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<p id="xdx_804_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock_z5gpTGaFItBf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Note 1. Organization Fusemachines Inc. (“Company” or “Pubco”) provides agentic AI solutions, offering innovative AI products and services to businesses. 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"> <td style="width: 0.5in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; background-color: white">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Fusemachines USA, Inc (Wholly Owned Subsidiary)</td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Fusemachines Nepal Inc. (Wholly Owned Holding Company)</td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Fusemachines Nepal Private Ltd. (Majority Owned Subsidiary)</td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Fusemachines Canada Inc (Wholly Owned Subsidiary) </td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Fusemachines India Inc. (Dormant Holding Company)</td> </tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Fusemachines 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. Merger Agreement and Business Combination In 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 14 - Reverse Capitalization for more information. Throughout the notes to the unaudited condensed consolidated interim financial statements, unless otherwise noted or the context otherwise requires, the term “Company” refers to Legacy Fusemachines Inc. 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 Condensed Consolidated Interim Financial Statements

Note 2. Summary of Significant Accounting Policies There have been no significant changes to the accounting policies during the nine months period ended September 30, 2026, as compared to the significant accounting policies described in Note 2 of the Notes to Consolidated Financial Statements in the Company’s audited consolidated financial statements for the year ended December 31, 2025. Basis of Presentation and Principles of Consolidation The Company prepares its unaudited condensed consolidated interim 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 unaudited condensed consolidated interim financial statements include the financial statements of Fusemachines Inc. and its subsidiaries. All intercompany balances and transactions have been eliminated. These unaudited condensed consolidated interim financial statements are presented in United States Dollars (“USD” or $), which is the functional currency of the Parent Company. Unaudited Interim Financial Information In the opinion of the Company, the accompanying unaudited condensed consolidated interim financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of its financial position and its results of operations, changes in stockholders’ deficit and cash flows. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The consolidated balance sheet at December 31, 2025, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The accompanying unaudited condensed consolidated interim financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the fiscal year ended December 31, 2025, which provides a more complete discussion of the Company’s accounting policies and certain other information. The interim results for the three and nine months ended September 30, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026, or for any future periods. Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements Use of Estimates The preparation of unaudited condensed consolidated interim 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 unaudited condensed consolidated interim 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 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 unaudited condensed consolidated interim financial statements. Changes in facts and circumstances may cause the Company to revise its estimates. 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 AI products, data engineering, AI consulting, and AI 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 unaudited condensed consolidated interim balance sheet as “total assets” and its significant segment expenses and net loss are listed on the accompanying unaudited condensed consolidated interim statements of operations and comprehensive loss. 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_zHgcJdalzx08" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">The Company holds long-lived assets in two countries, Nepal and the United States. 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: 90%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="display: none"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_49A_20260930_zeiD2sg9i9I5" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_491_20251231_zFuH28QJVMaf" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </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">Long lived assets as of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">September 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </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: center">2026</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: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--NoncurrentAssets_iI_pn3n3_hsrt--StatementGeographicalAxis__country--NP_zMaWxPKE2Oqk" 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">181</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">247</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--NoncurrentAssets_iI_pn3n3_hsrt--StatementGeographicalAxis__country--US_z41JoyzeFWQj" 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">322</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">264</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--NoncurrentAssets_iI_pn3n3_zDYpjgpxLBHb" 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">503</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">511</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> 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. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements 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. For fixed-fee arrangements that include distinct, milestone-based deliverables (for example, discrete design, architecture, or platform-development phases), where either of the criterion laid down in ASC 606-10-25-27(a), (b) or (c) are met, the Company recognizes revenue over time under a percentage-of-completion (“POC”) method, rather than the right-to-invoice practical expedient. Further the progress toward completion of these arrangements is measured using the output method i.e. based on the deliverables completed and accepted by the customer relative to total contractual deliverables for that performance obligation. 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 period ended September 30, 2026 and September 30, 2025 the product revenues were insignificant. 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 unaudited condensed consolidated interim balance sheets. 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 unaudited condensed consolidated interim 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 unaudited condensed consolidated interim statements of operations and comprehensive loss. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements 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. Advertising Cost Advertising costs are expensed as incurred. Advertising costs for the period three months ended September 30, 2026 and 2025 were $ 22 thousand and $ 9 thousand, whereas for nine months ended September 30, 2026 and 2025 were $ 77 thousand and $ 29 thousand, respectively, which are included in selling and marketing costs and general and administrative cost respectively in the unaudited condensed consolidated interim statements of operations and comprehensive loss. 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 unaudited condensed consolidated interim financial statements for pending litigation. Currently there are no pending or threatened litigation matters that management believes require accrual or disclosure in addition to those presented in the Note on Litigation (refer Note 12 – Commitment and Contingencies). 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 September 30, 2026 and December 31, 2025 the Company had four and three customers respectively 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_905_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20260101__20260930__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zKQSUVBevyy2" title="Concentration risk, percentage">52.9% and <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zsfRtkOlIl32" title="Concentration risk, percentage">47.6% of the Company’s receivables at the end of the respective periods. For the nine-month ended September 30,2026 and 2025, the Company had four and three customers whose revenue accounted for at least 10% of the Company’s consolidated revenue, respectively. These customers accounted for approximately <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20260101__20260930__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--FourCustomersMember_zd5Xy51rp7d4" title="Concentration risk, percentage"><span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20260101__20260930__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zpriYYW4YmYi" title="Concentration risk, percentage">46.3% and <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20250930__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--FourCustomersMember_zZoLWTdIbxvg" title="Concentration risk, percentage"><span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20250930__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zTYgTUO7Hon2" title="Concentration risk, percentage">43.3% 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 September 30, 2026 and December 31, 2025, the Company had two 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_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20260101__20260930__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--TwoSuppliersMember_zy8wlDM5z9dk" title="Concentration risk, percentage">44.9% and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--TwoSuppliersMember_zSC6Ma0x8sjh" title="Concentration risk, percentage">57.0% 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 Condensed Consolidated Interim Financial Statements Going Concern The Company’s unaudited condensed consolidated interim 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. Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. Significant factors in the management of liquidity include funds generated from operations, levels of accounts receivable and accounts payable, and capital expenditure requirements. As of September 30, 2026, the Company had cash of approximately $ 1,454 thousand. For the nine months ended September 30, 2026, the Company used approximately $ (4,807) 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 September 30, 2026, the Company had an accumulated deficit of approximately $ (43,573) thousand. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern within one year of the date these unaudited condensed consolidated interim 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. As of the date on which these unaudited condensed consolidated interim financial statements were available to be issued, we believe that our existing cash on hand and other potential equity or debt financing arrangements, may not, on their own, be sufficient to meet the Company’s working capital and capital expenditure requirements for at least the next twelve months. Management currently expects that the Company will be able to access additional sources of capital, including through issuances of equity securities and/or additional borrowings, as and when required to fund the Company’s operating and investing activities over the next year; however, there can be no assurance that such financing will be available on acceptable terms or at all. Accordingly, the Company’s ability to continue as a going concern remains dependent on the successful execution of these financing plans. These unaudited condensed consolidated interim financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts or to the classification of liabilities that might be necessary should the Company be unable to continue as a going concern. 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 three and nine -month period ended September 30, 2026 and 2025. 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 three and nine-month period ended September 30, 2026 and 2025, basic and dilutive net loss per share were the same, as the effect of potentially dilutive securities would have been anti-dilutive. Forward purchase derivative liability The Company evaluates its Forward Purchase Agreement (“FPA”) with the Meteora Parties under ASC 815, Derivatives and Hedging, to determine whether the arrangement meets the definition of a derivative and qualifies for any scope exception, including the own-equity exception under ASC 815-40. As the FPA has an underlying (the Company’s common stock), a notional, little or no initial net investment, and net-settlement provisions, and is not designated as a hedge, it is recorded as a free-standing derivative liability, with an offsetting contra-equity share subscription receivable recorded for the unrecognized portion of the escrowed Prepayment Amount. The derivative liability is remeasured to fair value at each reporting date using a Monte Carlo simulation model (Level 3), with changes in fair value recognized in the condensed consolidated statements of operations and comprehensive loss. The derivative liability is classified as current given the Company’s ability to settle the instrument, in whole or in part, within twelve months. 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 unaudited condensed consolidated interim 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. Debt Issuance Costs Costs to issue debt are capitalized and deferred when incurred and subsequently amortized to interest expense over the term of the related debt using the effective interest rate method. Deferred debt issuance costs are presented in the Company’s condensed consolidated balance sheets as a direct deduction from the carrying amount of the associated debt liability (refer to Note 6 – Debt). Debt issuance costs are expensed as incurred if they relate to debt for which a fair value option election has been made. The Company follows ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs and allocates debt issuance costs between the debt and the warrants on the same basis as proceeds were allocated. Issuance costs related to equity-classified warrants are presented as a direct reduction of additional paid-in capital. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In July 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets The ASU provides an optional practical expedient for estimating future credit losses based on current conditions as of the balance sheet date and assuming those conditions do not change over the remaining life of the accounts receivable. This standard is effective January 1, 2026. The Company did not elect the optional practical expedient provided by this standard. The adoption did not have a material impact on the unaudited condensed consolidated interim 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 to include conditions based on a customer’s purchases of the grantor’s goods or services, eliminates the forfeiture policy election for share-based consideration payable to a customer, and clarifies that the variable consideration constraint in Topic 606 does not apply to share-based consideration payable to a customer. ASU 2025-04 is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. The Company early adopted ASU 2025-04 effective January 1, 2026, using the modified retrospective method. The adoption of this guidance did not have a material impact on the Company’s unaudited condensed consolidated interim financial statements. The Company had no share-based consideration payable to customers before August 2026, so no cumulative-effect adjustment was required. 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 unaudited condensed consolidated interim financial statements and related disclosures. 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 period ending December 31, 2025. The rules require disclosure in the audited consolidated 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 unaudited condensed consolidated interim 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. 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 unaudited condensed consolidated interim financial statements. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements

Basis of Presentation and Principles of Consolidation The Company prepares its unaudited condensed consolidated interim 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 unaudited condensed consolidated interim financial statements include the financial statements of Fusemachines Inc. and its subsidiaries. All intercompany balances and transactions have been eliminated. These unaudited condensed consolidated interim financial statements are presented in United States Dollars (“USD” or $), which is the functional currency of the Parent Company.

Unaudited Interim Financial Information In the opinion of the Company, the accompanying unaudited condensed consolidated interim financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of its financial position and its results of operations, changes in stockholders’ deficit and cash flows. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The consolidated balance sheet at December 31, 2025, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The accompanying unaudited condensed consolidated interim financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the fiscal year ended December 31, 2025, which provides a more complete discussion of the Company’s accounting policies and certain other information. The interim results for the three and nine months ended September 30, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026, or for any future periods.

Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements

Use of Estimates The preparation of unaudited condensed consolidated interim 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 unaudited condensed consolidated interim 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 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 unaudited condensed consolidated interim financial statements. Changes in facts and circumstances may cause the Company to revise its estimates.

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 AI products, data engineering, AI consulting, and AI 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 unaudited condensed consolidated interim balance sheet as “total assets” and its significant segment expenses and net loss are listed on the accompanying unaudited condensed consolidated interim statements of operations and comprehensive loss.

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_zHgcJdalzx08" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">The Company holds long-lived assets in two countries, Nepal and the United States. 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: 90%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="display: none"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_49A_20260930_zeiD2sg9i9I5" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_491_20251231_zFuH28QJVMaf" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </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">Long lived assets as of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">September 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </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: center">2026</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: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--NoncurrentAssets_iI_pn3n3_hsrt--StatementGeographicalAxis__country--NP_zMaWxPKE2Oqk" 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">181</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">247</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--NoncurrentAssets_iI_pn3n3_hsrt--StatementGeographicalAxis__country--US_z41JoyzeFWQj" 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">322</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">264</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--NoncurrentAssets_iI_pn3n3_zDYpjgpxLBHb" 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">503</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">511</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

<p id="xdx_897_eus-gaap--DetailsOfImpairmentOfLongLivedAssetsHeldAndUsedByAssetTextBlock_zHgcJdalzx08" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">The Company holds long-lived assets in two countries, Nepal and the United States. 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: 90%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="display: none"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_49A_20260930_zeiD2sg9i9I5" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_491_20251231_zFuH28QJVMaf" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </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">Long lived assets as of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">September 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> </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: center">2026</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: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--NoncurrentAssets_iI_pn3n3_hsrt--StatementGeographicalAxis__country--NP_zMaWxPKE2Oqk" 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">181</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">247</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--NoncurrentAssets_iI_pn3n3_hsrt--StatementGeographicalAxis__country--US_z41JoyzeFWQj" 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">322</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">264</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--NoncurrentAssets_iI_pn3n3_zDYpjgpxLBHb" 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">503</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">511</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

181000

247000

322000

264000

503000

511000

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. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements 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. For fixed-fee arrangements that include distinct, milestone-based deliverables (for example, discrete design, architecture, or platform-development phases), where either of the criterion laid down in ASC 606-10-25-27(a), (b) or (c) are met, the Company recognizes revenue over time under a percentage-of-completion (“POC”) method, rather than the right-to-invoice practical expedient. Further the progress toward completion of these arrangements is measured using the output method i.e. based on the deliverables completed and accepted by the customer relative to total contractual deliverables for that performance obligation. 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 period ended September 30, 2026 and September 30, 2025 the product revenues were insignificant. 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 unaudited condensed consolidated interim balance sheets.

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 unaudited condensed consolidated interim 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 unaudited condensed consolidated interim statements of operations and comprehensive loss. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements 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.

Advertising Cost Advertising costs are expensed as incurred. Advertising costs for the period three months ended September 30, 2026 and 2025 were $ 22 thousand and $ 9 thousand, whereas for nine months ended September 30, 2026 and 2025 were $ 77 thousand and $ 29 thousand, respectively, which are included in selling and marketing costs and general and administrative cost respectively in the unaudited condensed consolidated interim statements of operations and comprehensive loss.

22000

9000

77000

29000

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 unaudited condensed consolidated interim financial statements for pending litigation. Currently there are no pending or threatened litigation matters that management believes require accrual or disclosure in addition to those presented in the Note on Litigation (refer Note 12 – Commitment and Contingencies).

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 September 30, 2026 and December 31, 2025 the Company had four and three customers respectively 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_905_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20260101__20260930__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zKQSUVBevyy2" title="Concentration risk, percentage">52.9% and <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zsfRtkOlIl32" title="Concentration risk, percentage">47.6% of the Company’s receivables at the end of the respective periods. For the nine-month ended September 30,2026 and 2025, the Company had four and three customers whose revenue accounted for at least 10% of the Company’s consolidated revenue, respectively. These customers accounted for approximately <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20260101__20260930__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--FourCustomersMember_zd5Xy51rp7d4" title="Concentration risk, percentage"><span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20260101__20260930__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zpriYYW4YmYi" title="Concentration risk, percentage">46.3% and <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20250930__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--FourCustomersMember_zZoLWTdIbxvg" title="Concentration risk, percentage"><span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20250930__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zTYgTUO7Hon2" title="Concentration risk, percentage">43.3% 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 September 30, 2026 and December 31, 2025, the Company had two 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_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20260101__20260930__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--TwoSuppliersMember_zy8wlDM5z9dk" title="Concentration risk, percentage">44.9% and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--MajorCustomersAxis__custom--TwoSuppliersMember_zSC6Ma0x8sjh" title="Concentration risk, percentage">57.0% 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 Condensed Consolidated Interim Financial Statements

0.529

0.476

0.463

0.433

0.449

0.570

Going Concern The Company’s unaudited condensed consolidated interim 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. Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. Significant factors in the management of liquidity include funds generated from operations, levels of accounts receivable and accounts payable, and capital expenditure requirements. As of September 30, 2026, the Company had cash of approximately $ 1,454 thousand. For the nine months ended September 30, 2026, the Company used approximately $ (4,807) 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 September 30, 2026, the Company had an accumulated deficit of approximately $ (43,573) thousand. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern within one year of the date these unaudited condensed consolidated interim 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. As of the date on which these unaudited condensed consolidated interim financial statements were available to be issued, we believe that our existing cash on hand and other potential equity or debt financing arrangements, may not, on their own, be sufficient to meet the Company’s working capital and capital expenditure requirements for at least the next twelve months. Management currently expects that the Company will be able to access additional sources of capital, including through issuances of equity securities and/or additional borrowings, as and when required to fund the Company’s operating and investing activities over the next year; however, there can be no assurance that such financing will be available on acceptable terms or at all. Accordingly, the Company’s ability to continue as a going concern remains dependent on the successful execution of these financing plans. These unaudited condensed consolidated interim financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts or to the classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

1454000

-4807000

-43573000

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 three and nine -month period ended September 30, 2026 and 2025. 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 three and nine-month period ended September 30, 2026 and 2025, basic and dilutive net loss per share were the same, as the effect of potentially dilutive securities would have been anti-dilutive.

Forward purchase derivative liability The Company evaluates its Forward Purchase Agreement (“FPA”) with the Meteora Parties under ASC 815, Derivatives and Hedging, to determine whether the arrangement meets the definition of a derivative and qualifies for any scope exception, including the own-equity exception under ASC 815-40. As the FPA has an underlying (the Company’s common stock), a notional, little or no initial net investment, and net-settlement provisions, and is not designated as a hedge, it is recorded as a free-standing derivative liability, with an offsetting contra-equity share subscription receivable recorded for the unrecognized portion of the escrowed Prepayment Amount. The derivative liability is remeasured to fair value at each reporting date using a Monte Carlo simulation model (Level 3), with changes in fair value recognized in the condensed consolidated statements of operations and comprehensive loss. The derivative liability is classified as current given the Company’s ability to settle the instrument, in whole or in part, within twelve months. 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 unaudited condensed consolidated interim 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.

Debt Issuance Costs Costs to issue debt are capitalized and deferred when incurred and subsequently amortized to interest expense over the term of the related debt using the effective interest rate method. Deferred debt issuance costs are presented in the Company’s condensed consolidated balance sheets as a direct deduction from the carrying amount of the associated debt liability (refer to Note 6 – Debt). Debt issuance costs are expensed as incurred if they relate to debt for which a fair value option election has been made. The Company follows ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs and allocates debt issuance costs between the debt and the warrants on the same basis as proceeds were allocated. Issuance costs related to equity-classified warrants are presented as a direct reduction of additional paid-in capital. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements

Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In July 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets The ASU provides an optional practical expedient for estimating future credit losses based on current conditions as of the balance sheet date and assuming those conditions do not change over the remaining life of the accounts receivable. This standard is effective January 1, 2026. The Company did not elect the optional practical expedient provided by this standard. The adoption did not have a material impact on the unaudited condensed consolidated interim 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 to include conditions based on a customer’s purchases of the grantor’s goods or services, eliminates the forfeiture policy election for share-based consideration payable to a customer, and clarifies that the variable consideration constraint in Topic 606 does not apply to share-based consideration payable to a customer. ASU 2025-04 is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. The Company early adopted ASU 2025-04 effective January 1, 2026, using the modified retrospective method. The adoption of this guidance did not have a material impact on the Company’s unaudited condensed consolidated interim financial statements. The Company had no share-based consideration payable to customers before August 2026, so no cumulative-effect adjustment was required.

