Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 103

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 103
---
572,304  
    $—  
    $— 
  
    As of December 31, 2024 

    Assets: 

    Treasury Trust Funds held in Trust Account 
    $16,053,202  
    $—  
    $— 

Non-Recurring Fair Value Measurements

On February 4, 2025, the Company entered into a third amendment on
its WC Promissory Note which resulted in the Company accounting for the 3rd A&R WC Promissory Note as a debt extinguishment (see Note
5). As a result, the Company measured the 3rd A&R WC Promissory Note at its reacquisition price, which is the fair value of the amended
debt instrument on February 4, 2025, or $4,715,000. The 3rd A&R WC Promissory Note was issued at a substantial premium (see Note 5),
which resulted in recording the substantial premium in excess of principal and accrued interest through additional paid-in capital. As
such, on February 4, 2025, $2,750,000 of principal and $142,156 of accrued interest were re-established as liabilities, and $1,822,844
of substantial premium was recognized in additional paid-in capital on the condensed consolidated balance sheets. The 3rd A&R WC Promissory
Note reacquisition price is deemed a Level 3 fair value measurement.

The Company valued the reacquisition price of the 3rd A&R
WC Promissory Note as the difference between the probability -weighted value of cash payoff amount and the present value of stock payoff
amount. Significant assumptions utilized in the analysis include an estimated Class A ordinary share price of the post-business combination
entity of $8.82 per share and a discount rate of 4.30% based on U.S. Treasury securities with a term commensurate with the remaining timeline
of the Combination Period.

The following table sets forth a level 3 rollforward for the three
and six months ended June 30, 2025:

    Balance – December 31, 2024 
    $— 
  
    Issuance of 3rd A&R WC Promissory Note 
     4,715,000 

    Balance – March 31, 2025 
     4,715,000 
  
    Additions (Reductions) 
     — 
  
    Change in