QumulusAI, Inc 10-Q for FY2026 Q3

QumulusAI, Inc. (QMLS)

10-Q 2026-11-10 For: 2026-09-30

Added on November 10, 2026

About this 10-Q

QumulusAI, Inc filed this 10-Q on November 10, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $14.76M; up 375.9% from $3.1M a year earlier
Net loss: $14.44M; compared with a net loss of $9.46M a year earlier
Diluted EPS: -$0.43; compared with -$5.34 a year earlier

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Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, no par value per share	QMLS	The Nasdaq Stock Market LLC



PART I —FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Financial Statements:	Page
	Condensed Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025	4
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2026 and 2025	5
	Condensed Consolidated Statements of Shareholders’ Equity for the Three and Nine Months Ended September 30, 2026 and 2025	6
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2026 and 2025	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	63
Item 4.	Controls and Procedures	63

PART II —OTHER INFORMATION

Item 1.	Legal Proceedings	65
Item 1A.	Risk Factors	65
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	65
Item 3.	Defaults Upon Senior Securities	66
Item 4.	Mine Safety Disclosures	66
Item 5.	Other Information	66
Item 6.	Exhibits	67
	S ignatures	68


	September 30, 2026		December 31, 2025
	(unaudited)
ASSETS
Current assets:
Cash	$	21,909,713	$	11,712,493
Restricted cash	9,225,679		—
Accounts receivable, net of allowance for credit losses of $321,047 and $2,263 as of September 30, 2026 and December 31, 2025, respectively	30,647,719		57,889
Deposits on power equipment - current	2,137,972		7,238,383
Prepaid expenses and other current assets	4,288,244		1,134,851
Total current assets	68,209,327		20,143,616
Property and equipment, net	138,629,171		12,502,886
Operating right-of-use assets, net	1,345,047		1,438,970
Finance right-of-use assets, net	133,044,741		6,996,077
Equity method investments	—		4,227,130
Investment in equity securities	1,082,500		—
Deposits on power equipment	4,285,885		6,384,258
Goodwill	31,416,827		31,416,827
Intangible assets, net	7,224,902		7,268,513
Other assets	8,823,952		1,356,216
Total assets	$	394,062,352	$	91,734,493

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	7,843,065	$	1,248,175
Dividend payable	359,188		359,188
Accrued expenses and other current liabilities	7,299,193		2,833,337
Deferred revenue - current portion	33,174,971		—
Current portion of notes payable	14,862,667		1,684,554
Current portion of notes payable - related party	2,000,000		3,848,915
Current portion of USD.AI protocol loans	12,214,906		—
Operating lease liabilities - current portion	109,557		97,463
Finance lease liabilities - current portion	39,136,857		1,645,069
Deferred tax liability	274,554		423,381
Total current liabilities	117,274,958		12,140,082
Long-term notes payable, net of current portion	44,245,099		6,241,948
Operating lease liabilities, net of current portion	1,430,559		1,497,549
Finance lease liabilities, net of current portion	83,353,330		5,179,828
Warrant liability	828,232		1,382,955
Deferred revenue, net of current portion	45,822,451		—
Additional convertible notes option liability	22,183,450		—
USD.AI protocol loans, net of current portion	20,319,360		—
Convertible note payable	32,040,000		—
Other non-current liabilities	1,313,364		—
Total long-term liabilities	251,535,845		14,302,280
Total liabilities	368,810,803		26,442,362

Commitments and contingencies (Note 24)

Shareholders' Equity
Preferred stock - no par value; 100,000,000 and zero shares authorized as of September 30, 2026 and December 31, 2025, respectively; zero shares issued and outstanding as of September 30, 2026 and December 31, 2025	—		—
Common stock - no par value; 1,000,000,000 and 500,000,000 shares authorized as of September 30, 2026 and December 31, 2025, respectively; 34,699,038 and 31,367,559 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively	135,611,986		93,400,180
Additional paid-in capital	11,307,803		6,318,290
Accumulated deficit	(124,247,844)		(37,546,254)
Total shareholders' equity attributable to QumulusAI shareholders	22,671,945		62,172,216
Non-controlling interests	2,579,604		3,119,915
Total shareholders' equity	25,251,549		65,292,131
Total liabilities and shareholders' equity	$	394,062,352	$	91,734,493


