OTC:FUST
FUSE GROUP HOLDING INC.
A distressed holding company with zero current revenue growth, deep accumulated deficits, and no existing cash runway facing immediate solvency challenges.
Key Metrics
Investment Thesis
Bull Case
There are currently no valid investment theses for this stock as it lacks revenue, cash flow, and has negative shareholders' equity.", "Any potential upside relies entirely on a successful turnaround strategy or asset sale that is not reflected in current financials.", "Speculators might consider it only if there is an imminent reverse merger with a profitable entity to reset the capital structure.
Bear Case
The company faces immediate liquidation risk with liabilities of $485,179 against assets of only $34,678, resulting in negative equity.", "Revenue has completely evaporated from $0.3M to $0.0M over the last five years while losses have widened.", "There is no operational business generating cash flow, and the company has burned through its entire cash reserve.", "Investors are exposed to a high risk of total capital loss given the lack of assets to cover debt and ongoing operational deficits.
About FUSE GROUP HOLDING INC.
FUSE GROUP HOLDING INC. operates as a holding company with minimal current revenue operations and significant accumulated deficits, currently navigating severe liquidity constraints. The entity has exhausted its cash reserves over the last five years while reporting substantial operating losses and negative net income trends. Investors must scrutinize its ability to secure external financing or generate sustainable profitability given its precarious balance sheet.
Analysis
Management Discussion
The company has experienced a catastrophic decline in financial health, evidenced by the net change in cash dropping by $46,441 and total liabilities surpassing total assets. Operating cash flow turned significantly negative at -$289,894, while general and administrative expenses of $323,804 far exceeded the meager revenue of $45,942. The company has moved from a slight loss in 2024 to a deeper deficit in 2025, signaling an accelerating deterioration of its financial position without any visible path to profitability.
Industry Overview
The holding company sector typically involves managing investments or waiting for strategic opportunities, but this specific entity appears to be in a state of financial distress rather than active management.", "Most small-cap holding companies require consistent cash generation from underlying assets, which is currently absent.", "Industry standards dictate maintaining positive working capital and equity, both of which are severely compromised here.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $0 | $332.0K | $45.9K |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $0 | $332.0K | $45.9K |
| Operating Expenses | $455.1K | $365.4K | $323.8K |
| Operating Income | $-455.1K | $-33.4K | $-277.9K |
| G&A | $393.1K | $345.7K | $323.8K |
| Depreciation | $1.8K | $455 | — |
| Other OpEx | $62.0K | $19.7K | $0 |
| Non-Operating Income | $-17.3K | $-4.6K | $-3.4K |
| Interest Expense | $17.3K | — | — |
| Pre-Tax Income | $-472.4K | $-38.0K | $-281.3K |
| Income Tax | $2.4K | $2.4K | $2.4K |
| Continuing Ops | $-474.8K | $-40.4K | $-283.7K |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-474.8K | $-40.4K | $-283.7K |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-474.8K | $-40.4K | $-283.7K |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $39.3K | $85.4K | $34.7K |
| Cash & Equivalents | $26.6K | $67.6K | $21.2K |
| Other Current Assets | $12.7K | $17.8K | $13.5K |
| Long-Term Assets | $32.9K | $0 | $0 |
| PP&E (Net) | $455 | $0 | $0 |
| Operating Leases | $32.5K | $4.8K | $0 |
| Other LT Assets | $0 | $-4.8K | $0 |
| Total Assets | $72.2K | $85.4K | $34.7K |
| Current Liabilities | $93.1K | $152.8K | $320.3K |
| Current Leases | $29.1K | $5.0K | $0 |
| Other Current Liab | $64.0K | $147.7K | $320.3K |
| Long-Term Liabilities | $156.8K | $99.4K | $164.9K |
| LT Operating Leases | $5.0K | $0 | — |
| Other LT Liab | $151.8K | $99.4K | — |
| Total Liabilities | $250.0K | $252.2K | $485.2K |
| Shareholders' Equity | $-177.8K | $-166.8K | $-450.5K |
| Paid-In Capital | $7.7M | $7.8M | $7.8M |
| Retained Earnings | $-7.9M | $-7.9M | $-8.2M |
| Total L&E | $72.2K | $85.4K | $34.7K |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-474.8K | $-40.4K | $-283.7K |
| Non-Cash Adjustments | $29.3K | $28.6K | $3.8K |
| Working Capital Changes | $5.7K | $-48.2K | $-10.0K |
| Cash from Operations | $-439.8K | $-60.0K | $-289.9K |
| Cash from Investing | $0 | $0 | $0 |
| Debt Repayments | $2.6K | $2.5K | $3.7K |
| Cash from Financing | $433.4K | $101.0K | $243.5K |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-6.4K | $41.0K | $-46.4K |
| Beginning Cash | $33.0K | $26.6K | $67.6K |
| Ending Cash | $26.6K | $67.6K | $21.2K |
Frequently Asked Questions
How does FUSE GROUP HOLDING INC. make money?
Holding Company Operations (Parent entity)", "Investment Portfolio Management", "Strategic Asset Liquidation or Restructuring
What are the main risks for FUST?
Immediate insolvency risk given total liabilities ($485,179) vastly exceed total assets ($34,678).", "Severe liquidity crisis with a net change in cash of -$46,441 and zero operating cash flow.", "Accumulated retained earnings deficit of $-8.2M indicating long-term structural unprofitability.", "High probability of dilution through equity financing or bankruptcy proceedings to address debt obligations.
What is FUST's competitive advantage?
None currently observable due to negative equity and lack of operational revenue streams.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.