American Fusion Secures Court Order to Cancel 1.68 Billion Shares, Strengthening Capital Structure Ahead of Key Milestones

American Fusion Inc. (OTC: AMFN) announced it obtained a default judgment from the Superior Court of Washington, King County, ordering the cancellation of 1,683,000,000 shares of common stock deemed improperly issued by prior management. The court confirmed the underlying transactions were never consummated and are void. This legal action represents a significant step in rectifying the company's capital structure and eliminating what it describes as improperly issued shares that could have diluted shareholder value.

The share cancellation comes at a critical juncture for American Fusion as it prepares for its first quarterly filing as a fully reporting company following the February 2026 merger with Kepler Fusion Technologies. The company has been completing a series of governance milestones including a PCAOB audit, Form 10 filing, and corporate name and symbol change. These steps are essential as the company advances toward its goal of exchange listing and eventual commercialization of its fusion energy platform. The court's decision to void these shares removes a substantial overhang that could have complicated these regulatory and financial transitions.

American Fusion operates as an advanced energy platform company focused on the development and commercialization of fusion energy technologies through its wholly owned subsidiary, Kepler Fusion Technologies. The company's strategy centers on building a scalable, infrastructure-grade fusion energy platform supported by proprietary technology, disciplined intellectual property development, and long-term commercial deployment objectives. Kepler Fusion Technologies is developing the Texatron(TM) aneutronic fusion platform, designed to support modular, infrastructure-grade deployment for industrial, commercial, and grid-constrained applications. More information about the company's technology and development strategy can be found at https://www.keplerfusion.com.

The timing of this court order is particularly significant given the company's progression toward becoming a fully reporting entity. By addressing this capitalization issue now, American Fusion positions itself more favorably for the rigorous scrutiny that accompanies exchange listing applications and the increased transparency requirements of being a fully reporting company. The removal of 1.68 billion shares from the company's capitalization table represents a substantial reduction in potential dilution and provides a cleaner financial structure as the company moves forward with its commercial development plans. Additional information about American Fusion's corporate developments and news updates is available through the company's communications channels at http://ibn.fm/AMFN.

This development occurs within the broader context of increasing interest and investment in fusion energy technologies as the global energy transition accelerates. Fusion energy represents a potentially transformative power source that could provide abundant, clean energy without the carbon emissions associated with fossil fuels or the radioactive waste concerns of traditional nuclear fission. American Fusion's progress in addressing corporate governance and capitalization issues while advancing its technological development reflects the maturation required for companies operating in this capital-intensive and highly regulated sector. The court's validation of the company's position regarding these improperly issued shares provides external confirmation of its efforts to establish proper corporate governance as it works toward bringing fusion energy technology to commercial reality.