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenue
Revenue from cryptocurrency mining	$	262,995	$	211,765	$	1,042,055	$	507,604
Revenue from mining hosting services	365,854		1,445,669		2,008,059		4,794,821
Revenue from compute power	14,126,265		1,443,351		21,837,723		2,755,051

Total revenue	14,755,114		3,100,785		24,887,837		8,057,476

Costs and expenses
Cost of revenue (exclusive of depreciation and amortization)	4,161,145		1,643,980		8,539,344		4,245,448
General and administrative expenses	35,671,537		2,638,965		43,921,812		6,081,954
Sales and marketing expenses	1,605,602		147,471		2,758,174		238,055
Depreciation and amortization expense	14,872,738		1,425,735		24,421,737		3,358,079
Total costs and expenses	56,311,022		5,856,151		79,641,067		13,923,536

Operating loss	(41,555,908)		(2,755,366)		(54,753,230)		(5,866,060)

Other income (expenses)
Income from equity method investments	—		179,617		21,994		1,043,937
Gain on sale of equity method investments	162,785		—		12,732,446		—
Gain on remeasurement of investment in TCM	—		—		—		14,549,536
Change in fair value of warrant liability	2,140,561		(4,844,713)		554,723		(5,536,816)
Change in fair value of digital assets	—		43,935		—		81,919
Change in fair value of convertible note	13,650,058		—		16,030,058		—
Change in fair value of additional convertible notes option	16,537,550		—		20,388,400		—
Gain on sale or disposal of property and equipment	—		462		36,298		462

Loss on settlement of lease liability	—		(692,837)		—		(692,837)
Loss on issuance of convertible note	—		—		(73,881,850)		—
Loss on extinguishment of debt	—		(883,667)		—		(1,037,501)
Other income (expense), net	27,704		(2,183)		(160,046)		24,771
Interest expense, net	(5,369,084)		(509,866)		(7,953,108)		(1,450,812)
Total other income (expenses), net	27,149,574		(6,709,252)		(32,231,085)		6,982,659

Income (loss) before income tax expense	(14,406,334)		(9,464,618)		(86,984,315)		1,116,599

Income tax expense (benefit)	36,237		(349)		(148,827)		284,771

Net income (loss)	$	(14,442,571)	$	(9,464,269)	$	(86,835,488)	$	831,828

Less: deemed dividend on conversion of preferred stock	—		89,386,947		—		89,386,947

Less: net income (loss) in non-controlling interests	16,813		—		(133,898)		—

Net loss attributable to common shareholders	$	(14,459,384)	$	(98,851,216)	$	(86,701,590)	$	(88,555,119)

Net loss per share attributable to common shareholders, basic and diluted	$	(0.43)	$	(5.34)	$	(2.68)	$	(5.36)

Weighted-average common stock outstanding, basic and diluted	33,516,738		18,503,757		32,299,039		16,512,498


