10-Q: Fuse Group Holding Inc. Q2 2026 Financial Update

Fuse Group Holding Inc. reports a net loss for the nine months ended June 30, 2026, with ongoing efforts to secure additional financing and manage operational expenses.

Summary

• Fuse Group Holding Inc. reported a net loss of $114,749 for the nine months ended June 30, 2026, compared to a net loss of $204,619 for the same period in 2025.
• Total revenue for the nine months ended June 30, 2026, was $7,683, a decrease from $45,942 in the prior year, primarily due to lower demand for consulting services.
• Operating expenses decreased significantly to $114,939 for the nine months ended June 30, 2026, from $246,176 in the prior year, mainly due to reduced personnel and rent costs.
• The company had a working capital deficit of $290,250 as of June 30, 2026.
• Management is actively seeking additional financing through private or public offerings to fund future operations.
• The company's disclosure controls and procedures were found to be not effective due to material weaknesses, including the lack of an audit committee and insufficient accounting personnel.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this filing as negative due to continued net losses, declining revenues, a widening working capital deficit, and identified material weaknesses in internal controls, despite efforts to reduce operating expenses.

Positives

• Significant decrease in operating expenses by $131,237 for the nine months ended June 30, 2026, compared to the prior year, driven by reductions in personnel and rent costs.
• Cash provided by financing activities increased to $112,528 for the nine months ended June 30, 2026, from $146,720 in the prior year, indicating continued access to funding sources.
• The company has no outstanding accounts receivable as of June 30, 2026.
• No material subsequent events were disclosed as of the financial statement issuance date.

Negatives

• Net loss of $114,749 for the nine months ended June 30, 2026, and a net loss of $23,964 for the three months ended June 30, 2026.
• Revenue decreased to $7,683 for the nine months ended June 30, 2026, from $45,942 in the prior year, and was nil for the three months ended June 30, 2026.
• A substantial working capital deficit of $290,250 as of June 30, 2026.
• Material weaknesses identified in disclosure controls and procedures, including the absence of an audit committee and insufficient accounting personnel.
• The company's ability to continue as a going concern is subject to substantial doubt due to accumulated deficit and operating cash outflows.

Risks

• The company's ability to continue as a going concern is dependent on its ability to implement its business plan, generate sufficient revenue, and raise additional funds through offerings or loans.
• Failure to secure additional financing could have a material adverse effect on the company's business viability, financial position, results of operations, and cash flows.
• The company's disclosure controls and procedures are not effective, posing risks to accurate financial reporting, fraud prevention, and timely filing of reports.
• Potential for future litigation and claims as the company grows and gains prominence.
• The acquisition of mining rights in Mexico remains incomplete, subject to Mexican government approval and transfer of shares.
• The exploratory drilling agreement in Mexico is on hold pending a buyer's analysis, with potential equity in the mine contingent on successful exploration.

Future Outlook

The company's future outlook is heavily dependent on its ability to secure additional financing through private or public offerings, or other means, to fund its ongoing operations and business development initiatives. Management is actively exploring these options.

Management Comments

• Management acknowledges that the company's ability to continue as a going concern is dependent upon its ability to further implement its business plan, generate sufficient revenue, and raise additional funds.
• Management believes in the viability of its strategy to generate sufficient revenue and its ability to raise additional funds on reasonable terms and conditions, but there can be no assurances to that effect.
• Management has evaluated the effectiveness of disclosure controls and procedures and concluded they were not effective due to material weaknesses.

Industry Context

StockSavvy.ai notes that Fuse Group Holding Inc. operates in the mining and consulting sectors, which are subject to cyclical demand and commodity price fluctuations. The company's diversification into catering and culinary consulting represents an attempt to broaden its revenue base, though current financial performance indicates significant challenges in all areas.

Comparison to Industry Standards

• The company's revenue generation is significantly below industry standards for established consulting or mining exploration firms. For instance, comparable consulting firms often report millions in quarterly revenue.
• The company's operating expense reduction strategy, while positive, is a response to severe financial constraints rather than a sign of efficient scaling.
• The lack of an audit committee and material weaknesses in internal controls are significant deviations from corporate governance best practices followed by publicly traded companies in the mining and consulting sectors.

Corporate Governance

Legal Proceedings

• The company is not currently a party to any legal proceedings.

Related Party Transactions

• As of June 30, 2026, the Company had an advance of $121,253 from its CEO for working capital needs, which was non-interest bearing and payable on demand.

Stakeholder Impact

• Shareholders may experience dilution if the company raises capital through equity offerings.
• Creditors and lenders face increased risk due to the company's going concern issues and reliance on future financing.
• Employees may face uncertainty regarding job security given the company's financial condition and operational challenges.

Next Steps

• Management will continue to explore options to obtain additional financing.
• The company will continue to evaluate the effectiveness of internal controls and procedures on an ongoing basis.
• The company intends to hire additional personnel in financial reporting and other areas as operations grow and become more complex.

Key Dates

Recommendation

While the company is facing significant financial challenges, including net losses and a going concern warning, it is actively seeking financing and has reduced operating expenses. The potential for future capital raises and the ongoing exploration of mining opportunities warrant a hold position, pending clearer signs of financial stabilization or progress in its core business areas.

Keywords

mining consulting, biotech, business development, financial statements, operating expenses, revenue, net loss, capital raise