Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 624

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 624
---
 statements of operations and comprehensive loss.

Deferred Transaction Costs

The Company records deferred transaction costs, which consist of legal, accounting, and other fees related to the preparation of the Merger.
(Refer to “Note 1 – Organization”). The deferred transaction costs will be offset against proceeds from the transaction upon the effectiveness of the Business Combination. As of March 31, 2025 and December 31, 2024,
$1,572 thousand and $1,865 thousand of deferred transaction costs, respectively, were capitalized and recorded in deferred transaction costs on the unaudited condensed consolidated interim balance sheets. Transaction costs that are not
eligible to be capitalized are expensed as incurred and included within general and administrative expense in the unaudited condensed consolidated interim statements of operations and comprehensive loss.

Research and Development Costs

The
Company accounts for research and development costs in accordance with the ASC 730, Research and Development. Under ASC 730, all research and development costs are expensed as incurred, with the exception of certain software development costs
discussed above. Our research and development costs consist primarily of payroll costs associated with software product development, testing, quality assurance, documentation, enhancements and upgrades for existing customers under maintenance.

Research and Development costs were $165 thousand and $221 thousand for the period ended March 31, 2025, and 2024,
respectively, which are included in the unaudited condensed consolidated interim statements of operations and comprehensive loss.

General and Administrative Expenses

Consists of expenses associated with general and administrative functions of the business such as the costs of
salaries, stock-based compensation expense, Information Technology (“IT”) infrastructure, allowance for expected credit losses, travel, legal and accounting services, insurance, rent, software and tools, meals, other professional services
activities, and certain non-income taxes.

Commitments and Contingencies

The Company may at times be involved in litigation in the ordinary course of business. The Company will, from time to time, when appropriate in
management’s estimation, record adequate reserves in the Company’s unaudited condensed consolidated interim financial statements for pending litigation. Currently there are no pending or threatened litigation matters that management
believes require accrual or disclosure.

Risks and Uncertainties

As a result of its global operations, the Company may be subject to certain inherent risks.

F-110

Concentration of Credit - Financial instruments that potentially subject the
Company to concentration of credit risk consist primarily of cash and cash equivalents, and accounts receivable. The Company maintains