	Series A Preferred Stock			Series B Preferred Stock			Series C Preferred Stock			Series D Preferred Stock			Common Stock
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Additional Paid-In Capital		Accumulated Deficit		Total Shareholders' Equity (Deficit) attributable to QumulusAI shareholders		Non-Controlling Interests		Total Shareholders' Equity (Deficit)
Balance at January 1, 2026	—	$	—	—	$	—	—	$	—	—	$	—	31,367,559	$	93,400,180	$	6,318,290	$	(37,546,254)	$	62,172,216	$	3,119,915	$	65,292,131
Issuance of common stock, net of issuance costs	—	—		—	—		—	—		—	—		172,070	1,932,770		—		—		1,932,770		—		1,932,770
Stock-based compensation	—	—		—	—		—	—		—	—		—	—		121,870		—		121,870		—		121,870
Net loss	—	—		—	—		—	—		—	—		—	—		—		(49,365,872)		(49,365,872)		(250,839)		(49,616,711)
Balance at March 31, 2026	—	$	—	—	$	—	—	$	—	—	$	—	31,539,629	$	95,332,950	$	6,440,160	$	(86,912,126)	$	14,860,984	$	2,869,076	$	17,730,060
Issuance of common stock, net of issuance costs	—	—		—	—		—	—		—	—		183,205	4,048,064		—		—		4,048,064		—		4,048,064
Issuance of common stock for exercise of warrants	—	—		—	—		—	—		—	—		4,167	12,501		—		—		12,501		—		12,501
Issuance of warrants for services	—	—		—	—		—	—		—	—		—	—		74,659		—		74,659		—		74,659
Issuance of warrants as consideration payable to customer	—	—		—	—		—	—		—	—		—	—		192,512		—		192,512		—		192,512
Capital distributions to joint venture partners	—	—		—	—		—	—		—	—		—	—		—		—		—		(182,793)		(182,793)
Stock-based compensation	—	—		—	—		—	—		—	—		—	—		119,939		—		119,939		—		119,939
Net loss	—	—		—	—		—	—		—	—		—	—		—		(22,876,334)		(22,876,334)		100,128		(22,776,206)
Balance at June 30, 2026	—	$	—	—	$	—	—	$	—	—	$	—	31,727,001	$	99,393,515	$	6,827,270	$	(109,788,460)	$	(3,567,675)	$	2,786,411	$	(781,264)
Issuance of common stock for services	—	—		—	—		—	—		—	—		1,140,930	26,412,529		—		—		26,412,529		—		26,412,529
Issuance of common stock for exercise of warrants	—	—		—	—		—	—		—	—		5,000	15,000		—		—		15,000		—		15,000
Issuance of common stock for conversion of convertible notes	—	—		—	—		—	—		—	—		1,826,107	9,790,942		—		—		9,790,942		—		9,790,942
Issuance of warrants for services	—	—		—	—		—	—		—	—		—	—		551,634		—		551,634		—		551,634
Capital distributions to joint venture partners	—	—		—	—		—	—		—	—		—	—		—		—		—		(223,620)		(223,620)
Stock-based compensation	—	—		—	—		—	—		—	—		—	—		3,928,899		—		3,928,899		—		3,928,899
Net loss	—	—		—	—		—	—		—	—		—	—		—		(14,459,384)		(14,459,384)		16,813		(14,442,571)
Balance at September 30, 2026	—	$	—	—	$	—	—	$	—	—	$	—	34,699,038	$	135,611,986	$	11,307,803	$	(124,247,844)	$	22,671,945	$	2,579,604	$	25,251,549

