The KM is the property mark of the Prussian/German Navy in the second half of the 19th century. KM = Königliche Marine (Royal Navy) while the 796 is the weapon number of this particular Entermesser (cutlass).
The first repeating pistols used by the Prussian (later Imperial) Navy were Colt 1851 Navies that Colt tried to smuggle to Russia in bales of hay shipped by rail. They were discovered and confiscated in Prussia, who later issued 1,000 of them to the Navy. The pistols and accessories were marked numbered like this cutlass.
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