American Fusion Inc. (OTC: AMFN) filed its quarterly report for the period ended March 31, 2026, showing a net loss of $669,750 compared to a $100,000 loss in the same period last year. The filing represents the company's first quarterly report following its reverse-merger with Kepler Fusion Technologies, which closed on February 27, 2026.

The company reported cash and cash equivalents of $99,594 at March 31, 2026, compared to $2,525 at December 31, 2025. Operating expenses increased to $632,583 for the quarter from $100,000 in the prior year period, driven by professional fees, marketing expenses, patent activity and public company costs.

American Fusion used $415,931 in operating activities during the quarter but received $513,000 from financing activities, including funding from its prepaid warrant facility. The company has accessed approximately $793,000 under the facility, with $2,207,000 remaining available under the $3 million commitment.

The company explained that the merger with Kepler was treated as a reverse recapitalization rather than a traditional business combination under accounting rules. This means the Texatron Fusion Engine platform and Kepler's intellectual property are not capitalized on the balance sheet at fair value.

Following quarter-end, American Fusion obtained a court order canceling 1.68 billion shares of common stock, reducing outstanding shares to approximately 1.32 billion. The company also reduced its authorized common stock from 3 billion to 1.8 billion shares.

American Fusion develops fusion energy technologies and continues advancing its Version 9 Texatron prototype in Midland, Texas. The company reported total assets of $99,594 and current liabilities of $1.21 million at quarter-end.