Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 334

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 334
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ines Common Stock.                                                                                                                                     
 Immediately prior to their settlement, these convertible notes (which are carried at fair value) have an aggregate carrying value of $10.3 million. This adjustment in Note 3(k) reflects the removal of this carrying value of $10.3 million, 
 an increase to Fusemachines common stock of less than $1 thousand, and an increase to Additional paid in capital of $10.3 million.                                                                                                             |

For the adjustment reflecting the settlement of the convertible notes referenced in 1) above in the Maximum Redemption Scenario, refer to Notes 3(y).

| (l) | To reflect the payment on the Closing Date of the $0.3 million premium for a six-year prepaid directors’ and officers’ tail policy and the recording of $1.2 million to notes payable, current for the deferred charge of the directors’ and officers’ insurance financed 
 over an expected nine-month term.                                                                                                                                                                                                                                         |

| (m) | To reflect, in the No Additional Redemption Scenario, the payment of the transaction completion bonus to the 
 Chief Executive Officer of Fusemachines on the Closing Date.                                                 |

| (n) | To reflect the settlement of a Fusemachines accounts payable balance through the issuance of 45,000 shares                                                                                                                                              
 of Fusemachines Common Stock to a Fusemachines vendor immediately prior to the Closing of the Business Combination. Upon the Closing of the Business Combination, the 45,000 newly issued Fusemachines Common Stock will be exchanged at the Conversion 
 Ratio of 0.6621 and 0.6526 under the No Additional Redemption Scenario and Maximum Redemption Scenario, respectively, for shares of Fusemachines Pubco Common Stock. The settlement of the accounts payable balance was treated as the settlement of    
 convertible debt that does not contain a bifurcated embedded conversion feature under ASC 815. As such, pursuant to ASC                                                                                                                                 
 470-20-40-4, upon conversion, the net carrying amount of the accounts payable is derecognized with the accounts payable net                                                                                                                             
 carrying amount credited to additional paid-in capital to reflect the equity shares issued and no gain or loss is recognized. The issuance of the shares                                                                                                |

204

| resulted in a $0 thousand adjustment within the Fusemachines Inc. Common Stock, par value $0.00001 line item due to the effect of rounding as the adjustment to record the shares at par value 
 was less than $1 thousand.                                                                                                                                                                     |

| (o) | To reflect the