Balance at January 1, 2025	4,713,515	$	5,224,127	5,205,630	$	10,027,471	3,663,841	$	5,990,371	9,089,000	$	9,008,512	12,835,535	$	408,505	$	2,007,227	$	(33,256,873)	$	(590,660)	$	—	$	(590,660)
Issuance of common stock, net of issuance cost	—	—		—	—		—	—		—	—		626,670	1,780,001		—		—		1,780,001		—		1,780,001
Issuance of Preferred Stock	—	—		—	—		—	—		14,000	—		—	—		—		—		—		—		—
Stock-based compensation	—	—		—	—		—	—		—	—		—	—		17,344		—		17,344		—		17,344
Net loss	—	—		—	—		—	—		—	—		—	—				(1,822,477)		(1,822,477)		—		(1,822,477)
Balance at March 31, 2025	4,713,515	$	5,224,127	5,205,630	$	10,027,471	3,663,841	$	5,990,371	9,103,000	$	9,008,512	13,462,205	$	2,188,506	$	2,024,571	$	(35,079,350)	$	(615,792)	$	—	$	(615,792)
Issuance of common stock, net of issuance cost	—	—		—	—		—	—		—	—		22,700	117,027		—		—		117,027		—		117,027
Issuance of preferred stock upon partial conversion of convertible note	—	—		—	—		—	—		84,756	164,427		—	—		—		—		164,427		—		164,427
Issuance of Common Stock and Series D Preferred Stock for the acquisition of TCM	—	—		—	—		—	—		1,432,182	3,195,139		2,574,718	17,054,874		—		—		20,250,013		—		20,250,013
Exchange of TCM stock options resulting in issuance of stock options in acquisition	—	—		—	—		—	—		—	—		—	—		1,883,955		—		1,883,955		—		1,883,955
Stock-based compensation	—	—		—	—		—	—		—	—		—	—		233,208		—		233,208		—		233,208
Net income	—	—		—	—		—	—		—	—		—	—		—		12,118,574		12,118,574		—		12,118,574
Balance at June 30, 2025	4,713,515	$	5,224,127	5,205,630	$	10,027,471	3,663,841	$	5,990,371	10,619,938	$	12,368,078	16,059,623	$	19,360,407	$	4,141,734	$	(22,960,776)	$	34,151,412	$	—	$	34,151,412
Issuance of common stock, net of issuance cost	—	—		—	—		—	—		—	—		1,801,784	19,322,570		135,482		—		19,458,052		—		19,458,052
Issuance of common stock for settlement of lease liability	—	—		—	—		—	—		—	—		151,574	1,749,516		—		—		1,749,516		—		1,749,516
Issuance of common stock for exercise of warrants	—	—		—	—		—	—		—	—		843,385	8,790,274		—		—		8,790,274		—		8,790,274
Issuance of common stock for exercise of options	—	—		—	—		—	—		—	—		52,956	112,600		—		—		112,600		—		112,600
Reissuance of common stock to TCM founders for shares previously forfeited	—	—		—	—		—	—		—	—		22,703	—		—		—		—		—		—
Redemption of preferred stock for cash	—	—		—	—		—	—		(266,749)	(293,742)		—	—		—		—		(293,742)		—		(293,742)
Issuance of preferred stock upon partial conversion of convertible note	—	—		—	—		—	—		429,836	1,547,410		—	—		—		—		1,547,410		—		1,547,410
Issuance of warrants for settlement of lease liability	—	—		—	—		—	—		—	—		—	—		387,621		—		387,621		—		387,621
Issuance of warrants to purchase equipment	—	—		—	—		—	—		—	—		—	—		104,854		—		104,854		—		104,854
Issuance of warrants for services	—	—		—	—		—	—		—	—		—	—		69,663		—		69,663		—		69,663
Conversion of preferred stock to common stock	(4,713,515)	(5,224,127)		(5,205,630)	(10,027,471)		(3,663,841)	(5,990,371)		(10,783,025)	(13,621,746)		11,692,965	36,896,276		—		—		2,032,561		—		2,032,561
Stock-based compensation	—	—		—	—		—	—		—	—		—	—		549,271		—		549,271		—		549,271
Net loss	—	—		—	—		—	—		—	—		—	—		—		(9,464,269)		(9,464,269)		—		(9,464,269)
Balance at September 30, 2025	—	$	—	—	$	—	—	$	—	—	$	—	30,624,990	$	86,231,643	$	5,388,625	$	(32,425,045)	$	59,195,223	$	—	$	59,195,223


Georgia (State or other jurisdiction of incorporation or organization)						92-2681813 (I.R.S. Employer Identification No.)
817 W Peachtree Street NW, Suite 935 Atlanta, Georgia 30308 (Address of principal executive offices) (Zip Code)


