QumulusAI borrowed $189.3 million in six months. It now owes more than everything it owns. Its plan to get through the year is to borrow again.

In six months, everything it owed grew 8.2 times. Everything it owned did not.

On 31 December 2025, QumulusAI’s books showed $26.4 million[C1][C1] 10-QTotal long-term liabilities 149,276,297 14,302,280 Total liabilities 215,783,480 26,442,362 Commitments and contingencies (Note 24) Shareholders ' Equity (Deficit) Common stock - no par value; 500,000,000 shares authorized, 31,727,001 and 31,367,559 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 99,393,515 93,400,180 Additional paid-in capital 6,827,270 6,318,290 Accumulated deficit (109,788,460 ) (37,546,254 ) Total shareholders' equity (deficit) attributable to QumulusAI shareholders (3,567,675 ) 62,172,216QumulusAI 10-Q balance sheet, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt owed to other people. They showed $62.2 million[C3][C3] 10-QTotal long-term liabilities 149,276,297 14,302,280 Total liabilities 215,783,480 26,442,362 Commitments and contingencies (Note 24) Shareholders ' Equity (Deficit) Common stock - no par value; 500,000,000 shares authorized, 31,727,001 and 31,367,559 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 99,393,515 93,400,180 Additional paid-in capital 6,827,270 6,318,290 Accumulated deficit (109,788,460 ) (37,546,254 ) Total shareholders' equity (deficit) attributable to QumulusAI shareholders (3,567,675 ) 62,172,216QumulusAI 10-Q balance sheet, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt left over for the owners. 181 days later the same two lines read $215.8 million[C2][C2] 10-QTotal long-term liabilities 149,276,297 14,302,280 Total liabilities 215,783,480 26,442,362 Commitments and contingencies (Note 24) Shareholders ' Equity (Deficit) Common stock - no par value; 500,000,000 shares authorized, 31,727,001 and 31,367,559 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 99,393,515 93,400,180 Additional paid-in capital 6,827,270 6,318,290 Accumulated deficit (109,788,460 ) (37,546,254 ) Total shareholders' equity (deficit) attributable to QumulusAI shareholders (3,567,675 ) 62,172,216QumulusAI 10-Q balance sheet, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt owed and $3.6 million[C4][C4] 10-QTotal long-term liabilities 149,276,297 14,302,280 Total liabilities 215,783,480 26,442,362 Commitments and contingencies (Note 24) Shareholders ' Equity (Deficit) Common stock - no par value; 500,000,000 shares authorized, 31,727,001 and 31,367,559 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 99,393,515 93,400,180 Additional paid-in capital 6,827,270 6,318,290 Accumulated deficit (109,788,460 ) (37,546,254 ) Total shareholders' equity (deficit) attributable to QumulusAI shareholders (3,567,675 ) 62,172,216QumulusAI 10-Q balance sheet, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt short. The company had taken on $189.3 million[C2][C2] 10-QTotal long-term liabilities 149,276,297 14,302,280 Total liabilities 215,783,480 26,442,362 Commitments and contingencies (Note 24) Shareholders ' Equity (Deficit) Common stock - no par value; 500,000,000 shares authorized, 31,727,001 and 31,367,559 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 99,393,515 93,400,180 Additional paid-in capital 6,827,270 6,318,290 Accumulated deficit (109,788,460 ) (37,546,254 ) Total shareholders' equity (deficit) attributable to QumulusAI shareholders (3,567,675 ) 62,172,216QumulusAI 10-Q balance sheet, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt[C1][C1] 10-QTotal long-term liabilities 149,276,297 14,302,280 Total liabilities 215,783,480 26,442,362 Commitments and contingencies (Note 24) Shareholders ' Equity (Deficit) Common stock - no par value; 500,000,000 shares authorized, 31,727,001 and 31,367,559 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 99,393,515 93,400,180 Additional paid-in capital 6,827,270 6,318,290 Accumulated deficit (109,788,460 ) (37,546,254 ) Total shareholders' equity (deficit) attributable to QumulusAI shareholders (3,567,675 ) 62,172,216QumulusAI 10-Q balance sheet, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt of new debt. The owners’ slice moved by $65.7 million[C3][C3] 10-QTotal long-term liabilities 149,276,297 14,302,280 Total liabilities 215,783,480 26,442,362 Commitments and contingencies (Note 24) Shareholders ' Equity (Deficit) Common stock - no par value; 500,000,000 shares authorized, 31,727,001 and 31,367,559 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 99,393,515 93,400,180 Additional paid-in capital 6,827,270 6,318,290 Accumulated deficit (109,788,460 ) (37,546,254 ) Total shareholders' equity (deficit) attributable to QumulusAI shareholders (3,567,675 ) 62,172,216QumulusAI 10-Q balance sheet, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt[C4][C4] 10-QTotal long-term liabilities 149,276,297 14,302,280 Total liabilities 215,783,480 26,442,362 Commitments and contingencies (Note 24) Shareholders ' Equity (Deficit) Common stock - no par value; 500,000,000 shares authorized, 31,727,001 and 31,367,559 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 99,393,515 93,400,180 Additional paid-in capital 6,827,270 6,318,290 Accumulated deficit (109,788,460 ) (37,546,254 ) Total shareholders' equity (deficit) attributable to QumulusAI shareholders (3,567,675 ) 62,172,216QumulusAI 10-Q balance sheet, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt, from a cushion to a hole.

