American Fusion Inc. (OTC: AMFN) Provides Development and

§ 01 Executive Snapshot

• What: American Fusion Inc. is advancing its 5MW Pre-Production Texatron™ Fusion Engine™ with ongoing development and testing efforts.
• Who: American Fusion Inc., Texas Department of State Health Services (DSHS), and various third-party manufacturers.
• Why it matters: Successful development of the Texatron™ Fusion Engine™ could lead to significant advancements in compact aneutronic fusion energy systems, impacting the energy sector.

§ 02 Key Developments

• American Fusion submitted its application for certification to the Texas DSHS on February 27, 2026.
• The Company is nearing completion of final modifications to the 5MW Pre-Production Texatron™ Fusion Engine™ at a third-party manufacturing facility.
• Management expects to take delivery of the system next week, marking a critical milestone before installation and testing activities.

§ 03 Strategic Context

• The Texatron™ Fusion Engine™ program represents a culmination of years of research and development in fusion energy technologies, transitioning from prototype to pre-production.
• The ongoing testing program is designed to validate subsystem integration and performance metrics that are crucial for the commercial viability of fusion energy.

§ 04 Strategic Implications

• Immediate market implications include potential leadership in the fusion energy sector if testing is successful, enhancing investor confidence and attracting further funding.
• Long-term implications may involve establishing a new energy infrastructure paradigm, significantly impacting energy production and consumption models globally.

§ 05 Risks & Constraints

• Regulatory challenges may arise during the certification process with the DSHS, potentially delaying testing and development timelines.
• Competition from other energy technologies and the need for substantial investment in infrastructure and technology could pose significant hurdles for market entry.

§ 06 Watchlist / Forward Signals

• Completion of DSHS certification and approval processes is expected by August 2026, which will be critical for advancing to full-scale testing.
• The successful integration and validation of the Texatron™ Fusion Engine™ system will be a key indicator of the Company's future prospects in the fusion energy market.