	Revenue								Accounts Receivable, net
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Customers	2026		2025		2026		2025		September 30, 2026		December 31, 2025
Customer A	14	%	45	%	22	%	32	%	—	%	—	%
Customer B	37	%	—	%	31	%	—	%	—	%	—	%
Customer C	14	%	—	%	—	%	—	%	—	%	—	%
Customer D	10	%	—	%	—	%	—	%	—	%	—	%
Customer E	—	%	33	%	—	%	40	%	—	%	—	%
Customer F	—	%	—	%	—	%	12	%	—	%	—	%
Customer G	—	%	—	%	—	%	—	%	82	%	—	%
Customer H	—	%	—	%	—	%	—	%	—	%	45	%
Customer I	—	%	—	%	—	%	—	%	—	%	45	%


	Common		Series D
Total Number of TCM Shares Exchanged	8,505,783		1,577,085
Conversion Ratio	0.9081		0.9081
Fair Value per Share (Controlling Interest)	$	2.21	$	2.23
Fair Value	$	17,054,874	$	3,195,139
Total Fair Value Shares Exchanged	$	20,250,013

Total Number of TCM Shares Held By the Company	8,966,981
Company Fair Value per Share (Non-Controlling)	$	1.92
Fair Value Company's Investment in TCM	$	17,216,604

Fair Value Replacement Options	$	1,883,955

Total Purchase Price	$	39,350,572


Description	Fair Value

Total purchase price	$	39,350,572
Estimated fair value of assets acquired:
Cash	$	2,441,275

Prepaid expenses	96,029
Property and equipment	7,136,180

Customer relationships	411,700
Trade name	148,080
In-process research & development ("IPR&D")	6,777,020
Finance right-of-use assets, net	5,820,225





Total assets acquired	$	22,830,509
Estimated fair value of liabilities assumed:
Accounts payable	172,255
Current portion of convertible note payable	1,716,657
Current portion of notes payable - related party	104,713
Accrued expenses and other current liabilities	555,888
Finance lease liabilities	6,078,929
Long-term notes payable, net of current portion	6,268,321
Total liabilities assumed	14,896,763

Goodwill	$	31,416,827


Intangible Assets	Estimated Fair Value		Estimated Useful Life
Customer relationships	$	411,700	4
Trade name	148,080		2
IPR&D	6,777,020		N/A
	$	7,336,800


	Nine months ended September 30, 2025
Revenues	$	9,398,555
Net loss	(208,209)
Net loss attributable to common stockholders	(89,595,156)
Basic net income (loss) per share – on a pro forma basis (unaudited)	$	(5.16)
Diluted net income (loss) per share – on a pro forma basis (unaudited)	$	(5.16)


	As of September 30, 2026
	Level 1		Level 2		Level 3		Total
Liabilities:
Warrant liability	$	—	$	828,232	$	—	$	828,232
Convertible note payable	—		—		32,040,000		32,040,000
Additional convertible notes option liability	—		—		22,183,450		22,183,450
Total	$	—	$	828,232	$	54,223,450	$	55,051,682


	As of December 31, 2025
	Level 1		Level 2		Level 3		Total
Liabilities:
Warrant liability	$	—	$	—	$	1,382,955	$	1,382,955


Total	$	—	$	—	$	1,382,955	$	1,382,955


	Estimated Useful Life (Years)	September 30, 2026		December 31, 2025
Buildings and improvements	10 - 40	$	961,539	$	961,539
Miners	3	9,543,336		9,597,138
Mining related equipment	5	2,074,733		2,074,733

Server equipment	3 - 7	139,118,641		12,146,199
Other equipment and furniture	5 - 7	9,712,796		287,112
		161,411,045		25,066,721
Less: Accumulated depreciation		(24,102,761)		(13,890,636)
		137,308,284		11,176,085
Construction in progress		1,320,887		1,326,801
Total property and equipment, net		$	138,629,171	$	12,502,886


	Future Amortization Expense
2026 (Remaining)	$	44,241
2027	121,435
2028	102,925
2029	25,732
Total	$	294,333


