Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 28

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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tinguishments”. During the three and six months ended
June 30, 2025, the Company recognized a loss on extinguishment of debt of $0 and $1,822,844, respectively, in the condensed
consolidated statement of operations. Additionally, the Company determined that the 3rd A&R WC Promissory Note was issued at a
substantial premium due to the inclusion of the conversion feature in accordance with ASC 470-20, “Debt with Conversion and
Other Options”. During the three and six months ended June 30, 2025, the Company recognized the substantial premium in excess
of the principal and accrued interest of $0 and $1,822,844, respectively, in additional paid-in capital on the condensed
consolidated balance sheets.

On May 23, 2025, the Company amended the 3rd A&R WC Promissory
Note solely to increase the amount the Company may borrow from $3,000,000 to $4,000,000. All other provisions of the 3rd A&R WC Promissory
Note remain the same.

As of June 30, 2025 and December 31, 2024, the Company had borrowed
$3,363,000 and $2,750,000, respectively, and accrued interest of $200,109 and $129,630, respectively.

Related Party Loans

In addition, in order to finance transaction costs in connection with
a Business Combination, the Sponsor, an affiliate of the Sponsor, or certain of the Company’s officers and directors or their affiliates
may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). The Working Capital Loans
would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $2,000,000
of such Working Capital Loans may be convertible into warrants, at a price of $1.00 per warrant, of the post Business Combination entity.
If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account
released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account. In the
event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the
Working Capital Loans but no proceeds held in the Trust Account would be used