Losses did most of it. Every loss the company had ever booked came to $37.5 million[C9][C9] 10-QTotal long-term liabilities 149,276,297 14,302,280 Total liabilities 215,783,480 26,442,362 Commitments and contingencies (Note 24) Shareholders ' Equity (Deficit) Common stock - no par value; 500,000,000 shares authorized, 31,727,001 and 31,367,559 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 99,393,515 93,400,180 Additional paid-in capital 6,827,270 6,318,290 Accumulated deficit (109,788,460 ) (37,546,254 ) Total shareholders' equity (deficit) attributable to QumulusAI shareholders (3,567,675 ) 62,172,216QumulusAI 10-Q balance sheet, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt at the year start. By 30 June 2026 that running total was $109.8 million[C10][C10] 10-QThe Company has incurred recurring operating losses since inception resulting in an accumulated deficit of $109,788,460 as of June 30, 2026. For the six months ended June 30, 2026, the Company had operating cash inflows of $22,305,214 and had an operating loss of $13,197,322. The Company's operations have been funded partially through the issuance of debt. These factors raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from the issuance of these unaudited condensed consolidated financial statements.QumulusAI 10-Q, the going concern note, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt. That is $72.2 million[C10][C10] 10-QThe Company has incurred recurring operating losses since inception resulting in an accumulated deficit of $109,788,460 as of June 30, 2026. For the six months ended June 30, 2026, the Company had operating cash inflows of $22,305,214 and had an operating loss of $13,197,322. The Company's operations have been funded partially through the issuance of debt. These factors raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from the issuance of these unaudited condensed consolidated financial statements.QumulusAI 10-Q, the going concern note, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt[C9][C9] 10-QTotal long-term liabilities 149,276,297 14,302,280 Total liabilities 215,783,480 26,442,362 Commitments and contingencies (Note 24) Shareholders ' Equity (Deficit) Common stock - no par value; 500,000,000 shares authorized, 31,727,001 and 31,367,559 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 99,393,515 93,400,180 Additional paid-in capital 6,827,270 6,318,290 Accumulated deficit (109,788,460 ) (37,546,254 ) Total shareholders' equity (deficit) attributable to QumulusAI shareholders (3,567,675 ) 62,172,216QumulusAI 10-Q balance sheet, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt of fresh losses in 181 days. The business itself lost $13.2 million[C11][C11] 10-QThe Company has incurred recurring operating losses since inception resulting in an accumulated deficit of $109,788,460 as of June 30, 2026. For the six months ended June 30, 2026, the Company had operating cash inflows of $22,305,214 and had an operating loss of $13,197,322. The Company's operations have been funded partially through the issuance of debt. These factors raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from the issuance of these unaudited condensed consolidated financial statements.QumulusAI 10-Q, the going concern note, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt over the same stretch.