FORM 10-Q



	September 30, 2026		December 31, 2025
Note payable with interest at current prime rate, subject to 5% floor, maturing January 2030	$	4,550,569	$	5,437,993
Balloon notes payable with monthly interest payments of 12%, secured by certain specified mining equipment, maturing in 2026 - related party	2,000,000		3,849,888
Notes payable with interest ranging from 0% to 1.49%, monthly payments of principal and interest, secured by track loaders, maturing in 2027	13,758		62,549
Note payable with variable interest, maturing in April 2028	2,097,048		2,430,979
Notes payable with interest of 13%, monthly payments of principal and interest, secured by server assets, maturing in September 2029	50,264,626		—
Note payable with variable interest, maturing in October 2027	3,500,000		—
Unamortized loan origination costs	(1,318,235)		(5,992)
Total notes payable	61,107,766		11,775,417
Less: Current maturities	(16,862,667)		(5,533,469)
Notes payable, net of current maturities	$	44,245,099	$	6,241,948



2026 (remaining)	$	5,745,031
2027	19,437,801
2028	18,878,796
2029	18,248,805
2030	115,568
Total	$	62,426,001


	Number of Warrants	Weighted Average Exercise price ($)	Weighted Average Grant-Date Fair Value ($)	Weighted Average Remaining Contractual Life (in Years)
Warrants outstanding as of January 1, 2025	1,439,962	1.02	1.72	2.31
Granted	195,696	9.36	7.83
Exercised	(872,100)	0.27	1.78
Warrants outstanding as of December 31, 2025	763,558	4.20	3.47	2.94
Granted	213,345	9.95	14.19
Exercised	(9,167)	3.00	1.99
Warrants outstanding as of September 30, 2026	967,736	8.15	5.81	3.23
Warrants exercisable as of September 30, 2026	812,700	5.24	3.86	2.42


	December 31, 2025
Total assets	$	10,754,967
Total liabilities	$	2,186,787


	September 30, 2026		December 31, 2025
Accrued interest	$	1,324,072	$	653,783
Sales tax payable	658,206		668,543
Accrued hosting fees	46,981		462,822
Accrued payroll and benefits	416,243		250,432
Accrued bonus	1,700,290		443,558
Accrued commissions	1,809,459		—
Other accrued expenses	1,343,942		354,199
Accrued expenses	$	7,299,193	$	2,833,337


	Number of Options	Weighted Average Exercise price ($)	Weighted Average Grant-Date Fair Value ($)	Weighted Average Remaining Contractual Life (in Years)	Aggregate Intrinsic Value
Options outstanding as of January 1, 2025	588,171	1.92	2.04	8.8	$	1,976,425
Granted	693,692	1.79	5.12
Exercised	(54,425)	1.93	4.81
Canceled	(45,404)	0.69	5.08
Options outstanding as of December 31, 2025	1,182,034	1.93	3.75	8.7	$	11,611,870



Options outstanding as of September 30, 2026	1,182,034	1.93	3.75	7.7	$	6,239,536
Options exercisable as of September 30, 2026	1,153,705	1.64	2.68	5.8


			Nine Months Ended September 30, 2025
Option Valuation Assumptions:
Risk-free interest rate			3.7% - 4.4%
Expected term (years)			0.04 - 5.00
Fair value of underlying common stock			$5.04 - $10.80
Exercise price			$0.69 - $10.80
Expected volatility			98.2% - 123.0%
Expected dividend yield			0%


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested balance as of January 1, 2026	—	—
Granted	3,087,697	5.87
Vested	(456,817)	5.87

Unvested balance as of September 30, 2026	2,630,880	5.87


		Three Months Ended September 30, 2026
		Bitcoin		HPC		Total Reportable Segments
Revenue from cryptocurrency mining		$	262,995	$	—	$	262,995
Revenue from mining hosting services		365,854		—		365,854
Revenue from compute power		—		14,126,265		14,126,265
Total revenue		628,849		14,126,265		14,755,114

Cost of revenue (exclusive of depreciation and amortization)		330,549		3,830,596		4,161,145
Segment gross profit	(3)	298,300		10,295,669		10,593,969

Operating expenses		1,036,578		20,145,993		21,182,571
Segment operating loss	(2)	(738,278)		(9,850,324)		(10,588,602)

