Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 563

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 563
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The realizability of deferred tax assets is
primarily dependent on future earnings. The Company evaluates the realizability of deferred tax assets and recognizes a valuation allowance when it is more likely than not that all, or a portion of, deferred tax assets will not be realized. A
reduction in estimated forecasted results may require that we record valuation allowances against deferred tax assets. Once a valuation allowance has been established, it will be maintained until there is sufficient positive evidence to conclude
that it is more likely than not that the deferred tax assets will be realized. A pattern of sustained profitability will generally be considered as sufficient positive evidence to reverse a valuation allowance. If the allowance is reversed in a
future period, the income tax provision will be correspondingly reduced.

Accordingly, the increase and decrease of valuation allowances
could have a significant negative or positive impact on future earnings.

The United States subjects corporations to taxes on Global
Intangible Low-Taxed Income (“GILTI”) earned by certain foreign subsidiaries. The Company elected to provide for the tax expense related to GILTI in the year the tax is incurred.

Debt Issuance Costs

Costs to issue debt
are capitalized and deferred when incurred and subsequently amortized to interest expense over the term of the related debt using the effective interest rate method. Deferred debt issuance costs are presented in the Company’s consolidated
balance sheets as a direct deduction from the carrying amount of the associated debt liability. Deferred debt issuance costs were zero and $110.8 thousand for the years ended December 31, 2024 and 2023, respectively. (Refer to Note12 -
Long-Term Debt).

Debt issuance costs are expensed as incurred if they relate to debt for which a fair value option election has been
made.

Debt Discounts

For certain
notes issued, the Company may provide the debt holder with an original issue discount. The original issue discount is recorded as a debt discount, reducing the face amount of the note, and is amortized to interest expense over the life of the debt,
in the consolidated statements of operations and comprehensive loss. As of December 31, 2024 there was zero debt discount recorded in the consolidated balance sheets. As of December 31, 2023 there was 42.7 thousand of debt discount
recorded in notes payable, current and $506.0 thousand recorded in notes payable in the consolidated balance sheets.

For the certain
notes measured at fair value, any changes in the fair value of the debt (including the debt