Its own accountants wrote down the words

The Form 10-Q does not bury this. The going concern note says it plainly:

"The Company has incurred recurring operating losses since inception resulting in an accumulated deficit of $109,788,460 as of June 30, 2026… These factors raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from the issuance of these unaudited condensed consolidated financial statements." QumulusAI, Form 10-Q, filed 2026-08-25

Then it says the doubt is handled — by three things that have not happened yet

The same note names what makes the doubt go away. Each of these has to land:

"At June 30, 2026, the Company had cash of $19,967,188. The Company's plans to alleviate the substantial doubt include receiving access to $19,925,104 in previously restricted cash as a result of the Company's public listing and completing an additional $15,300,000 draw under the USD.AI protocol. The Company also entered into multiple significant revenue contracts in July 2026 for approximately $103,900,000 in future revenue in which the Company received approximately $20,900,000 in cash deposits." QumulusAI, Form 10-Q, filed 2026-08-25

So there is $20 million[C12][C12] 10-QAt June 30, 2026, the Company had cash of $19,967,188. The Company's plans to alleviate the substantial doubt include receiving access to $19,925,104 in previously restricted cash as a result of the Company's public listing and completing an additional $15,300,000 draw under the USD.AI protocol. The Company also entered into multiple significant revenue contracts in July 2026 for approximately $103,900,000 in future revenue in which the Company received approximately $20,900,000 in cash deposits.QumulusAI 10-Q, the going concern note, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt in the bank. There is another $19.9 million[C13][C13] 10-QAt June 30, 2026, the Company had cash of $19,967,188. The Company's plans to alleviate the substantial doubt include receiving access to $19,925,104 in previously restricted cash as a result of the Company's public listing and completing an additional $15,300,000 draw under the USD.AI protocol. The Company also entered into multiple significant revenue contracts in July 2026 for approximately $103,900,000 in future revenue in which the Company received approximately $20,900,000 in cash deposits.QumulusAI 10-Q, the going concern note, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt it expects to be allowed to touch. And there is a further $15.3 million[C5][C5] 10-QAt June 30, 2026, the Company had cash of $19,967,188. The Company's plans to alleviate the substantial doubt include receiving access to $19,925,104 in previously restricted cash as a result of the Company's public listing and completing an additional $15,300,000 draw under the USD.AI protocol. The Company also entered into multiple significant revenue contracts in July 2026 for approximately $103,900,000 in future revenue in which the Company received approximately $20,900,000 in cash deposits.QumulusAI 10-Q, the going concern note, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt it means to borrow. Put the first two together and the company can reach about $39.9 million[C12][C12] 10-QAt June 30, 2026, the Company had cash of $19,967,188. The Company's plans to alleviate the substantial doubt include receiving access to $19,925,104 in previously restricted cash as a result of the Company's public listing and completing an additional $15,300,000 draw under the USD.AI protocol. The Company also entered into multiple significant revenue contracts in July 2026 for approximately $103,900,000 in future revenue in which the Company received approximately $20,900,000 in cash deposits.QumulusAI 10-Q, the going concern note, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt[C13][C13] 10-QAt June 30, 2026, the Company had cash of $19,967,188. The Company's plans to alleviate the substantial doubt include receiving access to $19,925,104 in previously restricted cash as a result of the Company's public listing and completing an additional $15,300,000 draw under the USD.AI protocol. The Company also entered into multiple significant revenue contracts in July 2026 for approximately $103,900,000 in future revenue in which the Company received approximately $20,900,000 in cash deposits.QumulusAI 10-Q, the going concern note, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt. It owes 5.4 times[C2][C2] 10-QTotal long-term liabilities 149,276,297 14,302,280 Total liabilities 215,783,480 26,442,362 Commitments and contingencies (Note 24) Shareholders ' Equity (Deficit) Common stock - no par value; 500,000,000 shares authorized, 31,727,001 and 31,367,559 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 99,393,515 93,400,180 Additional paid-in capital 6,827,270 6,318,290 Accumulated deficit (109,788,460 ) (37,546,254 ) Total shareholders' equity (deficit) attributable to QumulusAI shareholders (3,567,675 ) 62,172,216QumulusAI 10-Q balance sheet, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt[C12][C12] 10-QAt June 30, 2026, the Company had cash of $19,967,188. The Company's plans to alleviate the substantial doubt include receiving access to $19,925,104 in previously restricted cash as a result of the Company's public listing and completing an additional $15,300,000 draw under the USD.AI protocol. The Company also entered into multiple significant revenue contracts in July 2026 for approximately $103,900,000 in future revenue in which the Company received approximately $20,900,000 in cash deposits.QumulusAI 10-Q, the going concern note, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt[C13][C13] 10-QAt June 30, 2026, the Company had cash of $19,967,188. The Company's plans to alleviate the substantial doubt include receiving access to $19,925,104 in previously restricted cash as a result of the Company's public listing and completing an additional $15,300,000 draw under the USD.AI protocol. The Company also entered into multiple significant revenue contracts in July 2026 for approximately $103,900,000 in future revenue in which the Company received approximately $20,900,000 in cash deposits.QumulusAI 10-Q, the going concern note, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt as much again. The contracts signed in July are worth $103.9 million[C14][C14] 10-QAt June 30, 2026, the Company had cash of $19,967,188. The Company's plans to alleviate the substantial doubt include receiving access to $19,925,104 in previously restricted cash as a result of the Company's public listing and completing an additional $15,300,000 draw under the USD.AI protocol. The Company also entered into multiple significant revenue contracts in July 2026 for approximately $103,900,000 in future revenue in which the Company received approximately $20,900,000 in cash deposits.QumulusAI 10-Q, the going concern note, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt. Of that, $20.9 million[C15][C15] 10-QAt June 30, 2026, the Company had cash of $19,967,188. The Company's plans to alleviate the substantial doubt include receiving access to $19,925,104 in previously restricted cash as a result of the Company's public listing and completing an additional $15,300,000 draw under the USD.AI protocol. The Company also entered into multiple significant revenue contracts in July 2026 for approximately $103,900,000 in future revenue in which the Company received approximately $20,900,000 in cash deposits.QumulusAI 10-Q, the going concern note, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt has arrived as cash and $83 million[C14][C14] 10-QAt June 30, 2026, the Company had cash of $19,967,188. The Company's plans to alleviate the substantial doubt include receiving access to $19,925,104 in previously restricted cash as a result of the Company's public listing and completing an additional $15,300,000 draw under the USD.AI protocol. The Company also entered into multiple significant revenue contracts in July 2026 for approximately $103,900,000 in future revenue in which the Company received approximately $20,900,000 in cash deposits.QumulusAI 10-Q, the going concern note, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt[C15][C15] 10-QAt June 30, 2026, the Company had cash of $19,967,188. The Company's plans to alleviate the substantial doubt include receiving access to $19,925,104 in previously restricted cash as a result of the Company's public listing and completing an additional $15,300,000 draw under the USD.AI protocol. The Company also entered into multiple significant revenue contracts in July 2026 for approximately $103,900,000 in future revenue in which the Company received approximately $20,900,000 in cash deposits.QumulusAI 10-Q, the going concern note, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt has not.