Other income (expense)
Gain on sale of equity method investments		162,785		—		162,785
Interest expense, net		(60,220)		(5,444,247)		(5,504,467)
Segment net income (loss) before income tax	(1)	$	(635,713)	$	(15,294,571)	$	(15,930,284)


(1) Reconciliation of segment net income (loss) before income taxes:
Unallocated corporate overhead expenses:
Wages and salaries	$	(1,887,521)
Professional fees	(28,551,351)
Other general and administrative expenses	(528,434)
Unallocated other income (expense):
Change in fair value of warrant liability	2,140,561
Change in fair value of convertible note	13,650,058
Change in fair value of additional convertible note options	16,537,550
Other income (expense), net	27,704
Interest income	135,383
Income (loss) before income taxes	$	(14,406,334)

(2) Reconciliation of segment operating loss:
Segment operating loss	$	(10,588,602)
Segment other income (expense), net	(5,341,682)
Unallocated corporate overhead expenses	(30,967,306)
Unallocated other income (expense), net	32,491,256
Income (loss) before income taxes	$	(14,406,334)

(3) Reconciliation of segment gross profit:
Segment gross profit	$	10,593,969
Segment operating expenses	(21,182,571)
Segment other income (expense), net	(5,341,682)
Unallocated corporate overhead expenses	(30,967,306)
Unallocated other income (expense), net	32,491,256
Income (loss) before income taxes	$	(14,406,334)


		Three Months Ended September 30, 2025
		Bitcoin		HPC		Total Reportable Segments
Revenue from cryptocurrency mining		$	211,765	$	—	$	211,765
Revenue from mining hosting services		1,445,669		—		1,445,669
Revenue from compute power		—		1,443,351		1,443,351
Total revenue		1,657,434		1,443,351		3,100,785

Cost of revenue (exclusive of depreciation and amortization)		1,190,220		453,760		1,643,980
Segment gross profit	(3)	467,214		989,591		1,456,805

Operating expenses		735,214		2,247,046		2,982,260
Segment operating loss	(2)	(268,000)		(1,257,455)		(1,525,455)

Other income (expense)
Income from equity method investments		179,617		—		179,617
Gain on sale or disposal of property and equipment		462		—		462
Loss on settlement of lease liability		—		(692,837)		(692,837)
Change in fair value of digital assets		43,935		—		43,935
Interest expense, net		(136,775)		(358,224)		(494,999)
Segment net income (loss) before income tax	(1)	$	(180,761)	$	(2,308,516)	$	(2,489,277)


		Nine Months Ended September 30, 2026
		Bitcoin		HPC		Total Reportable Segments
Revenue from cryptocurrency mining		$	1,042,055	$	—	$	1,042,055
Revenue from mining hosting services		2,008,059		—		2,008,059
Revenue from compute power		—		21,837,723		21,837,723
Total revenue		3,050,114		21,837,723		24,887,837

Cost of revenue (exclusive of depreciation and amortization)		2,051,872		6,487,472		8,539,344
Segment gross profit	(3)	998,242		15,350,251		16,348,493

Operating expenses		3,697,607		31,717,560		35,415,167

Segment operating loss	(2)	(2,699,365)		(16,367,309)		(19,066,674)

Other income (expense)
Income from equity method investments		21,994		—		21,994
Gain on sale of equity method investments		12,732,446		—		12,732,446
Gain on sale or disposal of property and equipment		—		36,298		36,298
Interest expense, net		(60,220)		(5,444,247)		(5,504,467)
Segment net income (loss) before income tax	(1)	$	9,994,855	$	(21,775,258)	$	(11,780,403)


	Operating Lease
2026 (Remaining)	$	65,040
2027	260,160
2028	260,160
2029	315,160
2030	320,160
Thereafter	998,920
Total future lease payments	$	2,219,600
Less: Imputed interest	(679,484)
Present value of operating lease liabilities	$	1,540,116
Less: Current portion of operating lease liabilities	(109,557)
Operating lease liabilities, net of current portion	$	1,430,559