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 unaudited condensed consolidated interim financial statements and related disclosures. 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 period ending December 31, 2025. The rules require disclosure in the audited consolidated 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 unaudited condensed consolidated interim 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. 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 unaudited condensed consolidated interim financial statements. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements

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 September 30, 2026, the Company’s outstanding borrowings consist of (i) the convertible notes payable issued on August 2, 2026, with a net carrying amount of approximately $ 1,245 thousand and (ii) a related party note payable to Dolma Impact Fund I (“Dolma”) of $300 thousand, which is payable on demand. The Dolma balance was reclassified from a convertible note to a related party note payable on demand during the year ended December 31, 2025. These instruments are carried at amortized cost and are not measured at fair value on a recurring basis. They are therefore not included in the fair value hierarchy table. Refer to Note 6, Debt, for further information on the convertible notes. As of December 31, 2025, 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_zu7wo9LRFPWf" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">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; background-color: rgb(204,238,255)"> <td style="display: none"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_491_20260930__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zqocg65l66Fc" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_495_20260930__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zT78kMT2ADq7" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_490_20260930__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zOzJ2BrGUvh6" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_490_20260930__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_z4Be8tUb7Kp1" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </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 September 30, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td></tr> <tr id="xdx_408_eus-gaap--FinancialLiabilitiesFairValueDisclosureAbstract_iB_zkEOvmARWVj8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>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><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_401_ecustom--WarrantLiability_i01I_pn3n3_maFLFVDzHwA_zJcxTmIeQC4g" style="vertical-align: bottom; background-color: White"> <td style="width: 32%; text-align: left">Warrant liability</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; 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: 13%; 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: 13%; text-align: right">30</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: 13%; text-align: right">30</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--DerivativeLiabilitiesCurrent_i01I_pn3n3_maFLFVDzHwA_z29NZUfqFcv9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Forward purchase derivative 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">708</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">708</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FinancialLiabilitiesFairValueDisclosure_i01TI_pn3n3_mtFLFVDzHwA_z2vYXl74aRH6" 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">738</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">738</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; background-color: rgb(204,238,255)"> <td style="display: none"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_49E_20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zFCGZJOPVgH6" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_49C_20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zhLtkHCyEP9a" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_494_20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zWdahK2faXrf" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_495_20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zzAbw0OjiA54" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </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, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td></tr> <tr id="xdx_408_eus-gaap--FinancialLiabilitiesFairValueDisclosureAbstract_iB_z8NniHJpIGOc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>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><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_40B_ecustom--WarrantLiability_i01I_pn3n3_maFLFVDzHwA_zqNWsmuidPy7" style="vertical-align: bottom; background-color: White"> <td style="width: 32%; text-align: left">Warrant Liability</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; 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: 13%; 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: 13%; text-align: right">121</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: 13%; text-align: right">121</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DerivativeLiabilitiesCurrent_i01I_pn3n3_maFLFVDzHwA_z7RDSBDD86Pc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Forward purchase derivative 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">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_401_eus-gaap--FinancialLiabilitiesFairValueDisclosure_i01TI_pn3n3_mtFLFVDzHwA_zfpw4qN3yrG3" style="vertical-align: bottom; background-color: White"> <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">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">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">9,813</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> Warrant Liabilities The following table shows the change in the fair value of the warrant liability (in thousands): Schedule of Change in Fair Value of Warrant Liability <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B9_us-gaap--FairValueByFairValueHierarchyLevelAxis_us-gaap--FairValueInputsLevel3Member_us-gaap--FairValueByMeasurementFrequencyAxis_us-gaap--FairValueMeasurementsRecurringMember_z37AXwrTbWhd" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_436_c20250101__20250331_eus-gaap--DerivativeLiabilities_iS_pn3n3_zQRIfSci6Sa1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; font-weight: bold">Balance as of December 31, 2024</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</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_439_c20250101__20250331_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zDoThfJgzVX7" 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">26</td><td style="text-align: left"> </td></tr> <tr id="xdx_433_c20250401__20250630_eus-gaap--DerivativeLiabilities_iS_pn3n3_zA09wsxuDBFf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Balance as of March 31, 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">971</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_430_c20250401__20250630_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zL3cnMxZ2Bkj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Change in fair value of warrant liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(122</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_430_c20250701__20250930_eus-gaap--DerivativeLiabilities_iS_pn3n3_z5ljbPPXDCli" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Balance as of June 30, 2025</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">849</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_43C_c20250701__20250930_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zzYfl9GY9wme" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Change in fair value of warrant liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_43C_c20250701__20250930_eus-gaap--DerivativeLiabilities_iE_pn3n3_zJy188sZ6AMf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Balance as of September 30, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">850</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: 90%"> <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_4B9_us-gaap--FairValueByFairValueHierarchyLevelAxis_us-gaap--FairValueInputsLevel3Member_us-gaap--FairValueByMeasurementFrequencyAxis_us-gaap--FairValueMeasurementsRecurringMember_zc8THevjKOdg" 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_432_c20260101__20260331_eus-gaap--DerivativeLiabilities_iS_pn3n3_znD36IvftQ6k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; font-weight: bold">Balance as of December 31, 2025</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">121</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_431_c20260101__20260331_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zSpbQTSluU24" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value of warrant liabilities</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(59</td><td style="text-align: left">)</td></tr> <tr id="xdx_431_c20260401__20260630_eus-gaap--DerivativeLiabilities_iS_pn3n3_zjdf50jHulql" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Balance as of March 31, 2026</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">62</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_43A_c20260401__20260630_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zZC1p48dEwAf" 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">10</td><td style="text-align: left"> </td></tr> <tr id="xdx_434_c20260701__20260930_eus-gaap--DerivativeLiabilities_iS_pn3n3_zFEYHgFq4jmf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Balance as of June 30, 2026</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">72</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_43A_c20260701__20260930_eus-gaap--DerivativeLiabilities_iS_pn3n3_zXxQ5VMh7ag" 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">72</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_43D_c20260701__20260930_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zbNQSRG0tBac" 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">(42</td><td style="text-align: left">)</td></tr> <tr id="xdx_43F_c20260701__20260930_eus-gaap--DerivativeLiabilities_iE_pn3n3_zWLj5tJwrSJk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Balance as of September 30, 2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">30</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_432_c20260701__20260930_eus-gaap--DerivativeLiabilities_iE_pn3n3_zRBKhorlGCDi" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Warrant liability, ending balance</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">30</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements Forward Purchase Derivative Liability The forward purchase derivative liability was recognized at Closing on October 22, 2025. The fair value as of September 30, 2026 was $708 thousand. The following table presents a reconciliation of the Forward Purchase Derivative Liability (in thousands): Schedule of Reconciliation of Forward Purchase Derivative Liability <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="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="width: 80%; font-weight: bold">Balance as of December 31, 2025</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td id="xdx_985_eus-gaap--DerivativeLiabilitiesCurrent_iS_pn3n3_c20260101__20260331_zlSqTgVG6Cb6" style="width: 16%; font-weight: bold; text-align: right" title="Forward purchase derivative liability, beginning balance">9,692</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">Change in fair value of forward purchase derivative liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--UnrealizedGainLossOnDerivatives_pn3n3_c20260101__20260331_zV8lXZWqpg4e" style="text-align: right" title="Change in fair value of forward purchase derivative liabilities">(1,588</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Balance as of March 31, 2026</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98D_eus-gaap--DerivativeLiabilitiesCurrent_iS_pn3n3_c20260401__20260630_zBRsfeFnPpS7" style="font-weight: bold; text-align: right" title="Forward purchase derivative liability, beginning balance">8,104</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value of forward purchase derivative liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--UnrealizedGainLossOnDerivatives_pn3n3_c20260401__20260630_z51I1rEJPxg5" style="text-align: right" title="Change in fair value of forward purchase derivative liabilities">(20</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Balance as of June 30, 2026</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_989_eus-gaap--DerivativeLiabilitiesCurrent_iS_pn3n3_c20260701__20260930_zBqguQBUI0F9" style="font-weight: bold; text-align: right" title="Forward purchase derivative liability, beginning balance">8,084</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Adjustment to forward purchase derivative liabilities on account of partial early termination of forward contract (Refer note 15)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--AcceleratedShareRepurchaseProgramAdjustment_pn3n3_c20260701__20260930_zdoK6Oq9E2Pi" style="text-align: right" title="Adjustment to forward purchase derivative liabilities on account of partial early termination of forward contract (Refer note 15)">(9,588</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Change in fair value of forward purchase derivative liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--UnrealizedGainLossOnDerivatives_pn3n3_c20260701__20260930_zHeJuvgzCEL2" style="text-align: right" title="Change in fair value of forward purchase derivative liabilities">2,212</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Balance as of September 30, 2026</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98A_eus-gaap--DerivativeLiabilitiesCurrent_iE_pn3n3_c20260701__20260930_zr7LTUptTfX4" style="font-weight: bold; text-align: right" title="Forward purchase derivative liability, ending balance">708</td><td style="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 September 30, 2026: a risk-free rate of 4.21%, a valuation term of 2.06 years, and annualized volatility of <span id="xdx_905_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20260930__us-gaap--MeasurementInputTypeAxis__custom--MeasurementInputAnnualizedVolatilityMember_zxnVOXcUjiNc" title="Derivative liability, measurement input">65.0%, whereas 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 <span id="xdx_90A_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20251231__us-gaap--MeasurementInputTypeAxis__custom--MeasurementInputAnnualizedVolatilityMember_zD7iTYc6IAib" title="Derivative liability, measurement input">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. Convertible notes payable <p id="xdx_89E_ecustom--ScheduleOfChangeInFairValueOfTheConvertibleNotesAtFairValueTableTextBlock_zcubSnEfmvM6" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">The following table shows the change in the fair value of the Convertible Notes measured at Fair Value (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: 85%"> <tr style="vertical-align: bottom"> <td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_4B2_us-gaap--FinancialInstrumentAxis_custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_zRqCf6jlTTJh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Related party Convertible Note payable at fair value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B2_us-gaap--FinancialInstrumentAxis_custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember_zRv09cyPhLP3" style="border-bottom: Black 1pt solid; text-align: center">January 2024 Convertible Notes</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_4B9_zlBMa8kIAfU3" 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_43A_c20250101__20250331_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_zVSrDl0Ji6x2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 40%; 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">6,524</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">$</td><td style="width: 16%; font-weight: bold; text-align: right">8,986</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">15,510</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_433_c20250101__20250331_ecustom--ChangesInFairValueOfConvertibleNotesAtFairValue_iN_di_zggvGa2d9g1l" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Change in fair value of related party convertible note, 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">(548</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">(994</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">(1,542</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_435_c20250401__20250630_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_zDKPpHPc2j88" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold; padding-bottom: 1pt">Balance as of March 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">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">5,976</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">7,992</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">13,968</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_439_c20250401__20250630_ecustom--ChangesInFairValueOfConvertibleNotesAtFairValue_iN_di_zgm2zJWwK8Re" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value of related party convertible note, convertible notes at fair value</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,804</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,178</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,982</td><td style="text-align: left"> </td></tr> <tr id="xdx_438_c20250701__20250930_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_zL5sXgAQsDBc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold; padding-bottom: 1pt">Balance as of June 30, 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">7,780</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">9,170</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">16,950</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_435_c20250701__20250930_ecustom--ChangesInFairValueOfConvertibleNotesAtFairValue_iN_di_znufQR7lQhJj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value of related party convertible note, convertible notes at fair value</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(250</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">310</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">60</td><td style="text-align: left"> </td></tr> <tr id="xdx_43A_c20250701__20250930_eus-gaap--DebtInstrumentFairValue_iE_pn3n3_zebg7MZyuO56" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold; padding-bottom: 1pt">Balance as of September 30, 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">7,530</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">9,480</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">17,010</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <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><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_432_c20260101__20260930_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_zPgL9WrBiNzd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; 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">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</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 id="xdx_430_c20260101__20260930_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_zsriDoDmpfG8" style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Convertible notes at fair value, beginning balance</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_434_c20260101__20260930_ecustom--ChangesInFairValueOfConvertibleNotesAtFairValue_iN_di_z7NrHvdMqoQa" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Change in fair value of related party convertible note, 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">-</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 id="xdx_439_c20260101__20260930_eus-gaap--DebtInstrumentFairValue_iE_pn3n3_zl69mT9aXR4a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold; padding-bottom: 1pt">Balance as of September 30, 2026</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">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_43E_c20260101__20260930_eus-gaap--DebtInstrumentFairValue_iE_pn3n3_zNfKq7q0WAg3" style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Convertible notes at fair value, ending balance</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> </table> Common Stock Warrant Liability The Company estimates the fair value of the common stock warrant liability (refer to “Note 6 – 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 September 30, 2026 was determined using the following assumptions: a dividend yield of <span id="xdx_90C_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260930__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zphcStGm6ZPd" title="Warrant liability, measurement input">0.0%, a risk-free rate of <span id="xdx_90A_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260930__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zq5sdBf2s6I3" title="Warrant liability, measurement input">4.94%, a stock price of $<span id="xdx_90E_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260930__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_zOvDr3wAyz9g" title="Warrant liability, measurement input">0.52, a term of <span id="xdx_907_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260930__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zHX0n3VYzc23" title="Warrant liability, measurement input">6.90 years, and annualized volatility of <span id="xdx_900_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260930__us-gaap--MeasurementInputTypeAxis__custom--MeasurementInputAnnualizedVolatilityMember_zskObbkVHCik" title="Warrant liability, measurement input">65.0%. 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_zd1K2mCGaLjk" 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_zrznWCjQBxz7" 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_zbbxfisNQgv6" 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_zYCQDr23TTE3" title="Warrant liability, measurement input">7.65 years, and annualized volatility of <span id="xdx_90F_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20251231__us-gaap--MeasurementInputTypeAxis__custom--MeasurementInputAnnualizedVolatilityMember_z1RoSLuhJxFh" title="Warrant liability, measurement input">62.0%. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements Related Party Convertible Note payable at Fair Value and Convertible Notes at Fair Value The Company accounts for certain short-term debt (also refer to “Note 6 - 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. 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 Inc., 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 Inc. 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 September 30, 2026 other than related party note payable to Dolma $ 300 thousand.

1245000

300000

<p id="xdx_894_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock_zu7wo9LRFPWf" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">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; background-color: rgb(204,238,255)"> <td style="display: none"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_491_20260930__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zqocg65l66Fc" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_495_20260930__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zT78kMT2ADq7" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_490_20260930__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zOzJ2BrGUvh6" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_490_20260930__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_z4Be8tUb7Kp1" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </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 September 30, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td></tr> <tr id="xdx_408_eus-gaap--FinancialLiabilitiesFairValueDisclosureAbstract_iB_zkEOvmARWVj8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>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><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_401_ecustom--WarrantLiability_i01I_pn3n3_maFLFVDzHwA_zJcxTmIeQC4g" style="vertical-align: bottom; background-color: White"> <td style="width: 32%; text-align: left">Warrant liability</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; 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: 13%; 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: 13%; text-align: right">30</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: 13%; text-align: right">30</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--DerivativeLiabilitiesCurrent_i01I_pn3n3_maFLFVDzHwA_z29NZUfqFcv9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Forward purchase derivative 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">708</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">708</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FinancialLiabilitiesFairValueDisclosure_i01TI_pn3n3_mtFLFVDzHwA_z2vYXl74aRH6" 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">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">738</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">738</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; background-color: rgb(204,238,255)"> <td style="display: none"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_49E_20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zFCGZJOPVgH6" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_49C_20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zhLtkHCyEP9a" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_494_20251231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zWdahK2faXrf" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </td><td style="display: none"> </td> <td style="display: none; text-align: left"> </td><td id="xdx_495_20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zzAbw0OjiA54" style="display: none; text-align: right"> </td><td style="display: none; text-align: left"> </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, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td></tr> <tr id="xdx_408_eus-gaap--FinancialLiabilitiesFairValueDisclosureAbstract_iB_z8NniHJpIGOc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>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><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_40B_ecustom--WarrantLiability_i01I_pn3n3_maFLFVDzHwA_zqNWsmuidPy7" style="vertical-align: bottom; background-color: White"> <td style="width: 32%; text-align: left">Warrant Liability</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; 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: 13%; 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: 13%; text-align: right">121</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: 13%; text-align: right">121</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DerivativeLiabilitiesCurrent_i01I_pn3n3_maFLFVDzHwA_z7RDSBDD86Pc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Forward purchase derivative 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">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_401_eus-gaap--FinancialLiabilitiesFairValueDisclosure_i01TI_pn3n3_mtFLFVDzHwA_zfpw4qN3yrG3" style="vertical-align: bottom; background-color: White"> <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">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">9,813</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</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>

30000 30000

708000

738000

121000 121000

9692000

9813000

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: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B9_us-gaap--FairValueByFairValueHierarchyLevelAxis_us-gaap--FairValueInputsLevel3Member_us-gaap--FairValueByMeasurementFrequencyAxis_us-gaap--FairValueMeasurementsRecurringMember_z37AXwrTbWhd" 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_436_c20250101__20250331_eus-gaap--DerivativeLiabilities_iS_pn3n3_zQRIfSci6Sa1" 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">$</td><td style="width: 16%; font-weight: bold; text-align: right">945</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_439_c20250101__20250331_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zDoThfJgzVX7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value of warrant liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26</td><td style="text-align: left"> </td></tr> <tr id="xdx_433_c20250401__20250630_eus-gaap--DerivativeLiabilities_iS_pn3n3_zA09wsxuDBFf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Balance as of March 31, 2025</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">971</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_430_c20250401__20250630_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zL3cnMxZ2Bkj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Change in fair value of warrant liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(122</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_430_c20250701__20250930_eus-gaap--DerivativeLiabilities_iS_pn3n3_z5ljbPPXDCli" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Balance as of June 30, 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">849</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_43C_c20250701__20250930_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zzYfl9GY9wme" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Change in fair value of warrant 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">1</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_43C_c20250701__20250930_eus-gaap--DerivativeLiabilities_iE_pn3n3_zJy188sZ6AMf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Balance as of September 30, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">850</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_4B9_us-gaap--FairValueByFairValueHierarchyLevelAxis_us-gaap--FairValueInputsLevel3Member_us-gaap--FairValueByMeasurementFrequencyAxis_us-gaap--FairValueMeasurementsRecurringMember_zc8THevjKOdg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_432_c20260101__20260331_eus-gaap--DerivativeLiabilities_iS_pn3n3_znD36IvftQ6k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; font-weight: bold">Balance as of December 31, 2025</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">121</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_431_c20260101__20260331_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zSpbQTSluU24" 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">(59</td><td style="text-align: left">)</td></tr> <tr id="xdx_431_c20260401__20260630_eus-gaap--DerivativeLiabilities_iS_pn3n3_zjdf50jHulql" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Balance as of March 31, 2026</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">62</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_43A_c20260401__20260630_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zZC1p48dEwAf" 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">10</td><td style="text-align: left"> </td></tr> <tr id="xdx_434_c20260701__20260930_eus-gaap--DerivativeLiabilities_iS_pn3n3_zFEYHgFq4jmf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Balance as of June 30, 2026</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">72</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_43A_c20260701__20260930_eus-gaap--DerivativeLiabilities_iS_pn3n3_zXxQ5VMh7ag" 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">72</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_43D_c20260701__20260930_eus-gaap--FairValueAdjustmentOfWarrants_pn3n3_zbNQSRG0tBac" 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">(42</td><td style="text-align: left">)</td></tr> <tr id="xdx_43F_c20260701__20260930_eus-gaap--DerivativeLiabilities_iE_pn3n3_zWLj5tJwrSJk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt">Balance as of September 30, 2026</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">30</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_432_c20260701__20260930_eus-gaap--DerivativeLiabilities_iE_pn3n3_zRBKhorlGCDi" 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">30</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

945000

26000

971000

-122000

849000

1000

850000

121000

-59000

62000

10000

72000

-42000

30000

708000

Schedule of Reconciliation of Forward Purchase Derivative Liability <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="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="width: 80%; font-weight: bold">Balance as of December 31, 2025</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left"> </td><td id="xdx_985_eus-gaap--DerivativeLiabilitiesCurrent_iS_pn3n3_c20260101__20260331_zlSqTgVG6Cb6" style="width: 16%; font-weight: bold; text-align: right" title="Forward purchase derivative liability, beginning balance">9,692</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">Change in fair value of forward purchase derivative liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--UnrealizedGainLossOnDerivatives_pn3n3_c20260101__20260331_zV8lXZWqpg4e" style="text-align: right" title="Change in fair value of forward purchase derivative liabilities">(1,588</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Balance as of March 31, 2026</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98D_eus-gaap--DerivativeLiabilitiesCurrent_iS_pn3n3_c20260401__20260630_zBRsfeFnPpS7" style="font-weight: bold; text-align: right" title="Forward purchase derivative liability, beginning balance">8,104</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value of forward purchase derivative liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--UnrealizedGainLossOnDerivatives_pn3n3_c20260401__20260630_z51I1rEJPxg5" style="text-align: right" title="Change in fair value of forward purchase derivative liabilities">(20</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Balance as of June 30, 2026</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_989_eus-gaap--DerivativeLiabilitiesCurrent_iS_pn3n3_c20260701__20260930_zBqguQBUI0F9" style="font-weight: bold; text-align: right" title="Forward purchase derivative liability, beginning balance">8,084</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Adjustment to forward purchase derivative liabilities on account of partial early termination of forward contract (Refer note 15)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--AcceleratedShareRepurchaseProgramAdjustment_pn3n3_c20260701__20260930_zdoK6Oq9E2Pi" style="text-align: right" title="Adjustment to forward purchase derivative liabilities on account of partial early termination of forward contract (Refer note 15)">(9,588</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Change in fair value of forward purchase derivative liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--UnrealizedGainLossOnDerivatives_pn3n3_c20260701__20260930_zHeJuvgzCEL2" style="text-align: right" title="Change in fair value of forward purchase derivative liabilities">2,212</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Balance as of September 30, 2026</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_98A_eus-gaap--DerivativeLiabilitiesCurrent_iE_pn3n3_c20260701__20260930_zr7LTUptTfX4" style="font-weight: bold; text-align: right" title="Forward purchase derivative liability, ending balance">708</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

9692000

-1588000

8104000

-20000

8084000

-9588000

2212000

708000

4.21

2.06

65.0

3.53

2.81

65.0

<p id="xdx_89E_ecustom--ScheduleOfChangeInFairValueOfTheConvertibleNotesAtFairValueTableTextBlock_zcubSnEfmvM6" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">The following table shows the change in the fair value of the Convertible Notes measured at Fair Value (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: 85%"> <tr style="vertical-align: bottom"> <td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_4B2_us-gaap--FinancialInstrumentAxis_custom--RelatedPartyConvertibleNotesPayableAtFairValueMember_zRqCf6jlTTJh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Related party Convertible Note payable at fair value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B2_us-gaap--FinancialInstrumentAxis_custom--JanuaryTwoThousandTwentyFourConvertibleNotesMember_zRv09cyPhLP3" style="border-bottom: Black 1pt solid; text-align: center">January 2024 Convertible Notes</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_4B9_zlBMa8kIAfU3" 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_43A_c20250101__20250331_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_zVSrDl0Ji6x2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 40%; 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">$</td><td style="width: 16%; font-weight: bold; text-align: right">6,524</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">8,986</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">$</td><td style="width: 16%; font-weight: bold; text-align: right">15,510</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_433_c20250101__20250331_ecustom--ChangesInFairValueOfConvertibleNotesAtFairValue_iN_di_zggvGa2d9g1l" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Change in fair value of related party convertible note, convertible notes at fair value</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(548</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(994</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,542</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_435_c20250401__20250630_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_zDKPpHPc2j88" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold; padding-bottom: 1pt">Balance as of March 31, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">5,976</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">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">7,992</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">13,968</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_439_c20250401__20250630_ecustom--ChangesInFairValueOfConvertibleNotesAtFairValue_iN_di_zgm2zJWwK8Re" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value of related party convertible note, convertible notes at fair value</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,804</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,178</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,982</td><td style="text-align: left"> </td></tr> <tr id="xdx_438_c20250701__20250930_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_zL5sXgAQsDBc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold; padding-bottom: 1pt">Balance as of June 30, 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">7,780</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">9,170</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">16,950</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_435_c20250701__20250930_ecustom--ChangesInFairValueOfConvertibleNotesAtFairValue_iN_di_znufQR7lQhJj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value of related party convertible note, convertible notes at fair value</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(250</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">310</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">60</td><td style="text-align: left"> </td></tr> <tr id="xdx_43A_c20250701__20250930_eus-gaap--DebtInstrumentFairValue_iE_pn3n3_zebg7MZyuO56" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold; padding-bottom: 1pt">Balance as of September 30, 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">7,530</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">9,480</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">17,010</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <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><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_432_c20260101__20260930_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_zPgL9WrBiNzd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; 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="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 id="xdx_430_c20260101__20260930_eus-gaap--DebtInstrumentFairValue_iS_pn3n3_zsriDoDmpfG8" style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Convertible notes at fair value, beginning balance</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_434_c20260101__20260930_ecustom--ChangesInFairValueOfConvertibleNotesAtFairValue_iN_di_z7NrHvdMqoQa" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Change in fair value of related party convertible note, 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">-</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 id="xdx_439_c20260101__20260930_eus-gaap--DebtInstrumentFairValue_iE_pn3n3_zl69mT9aXR4a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold; padding-bottom: 1pt">Balance as of September 30, 2026</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">-</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_43E_c20260101__20260930_eus-gaap--DebtInstrumentFairValue_iE_pn3n3_zNfKq7q0WAg3" style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Convertible notes at fair value, ending balance</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> </table>

