Operating losses will continue

Company information filed in the UK less than 3 months ago reveals what management really think about the prospects of General Fusion.

The disclosure was made as part of the financial statements for General Fusion (UK) Limited. Importantly, the disclosure contained therein is an extract from the draft audited accounts of the parent company i.e., the Canadian company that is trying to con the public out of their hard-earned cash. The disclosure paints a very different picture to that put forward in investor material...

The following note refers to "the Company", which is the Canadian parent company. Here is the key extract in full with emphasis added by us:

In November 2025, the Company closed a Simple Agreement for Future Equity ("SAFE") financing resulting in gross proceeds of $42,000 (refer to Note 11(b)).

The Company does not currently generate revenue and has historically financed its operations through equity financing, debt and government assistance. Management expects that operating losses and negative cash flows from operations will continue in the foreseeable future. While we believe that the Company's current cash and cash equivalents and funds raised subsequent to year end are sufficient to fund our operating expenses and planned capital expenditures for the twelve months from the date of issuance of these consolidated financial statements. The Company's continuation as a going concern for a period beyond those twelve months will be dependent upon the ability to obtain adequate additional financing, as future capital expenditures are expected to be substantial. There is no assurance that the Company will be able to obtain such financings or obtain them on favourable terms. These material uncertainties raise substantial doubt about the Company's ability to continue as a going concern.

The statement from management that operating losses will continue in the foreseeable future contrasts sharply with messaging in investor material that suggests a profitable power plant is just around the corner...

On an unrelated but nevertheless important note, the directors of the UK company — Megan Wilson, Norman Harrison and Greg Twinney (CEO of the parent company) — have failed to submit corporate paperwork on time. At the time of writing the required confirmation statement is overdue. If the General Fusion directors can't file even the most basic company paperwork, why should investors trust that they can navigate the complex process of getting a first of a kind nuclear reactor licensed and built in record time?

General Fusion claim that they will get electricity on the grid in the early 2030's. If we factor in an optimistic 6 year construction and commissioning duration, that implies construction would need to begin in 2029 — just 3 years from now. Even ignoring site selection, planning and permitting, certification of a design would take several years. By way of comparison NuScale's SMR design took 4 years to certify, and that technology is much simpler and better understood than fusion. This implies that if General Fusion have not already submitted a licensing application, then a submission must be imminent. At the very least then, General Fusion must already be in conversation with regulators.

We contacted the Canadian, US, and UK regulators to enquire if any conversations were taking place. They are not. Perhaps the inept directors simply forgot about the need to submit a licensing application too? Or perhaps there isn't even a design to certify because the technology does not work?

Either way, the inability of directors to complete even the most basic tasks does not bode well for potential investors.