Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 51

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 the amounts held
in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting
agreement. On November 28, 2023, the Company and BTIG entered into an agreement under which BTIG waived its entitlement to the
payment of the deferred compensation and instead receive 426,000 Class A ordinary shares from shares held by the Sponsor only in the
event of the closing of a Business Combination. Accordingly, BTIG will not receive any portion of the $6,641,250 deferred
underwriting fee in the event of the closing of a Business Combination. Pursuant to the Waiver, BTIG resigned from every capacity,
role or involvement in which BTIG may otherwise be described in any registration statement as acting or agreeing to act in the
future with respect to any business combination of CSLM and/or its Sponsor. The Company has agreed to register shares received by
BTIG from Consilium Acquisition Sponsor I, LLC, the Company’s Sponsor, upon the closing of its initial Business Combination.
In the event that such shares are not registered, the underwriter’s deferred fee shall be reinstated.

Financial Services Agreement

The Sponsor entered into a financial services agreement (the “Financial
Services Agreement”) with a service provider (the “Broker-Dealer”) for a period of twelve (12) months commencing October
13, 2022, to provide broker-dealer services. In accordance with the Financial Services Agreement, the Broker-Dealer will be paid a fee
in the form of 125,000 shares of common stock in the surviving entity of the proposed business combination with Fusemachines. Compensation
due to the Broker-Dealer is in scope of ASC 718 Compensation — Stock Compensation (“ASC 718”) and SAB Topic 5T. The
consummation of the initial business combination is considered a performance condition under ASC 718 and stock based compensation should
not be recognized until the performance condition is considered probable. As business combinations are not considered probable until consummated,
the Company will not recognize compensation costs related to the Consulting Services Agreements until the consummation of the initial
business combination. The unrecognized stock-based compensation expense related to the Consulting Agreements was $533,750 as of June 30,
2025 and December 31, 2024.

Consulting Agreements

The Sponsor entered into consulting services agreements (the “Consulting
Services Agreements”) with a service provider (the “Consultant”) on