6524000

8986000

15510000

548000 994000 1542000

5976000

7992000

13968000

-1804000 -1178000 -2982000

7780000

9170000

16950000

250000 -310000 -60000

7530000

9480000

17010000

0.0

4.94

0.52

6.90

65.0

0.0

3.99

1.65

7.65

62.0

8048770

300000

Note 4. Customer Incentive Asset In August 2026, the Company entered into a Master License and Services Agreement (MLSA) with Qintess Holding e Participações Ltd. (“Qintess”), under which Qintess agreed to purchase a minimum of $6,500 thousand of the Company’s AI software and services over a three-year term. In connection with this agreement, the Company agreed to issue up to <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pid_c20260801__20260831__us-gaap--TypeOfArrangementAxis__custom--MasterLicenseAndServicesAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zVGMnrtEUJ2f" title="Shares issued for services">1,250,000 shares of its common stock to Qintess as consideration for its execution of the agreement and commitment to the minimum spend. Of the <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pid_c20260801__20260831__us-gaap--TypeOfArrangementAxis__custom--MasterLicenseAndServicesAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zXkKq1VL65U3" title="Shares issued for services">1,250,000 shares,<span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pid_c20260821__20260821__us-gaap--TypeOfArrangementAxis__custom--MasterLicenseAndServicesAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--VestingAxis__us-gaap--ShareBasedCompensationAwardTrancheOneMember_zllU4gmHIUwj" title="Shares issued for services"> 750,000 shares (Tranche 1) were issued on August 21, 2026 and are unconditional. The shares issued represent an upfront, non-refundable payment made to Qintess for entering into the MLSA and are not contingent on future purchases. They were recorded as a customer incentive asset at a grant-date fair value of $<span id="xdx_905_eus-gaap--StockIssuedDuringPeriodValueIssuedForServices_pn3n3_c20260821__20260821__us-gaap--TypeOfArrangementAxis__custom--MasterLicenseAndServicesAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--VestingAxis__us-gaap--ShareBasedCompensationAwardTrancheOneMember_ziItPLfvOUPc" title="Stock value for services">578 thousand. The remaining <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pid_c20260821__20260821__us-gaap--TypeOfArrangementAxis__custom--MasterLicenseAndServicesAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--VestingAxis__us-gaap--ShareBasedCompensationAwardTrancheTwoMember_z4GQnWpL3EUd" title="Shares issued for services"><span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pid_c20260821__20260821__us-gaap--TypeOfArrangementAxis__custom--MasterLicenseAndServicesAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--VestingAxis__us-gaap--ShareBasedCompensationAwardTrancheThreeMember_zWP43c5qpupb" title="Shares issued for services">500,000 shares (Tranches 2 and 3) vest on the later of (i) Qintess achieving cumulative purchases of goods and services of $<span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodValueIssuedForServices_pn3n3_c20260821__20260821__us-gaap--TypeOfArrangementAxis__custom--MasterLicenseAndServicesAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--VestingAxis__us-gaap--ShareBasedCompensationAwardTrancheTwoMember_zmTf9qfrzNkg" title="Stock value for services">4,500 thousand and $<span id="xdx_906_eus-gaap--StockIssuedDuringPeriodValueIssuedForServices_pn3n3_c20260821__20260821__us-gaap--TypeOfArrangementAxis__custom--MasterLicenseAndServicesAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--VestingAxis__us-gaap--ShareBasedCompensationAwardTrancheThreeMember_zU2jqyAWnNbj" title="Stock value for services">6,500 thousand, respectively, and (ii) the second and third anniversary of the effective date, respectively. Achievement of these thresholds was not probable as of September 30, 2026, and accordingly no amount has been recognized for these tranches. The shares are not issued in exchange for a distinct good or service and are therefore accounted for as consideration payable to a customer. They are recorded as a customer incentive asset at grant-date fair value. As of September 30, 2026, no revenue had been recognized under the MLSA and further the asset is amortized on a straight-line basis over 36 months, the MLSA initial term, as a reduction of revenue. Management considers this a reasonable approximation of the pattern in which services will be transferred. The asset is assessed for recoverability at each reporting date, and any unrecoverable amount is expensed. During the quarter ended September 30, 2026, amortization of $22 thousand was recorded as a reduction of revenue. The net carrying amount was $<span id="xdx_907_eus-gaap--DebtInstrumentCarryingAmount_iI_pn3n3_c20260821__us-gaap--TypeOfArrangementAxis__custom--MasterLicenseAndServicesAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--VestingAxis__us-gaap--ShareBasedCompensationAwardTrancheOneMember_zDFqR6f3tUpj" title="Carrying amount">557 thousand, of which $193 thousand is current and $364 thousand is non-current.

6500000

1250000

750000

578000

500000

4500000

6500000

22000

557000

193000 364000

<p id="xdx_803_eus-gaap--AccountsPayableAccruedLiabilitiesAndOtherLiabilitiesDisclosureCurrentTextBlock_zhQfLubu17bl" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">Note 5. Accrued Expenses and Other Current Liabilities <p id="xdx_89F_eus-gaap--ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock_zzKdkyBZEPV5" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">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_497_20260930_zUbjuoVeaC0c" style="font-weight: bold; text-align: center">September 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_493_20251231_zl0YJlBoJOJ1" 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">2026</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">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_pn3n3_maAPAALzFIG_zqbheunrGnm5" 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">$</td><td style="width: 16%; text-align: right">3,836</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,858</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AccruedProfessionalFeesCurrent_iI_pn3n3_maAPAALzFIG_zjCoHtNRPoYl" 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">14</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--InterestPayableCurrent_iI_pn3n3_maAPAALzFIG_z0z6sfAy5su9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interest payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">339</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">304</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_pn3n3_maAPAALzFIG_zm6BrXII4Va3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">545</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">456</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccountsPayableAndAccruedLiabilitiesCurrent_iTI_pn3n3_mtAPAALzFIG_zX9bTuICsvX4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; 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">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">4,734</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">4,618</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

<p id="xdx_89F_eus-gaap--ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock_zzKdkyBZEPV5" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">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_497_20260930_zUbjuoVeaC0c" style="font-weight: bold; text-align: center">September 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_493_20251231_zl0YJlBoJOJ1" 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">2026</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">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_pn3n3_maAPAALzFIG_zqbheunrGnm5" 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">$</td><td style="width: 16%; text-align: right">3,836</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,858</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AccruedProfessionalFeesCurrent_iI_pn3n3_maAPAALzFIG_zjCoHtNRPoYl" 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">14</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--InterestPayableCurrent_iI_pn3n3_maAPAALzFIG_z0z6sfAy5su9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interest payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">339</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">304</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_pn3n3_maAPAALzFIG_zm6BrXII4Va3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">545</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">456</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccountsPayableAndAccruedLiabilitiesCurrent_iTI_pn3n3_mtAPAALzFIG_zX9bTuICsvX4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; 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">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">4,734</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">4,618</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

3836000

3858000

14000

339000

304000

545000

456000

4734000

4618000

Note 6. Debt Debt consists of the following (in thousands): Schedule of Long-Term Debt Loans Payable <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 95%"> <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">September 30, 2026</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, 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">Current</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">Noncurrent</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><td style="font-weight: bold; padding-bottom: 1pt"> </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="font-weight: bold; padding-bottom: 1pt"> </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="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 style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Convertible notes payable, current</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20260930__us-gaap--LongtermDebtTypeAxis__custom--ConvertibleNotesPayableCurrentMember_zepTevacjqL5" style="width: 6%; text-align: right" title="Long term debt, current">1,245</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--LongTermDebtNoncurrent_iI_pn3n3_c20260930__us-gaap--LongtermDebtTypeAxis__custom--ConvertibleNotesPayableCurrentMember_zM2iQvcvPIv1" style="width: 6%; 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_987_eus-gaap--LongTermDebt_iI_pn3n3_c20260930__us-gaap--LongtermDebtTypeAxis__custom--ConvertibleNotesPayableCurrentMember_z3eegMPWGb2h" style="width: 6%; text-align: right" title="Long term debt">1,245</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_98C_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--ConvertibleNotesPayableCurrentMember_zb6BBXEUtxw8" style="width: 6%; 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_98C_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--ConvertibleNotesPayableCurrentMember_zBT8xLYDs5z1" style="width: 6%; 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--ConvertibleNotesPayableCurrentMember_zMQMRtQeZXLc" style="width: 6%; text-align: right" title="Long term debt">-</td><td style="width: 1%; 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_986_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20260930__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zC8p2Q5Vmel9" 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_98F_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20260930__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zBK9N7AaO0O3" 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_987_eus-gaap--LongTermDebt_iI_pn3n3_c20260930__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zJs1qtqzzPgj" 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_989_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zXKWcBlNbud8" 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_z4NFMc2HbsZ" 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_zte76zL8an4i" style="text-align: right" title="Long term debt">300</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">$</td><td id="xdx_983_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20260930_ztNhjIAKee14" style="font-weight: bold; text-align: right" title="Long term debt, current">1,545</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_984_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20260930_ze2FYAAb6jr7" 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">$</td><td id="xdx_98C_eus-gaap--LongTermDebt_iI_pn3n3_c20260930_zBBfJSufzIA4" style="font-weight: bold; text-align: right" title="Long term debt">1,545</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_981_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231_zZVDlDcglMah" 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">$</td><td id="xdx_987_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20251231_zbT0GmsZ6er6" style="font-weight: bold; text-align: right" title="Long term debt, noncurrent"> -</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--LongTermDebt_iI_pn3n3_c20251231_zlsDSwMTQIda" style="font-weight: bold; text-align: right" title="Long term debt">300</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements Convertible notes payable, current Issuance and terms: On August 2, 2026, the Company entered into securities purchase agreements (collectively, the “SPAs”) with certain institutional investors (the “Purchasers”) and issued original issue discount senior unsecured convertible promissory notes (the “Notes”) with an aggregate stated principal of $2,500 thousand for aggregate cash proceeds of $2,050 thousand, reflecting an original issue discount of $450 thousand. The Notes are due on February 12, 2027 and are zero-coupon: no interest accrues unless an event of default occurs, in which case simple interest accrues at 18% per annum until repaid. The Notes are senior unsecured obligations of the Company. They are convertible at the holder’s option at any time into shares of common stock at a fixed conversion price of $<span id="xdx_901_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_pid_c20260802__us-gaap--DebtInstrumentAxis__custom--AugustTwoTwoThousandTweentySixConvertiblePromissoryNotesMember_zJJ52aLDUFma" title="Debt instrumental conversion price">4.20 per share. The price is not subject to reset or ratchet and is adjusted only for stock splits, stock dividends, recapitalizations and similar events. Conversion is subject to a 9.99% beneficial ownership limitation and to Nasdaq share-issuance limits. The Company may prepay the Notes at any time at 100% of principal without premium. In addition, 33% of the proceeds received under the Forward Purchase Agreement, and 33% of the net proceeds of any financing transaction, must be applied to repay the Notes at 100% of face value (the “mandatory prepayment”). Classification and measurement: The Notes are not measured at fair value and are carried at amortized cost. The Notes are classified as liabilities under ASC 470, Debt. The Company evaluated the embedded features of the Notes under ASC 815-15-25-1. The holder’s conversion option is not clearly and closely related to the debt host and would otherwise meet the definition of a derivative. However, it qualifies for the scope exception in ASC 815-10-15-74(a) it is (i) indexed to the Company’s own stock, with a fixed conversion price of $<span id="xdx_908_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_pid_c20260802__us-gaap--DebtInstrumentAxis__custom--AugustTwoTwoThousandTweentySixConvertiblePromissoryNotesMember_zPUQkrbiM9vh" title="Debt instrumental conversion price">4.20 per share that is not subject to reset or ratchet adjustment other than standard anti-dilution provisions, and (ii) classified in stockholders’ equity, as the Notes convert in their entirety into a fixed number of shares and are settled only by physical delivery of shares (ASC 815-40-25-39). Accordingly, the conversion option was not bifurcated, and no portion of the proceeds was attributed to it (ASC 470-20-25-12). The optional and mandatory prepayment and the acceleration and default interest provisions only accelerate repayment of principal at par and are clearly and closely related to the debt host; they were therefore not bifurcated. Financing Warrants: Concurrently, the Company issued 2,050,000 detachable common stock purchase warrants (the “Financing Warrants”) exercisable at $<span id="xdx_900_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_pid_c20260802__us-gaap--DebtInstrumentAxis__custom--AugustTwoTwoThousandTweentySixConvertiblePromissoryNotesMember_zyrtYAAxR591" title="Debt instrumental conversion price">4.20 per share for five years. The Financing Warrants are freestanding instruments separate from the Notes. The Company evaluated them under ASC 480 and ASC 815-40 and concluded that they are not within the scope of ASC 480, are indexed to the Company’s own common stock, and satisfy all equity classification conditions under ASC 815-40-25-10. Accordingly, they are equity-classified, recorded in additional paid-in capital at their allocated fair value, and are not subsequently remeasured. Allocation of proceeds and transaction costs: In accordance with ASC 470-20, the $2,050 thousand of proceeds was allocated between the Notes and the Financing Warrants on a relative fair value basis. This gave $1,714.14 thousand (83.6%) to the Notes and $335.86 thousand (<span id="xdx_906_esrt--FinancingReceivableNonaccrualToOutstandingPercent_iI_pid_dp_uPure_c20260930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zMOMax5LzuK5" title="Financing receivable percent">16.4%) to the Financing Warrants. The amount allocated to the Financing Warrants was recorded in additional paid-in capital, with a corresponding debt discount against the Notes. The fair values were determined with the assistance of an independent valuation specialist as of August 2, 2026, the issuance date. The Financing Warrants were valued using the Black-Scholes option pricing model, based on the $<span id="xdx_90D_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20260802__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--DebtInstrumentAxis__custom--AugustTwoTwoThousandTwentySixConvertibleNoteMember_z8pMhbgDuaWe" title="Common stock exercise price">4.20 exercise price, the five-year term, a stock price of $<span id="xdx_909_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260802__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_zDddvY2FaVLe" title="Warrant liability, measurement input">0.78, volatility of <span id="xdx_908_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260802__us-gaap--MeasurementInputTypeAxis__custom--MeasurementInputAnnualizedVolatilityMember_zAITEG976CHb" title="Warrant liability, measurement input">65% and a risk-free rate of <span id="xdx_90C_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260802__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zIWl8am4Axf7" title="Warrant liability, measurement input">4.4%. The Notes, which are the hybrid instrument including the conversion option (not bifurcated) and the prepayment features, were valued using a Monte Carlo simulation of the Company’s stock price. At each simulated node, the model tests whether the holder would convert at $<span id="xdx_90C_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20260930__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--DebtInstrumentAxis__custom--AugustTwoTwoThousandTwentySixConvertibleNoteMember_zNd02wNFpDi1" title="Common stock exercise price">4.20 per share or the Notes would be repaid at the $2,500 thousand principal amount at maturity, and the resulting cash flows were discounted at a credit yield of 410.3%, calibrated so that the fair value of the Notes plus the fair value of the Financing Warrants equals the $2,050 thousand proceeds. The fair value of the Notes of $1,714.14 thousand, which includes the embedded conversion option, and the fair value of the Financing Warrants of $335.86 thousand were the basis for the relative fair value allocation. These valuations use significant unobservable inputs (Level 3). The Company incurred transaction costs of $150 thousand directly attributable to the issuance, which were initially deferred. They were allocated between the Notes and the Financing Warrants on the same relative fair value basis: $125.42 thousand to the Notes and $24.58 thousand to the Financing Warrants. The portion allocated to the Notes is presented as a direct deduction from the carrying amount of the Notes (ASC 835-30) and amortized to interest expense over the term using the effective interest method. The portion allocated to the Financing Warrants is recorded as a reduction of additional paid-in capital. Amendment of Shortfall Warrants: As a condition precedent to the closing of the Note financing, the Company amended the exercise price of pre-existing shortfall warrants held by one of the purchasers (refer to Note 16 Shortfall warrant). This amendment formed part of a single arrangement with the Notes; accordingly, the incremental fair value of the modified shortfall warrants of $494.05 thousand was recognized as a cost of the financing in accordance with ASC 815-40-35-17(b). Consistent with the allocation of proceeds and transaction costs above, <span id="xdx_90A_ecustom--ClassOfWarrantOrRightReasonForIssuingToNonemployee_c20260802__20260802__us-gaap--ClassOfWarrantOrRightAxis__custom--SecondWarrantAmendmentMember_zjIBop9rHAbc" title="Financing warrants issued description">this cost was allocated between the Notes and the Financing Warrants on the same relative fair value basis: $413.11 thousand (83.6%) to the Notes, which is recorded as a debt discount against the carrying amount of the Notes (ASC 835-30) and amortized to interest expense over the term using the effective interest method, and $80.94 thousand (16.4%) to the Financing Warrants, which is recorded as a reduction of additional paid-in capital. Accordingly, the amendment resulted in a net increase of $413.11 thousand in additional paid-in capital, comprising a credit of $494.05 thousand presented as “Shortfall warrant amendment” and a reduction of $80.94 thousand presented within “Warrants issued in connection with new Convertible Notes” in the condensed consolidated interim statements of stockholders’ deficit and in the supplemental non-cash disclosures in the condensed consolidated interim statements of cash flows. All discounts and issuance costs are amortized over the term of the Notes using the effective interest method at an effective interest rate of 410.3%. The effective interest rate does not represent the contractual coupon or stated interest rate for the notes, but rather reflects the accounting amortization of the original issue discount, warrant allocation, and debt issuance costs over the Notes’ relatively short contractual term. The Company recognized interest expense on the Notes of $294 thousand during the three months ended September 30, 2026. During the three months ended September 30, 2026, $224 thousand of principal was repaid through the mandatory prepayment from early-termination proceeds under the Forward Purchase Agreement (refer to Note 15 Forward Purchase Agreement). The net carrying amount of the Notes as of September 30, 2026 was $ 1,245 thousand. Related Party loan payable For a full description of the terms, conversion features, and amendment history of each convertible note, refer to Note 10 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Impact of Reverse Recapitalization on Convertible Notes In the prior fiscal year, on October 22, 2025, the Company consummated a Business Combination (accounted for as a reverse recapitalization). In connection with that transaction, each Legacy Fusemachines convertible note that was issued and outstanding immediately prior to closing — including both related-party and non-related-party convertible notes (comprising the 2019 and 2021 Convertible Notes, the January 2024 Convertible Notes, and the April 2024, June 2024, September 2024, and February 2025 Convertible Notes) — were converted into an aggregate of 8,048,770 shares of Legacy Fusemachines common stock in accordance with the respective convertible note agreements. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements In accordance with ASC 470-20, Debt with Conversion and Other Options, convertible notes exchanged for equity pursuant to their original contractual terms are accounted for by reclassifying the carrying amount of the convertible debt to equity, with no gain or loss recognized in earnings. 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, no convertible notes or related-party notes payable remained outstanding as of September 30, 2026, other than the related party loan payable to Dolma of $300 thousand, which was not converted in connection with the Business Combination and continues to remain outstanding as of the date of this filing. Warrant Issuance Upon Conversion at Reverse Recapitalization Upon conversion of the April 2024, June 2024, and September 2024 Convertible Notes in connection with the Business Combination on October 22, 2025, warrants to purchase <span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_pid_c20251022__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--DebtInstrumentAxis__custom--SeptemberTwoThousandTwentyFourConvertibleNoteMember_zLo7MtKdZBVb" title="Warrant to purchase">7,500 shares of Fusemachines Inc. common stock at an exercise price of $<span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20251022__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--DebtInstrumentAxis__custom--SeptemberTwoThousandTwentyFourConvertibleNoteMember_zwFmnCsLQVbc" title="Common stock exercise price">11.50 per share were issued to each respective noteholder. These warrants are classified as equity warrants under ASC 480 and ASC 815, were measured at fair value on the issuance date (October 22, 2025) and are not subject to subsequent remeasurement through earnings. These warrants carry the same terms and provisions as the Company’s Public Warrants (refer to Note 17 – Public and Private Warrants). Common Stock Warrant Liability In connection with the 2023 Notes Agreement, the Company issued common stock warrants (the “Common Stock Warrants”) to purchase up to <span id="xdx_90B_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_c20260930__us-gaap--StatementClassOfStockAxis__custom--CommonStockWarrantsMember_zolgcDJPTW6d" title="Common stock warrants outstanding purchase shares">92,211 shares of the Company’s common stock at an exercise price of $0.70 per share, with a contractual term of <span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_pid_dtY_c20260101__20260930__us-gaap--StatementClassOfStockAxis__custom--CommonStockWarrantsMember_ztDNEFQJVj8j" title="Contractual term">10 years. These warrants are liability-classified under ASC 480-10 and continue to be remeasured at fair value each reporting period. As of September 30, 2026 and December 31, 2025, the fair value and carrying amount of the Common Stock Warrant Liability was $ 29.6 thousand and $ 121.0 thousand, respectively (refer to Note 3 – Fair Value Measurements). Related Party Loan Payable The $300 thousand related party loan payable as of September 30, 2026 and December 31, 2025 represents the outstanding balance under the promissory note with Dolma, which was not converted or settled in connection with the Business Combination and remains outstanding as of the date of this report. In connection with the Business Combination on October 22, 2025, the Company separately settled the outstanding principal and accrued interest under the 2024 Related Party Promissory Notes with Mr. Sameer Maskey, CEO, in cash; accordingly, no balance remains outstanding under those notes as of September 30, 2026 and December 31, 2025.