	Finance Lease
2026 (Remaining)	$	12,979,280
2027	53,302,489
2028	50,211,311
2029	31,160,503
2030	536,660

Total future lease payments	$	148,190,243
Less: Imputed interest	(25,700,056)
Present value of finance lease liabilities	$	122,490,187
Less: Current portion of finance lease liabilities	(39,136,857)
Finance lease liabilities, net of current portion	$	83,353,330


		Incorporated by Reference
Exhibit No.	Description	Form	File No.	Exhibit	Filing Date
3.1	Second Amended and Restated Articles of Incorporation of QumulusAI, Inc.	8-K	001-43398	3.1	July 16, 2026

3.2	Second Amended and Restated Bylaws of QumulusAI, Inc.	S-1/A	333-292514	3.2	June 10, 2026

10.1	QumulusAI, Inc. 2026 Equity Incentive Plan.	8-K	001-43398	10.1	July 16, 2026

10.2	Form of Non-Employee Director Restricted Stock Unit Award Agreement under the QumulusAI, Inc. 2026 Equity Incentive Plan.	S-1/A	333-292514	10.45	May 1, 2026

10.3	Form of Employee Restricted Stock Unit Award Agreement under the QumulusAI, Inc. 2026 Equity Incentive Plan.	S-1/A	333-292514	10.46	May 1, 2026

10.4	Form of Employee Performance Share Unit Award Agreement under the QumulusAI, Inc. 2026 Equity Incentive Plan.	S-1/A	333-292514	10.47	May 1, 2026

10.5	Form of Employee Incentive Stock Option Award Agreement under the QumulusAI, Inc. 2026 Equity Incentive Plan.	S-1/A	333-292514	10.48	May 1, 2026

10.6	Form of Employee Non-Qualified Stock Option Award Agreement under the QumulusAI, Inc. 2026 Equity Incentive Plan.	S-1/A	333-292514	10.49	May 1, 2026

10.7	Form of Lock-Up Agreement.	S-1/A	333-292514	10.39	February 13, 2026

10.8	Form of Director and Officer Indemnification Agreement.	S-1/A	333-292514	10.57	June 29, 2026

10.9	First Amendment to Surface Lease Agreement, dated July 17, 2026, by and between TOM-STACK, LLC and SPRE WATONGA OK, LLC.	10-Q	001-43398	10.13	August 25, 2026

10.10	Membership Interest Purchase Agreement, dated November 5, 2026, between SPRE Commercial Group, Inc. and AM Denton Holdings LLC.*	Filed herewith

31.1	Certification of President and Chief Executive Officer pursuant to SEC Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	Filed herewith

31.2	Certification of Chief Financial Officer pursuant to SEC Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	Filed herewith

32.1	Certification of President and Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Furnished herewith

32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Furnished herewith

101	The following materials from QumulusAI, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2026, formatted in Inline XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Shareholders’ Equity, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements.	Filed herewith

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).	Filed herewith


			QUMULUSAI, INC.

Date: November 10, 2026			/s/ Michael Maniscalco
			Michael Maniscalco
			Chief Executive Officer
			(Principal Executive Officer)

Date: November 10, 2026			/s/ Scott Krosnowski
			Scott Krosnowski
			Chief Financial Officer
			(Principal Financial Officer)


			SELLER: SPRE COMMERCIAL GROUP, INC. /s/ Michael Maniscalco Name: Michael Maniscalco Title: Chief Executive Officer /s/ Scott Krosnowski Name: Scott Krosnowski Title: Chief Financial Officer PURCHASER: AM DENTON HOLDINGS LLC /s/ Beau Turner Name: Beau Turner Title: Manager


/s/ Michael Maniscalco
Michael Maniscalco Chief Executive Officer (Principal Executive Officer)


/s/ Scott Krosnowski
Scott Krosnowski Chief Financial Officer (Principal Financial Officer)