The lenders wanted stock. At this price they will want their money

Twice this year the company borrowed from the same investor. Each loan can turn into stock instead of cash. In March it drew $15 million[C16][C16] 10-QThe Facility consists of an initial tranche in the principal amount of $15,000,000, which was funded on March 26, 2026, and subsequent tranches in an aggregate principal amount of up to $30,000,000. The March 2026 Note bears interest at 7% per annum and the initial tranche matures on July 16, 2028. The March 2026 Note is convertible into shares of the Company's common stock at $11.50 per share.QumulusAI 10-Q, notes to the financial statements, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt, which turns into stock at $11.50[C6][C6] 10-QThe Facility consists of an initial tranche in the principal amount of $15,000,000, which was funded on March 26, 2026, and subsequent tranches in an aggregate principal amount of up to $30,000,000. The March 2026 Note bears interest at 7% per annum and the initial tranche matures on July 16, 2028. The March 2026 Note is convertible into shares of the Company's common stock at $11.50 per share.QumulusAI 10-Q, notes to the financial statements, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt a share. In June it drew $15 million[C17][C17] 10-QThe Second Facility consists of an initial tranche in the principal amount of $15,000,000, which was funded on June 3, 2026, and subsequent tranches in an aggregate principal amount of up to $30,000,000. The June 2026 Note bears interest at 7% per annum and the initial tranche matures on July 16, 2028. The June 2026 Note is convertible into shares of the Company's common stock at $24.25 per share.QumulusAI 10-Q, notes to the financial statements, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt more, at $24.25[C7][C7] 10-QThe Second Facility consists of an initial tranche in the principal amount of $15,000,000, which was funded on June 3, 2026, and subsequent tranches in an aggregate principal amount of up to $30,000,000. The June 2026 Note bears interest at 7% per annum and the initial tranche matures on July 16, 2028. The June 2026 Note is convertible into shares of the Company's common stock at $24.25 per share.QumulusAI 10-Q, notes to the financial statements, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt:

"The Second Facility consists of an initial tranche in the principal amount of $15,000,000, which was funded on June 3, 2026… The June 2026 Note bears interest at 7% per annum and the initial tranche matures on July 16, 2028. The June 2026 Note is convertible into shares of the Company's common stock at $24.25 per share." QumulusAI, Form 10-Q, filed 2026-08-25