Debt consists of the following (in thousands): Schedule of Long-Term Debt Loans Payable <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 95%"> <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">September 30, 2026</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, 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">Current</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">Noncurrent</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><td style="font-weight: bold; padding-bottom: 1pt"> </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="font-weight: bold; padding-bottom: 1pt"> </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="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 style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Convertible notes payable, current</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20260930__us-gaap--LongtermDebtTypeAxis__custom--ConvertibleNotesPayableCurrentMember_zepTevacjqL5" style="width: 6%; text-align: right" title="Long term debt, current">1,245</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--LongTermDebtNoncurrent_iI_pn3n3_c20260930__us-gaap--LongtermDebtTypeAxis__custom--ConvertibleNotesPayableCurrentMember_zM2iQvcvPIv1" style="width: 6%; 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_987_eus-gaap--LongTermDebt_iI_pn3n3_c20260930__us-gaap--LongtermDebtTypeAxis__custom--ConvertibleNotesPayableCurrentMember_z3eegMPWGb2h" style="width: 6%; text-align: right" title="Long term debt">1,245</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_98C_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--ConvertibleNotesPayableCurrentMember_zb6BBXEUtxw8" style="width: 6%; 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_98C_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--ConvertibleNotesPayableCurrentMember_zBT8xLYDs5z1" style="width: 6%; 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--ConvertibleNotesPayableCurrentMember_zMQMRtQeZXLc" style="width: 6%; text-align: right" title="Long term debt">-</td><td style="width: 1%; 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_986_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20260930__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zC8p2Q5Vmel9" 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_98F_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20260930__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zBK9N7AaO0O3" 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_987_eus-gaap--LongTermDebt_iI_pn3n3_c20260930__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zJs1qtqzzPgj" 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_989_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231__us-gaap--LongtermDebtTypeAxis__custom--RelatedPartyLoanPayableMember_zXKWcBlNbud8" 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_z4NFMc2HbsZ" 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_zte76zL8an4i" style="text-align: right" title="Long term debt">300</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">$</td><td id="xdx_983_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20260930_ztNhjIAKee14" style="font-weight: bold; text-align: right" title="Long term debt, current">1,545</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_984_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20260930_ze2FYAAb6jr7" 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">$</td><td id="xdx_98C_eus-gaap--LongTermDebt_iI_pn3n3_c20260930_zBBfJSufzIA4" style="font-weight: bold; text-align: right" title="Long term debt">1,545</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_981_eus-gaap--LongTermDebtCurrent_iI_pn3n3_c20251231_zZVDlDcglMah" 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">$</td><td id="xdx_987_eus-gaap--LongTermDebtNoncurrent_iI_pn3n3_c20251231_zbT0GmsZ6er6" style="font-weight: bold; text-align: right" title="Long term debt, noncurrent"> -</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--LongTermDebt_iI_pn3n3_c20251231_zlsDSwMTQIda" style="font-weight: bold; text-align: right" title="Long term debt">300</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

1245000

300000

1545000

300000

2500

2050

450000

0.18

4.20

Conversion is subject to a 9.99% beneficial ownership limitation and to Nasdaq share-issuance limits. The Company may prepay the Notes at any time at 100% of principal without premium. In addition, 33% of the proceeds received under the Forward Purchase Agreement, and 33% of the net proceeds of any financing transaction, must be applied to repay the Notes at 100% of face value (the “mandatory prepayment”).

4.20

2050000

4.20

2050

1714140

0.836

335860

0.164

4.20

0.78

4.4

4.20

2500000

4.103

2050

1714140

335860

150000

They were allocated between the Notes and the Financing Warrants on the same relative fair value basis: $125.42 thousand to the Notes and $24.58 thousand to the Financing Warrants.

494050.00

this cost was allocated between the Notes and the Financing Warrants on the same relative fair value basis: $413.11 thousand (83.6%) to the Notes, which is recorded as a debt discount against the carrying amount of the Notes (ASC 835-30) and amortized to interest expense over the term using the effective interest method, and $80.94 thousand (16.4%) to the Financing Warrants, which is recorded as a reduction of additional paid-in capital. Accordingly, the amendment resulted in a net increase of $413.11 thousand in additional paid-in capital, comprising a credit of $494.05 thousand presented as “Shortfall warrant amendment” and a reduction of $80.94 thousand presented within “Warrants issued in connection with new Convertible Notes”

4.103

294000

224000

1245000

8048770

300000

7500

11.50

92211

0.70

P10Y

29600

121000.0

300000

Note 7. 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 as of September 30, 2026 and December 31, 2025 respectively. <p id="xdx_894_ecustom--ScheduleOfReservedSharesOfCommonStockForFutureIssuanceTableTextBlock_ztcJjQ5uT8Kb" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">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: 85%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20260930_zdhxLeCCXSai" style="border-bottom: Black 1pt solid; text-align: center">As of September 30, 2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20251231_zousn8G4v9pb" style="border-bottom: Black 1pt solid; text-align: center">As of December 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40C_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--StatementClassOfStockAxis__custom--CommonStockWarrantsMember_zfZDS9veZGB8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Common stock warrants</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">92,211</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">92,211</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zf9gI84eYoV8" 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">546,342</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">686,880</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__custom--SPACPublicAndPrivatePlacementWarrantsMember_z67HzQNct3F8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">SPAC public and private placement warrants (Refer note 17)</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">13,458,750</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__custom--EquitySharesWarrantMember_z7vZ1PduvDo9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Equity share warrant (Refer note 16)</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">2,108,070</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--IssuanceOfWarrantsPursuantToConversionOfConvertibleNote_iI_pid_hus-gaap--AwardTypeAxis__us-gaap--WarrantMember_zn6BgQkWylFf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Issuance of warrants pursuant to conversion of convertible note (refer note 6)</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">30,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zKTJFm73kau6" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Restricted stock units (RSU) (Refer note 9)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">646,239</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_400_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__us-gaap--WarrantMember_zoQbVA8aX0k2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Detachable common stock purchase warrants (the “Financing Warrants”) (refer note 6)</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">2,050,000</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_400_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_z5K36n1Las65" style="vertical-align: bottom; background-color: White"> <td>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">18,931,612</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">16,375,911</td><td style="font-weight: bold; text-align: left"> </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_908_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20260930__us-gaap--StatementClassOfStockAxis__us-gaap--ConvertiblePreferredStockMember_zt0YPiHpDA2e" title="Preferred stock, shares authorized">5,000,000 as at September 30, 2026. Warrants As of September 30, 2026 and December 31, 2025 the Company had Common Stock Warrants outstanding to purchase up to <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20260101__20260930__us-gaap--SubsidiarySaleOfStockAxis__custom--CommonStockWarrantsMember_zXTwFiOMNSGj" title="Purchase of common stock warrants outstanding"><span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20250101__20251231__us-gaap--SubsidiarySaleOfStockAxis__custom--CommonStockWarrantsMember_zyGF2SEqY8V9" title="Purchase of common stock warrants outstanding">92,211 shares of the Company’s common stock at an exercise price of $0.70 per share and have a contractual term of 10 years. The Common Stock Warrants were issued in August 2023. (Refer to “Note 3 - Fair Value Measurements “ ). Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements

500000000

<p id="xdx_894_ecustom--ScheduleOfReservedSharesOfCommonStockForFutureIssuanceTableTextBlock_ztcJjQ5uT8Kb" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">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: 85%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20260930_zdhxLeCCXSai" style="border-bottom: Black 1pt solid; text-align: center">As of September 30, 2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20251231_zousn8G4v9pb" style="border-bottom: Black 1pt solid; text-align: center">As of December 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40C_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--StatementClassOfStockAxis__custom--CommonStockWarrantsMember_zfZDS9veZGB8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Common stock warrants</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">92,211</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">92,211</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zf9gI84eYoV8" 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">546,342</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">686,880</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__custom--SPACPublicAndPrivatePlacementWarrantsMember_z67HzQNct3F8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">SPAC public and private placement warrants (Refer note 17)</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">13,458,750</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__custom--EquitySharesWarrantMember_z7vZ1PduvDo9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Equity share warrant (Refer note 16)</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">2,108,070</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--IssuanceOfWarrantsPursuantToConversionOfConvertibleNote_iI_pid_hus-gaap--AwardTypeAxis__us-gaap--WarrantMember_zn6BgQkWylFf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Issuance of warrants pursuant to conversion of convertible note (refer note 6)</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">30,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zKTJFm73kau6" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Restricted stock units (RSU) (Refer note 9)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">646,239</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_400_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_hus-gaap--AwardTypeAxis__us-gaap--WarrantMember_zoQbVA8aX0k2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Detachable common stock purchase warrants (the “Financing Warrants”) (refer note 6)</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">2,050,000</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_400_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_z5K36n1Las65" style="vertical-align: bottom; background-color: White"> <td>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">18,931,612</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">16,375,911</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

92211

546342

686880

13458750

2108070

30000 30000

646239

2050000

18931612

16375911

5000000

92211

0.70

P10Y

Note 8. 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_zsvoN4JEuPp2" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">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 Customer’s Location <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20260701__20260930_zkzzJb1D21B6" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20250701__20250930_zA3JpFBaVhJ4" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20260101__20260930_z8hCrrCoo3Xc" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20250101__20250930_zGSblmxkbNXk" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Three Months Ended September 30,</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Nine Months Ended September 30,</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2026</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2025</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2026</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2025</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </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><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_zp9NfPluiZqk" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 32%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: right">1,700</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: 13%; text-align: right">1,741</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: 13%; text-align: right">5,225</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: 13%; text-align: right">5,464</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--Revenues_pn3n3_hsrt--StatementGeographicalAxis__us-gaap--NonUsMember_zzXuwQpcTYA4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Rest of the world</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">145</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">51</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">293</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">315</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--Revenues_pn3n3_zpsUDR2GXue5" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; 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">1,845</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">1,792</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">5,518</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">5,779</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_891_eus-gaap--ScheduleOfEntityWideInformationRevenueFromExternalCustomersByProductsAndServicesTextBlock_zv5Dplb5onB3" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">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 Customer’s Service Type <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20260701__20260930_zYCTD8XmXFGi" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250701__20250930_zK1ORZfaJSFd" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20260101__20260930_zCWEf7eZTulb" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20250101__20250930_zTJ76pz8JJkb" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold; vertical-align: bottom">Three Months Ended September 30,</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Nine Months Ended September 30,</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </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">2026</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">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">2026</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">2025</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; 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><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_40D_eus-gaap--Revenues_pn3n3_hsrt--ProductOrServiceAxis__custom--AISolutionsMember_zxceMJLpYrr3" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 32%; 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: 13%; text-align: right">1,825</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: 13%; text-align: right">1,790</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: 13%; text-align: right">5,481</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: 13%; text-align: right">5,656</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--Revenues_pn3n3_hsrt--ProductOrServiceAxis__custom--AIEducationServicesMember_zJBZEHcvQLJ" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">AI Education service</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">37</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">123</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--Revenues_pn3n3_zv2vPt5Oh9gb" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; 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">1,845</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">1,792</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">5,518</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">5,779</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_F00_zemBMGyJ73dl" style="width: 15pt; text-align: right">*</td><td 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> Deferred Revenue During the three months and nine months ended September 30, 2026, the Company recognized revenue of Nil from the deferred revenue balance as of June 30, 2026 and December 31, 2025. During the three and nine months ended September 30, 2025, the Company recognized revenue of Nil and $53.7 thousand from the deferred revenue balance as of June 30, 2025 and December 31, 2024 respectively. 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 unaudited condensed consolidated interim balance sheets included capitalized balances in the amount of $ 10 thousand and $ 19 thousand as of September 30, 2026 and December 31, 2025 which represents the current portion and is included within prepaid expenses and other current assets, respectively and $1 thousand and $3.2 thousand, as of September 30, 2026 and December 31, 2025, 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 the unaudited condensed consolidated interim statements of operations and comprehensive loss. Amortization recognized during the three months ended September 30, 2026 and 2025 was $11.8 thousand and Nil respectively, whereas during the nine month ended September 30, 2026, and 2025 was $27.5 thousand and $15.9 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. 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> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Contract Assets</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Deferred revenue</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Unbilled Revenue</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; font-weight: bold">Ending 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_98B_eus-gaap--ContractWithCustomerAssetNetCurrent_iS_pn3n3_c20250101__20251231_zHIkQEw9CgKl" style="width: 16%; font-weight: bold; text-align: right" title="Contract asset, beginning balance">27</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_c20250101__20251231_zlSWC75gojsh" style="width: 16%; font-weight: bold; text-align: right" title="Deferred revenue, beginning balance">54</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_983_eus-gaap--UnbilledReceivablesCurrent_iS_pn3n3_c20250101__20251231_zOojpmiScDDe" style="width: 16%; font-weight: bold; text-align: right" title="Unbilled Revenue, beginning balance">113</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_983_eus-gaap--IncreaseDecreaseInContractWithCustomerAsset_pn3n3_c20250101__20251231_z8zTewM1neY6" 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_98C_eus-gaap--IncreaseDecreaseInContractWithCustomerLiability_pn3n3_c20250101__20251231_zBzkZr08XfU2" 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_zLLB9oMLg1u2" 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_983_eus-gaap--ContractWithCustomerAssetNetCurrent_iS_pn3n3_c20260101__20260930_zCXAYRzwtw4b" style="font-weight: bold; text-align: right" title="Contract asset, beginning 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_98F_eus-gaap--ContractWithCustomerLiabilityCurrent_iS_pn3n3_c20260101__20260930_zyniycciOcm1" style="font-weight: bold; text-align: right" title="Deferred revenue, beginning 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_98A_eus-gaap--UnbilledReceivablesCurrent_iS_pn3n3_c20260101__20260930_z2PtQiKV4wx5" style="font-weight: bold; text-align: right" title="Unbilled Revenue, beginning balance">16</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_989_eus-gaap--IncreaseDecreaseInContractWithCustomerAsset_pn3n3_c20260101__20260930_zsq8LCNHe015" style="text-align: right" title="Contract assets, Increase/(decrease), net">(11</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--IncreaseDecreaseInContractWithCustomerLiability_pn3n3_c20260101__20260930_zTvLOHv564zk" style="text-align: right" title="Contract assets, Increase/(decrease), net">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--IncreaseDecreaseInUnbilledReceivable_pn3n3_c20260101__20260930_z9YN2mh60t35" style="text-align: right" title="Contract assets, Increase/(decrease), net">-</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 September 30, 2026</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_982_eus-gaap--ContractWithCustomerAssetNetCurrent_iE_pn3n3_c20260101__20260930_z5o4J4czpBy7" style="font-weight: bold; text-align: right" title="Contract asset, ending balance">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 id="xdx_987_eus-gaap--ContractWithCustomerLiabilityCurrent_iE_pn3n3_c20260101__20260930_zWeCQZG9WD67" 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_981_eus-gaap--UnbilledReceivablesCurrent_iE_pn3n3_c20260101__20260930_zSUFzLKg4gs" style="font-weight: bold; text-align: right" title="Unbilled Revenue, beginning balance">16</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements

<p id="xdx_89C_eus-gaap--RevenueFromExternalCustomersByGeographicAreasTableTextBlock_zsvoN4JEuPp2" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">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 Customer’s Location <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20260701__20260930_zkzzJb1D21B6" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20250701__20250930_zA3JpFBaVhJ4" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20260101__20260930_z8hCrrCoo3Xc" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20250101__20250930_zGSblmxkbNXk" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Three Months Ended September 30,</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Nine Months Ended September 30,</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2026</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2025</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2026</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">2025</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </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><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_zp9NfPluiZqk" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 32%; text-align: left">United States</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: right">1,700</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: 13%; text-align: right">1,741</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: 13%; text-align: right">5,225</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: 13%; text-align: right">5,464</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--Revenues_pn3n3_hsrt--StatementGeographicalAxis__us-gaap--NonUsMember_zzXuwQpcTYA4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Rest of the world</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">145</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">51</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">293</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">315</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--Revenues_pn3n3_zpsUDR2GXue5" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; 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">1,845</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">1,792</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">5,518</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">5,779</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

1700000

1741000

5225000

5464000

145000

51000

293000

315000

1845000

1792000

5518000

5779000

<p id="xdx_891_eus-gaap--ScheduleOfEntityWideInformationRevenueFromExternalCustomersByProductsAndServicesTextBlock_zv5Dplb5onB3" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">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 Customer’s Service Type <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20260701__20260930_zYCTD8XmXFGi" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250701__20250930_zK1ORZfaJSFd" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20260101__20260930_zCWEf7eZTulb" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20250101__20250930_zTJ76pz8JJkb" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold; vertical-align: bottom">Three Months Ended September 30,</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt; vertical-align: bottom"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Nine Months Ended September 30,</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold; vertical-align: bottom"> </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">2026</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">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">2026</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">2025</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; 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><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_40D_eus-gaap--Revenues_pn3n3_hsrt--ProductOrServiceAxis__custom--AISolutionsMember_zxceMJLpYrr3" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 32%; 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: 13%; text-align: right">1,825</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: 13%; text-align: right">1,790</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: 13%; text-align: right">5,481</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: 13%; text-align: right">5,656</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--Revenues_pn3n3_hsrt--ProductOrServiceAxis__custom--AIEducationServicesMember_zJBZEHcvQLJ" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">AI Education service</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">37</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">123</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--Revenues_pn3n3_zv2vPt5Oh9gb" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; 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">1,845</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">1,792</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">5,518</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">5,779</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_F00_zemBMGyJ73dl" style="width: 15pt; text-align: right">*</td><td 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>

1825000

1790000

5481000

5656000

20000

2000

37000

123000

1845000

1792000

5518000

5779000

53700

10000

19000

1000

3200

11800

27500

15900

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> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Contract Assets</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Deferred revenue</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Unbilled Revenue</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; font-weight: bold">Ending 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_98B_eus-gaap--ContractWithCustomerAssetNetCurrent_iS_pn3n3_c20250101__20251231_zHIkQEw9CgKl" style="width: 16%; font-weight: bold; text-align: right" title="Contract asset, beginning balance">27</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_c20250101__20251231_zlSWC75gojsh" style="width: 16%; font-weight: bold; text-align: right" title="Deferred revenue, beginning balance">54</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_983_eus-gaap--UnbilledReceivablesCurrent_iS_pn3n3_c20250101__20251231_zOojpmiScDDe" style="width: 16%; font-weight: bold; text-align: right" title="Unbilled Revenue, beginning balance">113</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_983_eus-gaap--IncreaseDecreaseInContractWithCustomerAsset_pn3n3_c20250101__20251231_z8zTewM1neY6" 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_98C_eus-gaap--IncreaseDecreaseInContractWithCustomerLiability_pn3n3_c20250101__20251231_zBzkZr08XfU2" 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_zLLB9oMLg1u2" 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_983_eus-gaap--ContractWithCustomerAssetNetCurrent_iS_pn3n3_c20260101__20260930_zCXAYRzwtw4b" style="font-weight: bold; text-align: right" title="Contract asset, beginning 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_98F_eus-gaap--ContractWithCustomerLiabilityCurrent_iS_pn3n3_c20260101__20260930_zyniycciOcm1" style="font-weight: bold; text-align: right" title="Deferred revenue, beginning 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_98A_eus-gaap--UnbilledReceivablesCurrent_iS_pn3n3_c20260101__20260930_z2PtQiKV4wx5" style="font-weight: bold; text-align: right" title="Unbilled Revenue, beginning balance">16</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_989_eus-gaap--IncreaseDecreaseInContractWithCustomerAsset_pn3n3_c20260101__20260930_zsq8LCNHe015" style="text-align: right" title="Contract assets, Increase/(decrease), net">(11</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--IncreaseDecreaseInContractWithCustomerLiability_pn3n3_c20260101__20260930_zTvLOHv564zk" style="text-align: right" title="Contract assets, Increase/(decrease), net">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_ecustom--IncreaseDecreaseInUnbilledReceivable_pn3n3_c20260101__20260930_z9YN2mh60t35" style="text-align: right" title="Contract assets, Increase/(decrease), net">-</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 September 30, 2026</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_982_eus-gaap--ContractWithCustomerAssetNetCurrent_iE_pn3n3_c20260101__20260930_z5o4J4czpBy7" style="font-weight: bold; text-align: right" title="Contract asset, ending balance">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 id="xdx_987_eus-gaap--ContractWithCustomerLiabilityCurrent_iE_pn3n3_c20260101__20260930_zWeCQZG9WD67" 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_981_eus-gaap--UnbilledReceivablesCurrent_iE_pn3n3_c20260101__20260930_zSUFzLKg4gs" style="font-weight: bold; text-align: right" title="Unbilled Revenue, beginning balance">16</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

