v3.26.3
Condensed Consolidated Interim Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Cash flows from operating activities        
Net Loss $ (3,721) $ (4,039) $ (928) $ (15,383)
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation of property and equipment 50 50 96 109
Amortization of intangible assets 67 42 93 70
Provision for credit losses (44) 61 55 540
Stock-based compensation 878 118 231 1,067
Amortization of right-of-use assets 43 43 88 110
Changes in fair value of convertible notes at fair value and warrant liability (49) 1,344 (6,544) 6,104
Change in fair value of forward purchase derivative liability (1,608) (1,076)
Accretion of cumulative mandatorily redeemable common and preferred stock liability 55 47 99 80
Equity method investment obtained in exchange for services     (122)
Impairment of Equity investments     120
Equity in earnings of investee     2
Loss on extinguishment of convertible notes payable 391 391 601
 Gain on extinguishment of payable (507)    
Loss on extinguishment of payable     70
Unrealized foreign exchange gain/(loss) (1) 27 49
Deferred income taxes     (2) (11)
Changes in operating assets and liabilities:        
Accounts receivable, current, net 109 285 47 (904)
Unbilled revenue (16) 1 82 (39)
Prepaid expenses and other current assets 289 37 (74) (85)
Accounts receivable, net 4 4 18
Other assets 1 (6) 22 (2)
Accounts payable 550 1,589 (200) 3,715
Operating lease liabilities (39) (34) (73) (87)
Accrued expenses and other current liabilities 431 (27) 34 1,744
Deferred revenue (54) (54) 33
Net cash used in operating activities (3,511) (149) (5,529) (2,201)
Cash flows from investing activities        
Costs capitalized for internally developed software (88) (54) (112) (144)
Purchases of property and equipment (27) (6) (53) (15)
Payment made to Capital Creditors     (20)
Disposal of property and equipment     3
Net cash used in investing activities (115) (60) (165) (176)
Cash flows from financing activities        
Proceeds from convertible notes payable 180 180 455
 Payment of premium financing obligation (251)    
Proceeds from premium financing obligation 28    
(Repayment)/ Proceeds from related party loan payable     (700) 700
Proceeds from convertible note payable, at fair value     6,500
Payments on notes payable, net of penalty and lender fees     (3,000)
Payment of deferred transaction costs     (836) (2)
Common stock repurchase     (2,000)
Proceeds from reverse recapitalization     9,432  
Proceeds from issuance of shares pursuant to PIPE transaction     1,000  
Debt Extinguishment cost paid     (53)
Exercise of stock options     12
Proceeds from director and officer insurance funding (short term debt)     382  
Payment of director and officer insurance funding (short term debt)     (40)  
Net cash (used in) / provided by financing activities (223) 180 9,418 2,612
Effect of exchange rate changes on cash and cash equivalents (4) (3) (1)
Net change in cash and cash equivalents (3,853) (29) 3,721 234
Cash and cash equivalents at beginning of the period 4,221 500 500 266
Cash and cash equivalents at end of the period 368 471 4,221 500
Supplemental disclosures of cash flow information        
Interest paid on the short-term debt (premium financing) 8 26
Cash paid for income taxes 19 15 31 10
Non-cash investing and financing activities:        
Purchase of property and equipment through capital advances     38
 Common Stock issued upon cashless exercise of stock options 39 707
Unpaid deferred transaction costs as of the end of the period 364 242 1,684
Waiver of deferred transaction costs as of the end of the period 505 1,177
Issuance of shares vested upon repayment and forgiveness of 2023 Promissory Notes 3 3 899
Issuance of subscription receivable     (11,005)  
Settlement of non-recourse 2023 promissory note in exchange for common stock repurchase consideration     903
Issuance of shares as a result of conversion of related party convertible notes at fair value     4,168  
Issuance of shares as a result of conversion of convertible notes at fair value     5,321  
Issuance of shares as a result of conversion of convertible notes     668  
Conversion of convertible preferred stock into common stock in connection with the reverse recapitalization     7,864  
Treasury stock repurchase cancellation upon reverse recapitalization     (2,903)  
Shares issued to a vendor of Legacy Fusemachines to settle outstanding invoices.     198  
(Loss)/Gain on extinguishment of debt (391) (391)  
Extinguishment of debt (Refer Note no. 10 - Long Term Debt and Note no.17 - Commitments and Contingencies)       4,091
Settlement of vendor payable by SPAC sponsor accounted as a capital contribution     137  
Issuance of warrants related to forward purchase agreement and convertible note agreement(refer note 10 &22)     1,013  
Recognition of debt at fair value (Refer Note no. 10 - Long Term Debt and Note no.17 - Commitments and Contingencies)     3,818
Investment in Equity securities       $ 122
Transfer of Fusemachines Inc. common stock to third party purchaser     $ 151  
Deemed dividend related to shortfall warrant modification $ 84