A Fusion Engine in Testing, With the Results Still to Come
The hardware: American Fusion says it took delivery of a 5MW pre-production Texatron fusion engine in June 2026 and finished the first phase of lab testing at Texas Tech University on July 31.
The target: Management is aiming for unity or better by the end of 2026 and possible electricity sales in 2027, both conditional. The company itself says testing has not yet shown unity, usable electricity or commercial operation.
The company: American Fusion trades on the OTCQB, reports 151 U.S. patent applications pending, and has delivered four commercial proposals to prospective customers.
Real Test Program + Growing Patent Filings + Commercial Proposals Out = A Fusion Story to Watch
$AMFN - American Fusion, a Texatron Fusion Engine in Testing
Price: ~$0.07 (October 2026) | Market Cap: ~$113M
americanfusionenergy.com | OTC Markets: AMFN
Report updated: October 17, 2026 (original version published May 3, 2026). Market cap is the price times the 1,619,034,363 shares on the Q2 10-Q cover (August 7, 2026).
WHAT CHANGED IN THIS UPDATE
- Dated: The May 3 version was current only to early May and described mid-May events as past. This version is dated and uses sources through October 13, 2026.
- The "100MW demonstration by end of 2026" target: Removed. The company's current stated target is unity or better by the end of 2026, with possible commercial sales in 2027, and its recent releases do not repeat the 100MW demonstration.
- "Working 5MW unit": Corrected. In May the company reported the unit's structural frame complete. A 5MW pre-production unit was delivered in June, and the first lab-testing phase finished July 31.
- "280+ patents in process": Replaced. The company's own counts since August are 100 (Aug 24), 130 (Sep 8) and 151 (Sep 22) U.S. patent applications pending.
- Trading tier: Corrected. AMFN was approved for the OTCQB Venture Market on August 21, 2026.
- Removed: The "10M x" energy density, "$10T+" market, "80% EBITDA margin" figures, the "NATO supply chain" wording and the Delaware litigation line. They were company projections or could not be confirmed in the filings reviewed.
- Price and share data: Refreshed, and the first-revenue wording clarified (see the financial section).
Sources: company releases through October 13, 2026; Form 10-Q for the period ended June 30, 2026 (filed August 11, 2026); Form 8-K signed October 6, 2026.
Executive Summary
- What it is: American Fusion, Inc. (OTCQB: AMFN) is a Southlake, Texas company formed in February 2026 when Renewal Fuels merged with Kepler Fusion Technologies. It is developing the Texatron, which it describes as an aneutronic deuterium-helium-3 fusion platform.
- Testing status: A 5MW pre-production unit was delivered in June. The first phase of lab testing at Texas Tech finished July 31 and covered subsystems such as the ignition and control system, plasma switching and high-voltage supply. The company has not shown sustained fusion or net energy.
- Financials: Cash was $79,341 at June 30, 2026. Six-month net loss was $1.94M, and the Q2 10-Q is the latest filing.
- Structure: About 1.619 billion shares were outstanding on August 7 after a court order cancelled 1.683 billion shares. A Series A Control Share held by an entity controlled by Executive Chairman Brent Nelson carries 60% of the voting power.
- Recent changes: On September 30 twelve insiders exchanged stock awards of up to $2.88M for Series C convertible preferred, and the company is transitioning to a new auditor, MBP Global LLP.
- Commercial side: Four commercial proposals have been delivered and one letter of intent sent, but the company reports no definitive agreements and no named counterparties.
THE TECHNOLOGY AND THE TEST PROGRAM
Pre-Production Unit
5MW
Delivery reported Jun 18
First Lab Phase
Jul 31
Texas Tech, company-reported
State Approval
12 Models
Texas DSHS, Jul 20
Company Target
Unity by End-2026
Conditional
- What it is: The Texatron is a pulsed, toroidal-plasma fusion design that the company says runs on deuterium and helium-3 fuel and would convert energy directly to electricity. These are company descriptions of a design under test.