27000

54000

113000

-5000

-54000

-97000

22000

16000

-11000

11000

16000

Note 9. Stock-based Compensation 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. <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_pid_c20230228__us-gaap--PlanNameAxis__custom--TwentyTwentyThreePlanMember_z7s8Dstv3Lne" title="Common stock were authorized for issuance">3,258,230 shares of Common Stock were authorized for issuance under the 2023 Plan. 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_901_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_c20230228__us-gaap--PlanNameAxis__custom--TwentyTwentyThreeEquityIncentivePlanMember_zGn7e1Rc4xv6" title="Common stock reserved for issuance">391,525 to <span id="xdx_905_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_c20231231__us-gaap--PlanNameAxis__custom--TwentyTwentyThreeEquityIncentivePlanMember_zbunSqlsN6f4" 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. 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 Company’s 2025 Omnibus Equity Incentive Plan (the “2025 Plan”), an aggregate of <span id="xdx_907_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_c20251022__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveOmnibusEquityIncentivePlanMember_zplQVryFfQoe" title="Common stock were reserved for issuance">1,500,000 shares of the Company’s common stock were initially reserved for issuance pursuant to awards granted under the 2025 Plan. During the nine months ended September 30,2026, the Company’s stockholders approved an amendment to the 2025 Plan, increasing the number of shares authorized for issuance under the 2025 Plan by <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_pid_c20260930__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveOmnibusEquityIncentivePlanMember_zbLhFAdqT1i5" title="Increasing the number of shares authorized for issuance">2,000,000 shares, resulting in an aggregate of <span id="xdx_90F_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_pid_c20260930__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveOmnibusEquityIncentivePlanMember_zgcHGFVzMZZ4" title="Common stock were reserved for issuance">3,500,000 shares reserved for issuance. 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 committee thereof. As of September 30, 2026, <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_pid_do_c20260930__us-gaap--PlanNameAxis__custom--TwentyTwentyThreePlanMember_zZRs0zPB9N84" 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_zNXYzgpHuAZ7" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">The stock-based compensation expense during the three and nine month ended September 30, 2026 and September 30, 2025 are reported in the following unaudited condensed consolidated interim 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: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20260701__20260930_zQjtWCKJrLId" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20250701__20250930_zJweM0Gk2hAi" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20260101__20260930_zQFDId7XqbR3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20250101__20250930_zHBRnTwISSxd" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </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">Three months ended September 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </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">Nine months ended September 30,</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">2026</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">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">2026</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">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--AllocatedShareBasedCompensationExpense_hus-gaap--StatementOfIncomeLocationBalanceAxis__us-gaap--GeneralAndAdministrativeExpense_zZYgMuWQ6T43" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 32%; text-align: left">General and administrative</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">30</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">39</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: 13%; text-align: right">105</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: 13%; text-align: right">117</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AllocatedShareBasedCompensationExpense_hcustom--StatementOfIncomeLocationBalancesAxis__custom--CostOfRevenueMember_zC7I6GLYk5sa" 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">4</td><td style="text-align: left"> </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">14</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AllocatedShareBasedCompensationExpense_hus-gaap--StatementOfIncomeLocationBalanceAxis__us-gaap--SellingAndMarketingExpense_zRMoWmlTA4i" 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">6</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9</td><td style="text-align: left"> </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">28</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AllocatedShareBasedCompensationExpense_hus-gaap--StatementOfIncomeLocationBalanceAxis__us-gaap--ResearchAndDevelopmentExpense_zubqY0hAHBEh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">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">4</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><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">11</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">15</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--AllocatedShareBasedCompensationExpense_zSMz33Q2Da" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total stock-based compensation expense</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">44</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">58</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">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">151</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">176</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 2two-to-four- 4year period and have a 10ten-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_zIgZQPX57XV2" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">The following table summarizes the stock option activity for options with service-based vesting conditions during the nine months ended September 30, 2026 : 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: 90%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Number of Options</td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Weighted Average Exercise Price</td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Weighted Average Remaining Contractual Term (Years)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Aggregate Intrinsic Value (In thousands)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; width: 32%">Outstanding balance as of December 31, 2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20260101__20260930_zAITBgOB9o68" style="font: bold 10pt Times New Roman, Times, Serif; width: 13%; text-align: right" title="Number of Options, Outstanding beginning balance">686,880</td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20260101__20260930_zf3GgNL4PS52" style="font: bold 10pt Times New Roman, Times, Serif; width: 13%; text-align: right" title="Weighted Average Exercise Price, Outstanding beginning balance">3.25</td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20251231_zyGx5czZTCp" style="font: bold 10pt Times New Roman, Times, Serif; width: 13%; text-align: right" title="Weighted Average Remaining Contractual Term (Years), Outstanding balance">6.88</td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_pn3n3_c20260101__20260930_zVCUMpOPc8Vj" style="font: bold 10pt Times New Roman, Times, Serif; width: 13%; text-align: right" title="Aggregate Intrinsic Value, Outstanding beginning balance">234</td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Granted</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20260101__20260930_zcEkJNSiivw8" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Number of Options, Granted">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20260101__20260930_zhk5JJVx7sr1" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Granted">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Exercised</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_987_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20260101__20260930_zwUuBBQ4yqUi" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Number of Options, Exercised">(26,321</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20260101__20260930_zzImXfYjqsx8" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Exercised">0.70</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Forfeited</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pid_di_c20260101__20260930_zYx9DENOHUOe" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Number of Options, Forfeited">(27,972</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_c20260101__20260930_zvZplyE3AZAk" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Forfeited">3.93</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Cashless exercise (1)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98E_ecustom--StockIssuedDuringPeriodSharesStockOptionsCashlessExercise_iN_pid_di_c20260101__20260930_fKDEp_z7XdhGKvAwD" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Number of Options, Exercised">(21,456</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageCashlessExercisePrice_pid_c20260101__20260930_fKDEp_zQFsaD6yHWM8" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Exercised">1.85</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Expired</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod_iN_pid_di_c20260101__20260930_zYekSHeVDwn7" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Number of Options, Expired">(64,789</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_pid_c20260101__20260930_z5stYrQGjpxh" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Expired">4.83</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif">Outstanding balance as of September 30, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20260101__20260930_zGdhOBgp7Ni9" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right" title="Number of Options, Outstanding ending balance">546,342</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20260101__20260930_zlnmVUqiqwH1" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Outstanding ending balance">3.21</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_988_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20260101__20260930_zuZOQYbRwC57" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Remaining Contractual Term (Years), Outstanding balance">6.83</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_pn3n3_c20260101__20260930_zUG5atieFbde" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right" title="Aggregate Intrinsic Value, Outstanding ending balance">-</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif">Options vested and exercisable as of September 30, 2026</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber_iE_pid_c20260101__20260930_zrPhm5gzEIWa" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Number of Options, Options vested and exercisable ending balance">473,219</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iE_pid_c20260101__20260930_zRmsA2nYkNM5" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Options vested and exercisable ending balance">2.99</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageRemainingContractualTerm1_dtY_c20260101__20260930_z1LTo9wduODa" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Remaining Contractual Term (Years), Options vested and exercisable balance">6.75</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue_iE_pn3n3_c20260101__20260930_zVEXmPn2Zy0a" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Aggregate Intrinsic Value, Options vested and exercisable ending balance">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.25in; text-align: left">(1)</td><td style="text-align: justify">During the nine month ended September 30, 2026, employees have performed cashless exercise of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFN0b2NrIE9wdGlvbiBBY3Rpdml0eSBmb3IgT3B0aW9ucyB3aXRoIFNlcnZpY2UtYmFzZWQgVmVzdGluZyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_908_ecustom--StockIssuedDuringPeriodSharesStockOptionsCaslessExercise_pid_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zr5f3IGAVAbb" title="Stock option exercised">21,456 options</td> </tr></table> Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements During the three month period ended September 30, 2026 and September 30, 2025, the Company recorded stock-based compensation expense of $ 44 thousand and $ 58 thousand, respectively, whereas for the nine month ended September 30, 2026 and September 30, 2025 the Company recorded stock-based compensation expense of $ 151 thousand and $ 176 thousand respectively. As of September 30, 2026, total stock-based compensation expense not yet recognized related to unvested stock options was $<span id="xdx_902_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions_iI_pn2n3_c20260930_zlGobnuccSI6" title="Stock-based compensation expense not yet recognized">234.8 thousand, which is expected to be recognized over a weighted-average period of <span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtY_c20260101__20260930_zOa9bAEw8pG6" title="Weighted-average period">1.16 years. The total intrinsic value of options exercised was $ <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_pp2n3_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zaLdx9kVxor8" title="Total intrinsic value of options exercised">17.1 thousand and $<span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_pp2n3_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zCTtAMA6o3N1" title="Total intrinsic value of options exercised">6,036.4 thousand during the nine month ended September 30, 2026 and year ended December 31, 2025, respectively. There were no stock options granted during the period ended September 30, 2026 and September 30, 2025. Accordingly, the weighted average grant-date fair value per share of stock options granted during the three and nine month period September 30,2026 and September 30, 2025 is <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_dxL_c20260101__20260930_zJ7KRehJosQi" title="Weighted average grant date fair value per share::XDX::-"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_dxL_c20260701__20260930_zjlRTl7ktoih" title="Weighted average grant date fair value per share::XDX::-"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_dxL_c20250701__20250930_zowwlyFfi3k3" title="Weighted average grant date fair value per share::XDX::-"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_dxL_c20250101__20250930_zHAdJQTGg9Nh" title="Weighted average grant date fair value per share::XDX::-">Nil. Cashless Exercise of Stock Options In February 2026, one of the Fusemachines employees exercised <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_c20260201__20260228__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zmPTtbAZl8ak" title="Stock options exercised, shares">1,715 options to purchase Fusemachines Inc. Common Stock. The exercise prices for the 1,715 options were paid on a cashless basis via net share settlement resulting in the net share issuance of 974 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. Exercise of Stock Options Through Settlement of Accrued Compensation Liability – In April 2026, a former Fusemachines employee (Raman Parthasarathy) exercised <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_c20260401__20260430__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zSfuLJR8gvo3" title="Stock options exercised, shares">19,741 options to purchase Fusemachines Inc. Common Stock. The exercise price of $<span id="xdx_909_eus-gaap--StockIssuedDuringPeriodValueStockOptionsExercised_pp2d_c20260401__20260430__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zLkAiwCBtRFh" title="Stock options exercised, value">38,402.16 (at $1.9453 per share) was satisfied on a cashless basis through the offset of an existing accrued wages payable balance owed to the former employee, resulting in the issuance of <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_c20260401__20260430__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zFo7ZoHE7hyl" title="Stock options exercised, shares">19,741 shares of Fusemachines Inc. Common Stock. The transaction has been accounted for under the guidance of ASC 718 – Stock Compensation and ASC 405-20 – Extinguishments of Liabilities. The settlement mechanism does not alter the substantive terms or the fair-value-based measure of the award and therefore does not constitute a modification under ASC 718. Consistent with ASC 405-20, the corresponding accrued wages payable of $<span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodValueStockOptionsExercised_pp2d_c20260401__20260430__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zFv4FMD5CN59" title="Stock options exercised, value">38,402.16 has been derecognized, as the Company was legally released from that obligation through mutual written agreement with the former employee. As no cash was received, this exercise is excluded from financing activities and is instead presented as a supplemental non-cash financing activity in the Statement of Cash Flows, representing the issuance of common stock in settlement of accrued wages payable. Restricted stock unit (RSU) The Board of Directors has granted restricted stock awards under the Plans. In January 2026, <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260101__20260130__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zhwW5dH6zic3" title="Number of RSU shares, Granted">1,217,210 awards had been granted as restricted stock units under the 2025 Plan as of period ended September 30, 2026, whose impact has been considered on the Company’s unaudited condensed consolidated interim financial statements as of that date. Restricted stock units are valued on the date of grant and have no purchase price for the recipient. Restricted stock units typically vest over period ranging from one to four years corresponding to anniversaries of the grant date. During the quarter ended September 30, 2026, the Company granted additional RSUs to employees, including RSUs granted to employees in settlement of their severance pay. These new grants are in addition to the awards granted in January 2026. <p id="xdx_891_ecustom--ScheduleOfShareBasedCompensationRestrictedStockUnitsTextBlock_zkvteZ2ftYVa" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">The restricted stock units expense during the three and nine month ended September 30, 2026 are reported in the following unaudited condensed consolidated interim financial statement line items (in thousands) as follows: Schedule of Restricted Stock Units Expense <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 75%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20260701__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zjCVkUKpurPl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three months ended September 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zh6hE8HExNBc" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Nine months ended September 30,</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">2026</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">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--GeneralAndAdministrativeExpense_pn3n3_maRSEz9zF_zyYCZPCCGw2e" 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">362</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">1,103</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--CostOfRevenue_pn3n3_maRSEz9zF_z2FSy0m9U6pg" 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">8</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--SellingAndMarketingExpense_pn3n3_maRSEz9zF_zfCpQH4dPNLe" 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">9</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--ResearchAndDevelopmentExpense_pn3n3_maRSEz9zF_zi6J6xl2zmag" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">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">8</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">21</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RestrictedStockExpense_iT_pn3n3_mtRSEz9zF_zRxoUmqMVAff" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total restricted stock units expense</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">387</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">1,158</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> <p id="xdx_895_eus-gaap--ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock_z8DZ9zrhM34i" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">The following is a summary of service based RSU activity for the nine month period ended September 30, 2026 : Schedule of Restricted Stock Units Activity <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 75%"> <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">Number of RSU 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">Weighted Average Grant Date Fair Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Opening</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_pid_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zs7qG9jV2F8d" style="text-align: right" title="Number of RSU shares, Opening balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20260101__20260930_zTdKArXdYj2e" style="text-align: right" title="Weighted Average Grant Date Fair Value, Opening balance">- </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">Granted (Refer note below)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zbpQjOhlmc93" style="width: 16%; text-align: right" title="Number of RSU shares, Opening balance">2,330,801</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--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20260101__20260930_zZZmUEWNHvuj" style="width: 16%; text-align: right" title="Weighted Average Grant Date Fair Value, Opening balance">1.21</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_pid_di_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z73Fli0JT2D8" style="text-align: right" title="Number of RSU shares, Vested">(1,373,566</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20260101__20260930_zw78Ydi3fT3g" style="text-align: right" title="Weighted Average Grant Date Fair Value, Vested">1.05</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Forfeited</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pid_di_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zxADKsKPhpjk" style="border-bottom: Black 1pt solid; text-align: right" title="Number of RSU shares, Forfeited">(310,996</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_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20260101__20260930_z1HtQGtIUNpj" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Grant Date Fair Value, Forfeited">1.34</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: 2.5pt">Nonvested balance, September 30, 2026</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_pid_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zlb5RPBYtRtf" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Number of RSU shares, Ending balance">646,239</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20260101__20260930_zTk1qwsKw5Q" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Weighted Average Grant Date Fair Value, Ending balance">1.48</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> The Company estimated the fair market value of these restricted stock units based on the closing market price on the date of the grant. As of September 30, 2026 , there was $<span id="xdx_907_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_pn2n3_c20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zLTC9GiiyaV3">586.6 thousand of total unrecognized compensation costs related to all remaining non-vested restricted stock units, which is expected to be recognized over a weighted-average period of <span id="xdx_90B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtY_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zQD2voYkE8Sj">0.65 years. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements The nonvested balance of restricted stock vests as follows: Schedule of Nonvested Restricted Stock Vests <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 50%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Year Ended</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">No. of shares</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: 80%; text-align: left">2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20260101__20260930__us-gaap--AwardTypeAxis__custom--TwoThousandTwentySixMember_z1s6JvgMyjrg" style="width: 16%; text-align: right" title="Number of restricted stock vests, shares">25,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20260101__20260930__us-gaap--AwardTypeAxis__custom--TwoThousandTwentySevenMember_zHfPIwdxH4s1" style="text-align: right" title="Number of restricted stock vests, shares">509,313</td><td style="text-align: left"> </td></tr> <tr 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 id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20260101__20260930__us-gaap--AwardTypeAxis__custom--TwoThousandTwentyEightMember_zum3Eo0xKmpe" style="text-align: right" title="Number of restricted stock vests, shares">111,926</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <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_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20260101__20260930_zhxWulbHzq79" style="font-weight: bold; text-align: right" title="Number of restricted stock vests, shares">646,239</td><td style="font-weight: bold; text-align: left"> </td></tr> </table> Note :- Of the total RSUs granted, <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260101__20260131__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zgEv2563vIPl" title="Number of RSU shares, Granted">1,217,210 were granted in January 2026 and the balance of <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260701__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z5cIi3vF9Or9" title="Number of shares, granted">1,113,591 were granted during the quarter ended September 30, 2026. Of the new grants,<span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260701__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--TitleOfIndividualAxis__custom--EmployeesMember_zVjkYdAkn4a9" title="Number of shares, granted">904,560 RSUs were granted to employees in settlement of severance and wages payable and vested immediately on the grant date. Consistent with ASC 405-20, the corresponding vendor and wages payable has been derecognized, as the Company was legally released from that obligation through mutual written agreement with the vendor and former employee. As no cash was received, this exercise is excluded from financing activities and is instead presented as a supplemental non-cash financing activity in the Statement of Cash Flows, representing the issuance of common stock in settlement of vendor and wages payable. The remaining <span id="xdx_907_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodRemainingShares_pid_c20260701__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z5Fkp2iGjjkj" title="Number of shares, granted">209,031 RSUs were granted to employees under the normal scheme and vest over their respective vesting periods.

3258230

391525

3649755

1500000

2000000

3500000

<p id="xdx_89E_eus-gaap--ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock_zNXYzgpHuAZ7" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">The stock-based compensation expense during the three and nine month ended September 30, 2026 and September 30, 2025 are reported in the following unaudited condensed consolidated interim 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: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20260701__20260930_zQjtWCKJrLId" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20250701__20250930_zJweM0Gk2hAi" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20260101__20260930_zQFDId7XqbR3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20250101__20250930_zHBRnTwISSxd" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </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">Three months ended September 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </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">Nine months ended September 30,</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">2026</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">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">2026</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">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--AllocatedShareBasedCompensationExpense_hus-gaap--StatementOfIncomeLocationBalanceAxis__us-gaap--GeneralAndAdministrativeExpense_zZYgMuWQ6T43" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 32%; text-align: left">General and administrative</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">30</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">39</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: 13%; text-align: right">105</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: 13%; text-align: right">117</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AllocatedShareBasedCompensationExpense_hcustom--StatementOfIncomeLocationBalancesAxis__custom--CostOfRevenueMember_zC7I6GLYk5sa" 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">4</td><td style="text-align: left"> </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">14</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AllocatedShareBasedCompensationExpense_hus-gaap--StatementOfIncomeLocationBalanceAxis__us-gaap--SellingAndMarketingExpense_zRMoWmlTA4i" 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">6</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9</td><td style="text-align: left"> </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">28</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AllocatedShareBasedCompensationExpense_hus-gaap--StatementOfIncomeLocationBalanceAxis__us-gaap--ResearchAndDevelopmentExpense_zubqY0hAHBEh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">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">4</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><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">11</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">15</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--AllocatedShareBasedCompensationExpense_zSMz33Q2Da" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total stock-based compensation expense</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">44</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">58</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">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">151</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">176</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

