Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 305

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 305
---
 Stock surrendered in the Merger in exchange
therefor, and the holding period of the Converted Stock Options received in the Merger by the U.S. Holder will include the holding period of Fusemachines Options surrendered in the Merger in exchange therefor.

If the Merger fails to qualify as a “reorganization” under Section 368(a) of the Code, a U.S. Holder of Fusemachines
securities would recognize gain or loss in an amount equal to the difference (i) the fair market value of the Pubco securities received in exchange for such surrendered Fusemachines securities upon completion of the Merger and (ii) the
holder’s basis in Fusemachines securities surrendered. Gain or loss will be calculated separately for Fusemachines Common Stock surrendered, Fusemachines Preferred Stock surrendered, and Company Options surrendered. Further, gain or loss on
each block of Fusemachines securities (generally shares acquired at the same cost in a single transaction) will be calculated separately. Gain or loss on surrendered Fusemachines securities generally will be capital gain or loss, and will be
long-term capital gain or loss if such Fusemachines securities have been held for more than one year at the time of the Merger. Long-term capital gain of non-corporate U.S. Holders
(including individuals) generally is taxed at reduced U.S. federal income tax rates. The deductibility of capital losses is subject to limitations. A U.S. Holder’s tax basis in the Pubco securities received in the Merger would be
equal to the fair market value thereof as of the Effective Time, and the U.S. Holder’s holding period in such Pubco securities would begin on the day following the Merger.

All U.S. Holders are urged to consult their tax advisors as to the tax consequences to them of the Merger under such holder’s
particular circumstances.

U.S. Federal Income Tax Consequences of Ownership and Disposition of Pubco Common Stock

Taxation of Distributions

In general,
distributions of cash or other property to U.S. Holders of Pubco Common Stock (other than certain distributions of Pubco stock or rights to acquire Pubco stock) generally will constitute dividends for U.S. federal

178

income tax purposes to the extent paid from Pubco’s current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions in excess of
current and accumulated earnings and profits will constitute a return of capital that will be applied