- What testing covered: The first phase, at the Center for Emerging Energy Sciences at Texas Tech, checked the remote ignition and control system, plasma switching, the high-voltage supply in a vacuum, instrumentation and radiation monitoring. The company reported no measurable radiation and results that "compared favorably" with its pre-test expectations.
- Later updates: On September 15 the company reported hotter and denser plasmas than in earlier tests. An August 27 update gave modeled, not measured, figures comparing its 23-inch and 11-inch designs.
- What has not been shown: In its September 9 release the company wrote that its current testing program has not yet demonstrated unity, usable electricity or commercial operation. Its October 13 release says the same of ignition, net energy gain and commercial generation.
- The "5MW" label: The June 18 release does not say whether 5MW is electrical or thermal, gross or net, or a design rating versus a measured output.
A real test facility and state approvals, with no independent data yet
Sources: company releases of June 18, July 20, July 31, August 27, September 9, September 15 and October 13, 2026 (GlobeNewswire and StockTitan); trade coverage of the July 31 release. All test results are company-reported. The company said in June it intends to publish an independent third-party report on its testing; none was found.
KNOW THE SETUP: Financial Position
Cash (Jun 30)
$79,341
Q1 was $99,594
Total Liabilities
$1.86M
Assets: $196,683
Stockholders' Equity
-$1.66M
Jun 30, 2026
6-Month Net Loss
-$1.94M
Q2 alone: -$1.28M
- Filing note: The Q2 10-Q reports an accumulated deficit of about $10.9M and includes the standard going-concern disclosure. See the 10-Q for the full text.
- Revenue: The only revenue reported is $58,000 in the second quarter, from the Canadian Department of National Defence equipment order announced April 28. The company calls it a first procurement transaction; it is not revenue from fusion.
- Operating costs: Operating expenses were $1.25M in the second quarter and $1.89M for six months, compared with $632,583 in the first quarter.
- Related parties: The filing lists convertible notes payable to related parties of $489,754 and consulting payments to the CEO and Executive Chairman of $15,000 a month. Independent directors receive $2,000 a month.
- Other liability: A December 2024 Alaska judgment of $618,994 is carried as a litigation liability of $697,341 at June 30.
- Funding: The company mentions non-binding financing term sheets only. No definitive financing agreement or banking engagement was found.
Funding the next phase of testing is the item to follow
Sources: Form 10-Q for the period ended June 30, 2026, filed August 11, 2026 (SEC EDGAR); first-quarter results release, May 20, 2026; company update, September 8, 2026. Verify figures in the original filings.
KNOW THE STRUCTURE: Shares, Control, Series C and the Auditor
Shares Out. (Aug 7)
1.619B
10-Q cover page
Shares Cancelled
1.683B
Court order, King County WA
Control Share
60% Vote
Series A, CEO-linked entity
Series C Exchange
Up to $2.88M
Twelve insiders, Sep 30
- Share count: 1,619,034,363 shares were outstanding on August 7, 2026 (1,641,801,029 issued). Authorized common shares were cut from 3.0 billion to 1.8 billion effective May 1.
- Voting control: The 10-Q states that Earth Sciences Fund I LLC, controlled by CEO and Executive Chairman Brent Nelson, holds the Series A Control Share, which carries 60% of the voting power.
- Series C preferred: Per the Form 8-K, twelve officers, directors, consultants and advisors each exchanged a right to $240,000 of stock awards for up to 24,000 Series C shares, up to 288,000 shares in all. Conversion starts only after a lock-up tied to a listing, in stages of up to 30% a quarter, and the company holds a cash call option at 125% of face value. Read the 8-K for the conversion terms.
- Auditor change: JV CPA resigned effective October 1, 2026, covering the third-quarter review and the 2026 audit. The 8-K reports no disagreements. MBP Global LLP is being engaged as the successor but had not formally accepted when the filing was signed.