30000

39000

105000

117000

4000

6000

14000

16000

6000

9000

21000

28000

4000

11000

15000

44000

58000

151000

176000

P2Y

P4Y

P10Y

<p id="xdx_89F_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zIgZQPX57XV2" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">The following table summarizes the stock option activity for options with service-based vesting conditions during the nine months ended September 30, 2026 : 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: 90%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Number of Options</td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Weighted Average Exercise Price</td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Weighted Average Remaining Contractual Term (Years)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Aggregate Intrinsic Value (In thousands)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; width: 32%">Outstanding balance as of December 31, 2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20260101__20260930_zAITBgOB9o68" style="font: bold 10pt Times New Roman, Times, Serif; width: 13%; text-align: right" title="Number of Options, Outstanding beginning balance">686,880</td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20260101__20260930_zf3GgNL4PS52" style="font: bold 10pt Times New Roman, Times, Serif; width: 13%; text-align: right" title="Weighted Average Exercise Price, Outstanding beginning balance">3.25</td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20251231_zyGx5czZTCp" style="font: bold 10pt Times New Roman, Times, Serif; width: 13%; text-align: right" title="Weighted Average Remaining Contractual Term (Years), Outstanding balance">6.88</td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_pn3n3_c20260101__20260930_zVCUMpOPc8Vj" style="font: bold 10pt Times New Roman, Times, Serif; width: 13%; text-align: right" title="Aggregate Intrinsic Value, Outstanding beginning balance">234</td><td style="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Granted</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20260101__20260930_zcEkJNSiivw8" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Number of Options, Granted">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20260101__20260930_zhk5JJVx7sr1" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Granted">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Exercised</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_987_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20260101__20260930_zwUuBBQ4yqUi" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Number of Options, Exercised">(26,321</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20260101__20260930_zzImXfYjqsx8" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Exercised">0.70</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Forfeited</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pid_di_c20260101__20260930_zYx9DENOHUOe" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Number of Options, Forfeited">(27,972</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_c20260101__20260930_zvZplyE3AZAk" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Forfeited">3.93</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Cashless exercise (1)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98E_ecustom--StockIssuedDuringPeriodSharesStockOptionsCashlessExercise_iN_pid_di_c20260101__20260930_fKDEp_z7XdhGKvAwD" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Number of Options, Exercised">(21,456</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageCashlessExercisePrice_pid_c20260101__20260930_fKDEp_zQFsaD6yHWM8" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Exercised">1.85</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Expired</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod_iN_pid_di_c20260101__20260930_zYekSHeVDwn7" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Number of Options, Expired">(64,789</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_pid_c20260101__20260930_z5stYrQGjpxh" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Expired">4.83</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif">Outstanding balance as of September 30, 2026</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20260101__20260930_zGdhOBgp7Ni9" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right" title="Number of Options, Outstanding ending balance">546,342</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20260101__20260930_zlnmVUqiqwH1" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Outstanding ending balance">3.21</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_988_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20260101__20260930_zuZOQYbRwC57" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Remaining Contractual Term (Years), Outstanding balance">6.83</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_pn3n3_c20260101__20260930_zUG5atieFbde" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right" title="Aggregate Intrinsic Value, Outstanding ending balance">-</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: bold 10pt Times New Roman, Times, Serif">Options vested and exercisable as of September 30, 2026</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber_iE_pid_c20260101__20260930_zrPhm5gzEIWa" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Number of Options, Options vested and exercisable ending balance">473,219</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice_iE_pid_c20260101__20260930_zRmsA2nYkNM5" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Exercise Price, Options vested and exercisable ending balance">2.99</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageRemainingContractualTerm1_dtY_c20260101__20260930_z1LTo9wduODa" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Weighted Average Remaining Contractual Term (Years), Options vested and exercisable balance">6.75</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue_iE_pn3n3_c20260101__20260930_zVEXmPn2Zy0a" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Aggregate Intrinsic Value, Options vested and exercisable ending balance">-</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.25in; text-align: left">(1)</td><td style="text-align: justify">During the nine month ended September 30, 2026, employees have performed cashless exercise of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIFN0b2NrIE9wdGlvbiBBY3Rpdml0eSBmb3IgT3B0aW9ucyB3aXRoIFNlcnZpY2UtYmFzZWQgVmVzdGluZyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_908_ecustom--StockIssuedDuringPeriodSharesStockOptionsCaslessExercise_pid_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zr5f3IGAVAbb" title="Stock option exercised">21,456 options</td> </tr></table>

686880

3.25

P6Y10M17D

234000

26321

0.70

27972

3.93

21456 1.85

64789

4.83

546342

3.21

P6Y9M29D

473219

2.99

P6Y9M

21456

44000

58000

151000

176000

234800

P1Y1M28D

17100

6036400

1715

974

19741

38402.16

1.9453

19741

38402.16

1217210

<p id="xdx_891_ecustom--ScheduleOfShareBasedCompensationRestrictedStockUnitsTextBlock_zkvteZ2ftYVa" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">The restricted stock units expense during the three and nine month ended September 30, 2026 are reported in the following unaudited condensed consolidated interim financial statement line items (in thousands) as follows: Schedule of Restricted Stock Units Expense <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 75%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20260701__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zjCVkUKpurPl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three months ended September 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zh6hE8HExNBc" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Nine months ended September 30,</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">2026</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">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--GeneralAndAdministrativeExpense_pn3n3_maRSEz9zF_zyYCZPCCGw2e" 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">362</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">1,103</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--CostOfRevenue_pn3n3_maRSEz9zF_z2FSy0m9U6pg" 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">8</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--SellingAndMarketingExpense_pn3n3_maRSEz9zF_zfCpQH4dPNLe" 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">9</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--ResearchAndDevelopmentExpense_pn3n3_maRSEz9zF_zi6J6xl2zmag" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">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">8</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">21</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RestrictedStockExpense_iT_pn3n3_mtRSEz9zF_zRxoUmqMVAff" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total restricted stock units expense</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">387</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">1,158</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

362000

1103000

8000

16000

9000

18000

8000

21000

387000

1158000

<p id="xdx_895_eus-gaap--ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock_z8DZ9zrhM34i" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">The following is a summary of service based RSU activity for the nine month period ended September 30, 2026 : Schedule of Restricted Stock Units Activity <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 75%"> <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">Number of RSU 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">Weighted Average Grant Date Fair Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Opening</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_pid_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zs7qG9jV2F8d" style="text-align: right" title="Number of RSU shares, Opening balance">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20260101__20260930_zTdKArXdYj2e" style="text-align: right" title="Weighted Average Grant Date Fair Value, Opening balance">- </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">Granted (Refer note below)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zbpQjOhlmc93" style="width: 16%; text-align: right" title="Number of RSU shares, Opening balance">2,330,801</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--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20260101__20260930_zZZmUEWNHvuj" style="width: 16%; text-align: right" title="Weighted Average Grant Date Fair Value, Opening balance">1.21</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_pid_di_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z73Fli0JT2D8" style="text-align: right" title="Number of RSU shares, Vested">(1,373,566</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20260101__20260930_zw78Ydi3fT3g" style="text-align: right" title="Weighted Average Grant Date Fair Value, Vested">1.05</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Forfeited</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pid_di_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zxADKsKPhpjk" style="border-bottom: Black 1pt solid; text-align: right" title="Number of RSU shares, Forfeited">(310,996</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_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20260101__20260930_z1HtQGtIUNpj" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Grant Date Fair Value, Forfeited">1.34</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: 2.5pt">Nonvested balance, September 30, 2026</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_pid_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zlb5RPBYtRtf" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Number of RSU shares, Ending balance">646,239</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20260101__20260930_zTk1qwsKw5Q" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Weighted Average Grant Date Fair Value, Ending balance">1.48</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

2330801

1.21

1373566

1.05

310996

1.34

646239

1.48

586600

P0Y7M24D

The nonvested balance of restricted stock vests as follows: Schedule of Nonvested Restricted Stock Vests <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 50%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Year Ended</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">No. of shares</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: 80%; text-align: left">2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20260101__20260930__us-gaap--AwardTypeAxis__custom--TwoThousandTwentySixMember_z1s6JvgMyjrg" style="width: 16%; text-align: right" title="Number of restricted stock vests, shares">25,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20260101__20260930__us-gaap--AwardTypeAxis__custom--TwoThousandTwentySevenMember_zHfPIwdxH4s1" style="text-align: right" title="Number of restricted stock vests, shares">509,313</td><td style="text-align: left"> </td></tr> <tr 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 id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20260101__20260930__us-gaap--AwardTypeAxis__custom--TwoThousandTwentyEightMember_zum3Eo0xKmpe" style="text-align: right" title="Number of restricted stock vests, shares">111,926</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <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_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_pid_c20260101__20260930_zhxWulbHzq79" style="font-weight: bold; text-align: right" title="Number of restricted stock vests, shares">646,239</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

25000

509313

111926

646239

1217210

1113591

904560

209031

Note 10. Net loss per share 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="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20260701__20260930_zyoYdGinQdS2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20250701__20250930_zt9miwdSLCp7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20260101__20260930_zLeYw56qJDGi" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20250101__20250930_z3rp1WYQkpG7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </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; text-align: center; font-weight: bold">Three months Ended September 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Nine months Ended September 30,</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">2026</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">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">2026</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">2025</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 colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_40C_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_zJTWT3R6HE7l" style="vertical-align: bottom; background-color: White"> <td style="width: 32%; text-align: left">Net loss per share attributable to common stockholders</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">(4,623</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">(1,174</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: 13%; text-align: right">(8,428</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: 13%; text-align: right">(5,213</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><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 -(A)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_uShares_c20260701__20260930_z3Uniiqv7Gz1" title="Vested shares of Restricted stock units-(B)-(Refer note below)">30,073,740</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_uShares_c20250701__20250930_zHY4imCBBfwg" title="Vested shares of Restricted stock units-(B)-(Refer note below)">7,672,654</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--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_uShares_c20260101__20260930_zfP9swA5G81d" title="Vested shares of Restricted stock units-(B)-(Refer note below)">29,330,107</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--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_uShares_c20250101__20250930_zDhw0w4N6DM" title="Weighted-average common shares outstanding -(A)">7,406,332</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Vested shares of Restricted stock units-(B)-(Refer note below)</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"><span id="xdx_903_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionVestedInPeriod_pid_uShares_c20260701__20260930_zktVb5KKgf2c" title="Vested shares of Restricted stock units-(B)-(Refer note below)">512,869</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"><span id="xdx_907_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionVestedInPeriod_pid_uShares_c20250701__20250930_zD1awGTGHZXh" title="Vested shares of Restricted stock units-(B)-(Refer note below)">-</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="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_906_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionVestedInPeriod_pid_uShares_c20260101__20260930_z4NRjtghbtM4" title="Vested shares of Restricted stock units-(B)-(Refer note below)">172,835</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"><span id="xdx_90C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionVestedInPeriod_pid_uShares_c20250101__20250930_ztfX4XiHXuSf" title="Vested shares of Restricted stock units-(B)-(Refer note below)">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">Weighted-average common shares outstanding - Basic and Diluted-(A+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">30,586,609</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">7,672,654</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">29,502,942</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">7,406,332</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="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Net loss per share attributable to Fusemachines Inc. common stockholders - Basic and Diluted</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.15</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.15</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.29</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.70</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table> Note:- Vested shares of Restricted stock units (B) represent restricted stock units for which all vesting conditions have been satisfied during the period, including vested RSUs for which the underlying common shares had not yet been issued as of September 30, 2026. As these shares are issuable for no further consideration and are no longer subject to any service or other contingency, they are considered outstanding common shares and have been included in the weighted-average number of common shares outstanding (basic and diluted) from the date on which vesting was completed, in accordance with ASC 260-10-45-13. Unvested RSUs are excluded from the computation. <p id="xdx_891_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zKOgOSHefmV6" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">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: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_492_20260101__20260930_zjTCsJYyBi11" style="font-weight: bold; text-align: center">September 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49D_20250101__20251231_zjF15HSzjz38" 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">2026</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">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockWarrantsMember_zZSJExqMHxkk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Common Stock Warrants</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">92,211</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">92,211</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zAvDTZZgeaZ3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Stock options (1)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">546,342</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">686,880</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--SPACPublicAndPrivatePlacementWarrantsMember_zPuUTylFsuql" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">SPAC public and private placement warrants (2) (Refer note 17)</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">13,458,750</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--EquityShareWarrantMember_zKjcLDesoOR5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Equity Share warrant (Refer note 16)</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">2,108,070</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertibleDebtSecuritiesMember_zVdF6iX5yWcd" 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 6)</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">30,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zLXCgSPZrBSa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Restricted stock units (RSU) (Refer note 9)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">646,239</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--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--DetachableCommonStockPurchaseWarrantsMember_zEI3EqpkAZm" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Detachable common stock purchase warrants (the “Financing Warrants”) (Refer note 6)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,050,000</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_406_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_zZottPIDTIye" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Potentially Diluted Securities</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">18,931,612</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">16,375,911</td><td style="padding-bottom: 2.5pt; 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="text-align: justify">Includes <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIE91dHN0YW5kaW5nIFNoYXJlcyBvZiBQb3RlbnRpYWxseSBEaWx1dGl2ZSBTZWN1cml0aWVzIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_c20250101__20251231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zMVC32Bwm6n4" title="Stock options exercised">6,772 stock options as of December 31, 2025 that were early exercised in exchange for non-recourse promissory notes. (Refer to “Note 9 - 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="text-align: justify">The SPAC public and private placement warrants were outstanding at CSLM Holding, Inc. 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> Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements

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="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20260701__20260930_zyoYdGinQdS2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20250701__20250930_zt9miwdSLCp7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20260101__20260930_zLeYw56qJDGi" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20250101__20250930_z3rp1WYQkpG7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </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; text-align: center; font-weight: bold">Three months Ended September 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Nine months Ended September 30,</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">2026</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">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">2026</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">2025</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 colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_40C_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_zJTWT3R6HE7l" style="vertical-align: bottom; background-color: White"> <td style="width: 32%; text-align: left">Net loss per share attributable to common stockholders</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">(4,623</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">(1,174</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: 13%; text-align: right">(8,428</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: 13%; text-align: right">(5,213</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><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 -(A)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_uShares_c20260701__20260930_z3Uniiqv7Gz1" title="Vested shares of Restricted stock units-(B)-(Refer note below)">30,073,740</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_uShares_c20250701__20250930_zHY4imCBBfwg" title="Vested shares of Restricted stock units-(B)-(Refer note below)">7,672,654</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--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_uShares_c20260101__20260930_zfP9swA5G81d" title="Vested shares of Restricted stock units-(B)-(Refer note below)">29,330,107</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--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_uShares_c20250101__20250930_zDhw0w4N6DM" title="Weighted-average common shares outstanding -(A)">7,406,332</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Vested shares of Restricted stock units-(B)-(Refer note below)</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"><span id="xdx_903_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionVestedInPeriod_pid_uShares_c20260701__20260930_zktVb5KKgf2c" title="Vested shares of Restricted stock units-(B)-(Refer note below)">512,869</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"><span id="xdx_907_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionVestedInPeriod_pid_uShares_c20250701__20250930_zD1awGTGHZXh" title="Vested shares of Restricted stock units-(B)-(Refer note below)">-</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="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_906_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionVestedInPeriod_pid_uShares_c20260101__20260930_z4NRjtghbtM4" title="Vested shares of Restricted stock units-(B)-(Refer note below)">172,835</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"><span id="xdx_90C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionVestedInPeriod_pid_uShares_c20250101__20250930_ztfX4XiHXuSf" title="Vested shares of Restricted stock units-(B)-(Refer note below)">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left">Weighted-average common shares outstanding - Basic and Diluted-(A+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">30,586,609</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">7,672,654</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">29,502,942</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">7,406,332</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="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Net loss per share attributable to Fusemachines Inc. common stockholders - Basic and Diluted</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.15</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.15</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.29</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(0.70</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table>

-4623000

-1174000

-8428000

-5213000

30073740

7672654

29330107

7406332

512869 172835

30586609

7672654

29502942

7406332

-0.15

-0.29

-0.70

<p id="xdx_891_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zKOgOSHefmV6" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">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: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_492_20260101__20260930_zjTCsJYyBi11" style="font-weight: bold; text-align: center">September 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49D_20250101__20251231_zjF15HSzjz38" 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">2026</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">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockWarrantsMember_zZSJExqMHxkk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Common Stock Warrants</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">92,211</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">92,211</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zAvDTZZgeaZ3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Stock options (1)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">546,342</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">686,880</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--SPACPublicAndPrivatePlacementWarrantsMember_zPuUTylFsuql" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">SPAC public and private placement warrants (2) (Refer note 17)</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">13,458,750</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--EquityShareWarrantMember_zKjcLDesoOR5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Equity Share warrant (Refer note 16)</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">2,108,070</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertibleDebtSecuritiesMember_zVdF6iX5yWcd" 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 6)</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">30,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zLXCgSPZrBSa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Restricted stock units (RSU) (Refer note 9)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">646,239</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--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--DetachableCommonStockPurchaseWarrantsMember_zEI3EqpkAZm" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Detachable common stock purchase warrants (the “Financing Warrants”) (Refer note 6)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,050,000</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_406_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_zZottPIDTIye" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Potentially Diluted Securities</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">18,931,612</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">16,375,911</td><td style="padding-bottom: 2.5pt; 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="text-align: justify">Includes <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNjaGVkdWxlIG9mIE91dHN0YW5kaW5nIFNoYXJlcyBvZiBQb3RlbnRpYWxseSBEaWx1dGl2ZSBTZWN1cml0aWVzIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_c20250101__20251231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zMVC32Bwm6n4" title="Stock options exercised">6,772 stock options as of December 31, 2025 that were early exercised in exchange for non-recourse promissory notes. (Refer to “Note 9 - 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="text-align: justify">The SPAC public and private placement warrants were outstanding at CSLM Holding, Inc. 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>

92211

546342

686880

13458750

2108070

30000

646239

2050000

18931612

16375911

6772

Note 11. Income Taxes For the three months ended September 30,2026, and September 30,2025, the Company recorded no income tax expense respectively, whereas for nine month ended September 30,2026, and September 30,2025 the Company recorded income tax expense of $4 and Nil respectively, primarily related to the corporate income tax obligations of our foreign operations. The Company has evaluated the positive and negative evidence bearing upon its ability to realize its deferred tax assets, which primarily consist of net operating loss carry forwards. The Company has considered its history of cumulative net losses, estimated future taxable income and prudent and feasible tax planning strategies and has concluded that it is more likely than not that the Company will not realize the benefits of its deferred tax assets. As a result, as of September 30, 2026 and December 31,2025, the Company has maintained a full valuation allowance against its net deferred tax assets.

4000

Note 12. 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_zlJX5ogfbSk8" 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_zxeCxwaJdzGe" 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 was recorded in loss on extinguishment of payable in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2025. 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 sheets 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. Further during the nine months ended September 30, 2026 the Company made the cash payment of approximately $60 thousand. In September 2026, the Company issued its common stock to the vendor for partial payment of the outstanding balance of the vendor for an aggregate total of $139.85 thousand which included the $38 thousand outstanding balance for the transaction mentioned above. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements Legal counsel fee arrangement In connection with the Business Combination, the Company incurred legal fees payable to its external legal counsel, totaling $1,307 thousand. Pursuant to an agreement entered into in December 2025, Counsel agreed to reduce the outstanding deal-related fees to $600 thousand, 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 $25 thousand from January through May 2026 and $<span id="xdx_90A_eus-gaap--DebtInstrumentPeriodicPayment_pn3n3_c20260601__20261231__dei--LegalEntityAxis__custom--DentonsUSLLPMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zawE3akTnyYg" title="Monthly instalments">75 thousand from June through December 2026, totalling $700 thousand. The Company’s remaining obligation under this arrangement as of December 31, 2025 was $650 thousand. During the nine months ended September 30, 2026, the Company made cash payments of approximately $75 thousand under this arrangement. In September 2026, the Company issued shares of its common stock with an aggregate value of approximately $<span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodValueNewIssues_pn3n3_c20260901__20260930__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zfhvqP96D12e" title="Common stock aggregate value">600 thousand in settlement of the remaining obligation under this arrangement of approximately $575 thousand, as well as approximately $<span id="xdx_901_eus-gaap--StockIssuedDuringPeriodValueIssuedForServices_pn3n3_c20260901__20260930__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z8OOn6KKBGs" title="Non routine legal services value">124 thousand of non-routine legal services provided by the vendor outside of the arrangement. As the aggregate carrying value of the liabilities settled exceeded the fair value of the common stock issued, the Company recognized a gain on extinguishment of liability of approximately $99 thousand in the condensed consolidated statements of operations.. The Company is also obligated to reimburse such counsel for all out-of-pocket expenses. Professional service arrangements In December 2025, the Company entered into a Payment Plan Agreement with a service provider to settle outstanding obligations of $<span id="xdx_903_eus-gaap--ContractualObligation_iI_pn3n3_c20251231__us-gaap--TypeOfArrangementAxis__custom--PaymentPlanAgreementMember__dei--LegalEntityAxis__custom--DonnelleyFinancialLLCMember_zKT25IkJ5OQb" 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_zaSTl3mQGpF" 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_zOY3TuSAHXQ" 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_zpMApWyi5AE5" 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_901_eus-gaap--DebtInstrumentPeriodicPayment_pn3n3_c20260401__20270630__us-gaap--TypeOfArrangementAxis__custom--PaymentPlanAgreementMember__dei--LegalEntityAxis__custom--DonnelleyFinancialLLCMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zVo3CJn7h8cl" title="Monthly instalments">26 thousand, commencing in April 2026 through June 2027. As of December 31, 2025, the company had $<span id="xdx_902_eus-gaap--PaymentsForLossesAndLossAdjustmentExpense_pn3n3_c20250101__20251231__us-gaap--TypeOfArrangementAxis__custom--PaymentPlanAgreementMember__dei--LegalEntityAxis__custom--DonnelleyFinancialLLCMember_zS56iL9ZQXua" title="Unpaid settlement">397 thousand of unpaid settlement balance out of which $<span id="xdx_900_eus-gaap--OtherLiabilitiesNoncurrent_iI_pn3n3_c20251231__us-gaap--TypeOfArrangementAxis__custom--PaymentPlanAgreementMember__dei--LegalEntityAxis__custom--DonnelleyFinancialLLCMember_zKYkixEfXH14" title="Non current liabilities">143 thousand was presented in non-current liabilities and the balance was classified within accounts payable under current liabilities. As of September 30, 2026, the Company had defaulted on some instalments. Under the agreement, this constitutes an event of default, entitling the service provider to terminate the agreement and pursue collection of the full undiscounted outstanding balance of $<span id="xdx_905_eus-gaap--ContractualObligation_iI_pn3n3_c20260930__us-gaap--TypeOfArrangementAxis__custom--PaymentPlanAgreementMember__dei--LegalEntityAxis__custom--DonnelleyFinancialLLCMember_z593YuxmTpHh" title="Outstanding obligations">1,032 thousand, net of amounts already paid. As of the issuance date, the service provider had not issued a default or termination notice, and the Company had not obtained a waiver. Management intends to remit the delinquent and future installments in the near term. Management has assessed that enforcement of this remedy is reasonably possible but not probable; accordingly, no additional liability has been recognized for the incremental $<span id="xdx_900_ecustom--DiscountOfDueBalance_iI_pn3n3_c20260930__us-gaap--TypeOfArrangementAxis__custom--PaymentPlanAgreementMember__dei--LegalEntityAxis__custom--DonnelleyFinancialLLCMember_zTRUpMoDnR36" title="Discount of due balance">555 thousand exposure, and the obligation continues to be carried at the negotiated settlement amount. The Company will continue to monitor and reassess this contingency. As of September 30, 2026, the remaining unpaid settlement balance was $<span id="xdx_90A_eus-gaap--DebtInstrumentCarryingAmount_iI_pn3n3_c20260930__us-gaap--TypeOfArrangementAxis__custom--PaymentPlanAgreementMember__dei--LegalEntityAxis__custom--DonnelleyFinancialLLCMember_zt4jhdRtdwH5" title="Outstanding obligations">370 thousand ($<span id="xdx_907_ecustom--InstallmentDefaulted_iI_pn3n3_c20260930__us-gaap--TypeOfArrangementAxis__custom--PaymentPlanAgreementMember__dei--LegalEntityAxis__custom--DonnelleyFinancialLLCMember_zo1nokxbljfl" title="Installment defaulted">132 thousand past-due, $<span id="xdx_90D_ecustom--InstallmentNotYetDue_iI_pn3n3_c20260930__us-gaap--TypeOfArrangementAxis__custom--PaymentPlanAgreementMember__dei--LegalEntityAxis__custom--DonnelleyFinancialLLCMember_zaTtxLVTJ9F3" title="Installment not yet due">238 thousand not yet due), classified within accounts payable under current liabilities, as the remaining term (through June 2027) falls within twelve months of the balance sheet date. 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 September 30, 2026 and December 31, 2025, 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_90B_eus-gaap--PaymentsToSuppliersAndEmployees_pn2n3_c20250327__20250327__us-gaap--TypeOfArrangementAxis__custom--WorkLaborAndServicesAgreementMember_zaYFKhfNO8x7" 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 estimated the payable amount at $41.3 thousand out of which $7.5 thousand was previously paid into an escrow account in 2025 and the remainder is recognized in the audited balance sheet as of December 31, 2025. During the nine month ended September 30, 2026, the Company entered into a settlement agreement with the vendor and settled the obligation in full for $32.9 thousand, inclusive of the $7.5 thousand previously held in escrow. The resulting difference of $8.5 thousand between the carrying amount of the liability and the settlement consideration was recognised as a gain on extinguishment of payable within other income (expense), net. No amount remained outstanding as of September 30,2026. On August 3, 2026, the Civil Court of the City of New York, Small Claims Part, issued a notice of claim against the Company in an action brought by Gary S. Kreissman of Group PRM relating to allegedly unpaid consulting fees. The claim sought approximately $9.6 thousand, including interest, plus court costs. Group PRM was issued shares of Common Stock pursuant to the Vendor SPA in consideration for its unpaid consulting fees, and the Company expects to settle the action brought by Mr. Kreissman following the registration of the Vendor Shares. Settlement of a former service provider obligation During the nine months ended September 30,2026, the Company and a former service provider agreed to a deferred payment arrangement with respect to an outstanding vendor payable of $<span id="xdx_90A_eus-gaap--LitigationSettlementAmountAwardedToOtherParty_pn3n3_c20260101__20260930__us-gaap--TypeOfArrangementAxis__custom--FormerServiceProviderObligationMember_zBBS6s7p4ao1" title="Outstanding payable">1,617 thousand. Under the revised payment terms, the full amount of the payable remains due and payable to the vendor, and no reduction in the amount owed was granted; accordingly, the Company has not recognized any gain in connection with this arrangement. As of September 30,2026, $1,542 thousand of the payable remained outstanding, reflecting payments made to date under the revised schedule, and is included in current liabilities in the unaudited condensed consolidated interim balance sheet. During the nine months ended September 30,2026, the Company reached a settlement agreement with a former service provider resolving an outstanding payable obligation. Under the terms of the settlement, the Company agreed to pay $320 thousand in full satisfaction of a vendor payable previously carried at $818 thousand, reflecting a negotiated reduction of the outstanding obligation. The Company recognized a gain on settlement of $498 thousand, presented within other income (expense), net in the consolidated statements of operations. The remaining settlement obligation of $120 thousand is included in current liabilities in the unaudited condensed consolidated interim balance sheet as of September 30,2026. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements

