American Fusion Inc.

What they do

American Fusion, through its wholly owned subsidiary Kepler Fusion Technologies Inc., is developing the Texatron, a compact pulsed toroidal fusion reactor intended to provide clean, scalable baseload electricity. The company plans to own and operate Texatron units and sell electricity under long-term contracts. Current operations focus on research and development, prototype testing (including a Version 9 prototype in Midland, Texas), and intellectual property expansion.

Revenue drivers

• Texatron Fusion Engine sales — Revenue for the quarter ended June 30, 2026 was $58,000, the company's first reported revenue, from a single sale to a new customer, with cost of revenue of $50,000.
• Power-as-a-Service (PaaS) — Intended future revenue model: owning and operating Texatron units and selling electricity under long-term contracts. No PaaS revenue has been reported to date.
• Research and development services — The company's DSHS registration authorizes R&D activities only and does not constitute certification of technology or commercial performance; no commercial revenue from R&D services has been reported.

Recent performance

For the three months ended June 30, 2026, the company reported revenue of $58,000 (vs. $0 in the prior year quarter) and a gross margin of $8,000. Operating expenses totaled $1.25 million, including $543,232 in consulting fees, $217,268 in professional fees, and $226,089 in corporate communications and marketing. The net loss was $1,275,208, compared to a net loss of $55,319 in the year-ago quarter. As of June 30, 2026, cash was $79,341, total assets were $196,683, total liabilities were $1.9 million, and shareholder equity was negative $1.7 million.

Strategy

The company completed a reverse recapitalization with Kepler Fusion Technologies Inc. on February 27, 2026, integrating Kepler's assets, technology, and operations. Strategic priorities include advancing prototype testing (Version 9 in Midland, Texas), expanding intellectual property, and preparing for commercial deployment. Management emphasizes the Power-as-a-Service business model, intending to own and operate Texatron units and sell electricity under long-term contracts. The company is also preparing research testing activities at its authorized location in Lubbock, Texas following receipt of a state radiation machine registration.

Risks

• Development-stage with no commercial revenue — The company has only generated $58,000 in revenue from a single customer sale and has not yet commercialized its fusion technology.
• Negative equity and high liabilities — As of June 30, 2026, shareholder equity was negative $1.7 million and total liabilities were $1.9 million, indicating a strained balance sheet.
• Regulatory limitation — The DSHS registration authorizes only research and development activities, not commercial operation or certification of the technology.
• Cash burn with limited cash — Cash of $79,341 is low relative to quarterly operating expenses of $1.25 million, raising going-concern risk and dependence on future financing.

Outlook

Management says the receipt of the DSHS registration is a significant operational milestone supporting continued engineering, prototype testing, technical validation, and research activities. The company has commenced preparations for research testing activities at its authorized location in Lubbock, Texas. The registration remains effective through February 28, 2034 and covers twelve registered Texatron Fusion Engine research model classes ranging from 500 kW through 1 GW.