Replies to post #55470 on American Fusion Inc (AMFN)

[BigBadWolf]

This press release, yep dropped late on May 20, 2026, is a masterclass👏 in corporate damage control & accounting spin. One doesn't have to be a $CPA/MBA, to see right through the dense paragraphs of GAAP justifications ($might $help). $Hawkins & $Nelson realize they have been completely exposed by the cold, hard numbers in the 10-Q, and this PR is a frantic attempt to give the dreamers & positivy crowd😏 a narrative to cling to so the stock price doesn't collapse before the required split. They are explicitly trying to walk back prior expectations and cushion the blow of a fundamentally bankrupt balance sheet. Here is the forensic audit of their defensive spin & again all please just read the damn press release, compare said to the 10Q & previous paid for releases of news. They don't want any to look at the actual $Balance $Sheet. Notice management spends over a third of the press release explaining ASC 805-40 (Reverse Recapitalizations). 🤔🙄 While attempting to argue / spin that the reason the multi-billion-dollar Texatron™ platform, patents, and prototypes aren't listed as assets is simply a technical accounting outcome dictated by GAAP. 🙄🤣 They want investors to believe the technology is incredibly valuable, but mean old accounting rules 🤥 won't let them show it. Under GAAP, internally developed R&D is expensed. However, if this technology had actual capital behind it (machinery, specialized lab equipment, land, buildings), it would be capitalized under Property, Plant, and Equipment (PP&E). The total asset line of $99,594 which is literally just their remaining cash proves that Kepler brought absolutely zero physical or capitalized infrastructure to the table. The 9th prototype is an accounting ghost. 👻💀 Let's discuss the distinction from prior illustrative analysis as this is the most damning admission in the entire release. Their own words

certain draft analyses prepared earlier in 2026 evaluated hypothetical purchase accounting outcomes... illustrative goodwill or fair-value adjustments contemplated in earlier draft modeling analyses are not reflected... and should not be interpreted as valuation opinions...

The above $exposes & $confirms Hawkins and Nelson were floating $hypothetical(to be kind) internal models showing massive asset valuations and goodwill to insiders or promoters earlier this year. Now that the SEC and independent auditors have forced them to sign a sworn 10-Q, they obviously are legally terrified (rightfully so) of being sued for securities fraud. They are explicitly telling the market that those giant numbers we hinted at before? Yeah, those were just $hypothetical $drafts for internal planning. Please don't sue us. The PR tries to highlight the up-to-$3,000,000 commitment on their prepaid warrant facility. Using their own math they have drawn $793,000 to date, leaving $2,207,000 available. Now why that's problematic their current liabilities are $1,209,664. If they max out the remaining availability on this dilutive warrant facility just to clear their current debts and keep paying their massive $100,000+ marketing bill, they will have almost nothing left for actual 5MW commercial engine construction. Trying to 🤔 of an appropriate phrase for said, (they are burning their furniture to heat the house.) They did reconfirm the 240,000,000 issuance as disclosed in the Form 10 as the PR explicitly states:

The Company has also processed the issuance of 240,000,000 common shares associated with previously disclosed equity obligations arising from the Kepler transaction.

🐺Howling So to be clear they have officially printed the 240M shares for Kepler. With the post-cancellation float at 1,316,801,029 shares, the required math I have talked about multiple times to conform to said Form 10 remains an absolute iron cage. To give Kepler its contractually mandated 89.7% control of the common equity, the public float must be shrunk via the reverse split. Now what the PR Says to the Dreamers vs What any CPA/MBA would see on the tape.

The Texatron isn't capitalized because of technical GAAP rules.

There are no physical assets. The entity has $99k in cash and a $1.1M working capital deficit.

Prior valuations were just draft illustrative models.

Sadly we got caught as to when we hyped up giant numbers in private, but our auditors told us we'd go to jail if we put them in a sworn SEC filing.

We are evaluating institutional financing with Revere.

The Reverse Split is imminent (required) while Revere and institutional money will not touch a company with a $1M deficit and a $0.14 stock price. They need the 1:100 split to print a clean $14.00 price tag.