10000.0

408900

45000

208900

408900

45000

478600

408900

69700

408900

29610

0.6580

45000

110000

60000

139850

38000

1307000

600000

25000

75000

700000

650000

75000

600000

575000

124000

99000

1032000

555000

476000

125000

45000

26000

397000

143000

1032000

555000

370000

132000 238000

76300

41300

7500

32900

7500

8500

9600

1617000

1542000

320000

818000

498000

120000

Note 13. Related Parties 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. 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 unaudited condensed consolidated interim balance sheet for the periods ended September 30, 2026 , and audited consolidated balance sheet December 31, 2025. Additionally, Fusemachines Nepal Private Limited incurred Nil as an annual monitoring fee for the nine months period ended September 30, 2026 and 2025. 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_906_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20240101__20240131__us-gaap--TypeOfArrangementAxis__custom--January2024RelatedPartyPledgeAgreementMember_z2E2OS7xdTu9" 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 2025 Convertible Notes (also see “Note 6- Debt “). Restricted stock units (RSU) The Board of Directors has granted restricted stock units (“RSUs”) under the Company’s 2025 Plan. RSUs are measured at fair value on the grant date and have no purchase price for the recipient. RSUs granted under the normal scheme typically vest over one to four years, based on anniversaries of the grant date. During the nine months ended September 30, 2026, the Company granted <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zLewB5ZNe6Zf" title="Number of shares, granted">2,330,801 RSUs, of which <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z2X8Mvo0JDu7" title="Number of shares, granted">1,031,961 RSUs were granted to related parties, including key management personnel (“KMP”), members of the Board of Directors, and other executive employees. These include <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260101__20260131__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z4lm3H5lWlyc" title="Number of RSU shares, Granted">1,217,210 RSUs granted in January 2026, of which <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260101__20260131__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zxRx3rtaZ5H4" title="Number of shares, granted">890,000 RSUs were granted to related parties. These RSUs vest over <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_dtY_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--RangeAxis__srt--MinimumMember_z4CNpTYviID3" style="display: none" title="Vest over period">1one to <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_dc_c20260101__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--RangeAxis__srt--MaximumMember_z4pTO00jVSJk" title="Vest over period">four years in accordance with the respective grant agreements. During the three months ended September 30, 2026, the Company granted <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260701__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zqfQBhuBvhPi" title="Number of shares, granted">1,113,591 RSUs, of which <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260701__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z04unE9TeFOg" title="Number of shares, granted">141,961 RSUs were granted to related parties. These include <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260701__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--TitleOfIndividualAxis__custom--EmployeesMember_z1hr8H3G6ard" title="Number of shares, granted">904,560 RSUs granted to employees in settlement of severance pay and wages payable, of which <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260701__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--TitleOfIndividualAxis__custom--ExecutivEmployeeMember_zBcO4PgNVAi5" title="Number of shares, granted">91,961 RSUs were granted to an executive employee. These RSUs vested immediately on the grant date. The remaining <span id="xdx_907_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodRemainingShares_pid_c20260701__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zx42GPoM3S12" title="Number of shares, granted">209,031 RSUs were granted under the normal scheme, including <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260701__20260930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember__srt--TitleOfIndividualAxis__custom--AnotherExecutiveEmployeeMember_zLvwVII2l513" title="Number of shares, granted">50,000 RSUs granted to another executive employee, and will vest over the respective vesting periods. The RSUs granted to related parties have been accounted for in accordance with ASC 718 and are disclosed as related party transactions pursuant to ASC 850. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements

964200

0.015 13700

3600000

2330801

1031961

1217210

890000

P1Y

P4Y

1113591

141961

904560

91961

209031

50000

Note 14. Reverse Capitalization 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. 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">Particulars</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">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">%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: left">Shares held by Fusemachines Inc. Stockholders</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_987_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--FusemachinesIncMember_zU8y6bm7Xgl3" 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_zTEOAHMF2LFi" 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: left">Shares held by CSLM public stockholders, Sponsor, and related parties of Sponsor</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CSLMPublicStockholdersSponsorAndRelatedPartiesOfSponsorMember_zYObqp1KIwxi" 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_zD3rUiZfUCpk" 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: left">Shares held by unrelated third parties</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--UnrelatedThirdPartiesMember_z1UwiASBwH3a" 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_z0iT1FRBeVte" 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">Total</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_982_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__us-gaap--OtherInvesteesMember_zQKcpb4foSFk" 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> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__us-gaap--OtherInvesteesMember_z3cQKvGhURj3" style="text-align: right" title="Ownership percentage">100</td><td style="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"> <td style="width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif; background-color: white; 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"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">●</td> <td style="font: 10pt Times New Roman, Times, Serif; background-color: white; text-align: justify">Public shareholders of CSLM received an aggregate of <span id="xdx_90C_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20251022__20251022__dei--LegalEntityAxis__custom--CSLMAcquisitionCorpMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zPQlP8FvB5vc" title="Aggregate shares received">901,955 shares of Fusemachines Inc. common stock.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">●</td> <td style="font: 10pt Times New Roman, Times, Serif; background-color: white; 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"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">●</td> <td style="font: 10pt Times New Roman, Times, Serif; background-color: white; text-align: justify">Issuance of <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_pid_c20251022__20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember__us-gaap--StatementEquityComponentsAxis__custom--ClassAAndClassBOrdinarySharesMember_zjduoJgHr5af" 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"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">●</td> <td style="font: 10pt Times New Roman, Times, Serif; background-color: white; 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_zLeswjW9BfCc" 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"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; background-color: white">Approximately $<span id="xdx_908_ecustom--StockIssuedDuringPeriodValuePrepaidForwardPurchaseAgreement_pn3n3_c20251022__20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z0QG7VdpWCRb" 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"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">●</td> <td style="font: 10pt Times New Roman, Times, Serif; background-color: white; 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_zl5RVdBEGJV" 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"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">●</td> <td style="font: 10pt Times New Roman, Times, Serif; background-color: white; 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_zGgGZYyBoL3j" 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_znuluirYkNod" 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"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">●</td> <td style="font: 10pt Times New Roman, Times, Serif; background-color: white; 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_906_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_pid_c20251022__20251022__us-gaap--BusinessAcquisitionAxis__custom--FusemachinesIncMember_zoCOcKNTnfSe" 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_90E_eus-gaap--ConvertiblePreferredStockSharesIssuedUponConversion_iI_pid_c20251022__us-gaap--BusinessAcquisitionAxis__custom--FusemachinesIncMember_zSGx7yMDlzK3" 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_z4qa7OrFxYz6" title="Payments to acquire businesses gross">110 thousand. Further during the nine months ended September 30, 2026 the Company made the cash payment of approximately $<span id="xdx_905_eus-gaap--PaymentsToAcquireBusinessesGross_pn3n3_c20260101__20260930__us-gaap--BusinessAcquisitionAxis__custom--FusemachinesIncMember_ztNnR4BV6em2" title="Payments to acquire businesses gross">60 thousand. The remaining $48 thousand obligation is still outstanding and is reflected in accounts payable as of September 30, 2026 in unaudited condensed consolidated interim balance sheet. (refer Note 12 - Commitment and Contingencies ).</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">●</td> <td style="font: 10pt Times New Roman, Times, Serif; background-color: white; 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_900_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_pid_c20251022__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--DebtInstrumentAxis__custom--SeptemberTwoThousandTwentyFourConvertibleNoteMember_zj1MKaCUESC5" title="Warrant to purchase">7,500 shares of common stock of CSLM with a per share exercise price of $<span id="xdx_909_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20251022__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--DebtInstrumentAxis__custom--SeptemberTwoThousandTwentyFourConvertibleNoteMember_zzWMgn81ItJ6" 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> <tr style="font: 10pt Times New Roman, Times, Serif"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; background-color: white">The assumption of the public and private warrants, as described in Note 17 “Public and private warrants”.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; background-color: white">The Company’s amended and restated certificate of incorporation and amended and restated bylaws were adopted.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; background-color: white">The Company adopted 2025 the equity incentive plan.</td></tr> </table> 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="font-weight: bold; padding-bottom: 1pt"> </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></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">Partial conversion of the 3rd Amended and Restated Promissory Note into Fusemachines Pubco 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_zjdmEyzSPJJd" 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: left">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_zJA3juOOUL8" 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: left">Automatic exercise of the rights related to 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_zaaCpSZOqGSa" 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: left">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_zljG3c3tM612" 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: left">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_98B_eus-gaap--ConversionOfStockSharesConverted1_pid_c20251022__20251022__us-gaap--StatementClassOfStockAxis__custom--ClassAAndClassBCommonStockMember__dei--LegalEntityAxis__custom--CSLMAcquisitionCorpMember_zenlq8YM9nY8" 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: left; padding-bottom: 1pt">Share issued to Consilium Frontier Equity Fund, LP</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20251022__20251022__dei--LegalEntityAxis__custom--ConsiliumFrontierEquityFundLPMember_zrVGnx288Yz1" style="border-bottom: Black 1pt solid; text-align: right" title="Shares issued">3,320,241</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; text-align: left; padding-bottom: 1pt">Total shares of Fusemachines Inc. common stock issued to CSLM security holders</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_985_ecustom--StockIssuedDuringPeriodSharesIssuanceOfCommonStockUponReverseRecapitalizationNetOfIssuanceCosts_pid_c20251022__20251022__dei--LegalEntityAxis__custom--ConsiliumFrontierEquityFundLPMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zsIw4gAHgPch" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right" title="Total shares of Fusemachines Inc. common stock issued to CSLM security holders">12,456,070</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Conversion of Legacy Fusemachines convertible notes (as adjusted by the exchange ratio)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_pid_c20251022__20251022__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__dei--LegalEntityAxis__custom--CSLMAcquisitionCorpMember_zwjJ7jc8CLzl" 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: left">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_988_eus-gaap--ConversionOfStockSharesConverted1_pid_c20251022__20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember_z2zeVI0Z1iP6" 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: left; padding-bottom: 1pt">Shares issued to Legacy Fusemachines stockholders (as adjusted by the exchange ratio)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20251022__20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember_z22gByQNU877" style="border-bottom: Black 1pt solid; text-align: right" title="Shares issued">7,967,237</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; text-align: left; padding-bottom: 1pt">Total shares of Fusemachines Inc. common stock outstanding immediately after the merger</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_98E_eus-gaap--SharesOutstanding_iI_pid_c20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zBoqP8Puw7mg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right" title="Total shares of Fusemachines Inc. common stock outstanding immediately after the Merger">28,350,030</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements Below table presents the Fund flow reconciliation (in thousands): Schedule of Fund Flow Reconciliation <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="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20251022__20251022_zimHnHiCsauc" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">(Amount In Thousands)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--ProceedsFromIssuanceOfTrustPreferredSecurities_pn3n3_maCAzo2P_zLS3OyCd9wHd" 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_zeXVACKvGfg3" 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_z3HNeTpOYFYh" 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_zdO9XGAiIddj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">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_z0I0BDTa7VK6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total Available Cash (A)</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">25,160</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_402_ecustom--TransactionCost_iN_pn3n3_di_maPAOCDzcl5_z7pd2lzbQju3" 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_zNXOxTH2k6Zf" 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_zKfU9OUlZuDd" 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_zcpw6sHqphF3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">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_zS4kRokV9dyf" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total Payments as of the closing date (B)</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">(15,728</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td></tr> <tr id="xdx_405_ecustom--ProceedsFromReverseCapitalisation_iT_mtPFRCzMzd_maNEIORzp4l_zYyMJo5XCl65" 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_400_ecustom--OperatingAssetsAssumed_pn3n3_maNEIORzp4l_zT7co2R5ZYoe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating assets assumed</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">531</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LiabilitiesAssumed1_iN_pn3n3_di_msNEIORzp4l_zPC6vbncFBKe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating liabilities assumed</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,100</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_ecustom--InitialFairValueOfForwardPurchaseDerivativeLiability_iN_pn3n3_di_msNEIORzp4l_zsIoCGry2W2j" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Initial fair value of forward purchase derivative liability</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_40E_ecustom--IssuanceOfSubscriptionReceivable_pn3n3_maNEIORzp4l_z1RPCMYv9jb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Issuance of share subscription receivable</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_402_ecustom--FairValueAdjustmentOfWarrant_iN_pn3n3_di_msNEIORzp4l_zRq4HaaIrgn3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Initial fair value of equity classified warrant</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,009</td><td style="text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--AssetAcquisitionConsiderationTransferredTransactionCost_iN_pn3n3_di_msNEIORzp4l_zzJPMxaNw6L7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Legacy Fusemachines transaction cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,873</td><td style="text-align: left">)</td></tr> <tr id="xdx_40F_ecustom--OthersAdjustmentsReverseRecapitalization_iN_pn3n3_di_msNEIORzp4l_z6h3So6u4pd9" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Others</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">137</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--NetEquityImpactOfReverseRecapitalization_pn3n3_mtNEIORzp4l_zXwOZIM2kS33" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Net equity impact of reverse recapitalization</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">8,507</td><td style="padding-bottom: 1pt; font-weight: bold; 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. 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">Particulars</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">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">%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: left">Shares held by Fusemachines Inc. Stockholders</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_987_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--FusemachinesIncMember_zU8y6bm7Xgl3" 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_zTEOAHMF2LFi" 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: left">Shares held by CSLM public stockholders, Sponsor, and related parties of Sponsor</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CSLMPublicStockholdersSponsorAndRelatedPartiesOfSponsorMember_zYObqp1KIwxi" 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_zD3rUiZfUCpk" 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: left">Shares held by unrelated third parties</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--UnrelatedThirdPartiesMember_z1UwiASBwH3a" 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_z0iT1FRBeVte" 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">Total</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_982_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20251022__20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__us-gaap--OtherInvesteesMember_zQKcpb4foSFk" 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> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20251022__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__us-gaap--OtherInvesteesMember_z3cQKvGhURj3" style="text-align: right" title="Ownership percentage">100</td><td style="text-align: left">%</td></tr> </table>

14864110

0.52

12654921

0.45

831000

0.03

28350031

29199809

0.0001

0.6580

19214201

9043234

5950673

29199809

19214201

3978000

2343000

408639

901955

1897486

4743750

2193000

11005000

745000

8048770

5296271

300000

29610

0.6580

45000

110000

60000

48000

7500

11.50

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="font-weight: bold; padding-bottom: 1pt"> </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></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">Partial conversion of the 3rd Amended and Restated Promissory Note into Fusemachines Pubco 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_zjdmEyzSPJJd" 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: left">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_zJA3juOOUL8" 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: left">Automatic exercise of the rights related to 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_zaaCpSZOqGSa" 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: left">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_zljG3c3tM612" 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: left">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_98B_eus-gaap--ConversionOfStockSharesConverted1_pid_c20251022__20251022__us-gaap--StatementClassOfStockAxis__custom--ClassAAndClassBCommonStockMember__dei--LegalEntityAxis__custom--CSLMAcquisitionCorpMember_zenlq8YM9nY8" 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: left; padding-bottom: 1pt">Share issued to Consilium Frontier Equity Fund, LP</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20251022__20251022__dei--LegalEntityAxis__custom--ConsiliumFrontierEquityFundLPMember_zrVGnx288Yz1" style="border-bottom: Black 1pt solid; text-align: right" title="Shares issued">3,320,241</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; text-align: left; padding-bottom: 1pt">Total shares of Fusemachines Inc. common stock issued to CSLM security holders</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_985_ecustom--StockIssuedDuringPeriodSharesIssuanceOfCommonStockUponReverseRecapitalizationNetOfIssuanceCosts_pid_c20251022__20251022__dei--LegalEntityAxis__custom--ConsiliumFrontierEquityFundLPMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zsIw4gAHgPch" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right" title="Total shares of Fusemachines Inc. common stock issued to CSLM security holders">12,456,070</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Conversion of Legacy Fusemachines convertible notes (as adjusted by the exchange ratio)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_pid_c20251022__20251022__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__dei--LegalEntityAxis__custom--CSLMAcquisitionCorpMember_zwjJ7jc8CLzl" 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: left">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_988_eus-gaap--ConversionOfStockSharesConverted1_pid_c20251022__20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember_z2zeVI0Z1iP6" 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: left; padding-bottom: 1pt">Shares issued to Legacy Fusemachines stockholders (as adjusted by the exchange ratio)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20251022__20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember_z22gByQNU877" style="border-bottom: Black 1pt solid; text-align: right" title="Shares issued">7,967,237</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; text-align: left; padding-bottom: 1pt">Total shares of Fusemachines Inc. common stock outstanding immediately after the merger</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_98E_eus-gaap--SharesOutstanding_iI_pid_c20251022__dei--LegalEntityAxis__custom--FusemachinesIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zBoqP8Puw7mg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right" title="Total shares of Fusemachines Inc. common stock outstanding immediately after the Merger">28,350,030</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