On the day the filing landed the stock closed at $6.35[C8][C8] IEXQMLS on 2026-08-25: 226,020.451159 shares traded, closing at $6.35. The last print landed half a minute before the close.IEX historical daily bar, 2026-08-25Open exact filing on SEC EDGAR ↗s3://filecrux-filing-screens/prices/2026-08-25.json. The March loan turns into stock at 1.8 times[C6][C6] 10-QThe Facility consists of an initial tranche in the principal amount of $15,000,000, which was funded on March 26, 2026, and subsequent tranches in an aggregate principal amount of up to $30,000,000. The March 2026 Note bears interest at 7% per annum and the initial tranche matures on July 16, 2028. The March 2026 Note is convertible into shares of the Company's common stock at $11.50 per share.QumulusAI 10-Q, notes to the financial statements, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt[C8][C8] IEXQMLS on 2026-08-25: 226,020.451159 shares traded, closing at $6.35. The last print landed half a minute before the close.IEX historical daily bar, 2026-08-25Open exact filing on SEC EDGAR ↗s3://filecrux-filing-screens/prices/2026-08-25.json that price. The June loan at 3.8 times[C7][C7] 10-QThe Second Facility consists of an initial tranche in the principal amount of $15,000,000, which was funded on June 3, 2026, and subsequent tranches in an aggregate principal amount of up to $30,000,000. The June 2026 Note bears interest at 7% per annum and the initial tranche matures on July 16, 2028. The June 2026 Note is convertible into shares of the Company's common stock at $24.25 per share.QumulusAI 10-Q, notes to the financial statements, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt[C8][C8] IEXQMLS on 2026-08-25: 226,020.451159 shares traded, closing at $6.35. The last print landed half a minute before the close.IEX historical daily bar, 2026-08-25Open exact filing on SEC EDGAR ↗s3://filecrux-filing-screens/prices/2026-08-25.json it. Nobody trades cash they are owed for something worth a fraction of it. So the swap is not the way out here. Repayment is. The two loans have already put $30 million[C16][C16] 10-QThe Facility consists of an initial tranche in the principal amount of $15,000,000, which was funded on March 26, 2026, and subsequent tranches in an aggregate principal amount of up to $30,000,000. The March 2026 Note bears interest at 7% per annum and the initial tranche matures on July 16, 2028. The March 2026 Note is convertible into shares of the Company's common stock at $11.50 per share.QumulusAI 10-Q, notes to the financial statements, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt[C17][C17] 10-QThe Second Facility consists of an initial tranche in the principal amount of $15,000,000, which was funded on June 3, 2026, and subsequent tranches in an aggregate principal amount of up to $30,000,000. The June 2026 Note bears interest at 7% per annum and the initial tranche matures on July 16, 2028. The June 2026 Note is convertible into shares of the Company's common stock at $24.25 per share.QumulusAI 10-Q, notes to the financial statements, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt into the company, with $30 million[C18][C18] 10-QThe Second Facility consists of an initial tranche in the principal amount of $15,000,000, which was funded on June 3, 2026, and subsequent tranches in an aggregate principal amount of up to $30,000,000. The June 2026 Note bears interest at 7% per annum and the initial tranche matures on July 16, 2028. The June 2026 Note is convertible into shares of the Company's common stock at $24.25 per share.QumulusAI 10-Q, notes to the financial statements, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt more available on each. The first of it comes due on 16 July 2028. That is 22.7 months from the day this filing was made.

