Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 408

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 408
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 million was attributable to existing customers which was fully offset by $1.1 million of customers churned. We entered into 11 new customer contracts
during the year ended December 31, 2024. Revenue increased $1.4 million in the United States from December 31, 2023 to December 31, 2024 with marginal change in the rest of the world. We expanded our market in the United States,
in states such as New York, Texas and California

Cost of revenue– Cost of revenue primarily consists of consulting and
payroll expenses that are assigned to building AI solutions.

Cost of revenue increased by $0.8 million to $4.0 million for the
year ended December 31, 2024, compared to $3.2 million for the year ended December 31, 2023. The increase was due to an increase in consulting cost due to new customer contracts as well as increased payroll costs attributable to headcount
increase across all of our subsidiaries.

Gross profit– Gross profit is calculated as revenue less total cost of revenue. Our
gross profit in future periods will depend on a variety of factors, including market conditions that may impact our pricing, sales mix changes among our service agreements, and product mix changes between established services and new services.

Gross profit increased by $0.6 million to $4.8 million for the year ended December 31, 2024, compared to $4.2 million for the
year ended December 31, 2023, as a result of higher sales.

Selling and marketing expenses– Selling and marketing expenses
represent spending associated with promoting and selling of our services. These expenses comprise of personnel costs, travel and accommodation expenses, as well as advertising and consulting costs related to such activities.

Selling and marketing expenses for the year ended December 31, 2024 increased by $0.07 million to $1.96 million as compared to
$1.89 million for the year ended December 31, 2023. The increase was due to an increase in advertising and commissions for the growth of our sales department. There was also an increase of $0.10 million in selling and marketing expense
related to stock-based compensation. We expect our sales and marketing expenses to increase in absolute dollars as we hire additional sales and marketing personnel, expand our sales support infrastructure and invest in our brand and product
awareness to further penetrate the United States and the international markets.

General and administrative expenses– General
and administrative