408639

901955

1897486

1184000

4743749

3320241

12456070

1976050

5950673

7967237

28350030

Schedule of Fund Flow Reconciliation <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="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20251022__20251022_zimHnHiCsauc" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">(Amount In Thousands)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--ProceedsFromIssuanceOfTrustPreferredSecurities_pn3n3_maCAzo2P_zLS3OyCd9wHd" 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_zeXVACKvGfg3" 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_z3HNeTpOYFYh" 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_zdO9XGAiIddj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">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_z0I0BDTa7VK6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total Available Cash (A)</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">25,160</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_402_ecustom--TransactionCost_iN_pn3n3_di_maPAOCDzcl5_z7pd2lzbQju3" 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_zNXOxTH2k6Zf" 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_zKfU9OUlZuDd" 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_zcpw6sHqphF3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">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_zS4kRokV9dyf" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Total Payments as of the closing date (B)</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">(15,728</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td></tr> <tr id="xdx_405_ecustom--ProceedsFromReverseCapitalisation_iT_mtPFRCzMzd_maNEIORzp4l_zYyMJo5XCl65" 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_400_ecustom--OperatingAssetsAssumed_pn3n3_maNEIORzp4l_zT7co2R5ZYoe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating assets assumed</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">531</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--LiabilitiesAssumed1_iN_pn3n3_di_msNEIORzp4l_zPC6vbncFBKe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating liabilities assumed</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,100</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_ecustom--InitialFairValueOfForwardPurchaseDerivativeLiability_iN_pn3n3_di_msNEIORzp4l_zsIoCGry2W2j" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Initial fair value of forward purchase derivative liability</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_40E_ecustom--IssuanceOfSubscriptionReceivable_pn3n3_maNEIORzp4l_z1RPCMYv9jb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Issuance of share subscription receivable</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_402_ecustom--FairValueAdjustmentOfWarrant_iN_pn3n3_di_msNEIORzp4l_zRq4HaaIrgn3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Initial fair value of equity classified warrant</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,009</td><td style="text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--AssetAcquisitionConsiderationTransferredTransactionCost_iN_pn3n3_di_msNEIORzp4l_zzJPMxaNw6L7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Legacy Fusemachines transaction cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,873</td><td style="text-align: left">)</td></tr> <tr id="xdx_40F_ecustom--OthersAdjustmentsReverseRecapitalization_iN_pn3n3_di_msNEIORzp4l_z6h3So6u4pd9" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Others</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">137</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--NetEquityImpactOfReverseRecapitalization_pn3n3_mtNEIORzp4l_zXwOZIM2kS33" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Net equity impact of reverse recapitalization</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">8,507</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

11118000

2193000

11840000

9000 25160000 2249000

131000

11005000

2343000

15728000 9432000 531000

1100000

8616000 11005000 1009000

1873000

-137000 8507000

1873000

Note 15. Forward Purchase Agreement On July 31, 2025, CSLM Acquisition Corp. (the “Counterparty”) prior to the closing of the Business Combination, and Fusemachines Inc. 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 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. 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 sellers 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. 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. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements 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 early termination of the Forward Purchase Agreement in respect of any shares (see “Early termination of the Forward Purchase Agreement” below), the Company records the receipt of funds as an increase to cash and a decrease to the share subscription receivable previously recorded as contra-equity and derecognizes the derivative liability attributable to the terminated shares against the share subscription receivable. The Company incurred no transaction costs that were directly related to issuance of the Forward Purchase Agreement. 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 Sellers. <span id="xdx_901_ecustom--DescriptionOfAmendmentOfTerminationAgreement_c20250731__20250731__us-gaap--BusinessAcquisitionAxis__custom--CSLMAcquisitionCorpMember_zstOFddp0twc" title="Termination price description">The Amendment replaces the agreement’s previously fixed Termination Price of $12.00 per share with a weekly-reset Termination Price equal to the lower of (a) $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: $2.50 floor; 50% of the Shares: $5.00 floor). The effect of amendment has been taken in change in fair value of forward purchase derivative liabilities (refer to Note 3 - Fair Value Measurements ). On August 2, 2026, the Company entered into a second amendment (the “Second FPA Amendment”) to the Prepaid Forward Purchase Agreement originally entered into on July 31, 2025 with Sellers. The Second FPA Amendment resets the Termination Price on the first scheduled trading day of each calendar week to the lower of (a) $12.00 and (b) the volume-weighted average price (VWAP) of the Shares for the immediately preceding week, as reported by Bloomberg L.P., with no floor applicable to any tranche. All other terms and conditions of the FPA remain unchanged. The effect of the amendment has been reflected in the change in fair value of the forward purchase derivative liability (refer to Note 3 Fair Value Measurements). Early termination of the Forward Purchase Agreement During the three months ended September 30, 2026, the Sellers terminated the Forward Purchase Agreement early in respect of a portion of the shares on two occasions, August 4, 2026 (“Termination 1”) and September 28, 2026 (“Termination 2”). On each termination, the Sellers paid the Company an amount equal to the number of terminated shares multiplied by the Termination Price applicable on the termination date (the “Early Termination Amount”). The Company received total Early Termination Amounts of $ 679 thousand in respect of 832,130 shares. As required by the SPAs, 33% of the Early Termination Amounts ($ 224 thousand) was applied as a mandatory prepayment of the Notes (refer to Note 6 Debt), and the balance of $ 455 thousand was retained by the Company. The cash received reduced the share subscription receivable. Further, the derivative liability to the extent of early termination of shares was reversed and adjusted against shares subscription receivables amounting to $ <span id="xdx_903_ecustom--SubscriptionReceivablesAmount_pn3n3_c20260701__20260930__us-gaap--TypeOfArrangementAxis__custom--ForwardPurchaseAgreementMember_zyEGO1GZ3SI" title="Subscription receivables amount">9,588 thousands. The following table summarizes the shares terminated (in thousands, except share and per share data): Schedule of Shares Terminated <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" id="xdx_499_20260804__us-gaap--AwardTypeAxis__custom--TerminationOneMember__us-gaap--TypeOfArrangementAxis__custom--ForwardPurchaseAgreementMember_zNUA7KWk5xgg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Termination 1 – August 04, 2026</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_490_20260928__us-gaap--AwardTypeAxis__custom--TerminationTwoMember__us-gaap--TypeOfArrangementAxis__custom--ForwardPurchaseAgreementMember_znsCyb89QpRk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Termination 2 – September 28, 2026</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_490_20260930__us-gaap--TypeOfArrangementAxis__custom--ForwardPurchaseAgreementMember_z2M1Px7bztba" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--SharesOutstanding_iI_pid_hus-gaap--TypeOfArrangementAxis__custom--ForwardPurchaseAgreementBeforeMember_zSvW402UAGV5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Shares outstanding under the FPA before termination</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">891,930</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">98,364</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">891,930</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_ecustom--SharesTerminated_iI_pid_z1zpep3OH3Cf" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Shares terminated</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">793,566</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38,564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">832,130</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--TerminationPricePerShare_iI_pid_zyoMSJIS7Mp1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Termination Price per share</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.8279</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.5779</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98E_ecustom--TerminationPricePerShare_iI_pid_c20260930_fKg_____zxNAsAhJJQZf" style="text-align: right" title="Termination Price per share">0.8163</td><td style="text-align: left">*</td></tr> <tr id="xdx_40B_ecustom--EarlyTerminationAmountReceived_pn3n3_za5t6sOGY9y1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Early Termination Amount received</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">657</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">679</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--TerminationPrepaymentOfNotes_iI_pid_zJwLNkrYXlW" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: justify">Less: 33% applied to prepayment of the Notes</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">(217</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">(7</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">(224</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_405_ecustom--NetCashRetainedByCompany_iI_pn3n3_zNpLPWKvAL3" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Net cash retained by the Company</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">440</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">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">455</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--SharesOutstanding_iI_pid_hus-gaap--TypeOfArrangementAxis__custom--ForwardPurchaseAgreementAfterMember_zVNi2Aw3YDAk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Shares outstanding under the FPA after termination</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">98,364</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">59,800</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">59,800</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">*</td><td style="text-align: justify">Weighted-average Termination Price.</td> </tr></table> The following table presents the movement in the share subscription receivable (presented as contra-equity) as at September 30, 2026 (in thousands): Schedule of Subscription Receivable <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: left"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_49C_20260101__20260930__us-gaap--TypeOfArrangementAxis__custom--ForwardPurchaseAgreementMember_zDkU5sTnK9E1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Share subscription receivable</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_ecustom--ShareSubscriptionReceivable_iS_pn3n3_zfAJYRy7G714" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; font-weight: bold; text-align: left">Balance at December 31, 2025</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">11,005</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--CashReceivedOnAccountOfEarlyTermination_pn3n3_zvfaq5FxRer9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Cash received on account of early termination</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(679</td><td style="text-align: left">)</td></tr> <tr id="xdx_40D_ecustom--AdjustmentToShareSubscriptionReceivableOnAccountOfEarlyTerminationOfForwardContract_pn3n3_zHvhigEEQS76" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Adjustment to share subscription receivable on account of early termination of forward contract</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">(9,588</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_405_ecustom--ShareSubscriptionReceivable_iE_pn3n3_zHyxgzLjdgw9" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Balance at September 30, 2026</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">738</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> The share subscription receivable of $ 738 thousand at September 30, 2026 relates to the 59,800 shares (approximately 6.7% of the original 891,930 shares) that remain outstanding under the Forward Purchase Agreement. The forward purchase derivative liability of $ 708 thousand at September 30, 2026 relates to those remaining shares (refer to note 3 Fair Value Measurements). As of September 30, 2026 and December 31, 2025, the value of the Forward purchase derivative liability is $ 708 thousand and $ 9,692 thousand respectively. The liability is presented as Current Liability in the unaudited condensed consolidated interim 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 Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements The Amendment replaces the agreement’s previously fixed Termination Price of $12.00 per share with a weekly-reset Termination Price equal to the lower of (a) $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: $2.50 floor; 50% of the Shares: $5.00 floor). The effect of amendment has been taken in change in fair value of forward purchase derivative liabilities (refer to Note 3 - Fair Value Measurements ). 12.00 12.00 679000 832130 224000 455000 9588000 Schedule of Shares Terminated <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" id="xdx_499_20260804__us-gaap--AwardTypeAxis__custom--TerminationOneMember__us-gaap--TypeOfArrangementAxis__custom--ForwardPurchaseAgreementMember_zNUA7KWk5xgg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Termination 1 – August 04, 2026</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_490_20260928__us-gaap--AwardTypeAxis__custom--TerminationTwoMember__us-gaap--TypeOfArrangementAxis__custom--ForwardPurchaseAgreementMember_znsCyb89QpRk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Termination 2 – September 28, 2026</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_490_20260930__us-gaap--TypeOfArrangementAxis__custom--ForwardPurchaseAgreementMember_z2M1Px7bztba" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--SharesOutstanding_iI_pid_hus-gaap--TypeOfArrangementAxis__custom--ForwardPurchaseAgreementBeforeMember_zSvW402UAGV5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Shares outstanding under the FPA before termination</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">891,930</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">98,364</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">891,930</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_ecustom--SharesTerminated_iI_pid_z1zpep3OH3Cf" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Shares terminated</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">793,566</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38,564</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">832,130</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--TerminationPricePerShare_iI_pid_zyoMSJIS7Mp1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Termination Price per share</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.8279</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.5779</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98E_ecustom--TerminationPricePerShare_iI_pid_c20260930_fKg_____zxNAsAhJJQZf" style="text-align: right" title="Termination Price per share">0.8163</td><td style="text-align: left">*</td></tr> <tr id="xdx_40B_ecustom--EarlyTerminationAmountReceived_pn3n3_za5t6sOGY9y1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Early Termination Amount received</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">657</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">679</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--TerminationPrepaymentOfNotes_iI_pid_zJwLNkrYXlW" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: justify">Less: 33% applied to prepayment of the Notes</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(217</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(7</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(224</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_405_ecustom--NetCashRetainedByCompany_iI_pn3n3_zNpLPWKvAL3" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Net cash retained by the Company</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">440</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">15</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">455</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--SharesOutstanding_iI_pid_hus-gaap--TypeOfArrangementAxis__custom--ForwardPurchaseAgreementAfterMember_zVNi2Aw3YDAk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Shares outstanding under the FPA after termination</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">98,364</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">59,800</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">59,800</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">*</td><td style="text-align: justify">Weighted-average Termination Price.</td> </tr></table>

891930

98364

891930

793566 38564 832130 0.8279 0.5779 0.8163 0.8163 657000 22000 679000 -217 -7 -224 440000 15000 455000

98364

59800

The following table presents the movement in the share subscription receivable (presented as contra-equity) as at September 30, 2026 (in thousands): Schedule of Subscription Receivable <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: left"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_49C_20260101__20260930__us-gaap--TypeOfArrangementAxis__custom--ForwardPurchaseAgreementMember_zDkU5sTnK9E1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Share subscription receivable</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_ecustom--ShareSubscriptionReceivable_iS_pn3n3_zfAJYRy7G714" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; font-weight: bold; text-align: left">Balance at December 31, 2025</td><td style="width: 2%; font-weight: bold"> </td> <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 16%; font-weight: bold; text-align: right">11,005</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--CashReceivedOnAccountOfEarlyTermination_pn3n3_zvfaq5FxRer9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Cash received on account of early termination</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(679</td><td style="text-align: left">)</td></tr> <tr id="xdx_40D_ecustom--AdjustmentToShareSubscriptionReceivableOnAccountOfEarlyTerminationOfForwardContract_pn3n3_zHvhigEEQS76" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left">Adjustment to share subscription receivable on account of early termination of forward contract</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(9,588</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_405_ecustom--ShareSubscriptionReceivable_iE_pn3n3_zHyxgzLjdgw9" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Balance at September 30, 2026</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">738</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> 11005000 -679000 -9588000 738000 738000

59800

891930

708000

9692000

Note 16. Shortfall warrant 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. The warrants grant the holders the right to purchase a fixed number of shares (<span id="xdx_901_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iI_pid_c20251022__us-gaap--TypeOfArrangementAxis__custom--ForwardPurchaseAgreementMember_z6Ia0hyRrRbc" title="Warrants purchase 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 September 30, 2026. 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; background-color: white"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">●</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; background-color: white"> <td> </td> <td>●</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; background-color: white"> <td> </td> <td>●</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; background-color: white"> <td> </td> <td>●</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’ deficit section of the consolidated balance sheet as of December 31, 2025. 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. On February 3, 2026, the Company entered into an amendment 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 reduced from $12.00 to $10.00 per share of the Company’s Class A common stock, subject to customary adjustments as set forth in the warrant agreement. All other terms and conditions of the warrant, including the number of shares issuable upon exercise (2,108,070 shares), remain unchanged and continue in full force and effect. As a result of the reduction in exercise price, the Company recognized a deemed dividend equal to the incremental fair value of the Shortfall Warrants resulting from the Warrant Amendment, measured as of February 3, 2026. The deemed dividend amounting to $<span id="xdx_901_eus-gaap--AdjustmentsToAdditionalPaidInCapitalDividendsInExcessOfRetainedEarnings_pn2n3_c20260203__20260203__us-gaap--StatementEquityComponentsAxis__us-gaap--AdditionalPaidInCapitalMember_zenIiHgo43qg" title="Deemed dividend">84.1 thousand has been recorded as a charge to accumulated deficit with a corresponding credit to additional paid-in capital and, while it does not affect net loss, is deducted from net income (loss) attributable to common stockholders for purposes of computing net loss per share. On August 2, 2026, the Company entered into a second amendment (the “Second Warrant Amendment”) to the Common Stock Purchase Warrant originally issued on October 22, 2025, in connection with the Business Combination with the Meteora Parties. Pursuant to the Second Warrant Amendment, the exercise price was changed from $<span id="xdx_90C_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20260802__us-gaap--ClassOfWarrantOrRightAxis__custom--SecondWarrantAmendmentMember_zQbRsmc73zlh" title="Exercise price">10.00 per share to the greater of (a) the Termination Price as defined in the FPA, including the weekly VWAP-based variability provided for thereunder, and (b) $0.85 per share. The number of shares issuable upon exercise remains unchanged at 2,108,070 shares. The Shortfall Warrants remain equity-classified following the amendment. As the Second Warrant Amendment was a contractual condition precedent to the Company’s convertible note financing completed on the same date (refer to Note 6 Debt), the incremental fair value of $ 494.05 thousand has been recognized as a cost of the financing in accordance with ASC 815-40-35-17(b). <span id="xdx_907_eus-gaap--ClassOfWarrantOrRightReasonForIssuingToNonemployees_c20260802__20260802__us-gaap--ClassOfWarrantOrRightAxis__custom--SecondWarrantAmendmentMember_zHv0TFVGaGQg" title="Financing warrants issued description">The cost has been allocated between the Notes and the Financing Warrants issued with the Notes on the same relative fair value basis as the proceeds: $413.11 thousand (83.6%) has been recorded as a debt discount against the carrying amount of the Notes, and $80.94 thousand (16.4%) has been recorded as a reduction of additional paid-in capital. The net increase in additional paid-in capital on account of the Second Warrant Amendment is therefore $413.11 thousand. The $494.05 thousand credit is presented as “Shortfall warrant amendment”, and the $80.94 thousand reduction is presented within “Warrants issued in connection with new Convertible Notes”, in the condensed consolidated interim statements of stockholders’ deficit and in the supplemental non-cash disclosures in the condensed consolidated interim statements of cash flows. Fusemachines Inc. and Subsidiaries Notes to the Condensed Consolidated Interim Financial Statements

2108070

1009000

12.00

10.00

2108070

84100

10.00

0.85

2108070

494050.00

The cost has been allocated between the Notes and the Financing Warrants issued with the Notes on the same relative fair value basis as the proceeds: $413.11 thousand (83.6%) has been recorded as a debt discount against the carrying amount of the Notes, and $80.94 thousand (16.4%) has been recorded as a reduction of additional paid-in capital. The net increase in additional paid-in capital on account of the Second Warrant Amendment is therefore $413.11 thousand. The $494.05 thousand credit is presented as “Shortfall warrant amendment”, and the $80.94 thousand reduction is presented within “Warrants issued in connection with new Convertible Notes”

Note 17. Public and Private Warrants As of September 30, 2026, there were 3,971,250 Private Warrants and 9,487,500 Public Warrants outstanding. There are no warrants exercised as at September 30, 2026. 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’ deficit 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

<p id="xdx_808_ecustom--SettlementOfVendorPayablesThroughIssuanceOfCommonStockDisclosureTextBlock_zkHgZMZJdau6" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt">Note 18. Settlement of Vendor Payables through Issuance of Common Stock During the three and nine months ended September 30, 2026, the Company entered into mutual written agreements with certain vendors to settle outstanding payables through the issuance of its common stock. Pursuant to these agreements, the Company issued <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20260701__20260930__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__srt--TitleOfIndividualAxis__custom--VendorsMember_zwjYb68gL7B" title="Shares issued"><span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20260101__20260930__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__srt--TitleOfIndividualAxis__custom--VendorsMember_z639uku3mPw8" title="Shares issued">2,138,935 shares of common stock to the vendors at an agreed price of approximately $0.61 per share, in settlement of vendor payables (included in accounts payable and accrued expenses) aggregating $<span id="xdx_90F_eus-gaap--AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent_iI_pn3n3_c20260930__srt--TitleOfIndividualAxis__custom--VendorsMember_zupypQ2a7DI9" title="Accounts payable and accrued expenses">1,397 thousand. Consistent with ASC 405-20, the corresponding vendor payables have been derecognized, as the Company was legally released from those obligations through mutual written agreement with the vendors. The Company recorded the issuance as an increase in common stock (at par) and additional paid-in capital of $1,298 thousand in aggregate, with a corresponding reduction in the vendor payables. For the majority of vendors included in the above arrangements, the fair value of the shares issued approximated the carrying amount of the payables settled and, accordingly, no gain or loss was recognized upon extinguishment. However, as described in Note 12 – Commitment and Contingencies, the Company settled obligations with its external legal counsel through issuance of common stock; as the fair value of shares issued was less than the aggregate carrying value of the liabilities settled, a gain on extinguishment of approximately $99 thousand was recognized in the condensed consolidated statements of operations. As no cash was received, the transaction is excluded from financing activities and is presented as a supplemental non-cash financing activity in the condensed consolidated statements of cash flows, representing the issuance of common stock in settlement of vendor payables

2138935

0.61

1397000

1298000

Note 19. 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; background-color: white"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">On September 24, 2026, the Company received a notice from Nasdaq stating that, because its Market Value of Listed Securities remained below the $50,000,000 minimum required by Nasdaq Listing Rule 5450(b)(2)(A) at the end of the compliance period on September 23, 2026, its securities were subject to delisting from The Nasdaq Global Market unless the Company requested a hearing before the Nasdaq Hearings Panel (the “Panel”). On October 1, 2026, the Company requested a hearing before the Panel to appeal the determination, which stayed any suspension or delisting action until the hearing is held and any extension granted by the Panel has expired. The hearing is scheduled for November 3, 2026.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: white"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">On October 1, 2026, the Company issued <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pid_c20261001__20261001__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--TitleOfIndividualAxis__custom--VendorMember_zqHpaT65rLk7" title="Shares issued for services">120,000 shares of common stock to a vendor as advance payment for services to be received in the future. The Company is currently evaluating the accounting and financial reporting implications of this event.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: white"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">On October 6, 2026, the Company filed a registration statement on Form S-1 registering the resale of up to 7,549,411 shares of common stock, including shares issuable upon conversion of the convertible notes and exercise of the related warrants. The SEC declared the registration statement effective on October 13, 2026. The Company is currently evaluating the accounting and financial reporting implications of this event.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: white"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Other than as described above, the Company has evaluated subsequent events through the date of issuance of these unaudited condensed consolidated interim financial statements and determined that there have been no other events that have occurred that would require adjustments to disclosures in the unaudited condensed consolidated interim financial statements.</td></tr> </table>

the Company received a notice from Nasdaq stating that, because its Market Value of Listed Securities remained below the $50,000,000 minimum required by Nasdaq Listing Rule 5450(b)(2)(A) at the end of the compliance period on September 23, 2026, its securities were subject to delisting from The Nasdaq Global Market unless the Company requested a hearing before the Nasdaq Hearings Panel (the “Panel”). On October 1, 2026, the Company requested a hearing before the Panel to appeal the determination, which stayed any suspension or delisting action until the hearing is held and any extension granted by the Panel has expired. The hearing is scheduled for November 3, 2026.

120000

7549411

false false false false false false The number of shares of convertible preferred stock, common stock and treasury 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’ deficit.