Red Flags Detected
- Going Concern (new) — Management expresses substantial doubt about the company's ability to continue as a going concern for the next twelve months without additional financing.
- Material Weakness (new) — Multiple material weaknesses identified in internal controls, including incomplete COSO framework implementation, inadequate segregation of duties, and lack of US GAAP expertise.
- Delisting (new) — Company received two Nasdaq deficiency notices for failing to maintain minimum market value thresholds, with compliance deadlines in July and September 2026.
Fusemachines burns $2.4M cash in Q1, faces Nasdaq delisting and going-concern doubt
Filed May 15, 2026 · Period ending March 31, 2026 · ~1 min read
Key Changes
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high
Cash fell from $4.2M to $1.8M in one quarter ($2.2M operating burn), with $15M stockholders' deficit and management expressing substantial doubt about surviving the next 12 months without additional financing.
MD&A: Liquidity and Going Concern verify on EDGAR → -
high
Received two Nasdaq deficiency notices: must restore $15M market value of publicly held shares by July 14 and $50M total market value by September 23, or face delisting to over-the-counter markets.
Risk Factors: Nasdaq Compliance verify on EDGAR → -
high
Operating loss widened 130% year-over-year to $3.0M in Q1 2026 as revenue declined 4% and gross margin compressed from 56% to 50%, signaling deteriorating unit economics.
MD&A: Operating Results verify on EDGAR →
2 more material changes behind this preview — plus the full narrative summary, section-by-section diffs against the prior filing, and verbatim quotes with EDGAR citations.
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Generated by AI · Jun 10, 2026 8:47 PM