise are subject to certain transfer restrictions pursuant to the letter agreement between the Company, the Sponsor and other parties thereto, as amended from time to time, including that any permitted transferee must agree to be bound by such transfer restrictions; (iii) the Private Placement Warrants are not redeemable by the Company; and (iv) the holders of the Private Placement Warrants (including the Class A common shares issuable upon exercise thereof) may be entitled to certain registration rights. The Private Placement Warrants will not become Public Warrants upon any transfer and shall remain non-redeemable. As of December 31, 2025, if holders elect to exercise the Private Placement Warrants for cash, the Company would deliver one Class A common share for each Private Placement Warrant exercised and would receive cash equal to the fixed exercise price per share. Consistent with the Public Warrants, the aggregate fair value of the shares issued upon such cash exercise of the Private Placement Warrants would vary directly with the then-current market price of the Company’s Class A common stock, while the per-warrant exercise price and resulting cash proceeds to the Company remain fixed in accordance with the warrant agreement. When Private Placement Warrants are exercised on a cashless basis in accordance with the warrant agreement, each warrant is settled through the issuance of a reduced number of Class A common shares determined by reference to the “Sponsor Exercise Fair Market Value” of the Class A common stock and the fixed exercise price. As the market price of the Company’s Class A common stock increases above the exercise price, the number of shares issued per Private Placement Warrant and the aggregate fair value of the shares delivered on cashless exercise increase; conversely, as the market price approaches or falls below the exercise price, the number of shares issued per Private Placement Warrant and the aggregate fair value of the shares delivered decrease, and no shares would be delivered if the Private Placement Warrants are out-of-the-money. The Alternative Issuance provisions described above for the Public Warrants also apply to the Private Placement Warrants such that, upon the specified reclassification, reorganization, merger, consolidation, tender offer or similar change-of-control transactions, each Private Placement Warrant becomes exercisable for the same form and amount of cash, securities or other property that would be received by a common shareholder on an as-if-exercised basis immediately prior to the transaction, and the settlement amount therefore varies directly with the per-share consideration payable to the Company’s common shareholders. Classification and accounting: The Company evaluated the terms of the Public and Private Warrants under the relevant U.S. GAAP guidance for freestanding financial instruments and derivative accounting and concluded that both the Public Warrants and the Private Warrants meet the criteria for equity classification. In connection with the reverse recapitalization transaction, the Public Warrants and Private Warrants that were outstanding immediately prior to the transaction were initially recorded through the reverse recapitalization and are presented within stockholders’ equity on the consolidated balance sheet as part of additional paid-in capital (rather than as a separate warrant liability line item). Because the Public Warrants and Private Warrants are classified in equity, there is no subsequent remeasurement required after initial recognition and changes in the fair value of the Company’s common stock do not give rise to gains or losses in the statement of operations related to these warrants.