What would make this story wrong

Management did not say the company is failing. It said the opposite. It said these plans alleviate the doubt. The business also threw off cash in the first half rather than eating it. And the whole company was worth about $201.5 million[C19][C19] 10-QTotal long-term liabilities 149,276,297 14,302,280 Total liabilities 215,783,480 26,442,362 Commitments and contingencies (Note 24) Shareholders ' Equity (Deficit) Common stock - no par value; 500,000,000 shares authorized, 31,727,001 and 31,367,559 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 99,393,515 93,400,180 Additional paid-in capital 6,827,270 6,318,290 Accumulated deficit (109,788,460 ) (37,546,254 ) Total shareholders' equity (deficit) attributable to QumulusAI shareholders (3,567,675 ) 62,172,216QumulusAI 10-Q balance sheet, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt[C8][C8] IEXQMLS on 2026-08-25: 226,020.451159 shares traded, closing at $6.35. The last print landed half a minute before the close.IEX historical daily bar, 2026-08-25Open exact filing on SEC EDGAR ↗s3://filecrux-filing-screens/prices/2026-08-25.json on the tape that day, against 1.1 times[C2][C2] 10-QTotal long-term liabilities 149,276,297 14,302,280 Total liabilities 215,783,480 26,442,362 Commitments and contingencies (Note 24) Shareholders ' Equity (Deficit) Common stock - no par value; 500,000,000 shares authorized, 31,727,001 and 31,367,559 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 99,393,515 93,400,180 Additional paid-in capital 6,827,270 6,318,290 Accumulated deficit (109,788,460 ) (37,546,254 ) Total shareholders' equity (deficit) attributable to QumulusAI shareholders (3,567,675 ) 62,172,216QumulusAI 10-Q balance sheet, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt[C19][C19] 10-QTotal long-term liabilities 149,276,297 14,302,280 Total liabilities 215,783,480 26,442,362 Commitments and contingencies (Note 24) Shareholders ' Equity (Deficit) Common stock - no par value; 500,000,000 shares authorized, 31,727,001 and 31,367,559 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 99,393,515 93,400,180 Additional paid-in capital 6,827,270 6,318,290 Accumulated deficit (109,788,460 ) (37,546,254 ) Total shareholders' equity (deficit) attributable to QumulusAI shareholders (3,567,675 ) 62,172,216QumulusAI 10-Q balance sheet, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt[C8][C8] IEXQMLS on 2026-08-25: 226,020.451159 shares traded, closing at $6.35. The last print landed half a minute before the close.IEX historical daily bar, 2026-08-25Open exact filing on SEC EDGAR ↗s3://filecrux-filing-screens/prices/2026-08-25.json as much owed. The market has read the same filing and has not written the company off.

Two ways this ends

Say all three land. The $103.9 million[C14][C14] 10-QAt June 30, 2026, the Company had cash of $19,967,188. The Company's plans to alleviate the substantial doubt include receiving access to $19,925,104 in previously restricted cash as a result of the Company's public listing and completing an additional $15,300,000 draw under the USD.AI protocol. The Company also entered into multiple significant revenue contracts in July 2026 for approximately $103,900,000 in future revenue in which the Company received approximately $20,900,000 in cash deposits.QumulusAI 10-Q, the going concern note, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt of July contracts turn into real revenue. The locked cash comes free. The next loan funds. Then the borrowing bought a business that grew into it, and the stock at $6.35[C8][C8] IEXQMLS on 2026-08-25: 226,020.451159 shares traded, closing at $6.35. The last print landed half a minute before the close.IEX historical daily bar, 2026-08-25Open exact filing on SEC EDGAR ↗s3://filecrux-filing-screens/prices/2026-08-25.json is priced as if none of that happens. Now say one of the three misses. A company whose own accountants wrote “substantial doubt” has to find $30 million[C16][C16] 10-QThe Facility consists of an initial tranche in the principal amount of $15,000,000, which was funded on March 26, 2026, and subsequent tranches in an aggregate principal amount of up to $30,000,000. The March 2026 Note bears interest at 7% per annum and the initial tranche matures on July 16, 2028. The March 2026 Note is convertible into shares of the Company's common stock at $11.50 per share.QumulusAI 10-Q, notes to the financial statements, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt[C17][C17] 10-QThe Second Facility consists of an initial tranche in the principal amount of $15,000,000, which was funded on June 3, 2026, and subsequent tranches in an aggregate principal amount of up to $30,000,000. The June 2026 Note bears interest at 7% per annum and the initial tranche matures on July 16, 2028. The June 2026 Note is convertible into shares of the Company's common stock at $24.25 per share.QumulusAI 10-Q, notes to the financial statements, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt by 16 July 2028. Its lenders will not take the stock at $11.50[C6][C6] 10-QThe Facility consists of an initial tranche in the principal amount of $15,000,000, which was funded on March 26, 2026, and subsequent tranches in an aggregate principal amount of up to $30,000,000. The March 2026 Note bears interest at 7% per annum and the initial tranche matures on July 16, 2028. The March 2026 Note is convertible into shares of the Company's common stock at $11.50 per share.QumulusAI 10-Q, notes to the financial statements, filed 2026-08-25Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/2084026/0001437749-26-028924.txt instead. The next set of quarterly figures is where anybody finds out which one it is.