FUSE Fusemachines Inc.

“Lack of adequate IT controls. Management has initiated or is in the process of implementing the following remediation measures to address the identified material weaknesses”

“Absence of a robust monthly and annual close process. Lack of centralized contract repository or checklist for key contract terms and accounting implications.”

“Inadequate segregation of duties and lack of review of accounting entries. Absence of a robust monthly and annual close process.”

“Lack of sufficient trained accounting staff with US GAAP expertise. Inadequate segregation of duties and lack of review of accounting entries.”

“Lack of formal process for independent review of significant accounting estimates by qualified personnel at each reporting date.”

“Lack of formal process for Board review or approval of significant CEO-initiated transactions.”

“Incomplete implementation of internal control framework (e.g., COSO 13) to establish an effective control environment, risk assessment, control activities, communication, and monitoring processes.”

“Based on a prior evaluation under these criteria, management determined that our internal controls over financial reporting were not effective as of December 31, 2025.”