3971250

9487500

11.50

0.01

18.00

9.20

18.00

Note 25. Subsequent Events <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Subsequently to year ended December 31, 2025, the Company entered into an amendment on February 3, 2026 to the Prepaid Forward Purchase Agreement (the “Amendment”) originally entered into on July 31, 2025 with Meteora Capital Partners and affiliates. The Amendment replaces the agreement’s previously fixed Termination Price of $<span id="xdx_907_ecustom--TerminationPrice_iI_pid_c20260203__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--PrepaidForwardPurchaseAgreementMember_zQ3oyvgsQPW1" title="Termination price">12.00 per share with a weekly-reset Termination Price equal to the lower of (a) $<span id="xdx_907_ecustom--TerminationPrice_iI_pid_c20260203__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--PrepaidForwardPurchaseAgreementMember_zqVQQ3awt8d8" title="Termination price">12.00 and (b) the volume-weighted average price (VWAP) of the Shares for the immediately preceding week (as reported by Bloomberg L.P.), subject to Reset Price Floors applied on a tranche basis (50% of the Shares: $<span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingPeriodIncreaseDecreaseWeightedAverageExercisePrice_pid_c20260203__20260203__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--PrepaidForwardPurchaseAgreementMember__us-gaap--VestingAxis__us-gaap--ShareBasedCompensationAwardTrancheOneMember_zz0YO4KGhED5" title="Volume weighted average price">2.50 floor; 50% of the Shares: $<span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingPeriodIncreaseDecreaseWeightedAverageExercisePrice_pid_c20260203__20260203__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--PrepaidForwardPurchaseAgreementMember__us-gaap--VestingAxis__us-gaap--ShareBasedCompensationAwardTrancheTwoMember_z08O3bv0ddnf" title="Volume weighted average price">5.00 floor). The Company is currently evaluating the accounting and financial reporting implications of this Amendment, including its impact, if any, on the valuation of the related derivative instrument.</td></tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Subsequent to year ended December 31, 2025, the Company entered into an amendment on February 3, 2026, to the Common Stock Purchase Warrant (the “Warrant Amendment”) originally issued on October 22, 2025 in connection with the Business Combination with Meteora Capital Partners, LP, Meteora Select Trading Opportunities Master, LP and Meteora Strategic Capital, LLC (collectively, the “Holder”). Pursuant to the Warrant Amendment, the exercise price of the warrant was amended such that the exercise price per share of the Company’s common stock is $<span id="xdx_90C_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20260203__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--PrepaidForwardPurchaseAgreementMember_zg0gU4plNEwa" title="Warrant exercise price">10.00, subject to customary adjustments as set forth in the warrant agreement. All other terms and conditions of the warrant remain unchanged and continue in full force and effect. The Company is currently evaluating the accounting and financial reporting implications of the Warrant Amendment, including its impact, if any, on the classification and valuation of the warrant. </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">On July 28, 2025, the Board of Directors and shareholders of the Company approved the Fusemachines Inc. 2025 Omnibus Equity Incentive Plan (the “Plan”). The Plan authorizes the Company to issue up to <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20250728__20250728__srt--RangeAxis__srt--MaximumMember__us-gaap--AwardTypeAxis__custom--TwoThousandTwentyFiveOmnibusEquityIncentivePlanMember_zLTkw7mjvPbl" title="Number of shares issued">1,500,000 shares of the Company’s common stock, par value $<span id="xdx_90D_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20250728__srt--RangeAxis__srt--MaximumMember__us-gaap--AwardTypeAxis__custom--TwoThousandTwentyFiveOmnibusEquityIncentivePlanMember_ztzvex2EIbif" title="Common stock, par value">0.0001 per share, to eligible employees, directors, and consultants in the form of stock options, restricted stock, restricted stock units, or other equity-based awards. Subsequent to December 31, 2025, the Company is in the process of granting awards under the Plan to certain employees. As the awards were not granted and no shares were issued under the Plan as of December 31, 2025, no amounts have been recognized in the accompanying consolidated financial statements.</td></tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Further the Company has evaluated any other subsequent events through the date of issuance of these consolidated financial statements and determined that there have been no events that have occurred that would require adjustments to disclosures in the consolidated financial statements.</td></tr> </table>

12.00 12.00

2.50

5.00

10.00

1500000

0.0001

The number of shares of convertible preferred stock and common stock issued and outstanding prior to the Merger have been retroactively adjusted by the Exchange Ratio to give effect to the reverse recapitalization treatment of the Merger. In connection with the consummation of the business combination, the Company adopted a new capital structure and amended the par value of its common stock from $0.00001 per share to $0.0001 per share. Accordingly, the historical equity presentation has been adjusted to reflect the revised par value of the Company’s common stock. The change resulted in a reclassification of amounts within stockholders’ equity from additional paid-in capital to common stock to reflect the increased par value per share. This reclassification had no impact on total stockholders’ equity. In connection with the Business Combination on October 22, 2025, all outstanding convertible notes, including both related party and third-party balances, were converted into equity in accordance with their respective terms. Accordingly, no convertible notes remained outstanding as of December 31, 2025, except for the note related to Dolma Impact Fund I (“Dolma”) amounting to $300 thousand, which was reclassified from a convertible note to a related party note payable on demand. Includes 6,772 stock options as of December 31, 2024 that were legally exercised prior to meeting the service base vesting requirements in exchange for nonrecourse promissory notes (Refer to “The Promissory Notes Transactions” in “Note 14 - Stock-based Compensation “). AI Solutions (Products and Services) includes both software product revenues and related services. Product revenue represents an insignificant portion of total revenue for the periods presented and, accordingly, has not been separately disclosed. During the year ended 31st December 2025, employees have performed cashless exercise of 745,896 options There were no stock options granted during the year ended December 31, 2025. Includes 6,772 stock options as of December 31, 2024, that were early exercised in exchange for non-recourse promissory notes. (Refer to “Note 14 - Stock-based Compensation “). The SPAC public and private placement warrants were outstanding at CSLM Acquisition Corp. prior to the business combination and were classified as equity and included in APIC in CSLM’s historical financial statements. The warrants became exercisable for shares of Fusemachines, Inc. common stock 30 days after the consummation of the business combination and were excluded from diluted net loss per share as their inclusion would have been antidilutive