- Patents: The company reports 151 U.S. patent applications pending as of September 22, up from 100 on August 24, with a stated goal of more than 260 by the end of 2026. Applications are not granted patents.
- Trading tier: FINRA cleared the company's Form 211 on August 18 and the stock was approved for the OTCQB Venture Market on August 21. The company has engaged securities counsel for a planned national exchange listing and has said it favors the Texas Stock Exchange, with no listing date.
The cap table is cleaner than it was, and the voting power sits with one holder
Sources: Form 10-Q for June 30, 2026; Form 8-K with event date September 30, 2026 (signed October 6) and Exhibit 16.1; company releases of August 18, 21 and 24 and September 8 and 22, 2026. Check these summaries against the originals on SEC EDGAR.
THE COMMERCIAL PICTURE: Proposals, Not Contracts
Proposals Delivered
4
One revised 4 times
Letters of Intent
1
Sent, per Oct 13 release
Data Center Talks
4 of 5
Developers identified
Definitive Deals
None
No named counterparties
- Model: The company plans to place systems at customer sites and sell electricity under power purchase agreements.
- What the October 13 release says: Four commercial proposals have been delivered and one letter of intent sent, and the company cautions against adding them together as separate opportunities. It reports discussions with four of five additional data center developers it has identified.
- Values: In September management described outstanding proposals as having a potential combined value in the tens of billions of dollars. The company states these are not completed agreements and that prospective customers are waiting for more test results.
- Timing: Management's stated plan is test results first, then a test unit deployment, with possible commercial production and electricity sales in 2027, subject to testing, financing and approvals.
Interest from developers is described; signed customers are not
Sources: company releases of September 8, September 9 and October 13, 2026. Proposal values are management characterizations and have not been verified.
Timeline
Catalysts to Watch
✓ Test data: published results from the Texas Tech program, and the independent third-party report the company said it intends to release.
✓ Scientific review: the technical manuscript the company says is under review, and whether it is published.
✓ Customer agreements: a definitive agreement or a named counterparty for any of the delivered proposals.
✓ Financing: a definitive financing agreement, since only non-binding term sheets have been mentioned.
✓ Auditor: MBP Global LLP's formal acceptance and the third-quarter 10-Q.
⚠ Dilution watch: Series C conversion timing after a listing, the share-based consulting arrangements, and any new share issuance to fund operations.
The Bottom Line: A Real Test Program With Results Still to Come
American Fusion has a delivered pre-production unit, a university test program, state approvals for its test models and a growing patent-application count. It also has a growing patent-application count and four commercial proposals delivered. Cash was $79,341 at June 30, and funding the next phase is the item to follow.
Everything about the technology's performance is company-reported so far, and the company itself says unity has not been demonstrated. Independent test data and signed customer agreements are the next milestones to look for.
Watch for test data, definitive deals and how the next round is funded
Key Resources
Company Website: americanfusionenergy.com
Investor Relations: americanfusionenergy.com/investors
Q2 2026 Form 10-Q (SEC EDGAR): Read the 10-Q
Form 8-K (Series C and auditor change): Read the 8-K
OTC Markets Profile: AMFN on OTC Markets
Company News Archive: AMFN News (StockTitan)
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See What Else We're Tracking →Disclaimer: This report is for informational and educational purposes only and does not constitute investment advice. It is not to be considered as an offer to buy or sell securities of any type. American Fusion, Inc. is an early-stage company with no commercial fusion revenue, limited cash and a voting structure controlled by one holder. Test results, targets, patent counts and commercial proposals described in this report are statements by the company that have not been independently verified, and technology timelines are forward-looking goals, not guarantees. Financial figures, share counts and terms come from the company's SEC filings and press releases as summarized by third parties; check them against the original documents on SEC EDGAR. Share price and market capitalization figures are approximate, differ by data provider and can move quickly. Always do your own due diligence and consult with a licensed financial advisor before making investment decisions. Data current as of October 17, 2026. Original version published May 3, 2026.